[00:01] more money than you? It's easy to feel behind when your friends and co-workers are buying expensive cars and taking elaborate vacations. But those aren't always true indicators of wealth. In fact, they're often the opposite. So,
[00:14] good shape? Today, we're going to talk about five signs you're doing well with money, even if it doesn't feel like it. And if none of these apply to you, don't worry. We'll talk about what it takes to get there. But first, go ahead and click
[00:29] those like and subscribe buttons so you don't miss out on practical personal finance videos from credentialed advisors. That's us. Okay, the first sign you're doing well financially sounds pretty basic, but it is super
[00:42] important. Because if you don't have this, it's impossible to build wealth. And that sign is you have financial margin every month. If this one is true for you, you're already ahead of a huge portion of the country. According to
[00:56] MarketWatch, 57% of Americans say they're living paycheck to paycheck. Meaning after the bills are paid, there's little to nothing left over. That means well over half the country has no financial breathing room at all.
[01:11] And margin is necessary for financial success, because without it, you can't invest, you can't pay off debt, and you can't cover an emergency. You can't even save for an emergency. If you want to make any progress, you got to have that
[01:25] gap between what you make and what you spend. That's the portion of your army of dollar bills that gets to go to work building wealth. And the way you get margin is simple. You live on less than you make. So, if you need more margin,
[01:38] you can either spend less or earn more. And bonus points if you can do both. If don't worry. [music] We've got a solution for you at the end of this money left over at the end of every month, congratulations. That's the first
[01:54] sign you're doing well with money, and it's the foundation everything else gets well financially is having something many Americans don't have, even though it's a vital component of wealth building. And that is you have an
[02:08] emergency fund. That's real cash sitting in a savings account ready to go when life comes at you. Again, this sounds like basic personal finance, but here's how rare this actually is. A Bankrate survey found that less than half of
[02:22] Americans could cover a $1,000 emergency expense from their savings. More than half would have to borrow, use a credit card, or ask for help to handle a single unexpected bill. And that's a pretty big deal. Having an emergency fund is like a
[02:37] financial firewall. Without it, one bad month can turn into credit card debt, which can turn into high interest payments, which can derail everything else you're trying to build. Your emergency fund is what keeps a
[02:50] small setback from becoming a major catastrophe. If you're following the financial order of operations, you know step one is having enough money in a savings account to cover your highest insurance deductible. Think of that as
[03:03] an entry-level emergency fund. Step four of the financial order of operations is having a full emergency fund, which is three to six months of living expenses in a liquid accessible savings account. Ideally, a high-yield savings account so
[03:17] your cash is at least keeping up with inflation while it sits there. If you've hit that target, or you're actively building towards it, that's a genuine sign of financial health. Sign number three, you are investing consistently.
[03:32] When we talk about investing, we mean saving money for retirement in a tax-advantaged account, like a Roth IRA, a 401k, or even a taxable brokerage account. And if you think everyone is doing this, here's a sobering stat for
[03:45] doing this, here's a sobering stat for you. According to a 2025 survey by the Federal Reserve Bank of Philadelphia, 57% of US adults said they don't personally own stocks. That means they're not taking advantage of any of
[03:58] those types of accounts we just mentioned. So, if you're investing at all, you're doing better than over half the country. And if you're investing consistently, you really got a leg up, because that's when the magic starts to
[04:11] happen. The earlier and more consistently you invest, the harder your army of dollars can work for you. And if you need proof, check out our free wealth multiplier calculator at moneyguy.com/resources.
[04:24] You can plug in your numbers and see how much you need to be investing each month to become a millionaire by age 65. It really is incredible how much your money can grow over time with the power of compound interest. So, how much should
[04:40] you invest? We suggest aiming for 25% of your gross income. I know that sounds like a lot, but there's a reason we recommend it. If you're getting 25% for retirement by age 30, you can replace 119% of your pre-retirement income if
[04:56] 119% of your pre-retirement income if you retire at 65, assuming a 6% annual rate of return. I know we went conservative on purpose, but personal finance is personal. So, I encourage you to run the numbers and find what's right
[05:08] for you based on your age, your goals, and your retirement needs. And here's a pro tip. Make it automatic for the people. Set up automatic contributions to your 401k and your Roth IRA so it happens before you ever see the money.
[05:24] This is a great way to put your wealth building on autopilot. Set it and forget it. The next indicator you're doing well financially is a little hard to notice, and that's the whole point. Sign number four on our list is your lifestyle
[05:40] hasn't exploded. Even as your income has grown, you're still living below your means. And this is harder than it sounds. Many people start spending more as they earn more, often without even realizing it. A new car when the raise
[05:54] comes in, a bigger apartment after the promotion, subscriptions, upgrades, dinners out. It can sneak up on you pretty fast, and it adds up. Lifestyle creep affects people at every income, including those earning
[06:08] six-figure salaries. According to a report from Goldman Sachs, 40% of those making over $500,000 said they're living paycheck to paycheck. You heard that right, 40%, which goes to show why your salary is
[06:22] not on this list of signs you're doing well with money. And here's why this one matters so much. Every dollar you don't put towards inflating your lifestyle is a dollar you can get to work compounding for your
[06:36] future. If you've seen any of our case studies where we compare Average Allen and Manny the Mutant, you know it's almost never about income. It's about the percentage of income that gets saved and invested. High earners who fall
[06:50] victim to lifestyle creep often struggle to build wealth. Meanwhile, someone with below their means and invest the difference can build serious life-changing wealth over time. So, if you've managed to grow your income
[07:04] as fast, that is something to be genuinely proud of and a sign you're doing well with money. The next sign is a little different from the rest, but it might be the most important one. Sign number five you're doing well
[07:19] financially, you sleep well at night. In other words, you don't lie awake worrying about money. Financial stress is an epidemic in this country. More than two in five US adults
[07:33] say money negatively affects their mental health, at least occasionally, causing anxiety, stress, worrisome thoughts, loss of sleep, depression, and other effects. Look, we talk a lot about numbers on this show, and the numbers do
[07:47] >> [music] >> The goal isn't to have the biggest retirement account balance when you die. The goal is a life well lived with security, options, peace of mind, and generosity. So, if you're not losing
[08:01] sleep over money, that is an indicator of wealth in more ways than one. But that's not all. In addition to those five signs, there's another indicator that you're doing well financially, and it ties all the others
[08:13] together. And that is you have a plan. Only 36% of US households had a long-term financial plan in 2024. This is why we built the financial order of step-by-step system that tells you exactly what to do with every dollar in
[08:30] the right order, so you never have to wonder if you're making the right call. If you've watched this whole video and none of these signs apply to you yet, as goals, and the financial order of operations is how you reach them. For a
[08:45] deeper dive on the FOO, check out this video right here to learn more about wealth building plan that could change your life. And as always, keep building towards your great big beautiful tomorrow. [music]