Americans want to feel comfortable financially. But just what does that mean? According to a new report, most of us have a long way to go.
As USA Today notes, the study found that American adults think they need to earn about:
- $233,000 annually to feel “financially secure”
- $483,000 annually to feel “rich”
The average adult American makes about $75,000 per year. With that discrepancy, it’s not surprising that the report found that about 72 percent of adults do not feel financially secure.
Inflation is a Major Factor
The number one reason that people give for not reaching their financial goals is inflation. About 63 percent of respondents gave inflation as the biggest factor, with the economy as runner-up with 48 percent. Interestingly, the same report also found that the more money people earn, the more money they claim they need to feel comfortable.
Steps to Feel More Secure Financially
No matter how much money you make, if you want to feel more secure, there are steps you can take.
First, go through your budget and make sure you know exactly where your money is going. Knowing these details will give you a sense of control, which will help you feel empowered with your next move.
Once you know where the money is going, look to reduce discretionary spending.
- Go through your budget and cut back on items you rarely or even never use (think subscriptions).
- Check your credit cards and make sure the rewards match your lifestyle.
- Take a good look through your bills and try to negotiate costs you haven’t attempted to adjust in some time.
- Shop around for insurance, bank accounts, and more. There are deals to be had, you’ll just need to do some work.
Every little step counts as you inch closer and closer to feeling financially secure.