Here are 5 signs you’re financially healthy in America even if you don't feel like it — how many do you show?

1. You have a fully loaded emergency fund

The Federal Reserve found that in 2023, 37% of Americans could not cover an unplanned $400 expense with savings. If you have an emergency fund, you’re in good shape to tackle an unexpected bill or a period of unemployment, which puts you in a great place overall.

Financial experts generally recommend building an emergency fund to cover three to six months of expenses. If you’re the only earner in your household, the higher end of that range may be most appropriate for you. If you have a spouse or partner who contributes financially, you may be all set with a three-month emergency fund, since it’s less likely for both of you to lose your jobs at the same time (though if you work in the same field or for the same employer, a six-month emergency fund may be better).

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2. You can handle an increase in your monthly bills

It’s not an uncommon thing for living costs to rise. If there's room in your budget to handle an increase in rent, or a higher cable bill once your introductory rate runs out, then it means you’re in a good spot. A good rule of thumb for a budget is the 50-30-20 — you put 50% of your money toward needs, 30% toward wants, and 20% toward savings.

Being able to manage an uptick in costs means you’re not already maxing out your paycheck every month, but rather, are living below your means. So while you may not be happy about an increase in your essential costs, the mere fact that you can handle it without having to move, cancel a service, or dip into your savings means you’re doing a good job.

3. Your housing costs don't exceed 30% of your pay

Housing may be your largest expense. And because of that, it’s important not to get in over your head.

If your housing costs, including your mortgage payment, property taxes, HOA fees, and homeowners insurance premiums, amount to 30% of your monthly paycheck or less, it’s a sign that you’re not overextended. And that means you’re less likely to fall behind on housing payments. It also means you’re less likely to fall behind on non-housing expenses due to your home monopolizing too much of your income.

Kiss your credit card debt goodbye

Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.

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4. You don't owe an excessive amount of credit card debt

Experian puts the average amount of U.S. credit card debt at $6,699 as of the second quarter of 2024. If your credit card balance is significantly lower, or if, better yet, you pay off your balance every month, it’s a sign that you’re doing well financially.

Credit cards are great for building your credit score and rewards, but make sure you’re using yours responsibly, especially since average interest rates are near record high levels. Credit card debt is usually considered “bad debt” that can hurt your financial future.

5. You have a solid retirement nest egg for your age

According to Fidelity, your retirement savings should be at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. This assumes that more than 50% of your portfolio is in stocks over your lifetime and that you retire at 67.

Fidelity mentions that these are “aspirational targets” so if you’re even close to achieving them with your IRA or 401(k) balance, it probably means you’re setting yourself up for a secure retirement. And that’s a big part of your financial health.

The reality is households of Americans ages 35 to 44 had a median retirement account balance of $45,000 in 2022, per the Federal Reserve. For households of Americans ages 45 to 54, it was $115,000. Knowing these figures may help you understand how you’re doing in comparison and make a plan for the future.

Even if you don’t have more money saved for retirement than the typical person in your age range, if you have a decent-sized nest egg, period, you’re in a better place than a lot of people. A 2024 GOBankingRates report found that 28% of Americans have no money saved for their senior years.