Americans need to earn significantly more to be financially comfortable than their average income, with 72% reporting insecurity in their finances. Housing costs in particular are a major issue, with high rent, mortgage, and utility bills cutting into the average take-home pay. As a result, many Americans struggle to save emergency funds, pay off debt, and plan for retirement. Experts recommend budgeting, saving, and clear goal-setting to achieve financial stability, while public policies and employer initiatives can also play a role. Despite financial struggles, individuals are encouraged not to blame themselves and to seek support.
1. The average American says they need to earn $233,000 a year to be financially comfortable.
2. American workers on average made only $75,203 annually in 2021.
3. 72% of Americans said they weren't financially secure given their current finances.
4. More than a quarter of Americans said they'll likely never be financially secure.
5. Americans are spending significant portions of their income on essential expenses like housing, food, and health care.
6. 36% of Americans said they had more credit card debt than emergency savings.
7. The cost of living in America has increased significantly, and wage growth has not kept up.
8. Budgeting is important for achieving financial goals.
9. Public policies and employer offerings can play a role in improving Americans' financial security.
10. Financial anxiety is common even among those with high incomes and savings.