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By: Aquib Nawab
Finance
The first sign of financial success is having a credit score above 690. This score is higher than the average for Americans between 18 and 41 years old, making it a crucial factor for obtaining favorable terms on loans and insurance.
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A good credit score is essential as it influences the terms and rates you get when applying for a mortgage, car loan, credit cards, insurance, and other credit products.
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Another indicator of financial security is the ability to cover an emergency expense exceeding $2,000. This level of preparedness places you in a more secure position than many fellow Americans.
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Despite financial advisors recommending an emergency fund, only 47% of Americans have followed this advice, with the average amount saved being about $2,000.
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If your credit card debt is less than $7,000, you are doing better than many Americans. The national average credit card debt is approximately $6,993, so staying below this amount is a positive financial sign.
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Credit card debt in the U.S. has reached over $1 trillion, showing a worrying trend. Keeping your debt low is a key aspect of maintaining financial health.
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Having more than $4,500 in your savings account is a significant achievement, especially considering that 35% of Americans have less than $1,000 saved.
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Saving money can be challenging in the current economy, as evidenced by more than half of Americans having less than $5,000 in their savings accounts.
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Possessing over $30,000 in your retirement accounts, especially if you're in your 30s, indicates you're financially ahead of many peers in your age group.
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A large number of adults are not saving enough for retirement, making it important to review your retirement plan and consider increasing your contributions.
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