What Americans say they need to earn to feel rich, or even just financially secure

It's not what you make, but what you do with what you make. I heard that over & over growing up.

I've seen stories over the years about people who said winning the lottery ruined their life. I personally don't think it was the money from the lottery, but the choices they made. Most likely, money or not, they would still have made poor decisions.

One day I was talking to a friends daughter. We ended up talking about everyday household finances. I explained to her simple things we did budgeting & she was totally amazed about what I said. I didn't think it was anything out of the ordinary, but she said "I wish I would have been taught those things growing up." Later I found out she was deep in debt following the example her Mom had set. I knew my friend had "issues", but I didn't ever think about her kid following suit. :(
 

Alligatorob said:
More than 2,500 US adults said they would need to earn, on average, $233,000 a year to feel financially secure and $483,000 annually to feel rich or to attain financial freedom

https://www.cnn.com/2023/07/06/success/how-much-to-feel-rich/index.html

Wow, must be a lot of insecure people out there...
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I think you'd agree that most Americans don't equate security with financial security. I think probably 45% of average Americans feel secure when they can cover all the monthly bills, store a few pounds of ground beef in the freezer, put some gas in the car, and still have something left over for a movie or a few pizzas.
 
I think when financial "experts" throw those one million and two million dollar numbers to define comfortable retirements, it discourages a good percentage of the population. I copied and pasted the text below from the Brave search summarizer when I asked "How much do you need to make to be happy". But I've read other articles over the last couple of years that gave the same figure: $75,000.

"According to various sources, the amount of money needed to be happy varies depending on the state.2 In Oklahoma, you need over $91,000 to be happy, but you can settle for emotional well-being at as little as $52,020.3 However, a Wharton study suggests that people tend to feel happier the more money they make only up until a point of about $75,000 a year.1 A study by Matthew Killingsworth of the University of Pennsylvania suggests that the more money we have, the happier we are. In 2020, researchers analysed data from the Office for National Statistics and Happy Planet Index to find out how much money the average Briton would need to live a happy life.0 However, it's important to keep in mind that "happiness" is subjective."

I also read an article tonight that states people associate being happier with making more, but making more than $200,000 can mean having to deal with a lot of stress (due to high paying but high pressure jobs). My pension and SS are no where near that $75,000 but I'm a fairly happy person and quite comfortable. I learned early in life how to, as we used to say, "make a dollar out of 15 cents".
 
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Muskrat said:
There is something wrong with a society that equates money with happiness or even security. I personally would rather feel safe and loved.
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While I understand what you mean, it's hard to feel secure when you can't afford decent housing, but are working two jobs to support your family and put food on the table. There are too many people in this country who work very hard but still can't meet ends meet, are totally stressed out and just a penny shy of being homeless.
 
Muskrat said:
I understand very very well not having money. And on that level I agree it offers a form of security. But if your bar is set so very very high as to think your ANNUAL income needs to be over 100000 you are missing so other very important aspects of life and living
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Oh I totally agree IF there are not extenuating circumstances such as living in a high rent or high property tax area.
 
I have worked with people in many income brackets and those with higher income did not seem as put together as those of lower paychecks...
i have seen people do amazing amount of things on lower income by great budgeting............. and others who had tons of money coming in and running around trying to cover small things.

Personal finance classes as part of high school could save a lot of people some big problems ........

That is not a 100% fix ... but my guess is better then 60% would be on a better foundation.
 
Wouldn't it be wonderful to live in a world where men are not judged
by power and wealth, who has the newest toys or the biggest house,
but by who has the most evolved and highly developed qualities
of his soul?

Perhaps when the world economic system collapses, it will be a
good thing as mankind will finally test their mettle; find out what
they are really made of; what's inside their hearts.
 
Weak article relating $$$$$ numbers given huge amount of COL inflation through years. Would only meaningful if weighted from a specific year. In any case, financial advisors are only talking to their wealthy audience with wealthy lifestyles as many ordinary working class people would welcome and be comfortable with far far less. But then many USA people spend their whole adult lives with their main purpose in life toiling away year after year making money, while dreaming and envying all manner of junk and activities of the rich... YAWN
 
Okay, so I'm going to be controversial.

When you're young(er) it's easy to have the single perspective that peace/achievement ='s success. Yet as an oldster, while I acknowledge that no money makes you unhappy, I also admit that more than you need doesn't make you happy. What you need can be controlled and changes over time.

I think I need the following: A roof over my head, enough food to stay healthy (or to eat unhealthful), and some entertainment. That's about it. I don't need to travel the world any longer. I don't need the most expensive furniture. I don't need the best clothes. Or more accurately, I no longer think of them.

As corny as it sounds, companionship, love, and friendship - those are the things I value. Having spent a good deal of my life going for the money, I now know it never brought me true happiness.

That said, healthcare is a huge issue for Americans, so you need to get that covered. But life is so much easier than I ever made it.
 
I honestly don't understand how people would need over 200,000 to feel "financially secure" unless they were living above their means (expensive lifestyle - expensive homes and automobiles, travel, etc.)

Years ago, when my husband was alive, we had made a serious goal to become financially independent one day. It took us several years, but we accomplished it. We tightened our belts, didn't eat out as much. Had picnics in the park, for example. Avoided traveling (traveled every five years instead of annually). Chose a home in a cheaper neighborhood that gave us just as much quality and acreage as the million-dollar homes an hour away. It was in preparation for retirement because we knew that with fixed incomes, we could not afford having a mortgage and living in an expensive place. By the time my husband retired, we had paid off the mortgage and all our debts. Now, it is easier to live off of a lot less money.
 
It takes a certain amount of income or money in the bank to feel secure. It doesn't make anyone feel safe or loved but it's nice to know you can pay for a roof. I want to have enough for food and shelter but I don't need money for a lot of stuff. Stuff actually becomes a burden or at least it seems that way to me.
 
I get a six figure pension from a municipality I worked for. They pay a great pension. Plus, I invested all my money in Amazon shares in the late 1990's. That paid off big time and now my daughter and her husband will probably retire on it after my wife and I die. I can't ever sell it because the taxes would be huge. However, once one dies, the shares are revalued at the date of death of the owner or one year later. Thus, my daughter will have very little capital gains taxes to pay. Of course, she would still have to pay a large inheritance tax.

Investing advisors always say to diversify. Instead, I put all the money in ONE bucket. My strategy paid off big time.
 
From the figures I could find, median household disposable income in the UK was £32,300 ( $42k at current rates) in the financial year ending 2022. Figures for USA appear to be significantly higher at about $66k (median post-tax income for all households) , though I'm not sure how US tax is calculated and how the purchasing power of these figures compare.

This figure is very different to $233k.
 

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