What annual salary would make you feel financially secure? Here's what Americans said (2024)

FAQs

What annual salary would make you feel financially secure? Here's what Americans said? ›

The cost of living comfortably: On average, Americans feel they'd need to earn over $186,000 to feel financially secure or comfortable, a 20 percent drop from 2023 but still more than two times what the average full-time, year-round worker earned in 2022 (about $79,000), according to Census Bureau data.

According to CBS News, citing a recent survey from Bankrate, the average American believes they need to make $186,000 annually to feel financially secure. Per the network, only 6% of adults in the United States make that amount or more.

That's because while the average earned by a full-time American worker in 2022 was a little more than $79,000, respondents to the survey in May 2024 said that financial security would require more than double that. The Bankrate.com research found that the magic number to feel financially secure is $186,000.

The average salary respondents said they would need to feel secure is $186,000, more than double the median income. To feel rich, they said they would need to earn $520,000 a year on average.

The average American requires a much larger income to live comfortably, the report found. Currently, the average full-time worker makes about $79,000, according to the U.S. Census Bureau. Meanwhile the survey found the average American needs an income of $186,000 to live comfortably.

$80,000 is about $5,000 higher than the U.S. median household income, so many people would consider it very good for a single person. “Good” is always a relative term when it comes to salary; whether or not the amount you earn covers your expenses is a highly personal dynamic.

On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.

A household with two adults and two children would need a combined income of around $235,000 to live without financial worries. The disparity in the cost of family life is particularly pronounced in certain cities. A family of four, two adults and children, need to make more than $300,000 to live comfortably.

Stable income - income received in a set/fixed amount from the same source(s) on a regular basis and there is no additional income which fluctuates. Stable income is defined as Social Security, Supplemental Security Income, Social Security Disability, pensions or other regular and consistent income.

Broadly speaking, financial stability means being free of debt and being able to comfortably pay off monthly expenses (with plenty left over for savings). Financial security, on the other hand, means having enough money to cover your expenses, emergencies, and retirement without the fear of running out.

How much does the average American need to live? ›

When considering the cost of everything, Americans feel they need to earn an average income of roughly $186,000 “to be financially secure or comfortable,” according to a recent survey by Bankrate. That range did vary across demographics.

Many Americans don't think they necessarily need to make $1 million a year to feel like they're well off financially, according to Bankrate's 2024 Financial Freedom survey. On average, Americans say they'd need to earn around $520,000 annually to feel rich, according to the survey.

The study found that a person needs an average of $96,500 for sustainable comfort in a major U.S. city. It's even more expensive for families, who need to make an average combined income of about $235,000 to support two adults and two children without the pressure of living paycheck to paycheck.

With the annual inflation rate for 2023 at 3.4% for the year — up from 3.1% previously — salaries aren't keeping up. A Smart Asset report based on MIT's Living Wage data found that the average salary required to live comfortably in the U.S. is $68,499 after taxes.

The national median for living comfortably alone is $89,461, which suggests that a 50/30/20 budget might not be practical for most single people.

A newly released Bankrate survey says comfort can be found at $186,000 a year — or three times the $59,540 annually the Bureau of Labor Statistics reported for a full-time wage and salary worker in the fourth quarter of 2023. To feel rich, on average, Americans said they would need to earn about $520,000.

Americans feel they'd need to earn approximately $233,000 a year on average to be secure or comfortable with their finances, a new Bankrate survey finds. To be rich and achieve financial freedom, Americans say they'd need to make about two times more: roughly $483,000 on average, according to the poll.

For most people we polled, nothing induces as much stress as managing money problems, according to our survey. Nearly nine in 10 survey-takers (88%) reported feeling financial stress, with 65% stating that their finances are the most stressful aspect of their life.

But true financial stability is often defined as living within your means, being able to easily pay your bills every month, living free of consumer debt, and having a healthy emergency savings fund set aside for unexpected expenses.

Why 20 percent is a good goal for many people. There are various rules of thumb that relate to savings, whether it's retirement or emergency savings, but a general consensus is to set aside between 10 percent and 20 percent of your income each month for savings.