Are You Doing Better Financially Than You Think?

Social media can often make us feel like we're financially behind. 

Many people worry about their financial situation often feeling as though they are not doing well enough or are "behind" the average person. The reality is, we are often doing better than we think.

Check in on your financial health with these 5 financial statistics below. I hope these statistics remind you that you are doing better than you think or give you some comfort that you are not alone. 

1. You have $5000 or more in savings. 

Savings is the foundation to financial wellness. The Motley Fool Ascent survey found that 71% of people have $5000 or less in savings, with 41% having $500 or less set aside. 

If you don't have $5000, but you have started setting aside funds in an emergency savings account, you are winning. Stay the course and keep building your financial safety net!

2. You have $4k or less in credit card debt. 

If you carry credit card debt, you're far from alone. 

According to Transunion, the average credit card balance for Canadians at the end of 2023 was $4265. 

Make sure you have a consistent plan to take the outstanding credit card debt that you do have. Paying off high interest debt is crucial. 

3. Not a homeowner & feeling behind?

Don't stress. 

The average age of a first time home buyer in Canada is 36 years old. 

Data shows that 31 percent of first-time homebuyers have received financial help from family members so far in 2024 with the average amount of money they received rising to $115,000. 

If you are independently saving for your first home, it is going to take a little longer. Keep it up and don't get down on yourself. And make sure you are taking advantage of the First Home Savings Account (FHSA) in Canada. 

And remember if you don't want to be a homeowner, that is perfectly okay.  A home is not the only way to build wealth. 

4. You don't have a car payment.

Paying interest on a depreciating asset that becomes less and less valuable over time is not recommended. 

The average car loan interest rate in Canada according to Statistics since 2023 has been 8%. 

If you have a used or new car that you bought without a loan or financing, you are doing well!

If you don't have a car, you are in a unique position to save or invest the amount that you save by not spending on fuel, insurance and car payments. Take advantage!

If you are financing with a better rate than 8%, that is a win too!

5. You have invested your first $100. 

Consistent investments are another key indicator you're better than you think financially, no matter how small. 

According to recent studies, 48% of working Canadians put at least some money into investments, however 32% of working Canadians have never set aside money for retirement (saving or investing). 

The earlier you start investing in your future, the better. 

You may be doing better than you think, but if not, you are not alone. 

Many people are doing better financially than they think. By building an emergency fund, paying down debt, saving for the future, tracking your net worth, and living within your means, you can gain a clearer picture of your financial health.

Remember, financial planning is a journey. Celebrate your progress and keep working towards your goals. Dream big, save often and come up with a financial plan that works for you and makes you feel good.