Current:Home > ScamsHere's how much Americans say they need to earn to feel financially secure -Streamline Finance
Here's how much Americans say they need to earn to feel financially secure
SignalHub Quantitative Think Tank Center View
Date:2025-04-06 23:10:45
Americans have a specific annual income in mind for what it would take to feel financially secure, according to a new survey from Bankrate. The magic number? $186,000 per year.
Currently, only 6% of U.S. adults make that amount or more, Bankrate said. The median family income falls between $51,500 and $86,000, according to the latest federal data. Achieving financial security means being able to pay your bills while having enough left over to make some discretionary purchases and put money away for the future, the personal finance site said.
Many inflation-weary consumers continue to experience financial stress, with a new Federal Reserve Bank of Philadelphia survey finding that 35% of Americans are worried about making ends meet, up from 29% a year earlier.
That gap between what the typical American earns and what they aspire to earn means "Americans have their eyes set on this high income, and they think they need to make more money even if they know it's unrealistic they'll never make that amount," Sarah Foster, an analyst at Bankrate, told CBS MoneyWatch.
Earning more remains at the top of many Americans' priorities as the price of shelter, food and medical care remain stubbornly high after two years of rising inflation. To cope, consumers are cutting spending on dining out, entertainment and travel, a TransUnion study found.
Bankrate's survey of 2,400 Americans in mid-May found that younger generations are more optimistic about eventually earning enough to live comfortably.
What does it take to be rich?
Americans have an even higher yardstick for feeling rich. The survey found they believe they would need to earn $520,000 a year to qualify as wealthy — up from their $483,000 response during the same survey last year.
The rising cost of consumer goods is a chief reason for the increase, Foster said. "Inflation is the centerpiece to this narrative," Foster said. "Americans know where the bar is for living comfortably, but every time they get there, the cost of living goes up and the bar grows further and further away."
Another recent report found that adults in major U.S. cities need to earn $96,500 annually before taxes to afford basic necessities and savings, while a two-parent household with two children needs a combined $235,000 for a comfortable life.
Interestingly, 2023 research from the late Nobel Prize-winning economist Daniel Kahneman and colleagues suggests that happiness does increase with income, up to about $500,000 – roughly the income Americans told Bankrate would make them feel rich.
- In:
- Finance
Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.
TwitterveryGood! (871)
Related
- A New York Appellate Court Rejects a Broad Application of the State’s Green Amendment
- This week on Sunday Morning (June 16)
- Report uncovering biased policing in Phoenix prompts gathering in support of the victims
- Stanley Cup Final Game 3 recap, winners, losers as Panthers take 3-0 lead on Oilers
- North Carolina justices rule for restaurants in COVID
- Report uncovering biased policing in Phoenix prompts gathering in support of the victims
- RFK Jr. offers foreign policy views on Ukraine, Israel, vows to halve military spending
- Nonprofit offers Indian women cash, other assistance to deal with effects of extreme heat
- Skins Game to make return to Thanksgiving week with a modern look
- Sandy Hook families want to seize Alex Jones' social media accounts
Ranking
- Oklahoma parole board recommends governor spare the life of man on death row
- Virginia's Lake Anna being tested after swimmers report E. coli infections, hospitalizations
- Her dying husband worried she’d have money troubles. Then she won the lottery
- Taylor Swift performs 'I Can See You' in Liverpool where she shot the music video
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- NBA Finals Game 4 Boston Celtics vs. Dallas Mavericks: Predictions, betting odds
- Tyson Foods suspends executive John R. Tyson after DWI arrest in Arkansas
- The RNC is launching a massive effort to monitor voting. Critics say it threatens to undermine trust
Recommendation
NCAA hands former Michigan coach Jim Harbaugh a 4-year show cause order for recruiting violations
Kansas governor and GOP leaders say they have a deal on tax cuts to end 2 years of stalemate
Donald Trump’s 78th birthday becomes a show of loyalty for his fans and fellow Republicans
‘Tis the season for swimming and bacteria alerts in lakes, rivers
Hidden Home Gems From Kohl's That Will Give Your Space a Stylish Refresh for Less
Nayeon of TWICE on her comeback, second album: 'I wanted to show a new and fresher side'
Conor McGregor fight vs. Michael Chandler off UFC 303 card, Dana White announces
Report uncovering biased policing in Phoenix prompts gathering in support of the victims