Americans Believe Earning Nearly $500K is the Threshold to Feeling ‘Rich’
You’re not the only one who worries about how you’ll pay your bills each month. A recent Bankrate poll found that 72% of Americans are uneasy about their financial situation.
However, exactly how much would it require to feel at ease? Or even wealthy? According to the same survey, Americans need to make an average of $233,000 yearly to feel comfortable in their finances and $483,000 annually to feel wealthy.
To feel comfortable, much alone wealthy, the typical full-time, year-round employee earning the median income of $75,203 would need to triple their pay.
This is not a huge surprise given how much more expensive living expenses have become due to the rising cost of products and services. The majority of Americans (63%) who reported feeling uneasy about their financial situation cited high inflation as the reason.
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What Does Being Wealthy Entail?
Depending upon the place you live and your financial requirements, being wealthy can look very different.
A single person making $250,000 a year in Scranton, Pennsylvania, which has a less expensive housing market, will likely feel wealthier than a family of four making $250,000 in San Francisco.
But in many ways, Elliot J. Pepper, a certified financial planner and director of tax services at Northbrook Financial, says, the concept of wealth and financial freedom is a deeply personal one.
Rather than comparing yourself to others, think about your own objectives, principles, and environment.
Does Your Income Affect the Amount that You Need to be Considered Wealthy?
If you’re currently earning more money, you probably have higher expectations for the amount of money you’ll need to feel wealthy.
According to a study by Bankrate, a person making $100,000 or more annually today would need to make an average of $600,000 to feel wealthy. One in four members of the six-figure club claimed that in order to feel wealthy, they would need to earn at least $1 million.
Spending increases in direct proportion to income.
The majority of respondents stated that they would spend more on travel, home improvements, charitable giving, and fine dining if they received a wage boost.
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Source: New York Post