The average American says they would need to make well over $200,000 a year in order to feel "financially secure."
That's one of the findings from a new Bankrate report, released today.
On average, Americans feel they need to make around $233,000 a year to feel comfortable with their finances. Women say they would need to earn slightly more than men ($237,400 vs $229,100) in order to feel secure.
What would it take to feel "rich"? Well, prepare to double those numbers.
Women said they would need to earn $502,400 a year to feel rich, while men said they would need $465,300 a year.
A majority of women (74%) and men (70%) say that currently, they do not feel financially secure.
What should people do if they're feeling insecure financially?
"Separate what you can and can’t control," says Bankrate analyst Sarah Foster. "The economy has been the ultimate wrecker of Americans’ financial goals, and between high inflation and pay that isn’t fully keeping up with rising prices, Americans shouldn’t put all the blame on themselves for feeling financially insecure."
Other tips:
Don’t shy away from setting small financial goals: "Any step - no matter how small - can move you and your finances in the right direction," Foster says. "If a tight budget is keeping you from investing for retirement or another big-picture goal, remember just how valuable time in the market and compound interest can be. Even a small contribution to your investing accounts each month can make significant headway toward helping you achieve your longer-term goals."
Save for the fun times just as much as the tough times: "Anytime you get a pay raise, it’s a wise time to ramp up your contributions towards both savings goals before you begin increasing your spending," Foster says. "That way, you know how much you can spend and never risk breaking your budget."
Set realistic salary expectations and get comfortable with marketing yourself: "An education is a clear way to help boost your earnings potential, but if your salary is important to you, it may be wise to research the median wage of workers in your desired industry. And if you’re already working, locking in a raise often comes down to speaking your business’ language," suggests Foster. "Learn how to talk about the value of your work and why it matters."
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