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The Ideal Salary for Americans to Achieve Financial Security: Revealing the Numbers

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Americans Feel Financially Insecure: New Bankrate Survey Reveals

Financial Insecurities and Factors Influencing Them

A recent Bankrate survey of over 2,500 adults in the U.S. revealed that less than one-third of Americans feel completely financially secure. The survey also found that Americans need an average salary of around $233,000 per year to feel comfortable. This is more than three times the median U.S. household income of about $71,000 per year. High inflation, the economic environment, and rising interest rates were cited as the biggest contributors to Americans' financial insecurities. Additionally, insufficient emergency savings and retirement funds were identified as key factors contributing to financial insecurity.

Insufficient Emergency Savings and Retirement Funds

According to the survey, over 40% of consumers feel financially insecure due to insufficient emergency savings and retirement funds. The latest Federal Reserve survey revealed that nearly 40% of Americans would not be able to cover a $400 emergency with cash savings. Furthermore, 60% of Americans reported not having a retirement-specific savings account, according to a recent NerdWallet survey.

The Role of Income and Financial Insecurity

The survey found that higher earners were more likely to feel financially secure, with 42% of those earning $80,000 or more per year reporting complete financial security. However, even these higher earners expressed concerns about emergency savings and retirement funds. The survey also revealed that historical inequalities play a role in individuals' feelings of financial insecurity. Parents of children under 18 felt the need for a higher income to feel secure, and black Americans and women expressed the need for higher salaries compared to their counterparts.

Implications of Wealth Gaps

Historical wealth gaps, such as the gender pay gap and racial wealth gap, contribute to individuals feeling the need for higher incomes to meet their financial goals and feel financially secure. These inequalities lead to disadvantages in the job market and wealth growth, ultimately resulting in the need for more financial resources. Strategies to address these disparities and promote financial security for all individuals are important to ensure a more equitable financial landscape.

Implications for New Businesses

The findings from the Bankrate survey highlighting Americans' financial insecurities and the factors influencing them have important implications for new businesses. Understanding the current financial landscape and the concerns of potential customers can provide valuable insights for entrepreneurs and new business ventures.

Targeting the Need for Financial Security

Considering that less than one-third of Americans feel financially secure, new businesses can focus on products or services that help address these insecurities. This could involve offering financial planning tools, budgeting apps, or innovative investment options that cater to individuals with varying income levels. By providing solutions to improve emergency savings, retirement planning, and overall financial well-being, new businesses can target a large market segment seeking financial security.

Addressing Inequalities and Promoting Equitable Opportunities

The survey findings also highlight the impact of historical wealth gaps on financial insecurity. New businesses can play a role in addressing these inequalities and promoting equitable opportunities. By adopting fair hiring practices, ensuring equal pay for equal work, and actively promoting diversity and inclusion within their organizations, new businesses can help bridge the wealth gap and provide individuals from marginalized communities with better financial prospects.

Collaboration with Financial Institutions and Experts

New businesses can further enhance their offerings by collaborating with financial institutions and experts in the field. Partnering with banks, credit unions, or financial advisors can provide customers with access to expert guidance and financial planning tools. Such collaborations can also elevate the credibility and trustworthiness of new businesses, especially when dealing with sensitive financial matters.

Education and Awareness Initiatives

New businesses can also contribute to addressing financial insecurities by launching educational initiatives. Providing educational resources, workshops, or online courses on personal finance, budgeting, and retirement planning can empower individuals to take control of their financial futures. By equipping individuals with the knowledge and skills necessary to make informed financial decisions, new businesses can play a role in improving the overall financial security of the population.

In conclusion, while financial insecurities continue to be a significant concern for many Americans, these challenges also present opportunities for new businesses to develop innovative solutions, promote financial well-being, and contribute to a more equitable financial landscape. By understanding the needs of potential customers and addressing the factors contributing to financial insecurity, new businesses can thrive while making a positive impact on individuals' lives.



Article First Published at: https://www.cnbc.com/2023/07/09/salary-americans-need-to-feel-financially-secure.html

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