According to Average Americans, Here’s How Much You Should Earn to Stop Worrying About Money

Financial anxiety is a common concern for many Americans. According to recent surveys, people have a specific income threshold in mind that could alleviate their money-related worries. Let’s dive into the numbers and reasons behind what most Americans believe would help them feel more financially secure.

The Magic Number: $100,000 a Year

According to a report from Edelman Financial Engines, almost 6 in 10 Americans believe they would need to earn at least $100,000 annually to stop worrying about their money.¹ For many, this amount represents a sense of stability that could help cover daily expenses without constant financial stress.

And while $100,000 might seem like a significant income, half of those surveyed believed that even more—$200,000 or higher—would be necessary to truly feel comfortable.² As the cost of living has risen, so has the income required to maintain a comfortable lifestyle, especially in major metropolitan areas.

Read More: People Confused Over Identifying Strange ‘Glass Dumbbell’

What Does Financial Security Mean?

Financial security means different things to different people, but a common theme is the ability to manage daily expenses, save for retirement, and handle emergencies without constant worry. Isabel Barrow from Edelman Financial Engines notes, “Many Americans, even those who are affluent, aren’t feeling very confident about their financial situation”.

The Role of Inflation in Financial Anxiety

One of the driving forces behind this shift in mindset is the sharp rise in inflation over the past few years. Inflation has significantly impacted the cost of living, from groceries to housing, making Americans feel like their money doesn’t go as far as it used to. What is deemed as today’s “living wage” isn’t nearly as powerful as it was twenty years ago. Even those with six-figure incomes might struggle with the higher costs of essentials.

Financial Worries Are Not Just About the Present

A separate survey by Capital One found that 77% of Americans feel anxious about their financial situation, with many worried about their future.³ Top concerns include not having enough money for retirement, keeping up with the rising cost of living, and managing debt. These long-term concerns are why so many are aiming for higher incomes as a safety net.

Retirement Concerns

The Edelman report also highlights that many Americans are worried about money for retirement, with most expecting to stop working around age 67 or 68. However, one-third of respondents don’t believe they’ll ever be able to fully retire. This reflects the increasing pressure to save enough for a retirement that could span decades.

Read More: The ‘Aluminum Foil Door Handle Hack’: Does It Actually Work?

Only a Small Percentage Feel Wealthy

Interestingly, only 12% of Americans consider themselves wealthy, despite a soaring stock market and wage increases. Even among those with over $2 million in assets, fewer than half feel truly rich. The gap between income and the cost of living, combined with the pressures of saving for the future, likely contributes to this mindset.

How to Tackle Financial Stress

Financial experts recommend creating big-picture goals and taking actionable steps toward managing financial stress. Andy Navarrete from Capital One suggests focusing on long-term, positive goals, such as saving for a house or retirement, rather than getting caught up in day-to-day worries.

Additionally, sharing your financial goals with others can also reduce stress. According to Navarrete, having a support network, whether through friends, family, or financial advisors, makes it easier to stick to long-term plans and avoid financial missteps.

Limit Regret and Take Positive Actions

Mistakes happen, but it’s important to limit regret and take actions to prevent similar situations from occurring again. Whether it’s cutting back on spending, paying down debt, or setting up automatic savings, small steps can alleviate financial anxiety.

Is There a Perfect Income?

While there isn’t a one-size-fits-all income that guarantees financial peace, it’s clear that many Americans feel a six-figure salary is the minimum to stop worrying about money. However, focusing on financial literacy, long-term goals, and actionable steps can help, regardless of your income level.

Conclusion

While $100,000 or more may seem like the key to stopping any worry about money, the reality is that managing finances wisely, setting goals, and creating a support system can be just as important. As inflation and other financial pressures continue, understanding your own needs and planning accordingly can help you feel more in control.

Read More: 5 Dangerous Foods You Should Never Cook in An Air Fryer