The Cure for Money Stress? Earning (at Least) $100,000 a Year

Even though wages are growing and inflation is cooling, more Americans are getting anxious about their money, new research shows.

Half of Americans now report that the overall state of the economy as well as their own personal finances are their biggest sources of stress, according to a wealth report released Monday by the investment and financial planning firm Edelman Financial Engines.

“There’s no question that the economic and social pressures Americans have faced in recent years continued to mount in 2024,” the authors wrote. “Money issues still loom large as a top source of stress.”

Specifically, 48% of respondents told Edelman that their personal financial situation was their biggest source of stress, an increase from recent years. In 2023, 46% rated that as a top stressor, and in 2022 — the first year of Edelman’s survey — 43% said the same. The latest report was based on responses from over 3,000 Americans at least 30 years old.

No money worries: How much income would it take?

This year, Edelman asked respondents how much they would need to earn to not worry about everyday living expenses.

About 6 in 10 Americans reported that they would need a salary of at least $100,000 to stop stressing so much about money. For a quarter of respondents, it would take more than $200,000.

Most Americans earn nowhere near those amounts. For reference, median earnings in the U.S. for 2024 are about $60,000.

In particular, younger Americans were far more likely than older ones to say they would need a six-figure salary to calm their money anxieties. For example, 71% of 30-somethings said they’d require at least $100,000, and a third of respondents in that age group cited $200,000 or more.

Aside from basic peace of mind, Edelman also asked about how much money it would take to “feel wealthy.” Some 65% said at least $1 million, and 19% said at least $5 million. Only 12% of respondents said they consider themselves wealthy right now — a dip of 2 percentage points from last year.

The public’s souring mood on their finances runs counter to many headlines about the state of the economy.

Over the past few years, inflation dropped from its 9.1% peak in June 2022 down to 2.5% last month. So far this year, wage growth has comfortably outpaced inflation, averaging about 5% each month. The Federal Reserve just delivered its first long-awaited interest rate cut, making borrowing money a little more affordable for consumers and sending a clear signal that the nation's central bankers believe inflation is subsiding.

Still, people’s financial anxiety is persisting — and even growing. That’s likely due to the cumulative effect of inflation, or in other words, the totality of price hikes since the start of COVID-19 crisis.

“For consumers, 2%, 3%, 4% don’t really mean anything,” Sofia Baig, an economist at Morning Consult, recently told Money. “What they've experienced is actually around like a 20% increase in prices since the pandemic, which is kind of shocking.”

To her point, Labor Department data shows that the overall cost of living has skyrocketed nearly 22% since March 2020. The cost of housing — one of Americans’ biggest monthly expenses — has run even hotter, at about 24%.

“Inflation has been the dominant concern across America,” the Edelman report states. “Even in 2024, it remains at the forefront of Americans’ minds.”

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