Finance

What Yearly Wage Would Give A Sense Of Financial Security For Americans?

According to a recent Bankrate survey, Americans estimate they would need to make an average of $233,000 per year to feel financially secure and $483,000 per year to feel wealthy.

Both figures are much greater than the estimated $75,000 average annual salary of a full-time worker in 2021, as reported by the Census Bureau. Only 28% of Americans, compared to 72% who say they are not, claim to be entirely financially secure, according to the survey.

Financially Not Secure

Americans don’t feel financially secure for a variety of reasons, including the present economic situation. According to the poll, 63% of respondents claimed excessive inflation prevents them from having financial security or comfort, while 48% blamed a more generalised economic situation and 36% mentioned rising interest rates. Another aspect of Americans’ financial stability, or lack thereof, is their personal finances.

The survey found that nearly 2 in 5 participants attributed their lack of financial security to a lack of emergency and retirement savings. Another 26% cited substantial or ongoing debt, while 25% blamed housing affordability or living in a rental rather than an owned home.

Isn’t There Always Greener Grass?

Source: ABC News

Another finding from the survey is that Americans require more money each year to be both comfortable and wealthy. Those with annual incomes under $50,000 claim that $184,000 would put them in a comfortable or secure financial position.

Americans who already earn $100,000 or more per year claim that they would need to make roughly $341,000 per year in order to feel financially secure.

Why do people who earn more money require more money in order to feel safe financially? The survey suggests that people may be modifying their level of living in tandem with their income.

When asked which category of expenditure they would increase if their wages increased, 32% of Americans responded that they would go on vacation or travel, and 30% that they would make house improvements.

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