Americans think they need to earn more than $270,000 a year on average to be financially successful, according to a recent survey by Empower. This figure is much higher than the U.S. median household income of around $80,000 in 2023. The survey found that only 37% of respondents currently consider themselves financially successful.
Many cite the economy (35%), income instability (30%), and lack of clear financial goals (28%) as barriers to achieving success. Perceptions of financial success vary by generation. Gen Z believes an annual salary of over $550,000 or a net worth exceeding $9 million is necessary for success, the highest figures among all generations surveyed.
Older generations have more modest definitions, typically citing an annual salary of around $100,000 or a net worth over $1 million as benchmarks. Interestingly, the survey revealed that the biggest measure of financial success is not necessarily wealth itself, but how money impacts one’s life.
Americans’ financial success perceptions
Nearly 60% of respondents defined financial success as being able to spend money on things they love and enjoy. “Americans are equating success with happiness as to what money can buy,” said Rebecca Rickert, head of communications at Empower. In addition to happiness, 35% of respondents value having free time to pursue their interests, and an equal percentage cited physical well-being as important indicators of success.
Financial advisors recommend finding a balance between saving for the future and enjoying the present. Shaun Williams, a private wealth advisor and partner at Paragon Capital Management, suggests tailoring budget proportions to one’s specific financial situation rather than rigidly following rules like the 50-30-20 budget. Starting small with savings is also advised if larger percentages are not feasible.
“Maybe we’re really stretching the dollar just to get 5% or 10% saved,” said Clifford Cornell, a certified financial planner at Bone Fide Wealth in New York City. Ultimately, understanding personal financial needs, wants, and dreams is key to achieving a balanced and fulfilling financial life. By finding the right balance and planning according to individual circumstances, one can achieve both immediate satisfaction and long-term financial health.
