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Study reveals household income needed for a comfortable life in America
As it turns out, the average American household is just shy of what is deemed financially independent.
In this crazy world we live in, people work for upwards of 50 years to barely survive. For forty-plus hours a week, they work away trying to put food on the table. But still, for some, its not enough.
The goal is a little under the median average
In a recent study conducted by Empower Financial Services, researchers found that, for most, the goal amount for financial independence is $94,000 a year. This is around $20,000 more than the median household average, $74,580.
The poll of 2,000 adults also found that 67% of Americans feel that reaching financial independence is important to them. Unfortunately, only 24% feel that they have reached that point.
Further looking into thoughts and feelings surrounding finances, the poll identified that 72% feel stressed or anxious over their financial situations. A shocking 17% said they feel stressed about their money every single day.
No matter your age, financial independence starts with clarity, said Keith Jones, a senior financial professional with Empower, in a statement. Ask yourself what you want and why you want it. Establishing clear financial goals provides both direction and purpose, motivating you to work toward a more secure and satisfying financial future.
What is financial independence?
Its worth noting that financial independence means different things to different people. For some, its being able to stop working, while for others its not needing to borrow money from friends or family.
The official definition is: Financial independence is a state where an individual or household has accumulated sufficient financial resources to cover its living expenses without having to depend on active employment or work to earn money in order to maintain its current lifestyle.
