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8 Signs You're in Great Financial Health (Even If You Don't Feel Like It)

Here are key signs your finances are on solid ground and how to keep building on that progress.

By Kristin Hitchcock

Edited by Calista Headrick

Updated Nov. 11, 2025

Sometimes financial strength doesn't feel strong. You might fret over bills, debt, or uncertainty, even while making smart choices behind the scenes. Yet those quiet moves are what build real resilience, staying afloat when things turn rocky, rather than merely surviving.

Below, we'll walk through key signals that your finances are healthier than you might assume, and how to lean into momentum so you can prepare yourself financially for whatever comes next.

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You have (or are building) an emergency fund

A meaningful signal of financial health is having a cash buffer you could tap when life throws you a curveball. In 2025, about 24% of U.S. adults reported having zero emergency savings. Meanwhile, only 46% of Americans have enough emergency savings to cover three months of expenses, which is what's recommended by most financial experts.

Even putting away $500–$1,000 first can prevent relying on high-cost credit when something breaks. To reinforce this habit, automate transfers (even small ones) and treat the fund as untouchable, except in true emergencies.

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You don't carry a high credit card balance

High-interest credit card debt can act like a weight dragging down your progress. Roughly 46% of U.S. households carried credit card debt as of the latest Survey of Consumer Finances. Even more alarmingly, 36% of Americans say they have more credit card debt than emergency savings.

When your credit card balances are low (or zero), you free up cash flow and reduce interest pain. To keep this in check, aim to pay in full each month or target the highest-rate card first using a snowball or avalanche method. As balances shrink, redirect that freed cash into savings or investments.

Your credit score and report are in decent shape

A solid credit score offers flexibility and lowers the cost of borrowing (if needed). Even if you're not actively using credit, a clean report signals reliability to lenders, landlords, insurers, and others.

Monitor your credit reports (you're entitled to a free copy annually) and watch for negative entries like late payments, charge-offs, or maxed cards. If your score isn't where you want it, small moves can help: pay on time, keep card utilization low (ideally under 30 %), and avoid opening many new accounts at once.

Resolve $10,000 or more of your debt

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.¹ <p>Clients who are able to stay with the program and get all their debt settled realize approximate savings of 45% before fees, or 20% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.</p>

You're putting money into retirement (or long-term savings)

Putting aside money for your future is one of the most consistent markers of financial health, yet many Americans aren't doing enough. Around half of U.S. households report no retirement savings at all.

If you're already contributing to a 401(k), IRA, or similar account, that's a win. If not, begin with what you can, even 1 % or 2 %. Use employer matches if available, raise contributions when you get income boosts, and consider "set-it-and-forget-it" automation so you steadily build without having to think about it.

You're tracking income, spending, and net worth

People in strong financial shape often know (or estimate) their monthly cash flows, trending expenses, and net worth. That awareness turns "money stress" into actionable data.

Create a simple dashboard with income minus fixed costs minus variable spending, and update monthly. Over time, you'll see patterns: where you overspend, potential cutbacks, or when surpluses emerge. That insight converts "getting by" into "moving ahead.

You maintain good financial habits (or incrementally improve them)

Resilience often comes less from a perfect score and more from consistent habits. Some telltales:

You adjust your budget when needed (raises, inflation, life changes)
You review bank and credit card statements for mistakes or surprises
You increase your savings rate when bonuses or pay bumps arrive
You avoid the "minimum payment trap" by focusing on full payments

These habits aren't glamorous, but they compound powerfully over time.

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You're living below your means (even slightly)

If your spending consistently falls below your income, you're already doing what many Americans struggle to achieve. The latest data from the Federal Reserve shows that about 35% of households spend equal to or more than they earn. Choosing a modest home, driving a paid-off car, or avoiding lifestyle creep means you're creating space for saving, investing, and flexibility.

You can handle an unexpected expense without panic

Emergencies are inevitable, but panic doesn't have to be. If your car breaks down or your pet needs urgent care and you can cover it without reaching for high-interest credit, that's financial health in action.

A $1,000 unexpected bill is enough to derail nearly half of U.S. adults, according to recent surveys. Being able to absorb one (even partially) means you've built a cushion. Keep nurturing that buffer so one bad week never turns into a lasting setback.

Bottom line

Even if you don't feel wealthy, hitting milestones like keeping credit card debt low, saving for emergencies, and contributing to retirement puts you ahead of many Americans financially. These are clear indicators you're building resilience.

Still, even financially healthy people can slip into money-wasting habits, like paying unnecessary subscription fees or letting bank rewards go unclaimed. Tightening up those small leaks can help you keep more cash in your wallet and make the good habits you've already built go even further.

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