How much do you need to feel financially secure? And to feel rich?
More than 2,500 American adults said they would need to earn an average of $233,000 per year to feel financially secure and $483,000 annually to feel rich or achieve financial freedom, according to a new survey by Bankrate.
For comparison, the average salary of a full-time American worker throughout 2021 was $56,473, according to the U.S. Census Bureau.
There is no objective or “correct” answer to these questions. What it takes for a person to feel financially comfortable can depend greatly on their childhood experiences, how much they perceive those around them to have, their current financial situation, the cost of living in their area, and what is most important to them in life.
Additionally, a high income is not necessarily a guarantee of financial security if you live paycheck to paycheck, do not save much, and carry high debts.
In the Bankrate survey, 72% of respondents said they currently do not feel financially secure, although 46% said they hope to feel that way someday.
The reasons cited for not feeling secure today include high inflation (63%); the economic environment (48%); insufficient emergency savings (42%); insufficient retirement savings (41%); rising interest rates (36%); low pay or low career mobility (33%); high debt (26%); and housing affordability (25%).