What does financial success look like to the average American?

What does financial success look like to the average American?
Spoiler alert: It’s not being a millionaire or being able to quit work.
MAY 21, 2024

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.”

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management