I don’t think you can tell without looking into their finances. For some, a big house and a couple of new cars signal wealth, but to me, they’re more likely signs of debt and poor financial judgment.
Personally, I live in a small, 75-year-old house, drive a 17-year-old pickup truck, and walk around in old clothes that were never in fashion to begin with. Yet I know for certain that my financial situation is far better than that of the average person in my country. You’d never be able to gauge my true wealth from my appearance or spending habits.
This is exactly it. If you can avoid the temptation to spend more when your fortunes rise, it makes a big difference in your finances.
May I ask what you spend your money on that nobody notices?
In my experience the mix out of everything gives me a feeling on how much they have. A big indicator usually are vacations. If you have money to burn to go on a expensive vacation you probably don’t have money problems.
OP already replied, but the answer was super brief: they invest in their future. I don’t know what that looks like for them, but for us it means funding an emergency fund plus 401ks, IRAs, and college funds for our kids. Even if you’re not able to set aside a ton, the more money you can invest when you’re young the better off you’ll be thanks to the power of compounding.
If you’re lucky enough to advance your career put the extra money into your emergency fund and/or investments - you won’t miss it.
If you’re in debt, try to target one loan to pay off. Once you pay off that single loan keep paying that amount towards your next loan. Repeat until necessary. For example, after we paid off our car we put what used to be our old payment as extra $$ for our mortgage.
Well assuming you’re not “financially successful” and talking about wealth classes that make their money from working, then by comparison they don’t do anything differently when their paycheck arrives, or even know what day exactly they get their paycheck. If someone is living above their means or otherwise financially at risk, they’re paying close attention to the numbers in their accounts. More subtly, they might say something like “I just got paid, let’s go out for dinner” or “I’ll buy those tickets on Tuesday” when there’s no reason they shouldn’t just get them now for whatever it is.
People have different priorities. Someone may have just bought a $500 designer shirt, while I bought a $500 comic book. Hard to tell by looking.
They seem to be at exactly the same level. But they have more savings. At least, given the average savings most people have, that would be enough.
It’s hard to tell now days because people are into conspicuous consumption. Like you may drive an Acura and they drive a MBZ right? But you may Max out your retirement and savings and they’re saving nothing. I think until you see where their kids go to college you may not be able to easily tell.
You’re the same age but they’re retired.
I think they’d be a lot more than slightly more successful than me.
It depends a lot on your age, and how much more modestly you’re willing to live, and whether you plan on leaving anything to anyone.
Having kids is a huge factor. Not only does it destroy 2 decades of potential savings, plus another potential decade’s worth it you put them through college for even 4 years - money which could supplement your retirement income; but also most parents want to leave something to their spawn, and are unwilling to burn down whatever capital investments to $0.
Childless couples (and the perpetually single) have many more options for early retirement.
