Wealth can have different meanings for different people. For some, it is the ability to afford a comfortable lifestyle. For others, it is the success of hitting a target salary or savings.
However, wealth is not just about how much money you have. Sometimes, it is a matter of perspective. It’s also about the things that make our lives happier and stress-free.
Even if you are not swimming in millions, you may be on the road to becoming wealthy. Read on to know the signs of wealth you might not realize yet.
1. You Are Not Drowning in Debt
Almost half (47%) of Americans say money negatively impacts their mental health. Of that, 47% cite they debt is the main reason they’re experiencing financial stress (e.g., credit card debt, student loan, medical debt, etc.).
If debts do not weigh you down, you are likely doing well. It means you are not spending money on interest, and you can invest it instead to grow your wealth. While it may not feel like it, you may be wealthier than you realize.
2. You Are Not Living Paycheck to Paycheck
Unfortunately, 78% of Americans live paycheck to paycheck. That means they can not pay their bills or handle expenses if they lose even one month of income.
However, if you are prepared for emergencies and live within your means, you might be richer than you think. You may even be richer than someone with a higher income who does spend each paycheck and needs to keep earning to pay their bills.
3. You Have an Emergency Fund
Have you reached your emergency savings goal? Are your retirement funds not a concern? If yes, these are signs you could be in a better spot than others.
Especially in an economy where 27 percent of adults in the United States don’t have emergency funds. What’s more, 1 in 5 Americans older than 50 have no savings for retirement.
4. Your Net Worth Grows
Perhaps you are not yet rich, or you don’t have millions in your bank account. Nevertheless, if your net worth grows year over year, it could indicate you are on the right track.
However, if you receive a 7 percent raise in income but your lifestyle costs grow by 10 percent, you are headed backward. The key is to increase the amount you save as your income grows.
5. You Budget Actively
Budgeting is a key step to getting ahead financially. It helps you reach your goals and prevent overspending. It also helps you build retirement savings and prepare for emergencies.
If you have a budget, you are going in the right direction. That is true for almost three-quarters of Americans with a monthly budget.
6. You Pay More in Principal Than Interest on Mortgage
Two in three recent house owners struggle to make their mortgage payments on time. However, are your mortgage payments more principal than interest? If you answered yes to that question, give yourself a pat on the back.
It means you are building significant equity in your home. Not only that, but you are now also paying off debt faster, leading to smaller interest charges.
7. You Have Money for Investments
Did you know that 39% of Americans don’t have investments? The main reason isn’t a lack of financial literacy but a lack of capital to invest.
However, if you start early enough and contribute consistently, you can reap success from investing. If you put some of your money toward a passive income stream, you are a step closer to financial success.
8. You Have Employee Benefits
Do not underestimate the significance of your workplace benefits. Having paid leaves, health insurance, retirement account contributions, and similar benefits reduces out-of-pocket expenses and contributes to your wealth.
Otherwise, you could be one of the 23% of U.S. private sector workers without paid sick leave. Or one of the 69 million American employees (56% of the workforce) who lack access to a retirement plan in the workplace.
9. You Can Go on Vacations
Fifty-eight percent of people who don’t go on summer vacations say they can’t afford it. Thus, taking vacations — especially international trips — is a luxury.
If you can save for a trip and pay for it in advance, it means you are ahead of the game. This is in contrast to more than half (59%) of credit card holders using their cards for travel expenses.
10. You Can Splurge Occasionally
Sometimes, giving yourself a treat is not such a bad thing. Even the most frugal people splurge now and then.
In fact, it can be healthy as long as you control it and manage your finances well. By enjoying some indulgences in life and still sticking to your financial goals, you motivate yourself to keep going on the path that you’re currently on.
11. Your Definition of Wealth Is Not Money
Wealth is not only about how much your bank account holds; it’s about what matters to you most. It could be working fewer hours, retiring early, traveling to different places, or spending time with family. The great thing about it is that you can define wealth for yourself and live your life according to that.
Fulfillment in life is one of the forms of true wealth. If you enjoy your job, pursue your passion, or help your community, you could be wealthier than you think.
12. You Have Good Health
Wealth comes in the form of good health, too. For example, heart problems cost more than $321 billion in the U.S. every year. That means a strong body and feeling good in your skin are priceless assets.
Freedom from chronic diseases and having no significant physical limitations is a luxury beyond monetary value. Keep your health in tip-top condition through a balanced diet and regular exercise.
13. You Have a Strong Social Network
Your relationships are another intangible form of wealth that matters more than you think. Healthy and strong relationships lower stress, promote healing, and bring a sense of purpose, among other positive effects.
Moreover, engaging with successful people can pave the way to lucrative opportunities. It’s why rich people attend networking events so often.
14. You Have Education and Skills
With higher educational attainment comes greater asset wealth. However, more than 60% of workers in the U.S. do not have degrees.
Education and skills are forms of wealth that open doors to opportunities and boost your earning potential. Furthermore, they are investments that help you navigate challenges in life and thrive. Continue learning, exploring, and mastering new things.
15. Your Life Has Meaning
Do you enjoy your job? Can you afford to give to causes you believe in? Can you share your resources generously to improve the lives of others?
If yes, these could be signs you are richer than you think. A meaningful life is a form of wealth nothing else can compare to. Otherwise, money can anchor you to a job full of obligations and stress.
Unlock the Secrets of Wealth: 19 Ways to Get Rich from Nothing in 2024
Ever heard tales of regular folks hitting the jackpot, going from broke to loaded? Well, guess what? It’s not just fiction; it’s real life. And the best part? You could be next in line for that transformation.
Yup, you read that right. All it takes is uncovering the secrets to go from nothing to something. Ready to learn how to turn zero into a hero? Let’s dive in.
18 People Share Telltale Signs of Growing Up Poor
Have you ever kept expired canned goods in the pantry or watered-down shampoo just to squeeze out every last ounce? Those are subtle signs of a childhood shaped by financial hardship.
Read on to discover the telltale signs shared by those who have lived through financial struggles.
7 Big Signs Work Is Too Much & What To Do
Are you working too much? How much work is too much? Today you’ll find clear signs work is too much and ways to overcome each one.
While it’s great to be all those things between 9 am and 5 pm, there is a time of going home and being none of those things. It is a great way to set boundaries, make sure that everything you deliver is still of excellent quality, and have a life outside of work.
Here are clear signs your work is too much, plus the actions you need to take.
