We’ve all been there—scrolling through social media, seeing someone post about their new house, fancy car, or luxurious vacation, and suddenly questioning if we’re financially behind. It’s easy to feel like you’re not doing enough or earning enough. But here’s the thing: financial success isn’t always what it looks like on the surface. In fact, the way you measure it might be the very reason you feel behind.
In this article we take a look at the different signs you are doing well financially even if you don’t feel like it.
1. You Spend Less Than You Earn
This is one of the most fundamental principles of financial success. If you consistently spend less than your income, it means you’re not relying on debt to cover your expenses, and you have extra cash to save, invest, or put toward future goals. Many people fall into the trap of increasing their spending as they earn more, a phenomenon known as lifestyle inflation. If you’ve been able to resist this and maintain a gap between your income and expenses, you’re already ahead of a significant portion of the population.
2. You Have an Emergency Fund
An emergency fund is like a financial safety net—it keeps you from falling into debt when unexpected expenses arise, such as medical bills, car repairs, or job loss. Experts generally recommend having at least three to six months’ worth of living expenses saved in an easily accessible account. If you have even one month’s worth saved up, you’re in a stronger position than many people who live paycheck to paycheck. If you have six months or more, you have an even greater level of financial security and peace of mind.
3. You’re Not Drowning in Debt
Having debt isn’t necessarily bad—it depends on the type of debt and how you manage it. A mortgage or a low-interest student loan is different from high-interest credit card debt. If you’re keeping your debt-to-income ratio low, making payments on time, and not using debt as a crutch to maintain your lifestyle, you’re in a good spot. The key is that debt should be manageable and not something that causes you constant financial stress.
4. You’re Investing for the Future
Saving money is great, but investing is what allows your money to grow over time. If you have money in a retirement fund like a 401(k) or an IRA, or if you’re investing in the stock market, real estate, or even your own business, you’re setting yourself up for long-term financial success. Even if you’re just contributing a small amount, time in the market beats timing the market, meaning starting early gives you a major advantage due to compounding interest.
5. You Have Multiple Income Streams
Relying on a single source of income can be risky, especially in uncertain economic times. If you have additional sources of income—whether it’s a side hustle, dividends from investments, rental income, freelance work, or a small business—you’re diversifying your income streams. This not only increases your financial stability but also gives you more flexibility and security if something happens to your primary job.
6. You’re Not Stressed About Everyday Expenses
If you can comfortably pay for necessities—like rent, groceries, utilities, and transportation—without feeling anxious about running out of money before your next paycheck, you’re in a strong financial position. Many people live paycheck to paycheck and feel constant financial stress. If you’re able to budget effectively, cover all your basic needs, and still have money left over, that’s a great sign of financial well-being.
7. You Can Afford to Give and Enjoy Life
True financial success isn’t just about accumulating wealth—it’s also about having the freedom to give and enjoy your life. If you can afford to donate to charity, help family members, take vacations, or enjoy occasional treats without feeling guilty or financially strained, that’s a sign you’re in a good place. Being able to spend money on things that bring you happiness, while still maintaining financial security, is a key indicator of financial success.
8. You Have a Good Credit Score
Your credit score reflects how responsibly you manage debt. A good credit score (typically above 700) means you make payments on time, don’t carry too much debt, and have a strong credit history. Having a high credit score can save you thousands of dollars in the long run by giving you access to lower interest rates on loans and credit cards, better mortgage rates, and even lower insurance premiums. If your score is in good shape, it’s a sign that you are doing well financially.
9. You’re Continuously Learning About Money
Financial success isn’t just about how much money you have—it’s also about how much you understand money. If you’re actively educating yourself on budgeting, investing, saving strategies, and wealth-building, you’re setting yourself up for long-term success. Reading personal finance books, following reputable financial experts, and staying informed about economic trends can help you make smarter money decisions. Financial literacy is a lifelong journey, and if you’re committed to learning, you’re on the right track.
10. You Feel in Control of Your Financial Future
At the end of the day, financial security is about having control over your money, rather than money controlling you. If you have a clear financial plan, a budget that works, and a sense of confidence in your ability to handle money, you’re doing well—regardless of how much you earn. Financial success isn’t just about wealth; it’s about freedom, peace of mind, and the ability to make choices without financial fear.
Are You Playing the Right Game?
One of the biggest reasons people feel behind financially is because they’re measuring success the wrong way. There are two games you can play when it comes to money: the status game and the wealth game.
The status game is all about external validation. It’s the game where people measure success by how big their house is, what brand their clothes are, or whether they drive a luxury car. The problem? This game is never-ending. If I buy a Porsche, it only boosts my status if you don’t have one. But if everyone has one, I’m back to square one. It’s exhausting, and it never actually leads to financial security—just temporary boosts in self-esteem.
Then there’s the wealth game, which is the one that actually matters. This game isn’t about what people can see; it’s about what’s going on behind the scenes. It’s the money in your savings account, the investments you’re making, the business you’re building, and the skills you’re learning that increase your earning potential. These are the things that buy you freedom and long-term security.
If you’re stuck in the status game, you’ll always feel behind. But if you shift your focus to the wealth game, you might realize you’re in a much better financial position than you thought.
How Much Should You Be Earning?
Another reason people feel financially behind is because they compare their income to national averages. According to statistics, the average salary in the UK is about £27,756, and in the US, it’s around $59,428. But here’s the truth: these numbers mean very little when it comes to how you actually feel about your finances.
Why? Because we don’t compare ourselves to the national average—we compare ourselves to our friends, colleagues, and people in our immediate circle. If everyone around you earns more, even if you’re technically doing great, it won’t feel like enough. And here’s where loss aversion kicks in: research shows that losing something feels twice as bad as gaining something of the same value feels good. So if you find out you’re earning more than your friends, you might feel a little better, but that feeling fades fast. But if you find out you’re earning less? That can hit hard.
This cycle of comparison never really ends because as you make more money, your peer group levels up too. The benchmark keeps moving, making it easy to feel like you’re always falling short. So if you ever wonder, why do I still feel behind even though I’m earning more than I was before?, this is why.
The Three Fundamentals of Financial Stability
Okay, so now that we know how our perception of money is often skewed, let’s talk about the actual financial fundamentals that matter. If you get these three things right, you’re ahead of most people.
1. Understanding Your Relationship with Money
This is all about knowing where you stand financially. What’s your income? What are your expenses? Are you spending less than you earn? A lot of people have no clue what’s really going on with their money. One of the best ways to get a clear picture is by tracking everything—whether it’s with an app, a spreadsheet, or even writing it down. Once you see the numbers, it becomes much easier to make adjustments and live below your means.
2. Having an Emergency Fund
This one is huge. Life happens—unexpected expenses, job losses, medical bills. Having a safety net can make all the difference. Studies show that 40% of people in the UK don’t even have one month of living expenses saved, and in the US, only 39% of people could cover a $1,000 emergency. If you have at least one month of savings, you’re already ahead of a large percentage of the population. If you have three to six months saved? Even better.
3. Managing Debt
This isn’t just about not buying things you don’t need—it’s about making sure debt isn’t the only way you can cover your basic expenses. The average American has $32,878 in non-mortgage debt, and UK credit card debt is at an all-time high. Many people are borrowing just to maintain their lifestyle, especially with rising inflation. If you’re able to pay your bills without relying on credit, you’re already in a strong position.
Changing Your Perspective on Success
Even if you have solid savings, low debt, and a growing income, it might not feel like you’re doing well. And that’s because our perception of financial success is often dictated by society.
We’re constantly told that external wealth—big houses, designer clothes, expensive vacations—is what matters. But the reality is that true financial success is about security, freedom, and the ability to live life on your own terms. The moment you shift your mindset from How do I compare to others? to Am I improving my own financial situation?, everything changes.
There’s a great thought experiment that sums this up: Would you rather be the best in the world at something but have everyone think you’re the worst? Or would you rather be the worst but have everyone think you’re the best?
When you measure financial success based on societal standards, you’re essentially letting other people define your worth. But when you measure it based on personal progress, you take back control.
Signs You Are Doing Well Financnally
So, are you actually behind financially? Probably not. But if you’re playing the wrong game, comparing yourself to others, or focusing on the wrong metrics, it’s easy to feel like you are.
Instead of stressing over how you stack up against the world, focus on building real wealth, tracking your finances, saving for emergencies, and avoiding unnecessary debt. If you’re doing those things, you’re already ahead of most people—even if it doesn’t always feel like it.
And next time you see someone flaunting their lifestyle on social media? Just remember, that’s the highlight reel. The real measure of financial success isn’t what people can see—it’s the financial security you’re building behind the scenes