Is This the Salary You Need To Stop Worrying About Money?
Written by
Adam Palasciano
Edited by
Jasmine Browley
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There’s no argument that everything costs more these days. Rising prices and continued inflation are driving many Americans to worry about their finances and many can’t even afford a minor emergency.
In fact, according to a recent Empower survey, 37% of Americans can’t afford an emergency expense over $400 and 21% have zero emergency savings. Not having to worry about money daily would be great, but this is certainly not the case for many Americans today.
Here’s how much money Americans think they need to earn annually to stop worrying about money.
Americans Think $100K+ Is the Sweet Spot
According to Edelman Financial Engines’ 2024 Everyday Wealth In America study based on more than 3,000 respondents, here are some key insights highlighting Americans’ financial perceptions today:
- 58% of Americans think earning at least $100,000 annually is necessary to avoid worrying about everyday expenses. One-quarter of respondents believe it takes an annual salary of at least $200,000.
- 49% of Americans carry credit card debt. Of those who do, the median amount of debt held is $7,000. At the same time, about two-fifths of this group (21%) have more than $20,000 credit card debt.
- 36% of U.S. homeowners (and 49% of those under age 50) feel like they can’t move houses due to continued high interest rates.
- 22% of Americans have made financial decisions before or in response to an election.
Isabel Barrow, director of financial planning at Edelman explained to CBS MoneyWatch that “we are noticing many Americans, even those who are affluent, aren’t feeling very confident about their financial situation.”
Of those Americans polled, continued inflation, high interest rates and political instability were some of the reasons cited for their financial worries. In today’s economy, the general perception indicates that a six-figure income may no longer be the gold standard but rather just what you need to pay the bills.
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