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Managing money is a lot like running. Many people dislike it, and most are just trying to reach the finish line without burning out.
But a few are like elite athletes — effortlessly staying ahead of the pack. In fact, you might be managing your finances so well that you don’t even realize you’re part of this high-performing group. According to data from the Federal Reserve, the average American household had a net worth of $1.17 million in 2024 (1).
Here are five clear signs your personal finances are hitting well above the average American’s, and what you can learn from them if you’re not.
For many Americans, debt is a fact of life, with about 90% of adults carrying some form of it, according to Debt.org (2). The bulk of this debt is typically mortgages, which are often considered “good debt” because they can help build equity. On the other hand, if you’ve avoided consumer debt entirely — and especially if you’ve paid off your mortgage — you’re in a rare financial position.
Without the burden of interest payments, you likely have more flexibility to save, invest and grow your wealth, putting you well ahead of the average American.
But for those who are struggling with debt, there are still some options to take into accountaside from the usual suspects like loan consolidation.
The big two methods for paying it down are the avalanche and snowball techniques.
The avalanche method focuses on paying down your highest-interest debts first. This can create a cascading effect where, after the big debt is paid, you knock off the smaller ones quickly.
Meanwhile, the snowball method starts with paying down your smaller debts one after another to build up steam. Then, once you’re down to one debt, you put all your resources into paying it off.
From here, most financial experts recommend building out an emergency fund, then getting to investing as soon as possible. But becoming debt-free is the first, and arguably most important, step.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)’
If you have any retirement savings at all, you’re already ahead of many Americans. About 40% of Americans have no money in retirement accounts at all, according to Gallup (3).
Even among savers, balances tend to be modest. Vanguard reports that the median 401(k) balance for Americans was $38,176 in 2024 (4). According to Northwestern Mutual, Americans believe they’ll need $1.26 million to retire comfortably (5). Making sure you have at least a million in retirement funds — and not just looking at your net worth — is a good starting point.
If you want to boost your 401(k) balance, you could invest in a Gold IRA with Goldco. Gold typically performs well during times of economic uncertainty, and recently broke past the $4,500 per ounce benchmark in December for the first time (6).
By opening a Gold IRA, you could be looking out for your future self and cushioning your retirement by potentially hedging your investments against economic turbulence. Investing in gold through a tax-advantaged account can also help stabilize your finances by allowing you to invest directly in physical precious metals rather than stocks and bonds.
You can even get a free gold and silver kit shipped to you, which includes an instant match of up to 10% in free silver depending on your contribution. Terms and conditions apply.
If you want to boost your IRA, but aren’t sure about gold, another option is to tap into inflation-resistant assets like real estate.
Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives high net worth investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls. Blue-chip rentals, like blue-chip stocks, are properties that are expected to retain their value reliably over time.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios.
But you may want to act fast. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
With the rising living costs and stagnant wages, saving has become a challenge for many Americans.
As of September, the personal savings rate was just 4%, according to Federal Reserve data (7). This figure refers to the percentage of personal disposable income left over for saving after other accounts are settled.
So, if you’re saving more than $10,000 annually — or putting away a double-digit percentage of your income — you’re well ahead of the curve. A strong savings rate not only sets you apart but also accelerates your path to financial goals. Most financial planners recommend setting aside three to six months of emergency savings before digging into investing.
No matter what you’re saving, it’s important to get the best interest rate you can so that your money is being put to work in the background.
For instance, a Wealthfront Cash Account can provide a base variable APY of 3.25%, but Moneywise readers can snag an exclusive 0.65% boost over their first three months for a total APY of 3.90% provided by program banks on your uninvested cash. That’s over ten times the national deposit savings rate.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
If you’re less concerned about liquidity, you could instead consider using Certificates of Deposit (CDs) to lock your money in for a fixed term in exchange for a guaranteed return.
Rates vary by term but can exceed 4% for longer durations. This can make CDs a low-risk savings option that can yield higher interest than some top savings accounts. This is especially true when interest rates are cut, which impacts the base rates offered for many variable high-yield accounts.
With Raisin, users can shop and compare top certificate of deposit rates from federally regulated banks and credit unions across the country. You can browse a long list of the best offers instantly, and find offers with no fees and a $1 minimum deposit.
For a limited time, receive up to $2,000 with qualifying deposits. Use Raisin’s interest calculator to find out how much you could earn on your savings.
Just keep in mind that CDs are not as liquid as high-yield savings accounts.
Only one-third of U.S. adults have hired a financial advisor, according to Northwestern Mutual’s 2024 Planning & Progress Study. Among millionaires, however, that number jumps to 69% (8).
If you’re a part of this elite club and don’t have an advisor, you could consider working with the tax experts and professional advisors at Range. They offer white-glove financial services to households making at least $200,000 a year, or individuals making a minimum of $250,000.
Once your equity enters this ballpark, one of the biggest financial pain points can be asset under management (AUM) fees. These fees mean that portfolio managers take a percentage of the value, typically between 0.5% and 2%, of your managed assets — so their fees scale with your wealth.
Range offers 0% AUM fees for advisory services and a flat-fee structure so that you can preserve more of your wealth. What’s more, they also offer an all-in-one solution for everything from alternative asset management to taxes — all of which is informed by modern AI solutions, but backed by a team of certified financial professionals.
And the best part? You can book a complimentary demo to see if Range can meet your comprehensive financial needs.
But even if you’re not a millionaire, working with an advisor can improve how you manage your money and help you reach your goals faster. And there are services that can get you started on the path to millionaire status.
With Vanguard, you can connect with a personal advisor who can help assess how you’re doing so far and make sure you’ve got the right portfolio to meet your goals on time.
Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.
All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisers will help you set a tailored plan, and stick to it.
Economic anxiety is so common that even many millionaires don’t feel secure. In fact, only 32% of millionaires in the same Northwestern Mutual said they consider themselves “wealthy.”
So if you genuinely feel financially secure or even “rich,” you’re not just outperforming the average American — you may even be ahead of wealthy peers. Confidence in your financial position is a powerful indicator that you’re operating at an elite level.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Federal Reserve (1); Debt.org (2); Gallup (3); Fidelity (4); Northwestern Mutual (5), (8) APMEX (6); Federal Reserve Bank of St. Louis (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
