It’s no secret that having enough money in the bank can reduce stress. improve overall happiness.
According to research, Higher income correlates with higher life satisfactionAnd Americans themselves tend to agree, with one survey finding that 6 in 10 say money can buy happiness. Recent research by Empowera financial services company.
However, it’s not cheap. When asked how much money they need to be happy, the average American said they needed a net worth of about $1.2 million.
But millennials say they need a net worth of about $1.7 million to be happy. Gen
Gen Z is a true outlier. Empower found that for the youngest adult generation, an average net worth of about $487,000 is sufficient for financial well-being.
The price of happiness is highest for Millennials
About 72% of Millennials agree that money can buy happiness more than any other generation.They are also the generation that achieves the best results. the annual income they need to be happy —This is more than four times the number for other generations.
According to Empower, here’s the average salary each generation needs to be happy and less stressed.
- Generation Z: $128,084
- Millennials: $525,947
- Generation X: $130,344
- Baby boomer: $124,165
The median annual income that respondents said would reduce stress is $95,000 per year. Their current average salary is $65,000, and they would need a nearly 50% raise to get there.
Remember that the median is the number in the middle of all answers. Half of the respondents gave a higher number, and the other half gave a lower number. On the other hand, if some numbers are high or low, the average can be skewed up or down.
Empower has found that, relatively speaking, it doesn’t cost much to improve people’s lives. An additional one-time payment of $25,000 increases an American’s financial well-being by 42% over a six-month period. A $15,000 bonus would make 32% of respondents feel the same way, while 17% said their girlfriend would be more satisfied with a $5,000 bonus.
What does economic well-being look like?
Despite saying that you need to earn a high salary or be super wealthy to feel happy, these things in and of themselves do not make most Americans happy.
In fact, Empower found that for 67% of Americans, paying all their bills on time is the perfect definition of financial well-being.
The other two most popular ways Americans can be financially happy are being debt-free (65%) and enjoying small daily luxuries (54%). Only 17% of respondents said they would be financially happy once they reached a certain net worth.
In general, most Americans are happy – 75% Empower’s research shows that people rank their overall happiness at 7 out of 10 or above. But finance is the area where Americans’ happiness has the most room to grow.
The areas of life in which Americans are most satisfied are:
- at home: 80%
- About relationships: 72%
- At work: 68%
- Financial goals: 63%
- Plan to achieve your financial goals: 62%
- With financial freedom: 61%
- With financial allies (e.g. mentors): 58%
- About finances (net worth, etc.): 58%
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