What does financial success look like to the average American?

Success is one of those words that is often considered to have a universal meaning but is actually quite personal. But what about financial success?

What does it take for an American to feel financially successful in 2024? And if they say they are not already there, are they confident that the status can be achieved?

A new survey asked around 2,400 adults with most of them saying they have some idea of what being financially successful looks like, but 89% of respondents said they do not think they are there yet while 27% don’t expect to ever make it.

The Bankrate.com poll found that 56% of those who have an idea of what financial success is cited ‘living comfortably’ while 44% said it was being prepared for the future such as having adequate retirement savings. Never having to worry about money and being debt free were how four in ten defined being financially successful.

“With the worst inflation crisis in 40 years far from over, the U.S. economy might be causing a bit of ‘goals dysmorphia’ for many Americans,” said Bankrate Analyst Sarah Foster. “Surprisingly, Americans aren’t saying that the sign of being financially successful is becoming a millionaire or making enough money to quit working. Instead, they mostly have their sights on living comfortably, feeling financially prepared for the future and never having to worry about money as the marker for success.”

WHEN WILL THEY GET THERE?

Asked when they felt they may achieve their version of financial success, 38% of Gen Zs feel it will be in their 30s with 30% of Millennials opting for their 40s. For Gen Xers there is a split between 50s (24%) and 60s (20%) while Boomers remain optimistic of getting there in their 60s (23%) or 70s (14%). Older generations are generally more likely to believe they won’t achieve it.

As for what they need to become financially successful, the top answers included:

• make more money to do so (i.e. wages/salaries)
• growing their savings (49%)
• paying down debt (34%; e.g. credit cards, personal loans, student loans, etc.),
• investing more (30%; e.g. retirement/brokerage accounts),
• sticking to a budget (26%)
• taking on more work responsibilities/working longer hours (13%).

“For those who haven’t yet achieved their version of financial success, Americans are most commonly saying that making more money and growing their savings are the most common way toward that outcome,” Foster added. “But keep in mind the power of investing, even if just a little bit over time. Historically, participating in financial markets has been the best way to guarantee that your money not only keeps pace, but beats inflation over time.”