The State of Personal Finance study from Ramsey Solutions found that 67% of Americans were either financially stable or thriving in the first quarter of 2025. But even if you’re someone who doesn’t have trouble paying the bills and even saving a little, you might still feel like you haven’t accomplished enough in the area of personal finance.
See Next: Dave Ramsey Says This Is the Best Way To Pay Off Debt
Try This: How Much Money Is Needed To Be Considered Middle Class in Your State?
A YouTube video from money expert George Kamel discussed 11 small to large money milestones that show you’re crushing it. Find out below which financial wins you have to celebrate and why they matter.
Also Kamel said don’t obsess over your net worth — here’s why.
Kamel explained that cutting up credit cards is an emotional step that leads to big changes in your life. Even though it’s challenging at first, no longer using credit cards puts you on a path to avoid burdensome debt and interest payments and build more wealth. It also pushes you to spend more responsibly.
Discover Next: I Made $10,000 Using One of Dave Ramsey’s Best Passive Income Ideas
This small step helps you spend more intentionally and have a better understanding of where your money is going. Kamel suggested a zero-based budget that requires allocating every dollar to a specific use, such as a spending category, debt payoff or savings and investment goals. He also highlighted the free EveryDollar app, which is helpful for beginners.
A Pew Research Center survey found that 51% of Americans didn’t have a three-month emergency fund. Some people have nothing at all, so having any savings is a worthy milestone that gives you some financial security.
Kamel encouraged getting used to regularly saving cash and working toward a $1,000 emergency fund, which he said you shouldn’t focus on fully funding until you’re debt-free.
“Being debt-free is a big one because it’s the point where you stop paying for the past and you start building for the future,” Kamel said.
This milestone frees you of interest, monthly payments and some stress. Instead, you can focus on getting a return on your money. If you’re not there yet, consider Kamel’s recommendation to use the snowball method, which involves paying off your debts from the smallest to largest.
Kamel explained that this money milestone is important for having a safety net for emergencies, such as vet bills, car repairs and home repairs.
With three to six months of your expenses saved, you’ll be less likely to use credit out of desperation and pay a high interest rate. The peace of mind is also worth it.
According to Edmunds, the average monthly car payment was $756 for a new car and $559 for a used car in the second quarter of 2025, with average interest rates of 7.2% and 10.9% respectively.
Financing a vehicle with such high payment amounts can leave you struggling to afford everyday expenses and lead to thousands of dollars in interest. Plus, your car’s value will depreciate. That’s why Kamel said saving cash to buy a used car is a big accomplishment.
“The moment you start investing is a huge milestone because it means you’re not just working for money anymore; your money is finally starting to work for you,” Kamel said.
While contributing any amount is a good start, Kamel suggested setting a target of investing 15% of your income and using a 401(k), IRA or another tax-advantaged account.
Kamel described homeownership as an advanced milestone that frees you from having a landlord and provides several other perks. For example, you’ll build equity with each mortgage payment, likely see the home’s value go up and enjoy more freedom to customize your place.
But he cautioned against making this big move before you’re ready. In addition to his advice to first fill your emergency fund and get rid of other debt, Kamel recommended getting a 15-year mortgage with a fixed rate and limiting your mortgage payment to 25% of your after-tax pay.
Once you’ve invested $100,000, you’re at a point where you can see several thousand dollars per year in growth without any work on your part. And thanks to compound interest, the earnings can grow indefinitely.
Kamel gave an example of earning a 10% return on $100,000, which in the first year provides $10,000 in growth (around $833 per month). In the second year, you’ll get a return on the $110,000 balance. In 10 years, you’d have about $260,000 without contributing another penny.
According to Kamel, getting rid of your mortgage early is smart regardless of how competitive your interest rate is. Not only can the potential interest savings add up to hundreds of thousands, but the lack of mortgage payments makes it easier to invest and buy things you like.
Having no mortgage is also good news for your net worth and financial flexibility. For example, Kamel discussed how owning your home outright might make it easier to buy future properties using cash. Plus, your property can continue to appreciate, increasing your equity.
Kamel explained that you’ve become a net worth millionaire if you get $1 million after subtracting your debts from your assets. While it may not change your life significantly yet, it’s a win that many people will never see.
“Now, that doesn’t mean you’re balling out or retiring today, but it’s still a huge accomplishment and it’s likely the result of decades of hard work and making smart decisions with money,” Kamel explained.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: George Kamel: 11 Money Milestones That Prove You’re Crushing It
