This US senator says financial literacy is a crucial 'pathway to the American Dream' — here are 4 signs you have healthy money habits even if you don't feel like it

Moneywise
This US senator says financial literacy is a crucial 'pathway to the American Dream' — here are 4 signs you have healthy money habits even if you don't feel like it
This US senator says financial literacy is a crucial 'pathway to the American Dream' — here are 4 signs you have healthy money habits even if you don't feel like it

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U.S. Senators Tim Scott and Jack Reed made an announcement on Tuesday to recognize April as Financial Literacy Month and highlight the importance of financial education and building productive money habits for all Americans.

Sen. Tim Scott, who led the resolution, emphasized the pivotal role of financial literacy in a government press release as “the cornerstone to achieving financial independence and opening the pathway to the American Dream.”

Not sure about your own financial health? A popular video by YouTuber and former financial advisor Humphrey Yang identified seven signs that you’re actually doing well with your money, even if you might currently feel like you’re behind where you want to be.

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The video isn’t set up as a pass-fail test or a prelude to a guilt trip. “... if they don’t apply to you, we can talk about how you can quickly achieve financial wellbeing,” he says in the video.

If you’re wondering whether your financial habits are helping you make healthy money moves, here are four of Yang’s signs that suggest you’re actually on the right track.

4. You keep your debt manageable

Consumer debt can put serious dents in the finances of otherwise savvy adults.Yang adds, “... but if you do have some debt, if you’re able to manage those payments every single month, and not really miss any payments, that shows me that you’re doing well financially.”

If you have multiple debts to pay every month and you’re finding them hard to stay on top of them, consider a loan to to help you consolidate them. Consolidating your debts through a personal loan from Credible could help you pay off your debt faster and at a better interest rate.

Credible’s online marketplace of vetted lenders simplifies the task of shopping around for a loan to consolidate your debt so you don’t have to keep paying multiple lenders every month at different interest rates.

Credible will show you rates from top lenders with just a few clicks, then you can easily compare your options and choose the loan that best suits your needs.

3. You live within your means

While it’s not exactly glamorous to spend less than you make, “this is one of the number one ways to increase your wealth over time,” Yang says in his video, because it frees up more money for investing and paying down debt. Smart spending also gives you the flexibility and freedom to entertain choices such as a career change and retiring early.

Monarch Money is a budgeting app that makes checking in on your finances easy to ensure you’re staying on track with your money and your various financial goals like saving for a home or your next vacation.

You can set and track your money goals, enjoy access to personalized advice and keep track of your net worth, all in one app. To get started, all you need to do is download the app, make an account and start your free trial.

Read more: Generating 'passive income' through real estate is the biggest myth in investing —but here's one surefire way to do it without breaking the bank

2. You’re able to meet your spending and savings targets

The 2024 Financial Well-Being Report by Assurance revealed that American households earning below the U.S. median income of $75,000 encounter distinct challenges in achieving financial stability.

Yang suggests managing your finances effectively involves setting clear financial goals, maintaining a budget, and tracking expenses. For instance, if you’re making $75,000 annually and spending $60,000, then you should be “making a plan for that extra $15K."

One way to meet those targets is to leverage your everyday transactions to help bolster your savings. Acorns — an automated investing app — can help you do just that..

By rounding up each purchase and investing your spare change into a diversified portfolio of ETFs, Acorns can help you effortlessly grow your money over timne. To get started is simple: sign up and link your account and continue spending as usual as Acorns puts your money to work.

1. You build your net worth steadily

People doing well financially see consistent growth in their wealth over time as investments build up and compound. According to Yang, fluctuations in net worth are normal, especially with investments, as long as the overall trend is upwards.

There’s nothing wrong with starting smal and with platforms like Arrived you can facilitate steady growth of your net worth through accessible real estate investments.

Backed by world-class investors like billionaire Jeff Bezos, Arrived allows individuals to invest in the real estate market, offering shares in rental and vacation properties. With Arrived, you can start investing with as little as $100 in properties vetted for their appreciation and income potential.

Another way you can steadily build your net worth is by diversifying your portfolio to include a variety of different assets. While you may not have a huge net worth yet, through the online platform Masterworks you can invest in fine art like the ultra-rich.

You purchase shares of iconic artwork without the price tag associated with buying art at auctions. To get started, all you have to do is sign up and start investing in paintings by iconic artists like Banksy and Basquiat.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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