Most Americans Are Not Even Halfway to ‘Financial Happiness’ — 4 Reasons Why and What To Do About It
Written by
Vance Cariaga
Edited by
Zuri Anderson
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Americans have been on a wild financial ride so far in 2025, with the stock markets bouncing up and down and economists sounding the alarm about a possible recession.
Given all the volatility, it’s perhaps not surprising that most Americans have a lukewarm view of their overall financial situation. On average, they rate their happiness with their overall personal finances a 4.97 out of 10, according to a new survey results from Empower. This means most Americans aren’t even halfway to financial happiness.
Based on those results, here are four reasons Americans are not financially happy — and what they can do about it.
Inadequate Income
Out of 2,208 U.S. adults surveyed, more than one-third (35%) of respondents said one of the biggest roadblocks to achieving financial happiness is income. They provided an average rating of 4.65 out of 10 on salary, meaning most don’t think they are even halfway to their ideal income.
In terms of financial challenges, an inadequate income can seem like one of the toughest. However, there are a few ways to boost your income, including asking for a raise, taking on a side hustle or finding a better-paying job.
It might also be helpful to look for positive macro trends. For example, average wage growth in the U.S. has outpaced inflation since February of 2023, according to Statista. Meanwhile, the U.S. Bureau of Labor Statistics reported that median weekly earnings for full-time workers reached $1,194 during the 2025 first quarter — up 4.8% from the previous year and above the inflation rate of 2.7%
High Expenses
Another major roadblock to achieving financial happiness is the feeling that “expenses are adding up” — a problem that was also cited by 35% of Empower survey respondents.
The best way to deal with high expenses is to find areas to cut back — and many Americans are doing just that. About one-third (32%) of the survey respondents said they’re cutting their discretionary spending and spending less on non-essential items. The same percentage said they’re switching to cheaper brands.
Economic Uncertainty
Seven in 10 survey respondents said the economy is “too uncertain” to make big money moves.
“What we’re seeing across these scores is more than economic uncertainty — it reflects what we’re calling a ‘Great Decide,'” Rebecca Rickert, Empower’s head of communications and consumer insights, said in a press release. “People find themselves at financial crossroads with important choices about saving, investing and, critically, where to turn for advice to get where they want to go.”
If you’re worried about the economy, a good first step is to adopt more frugal habits, such as establishing “no-buy” days and building up your emergency fund. You should also assess your financial situation to determine where there is room for improvement in terms of spending, savings and debt.
Inability To Save
Nearly one-third (31%) of Americans believe they’re not in a place where they can save money, according to Empower. As a whole, the survey respondents rated their satisfaction with retirement savings at an average of only 4.54 out of 10 — the lowest rating among all categories.
One way to save more money is to reduce your spending and put whatever is left over into your savings accounts. Earning additional income can also boost your savings. And if you haven’t done so already, put your money into a high-yield savings account to ensure the best return on your deposits.
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