Would a Six-Figure Salary Soothe Your Financial Fears?

Key Takeaways

• More than half of the respondents to a recent Edelman Financial survey said they'd need an annual income of over $100,000 to avoid financial worries.
• Roughly 72% of "affluent" Americans—those aged between 45-70 years old with household assets between $500,000 and $3 million—said they needed more than $100,000 annually.
• Higher interest rates weighed on respondents, who are frustrated with the housing market. Nearly half of respondents reported credit card debt.

A six-figure salary might not fix all your financial problems—but it could help with the stress they cause.

More than half (58%) of the people surveyed by Edelman Financial said that they would need an annual income of over $100,000 to avoid financial worries. Roughly a quarter of respondents said they would need more than more than $200,000.1

"Americans—even the affluent—aren’t feeling overly confident about the state of their finances," said Amin Dabit, SVP, Head of Wealth Planning at Edelman Financial Engines. Dabit said some of their worries stem from external pressures, such as the political environment and inflation, which others are individual, such as family responsibilities and credit card debt.

Even 'Affluent' Americans Don't Feel Wealthy

Roughly half of Edelman's survey of 3,000 people included respondents classified as "affluent"—those between 45-70 years old, with household assets between $500,000 and $3 million.

Nearly three-quarters (72%) of affluent respondents said they would need more than $100,000 to not worry about everyday living expenses. About a third of them said they need $200,000 or more to put their minds at ease.

These affluent Americans echo the sentiment of other high-net-worth individuals with more than a $1 million in assets who don’t feel wealthy. Almost two-thirds (65%) of those surveyed by Edelman said they would need more than $1 million to be wealthy, down only slightly from 67% in 2023.

Mortgages and Credit Card Debt Weigh Heavily

High interest rates have weighed on survey respondents, especially when it comes to the housing market and credit card debt. The Federal Reserve's fight against inflation pushed interest rates to a 23-year high, driving up borrowing costs on all kinds of loans, including mortgages and credit cards.

Even though the central bank cut interest rates last week, mortgage rates still remain high. That has deterred potential homebuyers, while potential sellers with lower mortgage rates from years ago are less inclined to sell.

More than one-third of homeowners and nearly half of homeowners under 50 said they feel stuck in their current home because of mortgage rate, according to the Edelman survey. Almost three-quarters (72%) of respondents said that the housing market continues to be a major frustration for them.

Although inflation has cooled recently, many respondents said higher prices have had a negative impact on them—20% said they took on more credit card debt as a result. Nearly half of all respondents (49%) said they had credit card debt.

The median amount of credit card debt clocked in at $7,000. People were also worried about the long-term consequence of holding credit card debt: 44% of respondents said that credit card debt was the biggest threat to their wealth.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

1. Edelman Financial Engines. "Everyday Wealth In America, 2024 Report: The Intersection of Life and Money."