Survey Reveals Majority of Americans Feel Financially Insecure

The survey also indicated that the average annual income needed for individuals to feel financially secure is $233,000, while an income of approximately $483,000 is perceived as necessary to achieve wealth and financial freedom. In comparison, data from the U.S. Census Bureau shows that the median earnings for a full-time, year-round worker two years ago were $56,473.

In March 2022, the Federal Reserve implemented a significant tightening cycle to combat inflation, raising the federal funds rate to a target range of 5.0%-5.25% from near-zero. Consequently, borrowing costs have increased, making it more expensive for consumers to finance homes and cars. Businesses have also faced challenges as the cost of debt rose, requiring more funds to cover higher interest costs.

The Bankrate survey, conducted from June 5-7 and involving 2,521 U.S. adults, identified rising interest rates as the fifth major factor contributing to the lack of financial security.

Sarah Foster, an analyst at Bankrate.com, advised Americans to ensure their financial commitments are manageable. She recommended increasing savings and discretionary spending in proportion to any salary raises received.

Further topics related to the U.S. economy and consumers include:

1. Federal Reserve Watch: Higher Interest Rates

2. Labor Costs Drive June's Global Inflation Rates

3. U.S. Economic Downturn Delayed

4. Weaker-than-Expected Nonfarm Payroll Growth; Unemployment Rate at 3.6%