A recent survey conducted by Bankrate reveals that Americans believe they need to earn around $233,000 per year to feel financially secure, significantly higher than the current median household income of approximately $70,000. “That’s showing us that Americans feel like they’re being priced out,” said Bankrate analyst Sarah Foster. The survey, released on Thursday, also indicated that Americans think they would need to earn nearly half a million dollars annually to feel rich or attain financial freedom.
Despite personal incomes rising about 70% over the past two decades, the cost of living has increased substantially more, with home prices up 134%, gas costs 139% higher, and grocery staples at least 95% more expensive. As a result, Americans are more than twice as likely to feel financially insecure than secure. High inflation emerged as the main factor driving this insecurity. However, approximately a quarter of Americans reported feeling entirely financially secure, while an equal proportion doubted they would ever achieve complete financial security.
Foster offered advice to boost financial security, emphasizing focus on controllable aspects such as consistent savings, even in small amounts, keeping long-term goals in mind, and setting realistic salary expectations. She also noted that despite the high figures, financial security should be viewed as a continuum and not a single destination. “It’s more of a journey, so it kind of starts with you being able to afford your everyday expenses… and hopefully treat yourself every now and then,” she explained.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].