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This is how much money Americans think they need to live comfortably

Last Updated 3 weeks by Amnon J. Jobi | Amnon Front Page

Few Americans think they make enough money each year to live comfortably, and a new survey shows many don’t believe they ever will.

According to Bankrate’s annual financial freedom survey, Americans claim they need to earn more than $186,000 per year just to live comfortably more than double the median annual household income. However, less less than 4 in 10 people actually believe they’ll ever achieve that level of income in their lifetime, and only 6% of U.S. adults currently make that amount.

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While a six-figure salary may seem out of reach for many, it’s not necessarily surprising that so many Americans think it’s needed to live comfortably. The data follows a recent trend that shows declining faith in the so-called American dream, as many younger people struggle to achieve things like homeownership.

Experts recommend that housing expenses should cost no more than 28% of a person’s gross income. Meanwhile, the median cost for a home in January 2024 was $402,343, up by 46% compared to January 2020, according to Bankrate.

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That means in order for a person to afford a typical house in today’s market, they would need a yearly income of about $110,000. Bankrate senior economic analyst Mark Hamrick said it’s things like this that are causing so many people to feel financially insecure.

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“Many Americans are stuck somewhere between continued sticker shock from elevated prices, a lack of income gains and a feeling that their hopes and dreams are out of touch with their financial capabilities.”

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