A 2024 Bank of America survey found that about 25% of Americans live paycheck to paycheck with no savings whatsoever. A separate AARP survey found that 20% of Americans ages 50 and over have no money saved for retirement yet.
So if you’re 50 years old with $3 million saved, you’re way ahead of the game. And if you live in a $1 million home, you’re in a better position than the millions of Americans who can’t afford to own a home, period.
Now you’d think that someone in that situation would be feeling pretty darn good about their prospects. But what if that’s not the case at all?
What if instead of feeling great about all you’ve accomplished, you’re instead struggling with feelings of self-doubt? If that’s the case, it’s time to get to the root of the problem — and do your best to snap out of it.
Stop comparing yourself to others
If you’re feeling iffy about your financial status because you have friends who own $2 million homes and have more savings than you do, stop making those comparisons. They’re not going to do you any good, so there’s no point in making yourself miserable.
You don’t know what path your peers took to build more wealth than you. But maybe your neighbor down the road with a $1.8 million home and a $4 million IRA got a $2 million inheritance, and you got nothing because your family didn’t have money. How’s that a fair comparison?
Similarly, maybe your old college roommate has a home worth twice as much as yours and an extra $2 million in the bank. But if they missed their kids’ childhood because they were constantly working and you were around for all of those softball games and dance recitals, then you’re talking about two very different worlds.
All told, making comparisons is only going to cause you to feel bad about where you’re at if you’re surrounded by people who have more. So try to focus on the fantastic things you’ve accomplished. And recognize that if you already have $3 million saved by age 50, you could easily double it by age 65 — even if you don’t contribute another dollar to your long-term savings.
Work with a professional to meet your goals
Maybe you’re not the type to compare yourself to others, but rather, the reason behind your self-debt is a classic lack of confidence. In that case, one thing you may want to do is sit down with a financial advisor for a reality check.
A financial advisor can review your portfolio and savings and tell you if you’re on track to meet your goals or not. They can also help you build on your existing savings to secure your dream retirement, or to work toward whatever other goals you have in mind.
Most importantly, a financial advisor isn’t going to judge you for having anxiety about where you’re at — even though you’re in a great place. If you grew up in a household where there was never enough money, it’s easy to apply that “never enough” sentiment to your situation today.
But talking to a professional might ease your mind and allow you to feel good about what you’ve achieved. And that’s a feeling you absolutely deserve.
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