The Rachel Cruze Show - 7 Signs You Are WAY Above Average (Shocking Money Stats!)

Starting point is 00:00:05 What if I told you that you're already doing better with money than you think you are? So when you're hyper-focused on your financial goals, it's really easy to feel like, oh my gosh, I just have to go to this next thing and you don't realize how much you've accomplished. So here are seven signs that you're doing better financially than the average American. And let me know in the comments where you fall, because I'm curious. And make sure to like, subscribe, and share this video with a friend. All right, the first sign that you're doing better than the average American is that you're living without debt or you're actively trying to pay it off. Recent data says that the average U.S. adult owes $66,702 in debt, and 77% of American households

Starting point is 00:00:44 carry at least some type of debt. So when you are debt-free, you are obviously weird because you're not part of the majority, and that means you have your income, which is your largest wealth building tool to use for you. You're not using it for banks and to pay back, you know, Ford motor company and like car payments and all the things, right? Like, this is for you. So if you are debt-free, you are doing better than the average American. So if you're not, start working on paying it off. And the most effective way to do that is to list out all of your debt smallest to largest, regardless of the interest rate, pay minimum payments on everything, and pay off the smallest one first. All right. The second sign is that you have savings. So as of 2022, the median savings

Starting point is 00:01:31 balance for Americans, 35 and younger, was about $5,400. The median savings balance for Americans ages 35 to 64 fall somewhere between 7,500 and 8,700. So listen, if you have the ability to have margin with your money and your income, which means you're probably debt-free, then you have the ability to save. And when you can save and you have money at your disposal, that helps you so much, especially when it comes to emergencies and things that pop up versus relying on debt to take care of those situations, you are relying on you and your money. So once you are debt-free, build up a three-to-six-month emergency fund. And again, this can be put in a high-yield savings account, which is great, or a money market account, but just tucking it away, don't invest it, and have it there. So if you

Starting point is 00:02:21 have money saved, you're doing great. Number three is that you're planning for retirement. So according to Ramsey's latest state of personal finance report, 37% of Americans, have more credit card debt than retirement savings. So if you are able to prioritize retirement, you are ahead of the curve. Okay, so once you are debt-free and you have your emergency fund, start investing 15% of your income into retirement. And again, some people, if they are investing, a lot of people aren't even saving for retirement, but if they are, it's like 3, 4, 5%, because that's all they have.

Starting point is 00:02:53 But again, once you have no debt and you have an emergency fund in place, then your income can be used to pay for yourself in the future for retirement, which is amazing. All right, believe it or not, the next part of this list pulls some things about your character and who you are as a person, which is huge when it comes to managing money. But one thing that you never want to leave out for the world to see is your personal info online. And this is why I love and use delete me. So if you don't remove your personal data from the internet, it's basically like a billboard

Starting point is 00:03:26 of all of your information. I mean, your name, your address, your email, even your kids' names are out there. And what happens is they get put on these sketchy data broker websites, and then they go, collect your data, and then they sell your data to make money. And then you're at risk for scams and fraud, and it's not great. So delete me as there to remove your data and help protect you from harassment, threats, again, scams, all of it. Like, get your data off.

Starting point is 00:03:53 And that's why Winston and I use delete me because they go in and delete you from the internet. So your family safety and financial security are very important. And so you do not want to leave those exposed. So sign up for DeleteMe. Go to join DeleteMe.com slash Rachel for 20% off. And that brings your monthly cost to under $9 a month. So click the link down in the description. All right.

Starting point is 00:04:15 Number four, I would say that you're able to celebrate others wins. So it is an ultimate sign of personal growth when you are able to cheer on other people. and there's not bitterness or jealousy within you. And I think that's because you have a level of contentment of where you are financially. And if that's great and that's your true heart, you are doing better than most people. Because I do think when you are stressed with money,

Starting point is 00:04:39 you are living paycheck to paycheck, and it's like this feeling of like, we just got to get by. And then you see someone like goes on a great trip and you're like, well, screw you, right? Like we're just trying to make ends meet. Like there's this level of like, there's no margin emotionally sometimes.

Starting point is 00:04:53 And so understanding, that, man, contentment is huge, regardless of where you are financially, even if you are still living paycheck to paycheck, like getting to this place where you're not apathetic about it, you still have goals, but who you are and what other people are doing doesn't have to affect you. Just because someone else is winning does not mean that you're losing. And that's where you are regardless of where you are financially, that is true. And so there is something to be said from an emotional standpoint. If you are able to cheer someone else on and you're just genuinely excited when other people win. That is a huge marker that you're doing better than other people financially because it has to do with

Starting point is 00:05:25 your character. Number five is that you own a home. So if you have managed to buy a home, then you are ahead of approximately 35% of Americans who don't own the home they live in. Now, owning a home, again, there is a lot that happens here because it is so expensive today and we are not mad at renting. If you are renting right now because you don't have a down payment save that you're still in debt, you don't have an emergency fund. Like, you're not in a place to own a home. That is okay. You will get there eventually.

Starting point is 00:05:55 Okay, so understand that. But man, there is something to be said about you are at the place where financially you are able to buy a home, sustain a mortgage, ideally a 15-year fixed rate mortgage where it's no more than 25% of your take-home pay is your payment. You know, all of that, that is a powerful place to be. And again, it takes time to get there. Now, if you do have a mortgage, make sure to use our mortgage payoff calculator to see, you know, if it's possible for you to pay.

Starting point is 00:06:20 off your home faster than what you've realized. So I'll put a link down below for you to check that out. But you can put in your own numbers and actually see where you are to pay off your home faster. And we find that people are paying off their homes when they're using the baby steps in 9 to 11 years. So pay it off fast. It's awesome. All right. Number six is that you practice generosity. So if you, again, have the spirit of being generous. And maybe it's buying someone a gift, you know, getting someone coffee. maybe you give consistently to your place of worship, to church, or something that you're passionate about. But this idea of sacrificing your time, your energy, your money for other people, man, that is

Starting point is 00:06:58 huge. Like, we live in a world where generosity sometimes is everywhere, which is beautiful. Like, we do see this, that there's like a natural disaster or something happens, like towns and communities gather to help people. And it's like one of the best pictures ever. But in a consistent basis, a rhythm of your life, if you are being generous, I would say you're doing. doing better financially than the average person, not just because you have the ability to give. It's not a math issue, but it is a heart issue. And there is something to be said that when we hold our money like this and we try to control every aspect of it, there's a point that you're like, okay, maybe you do great financially, but what is it? You're just stuck with yourself and your

Starting point is 00:07:34 wants and your needs and desires. That will only get you so far in life with joy. Like there's a point where you open your hand and you actually have the ability to serve and give to others. And that brings a much richer life than just living for yourself. All right, number seven is that you're earning the median income. So at the end of the day, your income is your most powerful wealth building tool. And a little over a year ago, the median household income was about $80,610. So if you're earning anywhere within that $10,000 to $15,000 of that number, you're probably on par with most of your peers. And that's a great place to be. Now, you may be doing better financially than you thought, but if you aren't budgeting

Starting point is 00:08:16 the right way. This is a huge miss. So make sure to download every dollar. I'll put a link down below because it is the best tool when it comes to helping you budget to be able to hit all the goals and get to the places you want to get to with your money. And to make sure you're not missing the most crucial step for building wealth, check out my episode, Create Your First Budget in Five Simple Steps. I'll leave a link here. You can click this or if you're listening on podcasts, click the link below. All right, you guys, remember to take control of your money and create a life you love. Thank you.

The Rachel Cruze Show - 7 Signs You Are WAY Above Average (Shocking Money Stats!)

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