A significant number of Americans feel that their income is insufficient for comfortable living, and a new survey indicates that many doubt they will ever reach that level of financial security.
According to Bankrate’s annual financial freedom survey, Americans believe they need to earn more than $186,000 per year to live comfortably, which is more than double the median annual household income. Despite this, fewer than 40% of people think they will ever achieve this level of income in their lifetime, and only 6% of U.S. adults currently earn that much.
While a six-figure salary may seem unattainable for many, it is not surprising that so many Americans believe it is necessary for a comfortable lifestyle. This sentiment aligns with a recent trend showing a decline in confidence in the so-called American dream, particularly as younger generations face challenges such as achieving homeownership.
Experts suggest that housing expenses should account for no more than 28% of a person’s gross income. However, the median cost for a home in January 2024 was $402,343, a 46% increase since January 2020, according to Bankrate. To afford a typical home in today’s market, an individual would need an annual income of approximately $110,000.
Bankrate’s senior economic analyst, Mark Hamrick, noted that these financial pressures contribute to widespread feelings of insecurity. “Many Americans are stuck somewhere between continued sticker shock from elevated prices, a lack of income gains, and a feeling that their hopes and dreams are out of touch with their financial capabilities,” Hamrick said.
This survey underscores the growing financial challenges many Americans face and the increasing difficulty of achieving financial stability and comfort.
Matt Pinner is a dedicated journalist for WVPrepBB.com, specializing in USA and crime news. With a keen eye for detail and a passion for uncovering the truth, Matt brings timely and insightful reporting to his readers. His work on WVPrepBB.com keeps the community informed and engaged with the latest developments in national news and criminal justice.
