With Americans still feeling the pinch of higher prices, many believe they would have to take home at least $100,000 a year to not fret about everyday living expenses, newly-released data showed.
Edelman Financial Engines on Monday said 58% of Americans said their concerns about day-to-day expenses would be lessened if they received that level of yearly income.
Higher percentages of Americans in their 30s and 40s said they had to make at least $100,000 compared to older age groups, the company found. For those in their 30s, the share was 71%, while 75% in their 40s cited that figure.
Those findings were part of the company’s latest “Everyday Wealth in America” study that surveyed 3,000 Americans 30 years or older, including 1,500 “affluent” individuals aged 45-70, online between June 12-July 3.
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Meanwhile, for one-fourth of all Americans, $200,000 was the yearly salary necessary to banish stress about everyday expenses, Edelman Financial Engines reported.
The data comes as Americans have been contending with high inflation and costs of living for quite some time.
In August, inflation measured by the Consumer Price Index went up 0.2% month-over-month and 2.5% year-over-year in August, which the Bureau of Labor Statistics called the “smallest 12-month increase since February 2021,” FOX Business previously reported.
The costs of food and shelter have been pain points for U.S. consumers. The prices for food in August remained 2.1% higher than a year ago, while shelter was up 5.2% in the same time frame, according to the CPI.
Edelman Financial Engines’ wide-ranging study also showed just 12% of Americans view themselves as wealthy.
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Nearly two-thirds of Americans that don’t put themselves within that category indicated that having $1 million would make them feel wealthy, according to the data.
About 44% of Americans “see credit cards (versus other types of debt) as the biggest threat to their ability to build wealth,” per the study.
Edelman Financial Engines’ Amin Dabit said in a statement accompanying the newly-released study that Americans “aren’t feeling overly confident about the state of their finances.”
“Part of these worries stem from external pressures, like inflation or a turbulent election economy, while some are individual pressures, such as family responsibilities and mounting credit card debt,” he said. “Through this research, we’re learning more about how these different factors all come together to impact the way Americans perceive and achieve their wealth.”
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Overall, the economy and personal finances were major drivers of anxiety for Americans, with 49% calling the former their “biggest source” and 48% saying the latter, Edelman Financial Engines found. About 37% said politics.
Building emergency savings, growing wealth and saving for retirement were among the “top 3” financial goals reported by Americans this year.
Eric Revell contributed to this report.
