Average American needs to make $186K to feel financially secure, survey finds

(InvestigateTV) — Bankrate found that the average American would need to make $186,000 a year in order to feel financially secure.

Bankrate Analyst Sarah Foster said most Americans are not at that magic number.

“This rapid increase in this cost of living is causing so many Americans to feel that just living comfortably is just out of reach,” Foster said. “And I do think what we do see broadly is many wealth building opportunities, many assets have risen faster than overall household income and I think that’s really evident when you look at what the buying power of $186,000 was back in 1980s.”

Foster said the Bureau of Labor Statistics (BLS) CPI calculator shows that $186,000 dollars this year has the same buying power as about $44,000 did in 1980.

Foster said a lot of people feel like the economy is in a recession, even though it isn’t, because of their loss of buying power due to higher prices.

She said that making more money always helps but there are things people can do now to shore up their finances.

“I always try to stress the importance of saving for the future, including for retirement and even emergencies, as much as you can,” Foster advised. “It doesn’t have to be a large amount, just really getting in the habit of paying for yourself first. It’s what sets the strong foundation for the future.”

She said even if it’s hard, continuing to contribute to 401(k)s and setting aside at least a small amount from each paycheck can make a big difference down the road.

She also recommended to try to keep credit card debt under control or make a plan to tackle it. Try to pay more than the minimum, every little bit helps, she said.

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