3 Signs You’re Above Average (These Money Stats Are Unreal)

3 Signs You’re Above Average (These Money Stats Are Unreal)

Welcome to a revealing exploration of your financial status. We will uncover some fascinating insights if you’ve ever questioned how you stack up against your peers regarding money management. By looking into specific money habits and knowledge, we can identify signs suggesting you might be operating on a higher financial level than most.

Financial health is one of the critical aspects of an individual’s overall well-being. However, where do you stand on the spectrum of personal finance? Are you just getting by, or have you managed to elevate yourself to a position that’s above average? Achieving these milestones indicates the first commitment to financial stability and growth. Ready to delve into these indicators and find out where you stand?

Three signs you’re above average in personal finance:

  1. You don’t live paycheck to paycheck.
  2. You have more than a thousand dollars in savings.
  3. You can pass the financial literacy test with flying colors.

You Don’t Live Paycheck to Paycheck

As of January 2023, 60% of United States adults, including more than four in 10 high-income consumers, live paycheck to paycheck, down four percentage points from January 2022.[1]

Let’s start with the first sign – you don’t live paycheck to paycheck. This is a significant achievement in the modern world, where immediate gratification and lifestyle inflation can easily lead to a vicious cycle of financial stress at any income level. If you’re not living paycheck to paycheck, you’re among an elite group that can manage finances prudently regardless of income level.

Not living paycheck to paycheck demonstrates a financial management strategy above average. It means you’ve successfully budgeted your income to cover your bills, saves for the future, and even have a bit leftover for unexpected expenses or financial opportunities. This financial buffer gives you a sense of security and the freedom to make choices that aren’t driven by immediate financial pressures. It doesn’t matter how much you make; you will be broke if you spend more than you make. Living hand-to-mouth is a very tough financial existence, and that is what most people experience. Congratulations if you escaped this financial trap.

You Have More Than a Thousand Dollars in Savings

22% of U.S. adults have no emergency savings, the second lowest percentage in 13 years of polling. Growing debt is hurting savings. As of January polling, 36% have more credit card debt than emergency savings, a record high since 2011. 51% have more emergency savings than credit card debt.[2]

The second sign you’re financially above average is having more than a thousand dollars in savings. Considering that many Americans lack savings, having over a thousand dollars set aside is an impressive feat. Having $1,000 in savings is Dave Ramsey’s first financial baby step.

The ability to save money speaks volumes about your financial discipline. It shows you’re not just thinking about today, but you’re planning for tomorrow as well. It means you’re prepared for unexpected expenses and have the resilience to handle minor financial emergencies without resorting to debt. By cultivating a savings habit, you’re building a financial cushion that provides security and opens up opportunities for growth through investments. You’re above average with positive savings; now it’s time to build this habit larger.

You Can Pass the Financial Literacy Test with Flying Colors

On average, U.S. adults answered only 50% of the 2022 Personal Finance Index questions correctly on the annual survey conducted by the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business. This figure has remained steady since 2017.

While only 18% of respondents could correctly answer between 76% and 100% of the 28 questions posed in this year’s survey, nearly a quarter of adults (23%) incorrectly answered at least 75% of questions. Worse, the percentage of adults with poor financial literacy is rising. In 2020, only 17% of respondents got three-quarters of the questions wrong.[3]

Financial literacy is the foundation of sound financial management. You’re above average if you can pass a financial literacy test with flying colors. This accomplishment implies a deep understanding of financial concepts and how to apply them in everyday life.

A high level of financial literacy means you understand how to budget effectively, use financial tools to your advantage, and make intelligent decisions about saving, investing, and debt management. You know the difference between various financial products, like a 401(k) and a 529 plan, and can utilize them to optimize your financial future. This comprehensive understanding of money helps you navigate the complex world of finance and gives you the knowledge to grow your wealth over time.

Key Takeaways

  • Dodging the paycheck-to-paycheck lifestyle showcases your disciplined financial strategy and intelligent management of personal finances.
  • Maintaining over a thousand dollars in your rainy day fund indicates your economic discipline and foresight for future uncertainties.
  • Passing a financial literacy test exhibits your comprehensive command over financial concepts and ability to harness them in practical scenarios.


Exhibiting superior financial habits, such as escaping the paycheck-to-paycheck cycle, preserving a substantial emergency fund, and validating your proficiency in financial literacy, sets you apart as an individual of above-average financial acumen. These milestones symbolize financial skills and the right money mindset that balances the needs of the present with the considerations for the future, coupled with an encompassing understanding of the financial world. Strive to acquire these attributes and elevate your fiscal standing to new heights.

These three signs indicate that you’re financially above average. They suggest that you have developed effective financial habits and an understanding that allows you to manage, protect, and grow your wealth. And while they are significant achievements, they are goals anyone can strive to reach. Remember, every financial journey begins with a single step. You can elevate yourself to above-average financial status with the proper knowledge and discipline.

Don’t stop if you’re above average financially; thrive to keep going to higher and higher levels of wealth. Set your goals to get to the top 10% or even the 1% of wealth. There are many levels of wealth, and you can achieve the heights you want with the right strategy and work ethic. Never give up on your financial dreams.