It’s surprising how many people earning more than most Americans still feel like they’re barely getting by.
According to a Bloomberg report, even those making over $175,000 a year – which puts them in the top 10% of U.S. earners – often don’t see themselves as “rich.” A quarter of those surveyed said they felt “very poor,” “poor,” or “just getting by” despite being in a financial position many would envy.
More than half of those surveyed expressed concerns about their financial future, with 25% doubting they would ever surpass their parents’ financial standing.
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So, what’s behind this disconnect? Why do people who seem to have it all still feel like they’re falling behind? One major factor is that while their incomes are high, so are their expenses.
Things like housing costs, education and basic living expenses have skyrocketed, leaving many feeling financially stressed. According to the latest Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS), the average monthly expenses for American households amount to $6,440. Over the course of a year, this totals approximately $77,280 in household spending. Now, keep in mind that the median household income was just around $80,000 in 2023. Average earners can barely make ends meet based on these numbers.
As the cost of living rises, so does the pressure to maintain a certain lifestyle, making it harder for people to feel secure no matter how much they earn.
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A Bankrate survey found that while 64% of workers received a pay increase last year, 60% still feel inflation has outpaced their income growth. This has fueled a sense that even higher earnings aren’t enough to secure financial stability. For those in the top income brackets, it creates a paradox where they earn significantly but still feel financially insecure.
In addition, a Charles Schwab survey revealed that Americans now believe a net worth of $2.5 million is necessary to be considered wealthy, a 14% increase from the previous year.
You’ve probably heard the phrase “keeping up with the Joneses.” Social media makes this even worse. Constantly seeing the glamorous lives of others can distort your sense of financial success. It’s easy to feel like you’re not doing well when you’re bombarded with images of people who seem to have more – even if your bank account says otherwise.
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But here’s the thing: feeling rich isn’t just about how much money you make. It’s about mindset. While it’s true that economic pressures like inflation and the rising cost of living can take a toll, constantly comparing yourself to others will leave you feeling dissatisfied. Financial advisors often emphasize this point, encouraging clients to focus on their goals rather than measuring their success by someone else’s standards.
If you’re in the top 10%, you’re doing better than you may realize, but it’s easy to lose perspective when expenses are high and comparisons are everywhere. A good financial adviser can help you navigate these feelings, offering personalized advice on saving, investing and spending so you feel more in control of your financial future.
Ultimately, feeling wealthy is about more than just your paycheck – knowing how to manage what you have, set realistic goals and build a sense of security.
Financial freedom is within reach, but it starts with redefining what wealth means for you.
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This article Are You Richer Than You Realize? A Shocking Number Of People Consider Themselves ‘Poor’ But They’re Really Among The Top 10% Of Earners originally appeared on Benzinga.com
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Source: finance.yahoo.com