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

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If you’re feeling iffy about the state of your finances, you’re not alone. A 2024 Gallup poll found that 36% of Americans consider their financial situation “only fair,” while 17% rate it as “poor.”

But while you may be inclined to view your financial situation in a negative light, you may actually be in a stronger place than you think. Here are a few signs you’re financially healthy despite experiencing the occasional bout of financial stress.

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).

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.

Read more: 5 ways to boost your net worth now — easily up your money game without altering your day-to-day life

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

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