How much money Americans need to feel ‘financially comfortable’

news7g04/12/2023

2 2 minutes read

How much money Americans need to feel 'financially comfortable'

For Americans to feel “financially comfortable,” 1 in 5 say they need $1 million, according to the report. CNBC Your Money Financial Confidence Surveymade in partnership with Momentive.

The description “financial comfort” is subjective and will mean different things for different people. Some may be thinking about current bills or debt they want to pay off, while others may be focusing on long-term expenses or retirement goals.

70% of Americans are feeling financially stressed, new CNBC survey shows

Below is a breakdown of the results, based on the number of survey respondents selected:

$10,000: 8%
$25,000: 14%
100,000 USD: 36%
$500,000: 18%
1 million USD: 20%
No answer: 4%

Nearly 75% of respondents said they needed $100,000 or more to feel financially comfortable, with 20% choosing $1 million. That majority was stable across all income levels, although six-figure respondents were more likely to say they needed $100,000 or more.

Americans are struggling with rising costs

As part of the National Financial Literacy Month effort, CNBC will feature stories throughout the month to help people manage, grow, and protect their money so they can truly live ambitiously. .

There are growing signs that Americans are struggling to keep up with the additional costs.

Credit card debt hits all-time high in 2022, extra 18.5% compared to a year earlier, According to a recent report by the credit bureau TransUnion.

And a growing number of people say it’s “slightly” to “very difficult” to pay their regular bills in the past seven days, up 25% from a year earlier, according to the most recent Bureau of Investigation report. population. Household impulse survey.

Financial vulnerabilities are also felt across income levels: Most Americans make less than $100,000 say they live from paycheck to paycheckwhile 32% who earn more than six figures say the same, according to surveys by CNBC and Momentive.

At the same time, 53% of survey respondents said that they without any emergency savings. Of those who did, just over 1 in 4 saved less than $5,000. That amount may not be enough for most people, as certified financial planners often recommend saving three to six months of expenses for emergencies.

The survey of 4,336 respondents was weighted for age, race, sex, education, and geography using the Census Bureau’s American Community Survey to reflect demographics. U.S. demographics for people 18 years of age and older.