Am I doing well Financially?

In an age of constant comparison, it’s easy to feel financially behind—even when the numbers say otherwise. You might earn a solid salary, pay your bills on time, and save a little each month, yet still wonder: Am I doing well financially? The answer depends less on your income and more on your perspective.

Why Financial Satisfaction Is Relative

We don’t measure our financial success in isolation. We measure it against others - friends, colleagues, influencers, even strangers online. Studies show that people earning £40,000 a year feel dissatisfied if their peers earn £50,000, but content if their peers earn £30,000. The same income feels different depending on who you compare it to.

This is the trap of positional comparison. When our social circles were limited to our local communities, it was easier to feel successful. Today, the internet exposes us to the lifestyles of the ultra-wealthy, making even high earners feel average. But from a global perspective, most people in developed countries are among the top earners on the planet.

The Reality Behind Savings and Spending

Financial security isn’t just about how much you earn - it’s about how much you keep. And the truth is, most people aren’t saving much:

• 15% of UK adults have no savings

• 1 in 3 have less than £1,500 saved

• 40% couldn’t cover a month’s expenses without income

• UK average savings rate: ~5% of income

• Nearly half of Americans earning over $100K live paycheck to paycheck

These figures reveal a sobering truth: many people, regardless of income, struggle to save. Rising living costs, shrinking real wages, and lifestyle inflation all play a role. So if you’re saving even a modest amount each month, you’re already ahead of the curve.

Debt and the Cost of Living

Let’s look at the average UK household:

• Monthly living costs: £2,907

• Annual total: £34,884

• Median disposable income: £31,400

That gap explains why so many households rely on credit to get by. In fact:

• 1 in 4 Brits borrow to pay for essentials like food and energy

• 1 in 3 households live above their means

If you’re managing to cover your expenses without borrowing, you’re doing well—especially in today’s economic climate.

The Problem with Competing

Financial comparison is a game with no finish line. There’s always someone richer, flashier, or more successful. And the more people you compare yourself to, the less effective you become at managing your own goals - a phenomenon known as the N-effect. When the competitive arena becomes too large, motivation drops and dissatisfaction rises.

External rewards - like status or recognition - can motivate us temporarily. But lasting financial wellness comes from intrinsic goals: the ones that matter to you personally.

Define Your Own Financial Success

Instead of chasing vague notions of wealth, define what “doing well” means for you. That might include:

• Paying bills on time without borrowing

• Saving consistently—even just 5% of your income

• Building an emergency fund

• Reducing or eliminating consumer debt

• Investing for long-term security

• Supporting your family or planning for retirement

  
  

These goals are grounded, achievable, and meaningful. They’re not about winning—they’re about enough.

So… Are You Doing Well?

If you’re saving anything, avoiding debt, and living within your means, then yes - you’re doing well financially. You don’t need a Bentley or a six-figure salary to prove it. You just need clarity, consistency, and a focus on what truly matters to you.

Forget the noise. Define your own mountain. And climb it at your own pace.