Yahoo Finance What’s the Minimum Salary Americans Need To Feel Happy in 2024? The Answer Might Surprise You
As reported by SoFi, the average salary in the United States is $60,575, but it can vary widely depending on which state you live in. For instance, the average salary for someone working in Mississippi is $40,090, while the average salary for someone working in Massachusetts is $65,680. Their research also shows that only 12.2% of Americans make between $75,000 and $99,999. But, many Americans do not feel that they need to make that much in order to feel happy.
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At GOBankingRates, we asked respondents what the minimum annual salary would be that they would need to feel happy. Surprisingly, 27.66% felt that they would need $50,000 or less to be content. Another 19.40% said that they would only need between $50,001 and $65,000 to be happy.
We asked experts to explain why people might assume that they would need less money in order to feel happy and whether $50,000 would be sufficient to live on. Here is what they considered a reasonable salary.
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Why Do People Think $50,000 Is Enough to Live On?
The majority of respondents (nearly 70%) felt that they would not need more than $95,000 to feel happy. Despite the high costs of living in areas across the country, most people answered that they could make a salary under the national average and still be content.
Jared Stern, managing member of Uplift Legal Funding explained, “People might answer this way due to various reasons, including the prioritization of work-life balance, personal fulfillment over material gains, or a belief in living within one’s means.”
David Kemmerer, CEO of CoinLedger said, “I think the somewhat low figures we see in these types of surveys come from different people having different frames of reference and different definitions of happiness.”
He continued, “For someone who’s lived just above the poverty line for much of their life, $50,000 [per] year minimum would certainly allow them to live more comfortably, for instance. I do think that with the rising cost of living, many people would be looking at $80k annually to be truly happy–but again, it boils down to the individual.”
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Is $50K Enough?
Jake Hill, CEO of DebtHammer Relief, said, “Thanks to inflation and rising housing costs in the last few years, $50K may not be a high enough salary to guarantee financial security in many parts of the country.”
He continued, “Financial security is deeply tied to our overall comfort and happiness, so it’s imperative to aim for a salary that enables that comfort. A salary closer to $75K is more reasonable for most of the U.S., allowing people to avoid living paycheck-to-paycheck and focus on other financial goals.”
How Many People Think They Need More?
According to our survey, 6.37% of people believe they need $200,001 or more to be happy. While this number may seem small, it represents a good portion of people who believe they need to make over 3x the national average to be content.
As reported by CNBC, only 12% of households in the U.S. make $200,000 or more annually and it varies widely by state. In a state like Mississippi, only around 3% of households bring in $200,000 per year, while in New Jersey nearly 14% of households do, according to World Population Review.
However, studies show that more high earners may be moving to the South. CNBC showed that Florida, Texas, North Carolina, Arizona, and South Carolina topped the list of places where high-earners moved to during 2020 and 2021.
Does Where You Live Matter?
“Regarding the salary Americans should target to live comfortably, it’s more complex than suggesting a one-size-fits-all number,” Stern stated. “A salary range of $80,001 to $95,000 is more reasonable for living comfortably, this aligns more closely with the reality in high-cost living areas.”
He added, “For individuals residing in or near cities like San Francisco, San Diego, and New York, this range is not just reasonable but necessary to cover higher housing costs, transportation, healthcare, and other essentials while also allowing for savings and discretionary spending. However, in lower-cost areas like Houston or Philadelphia, such a salary might provide a luxurious lifestyle.”
Does Cost of Living Play a Role?
The average cost of living in the United States is approximately $61,334 a year. When asked, 19.40% of respondents said they would need to make between $50,001 and $65,000 a year, which would cover the average cost of living but would leave little room for error. Cost of living generally includes housing and housing-related costs, food, utilities, healthcare costs, and transportation. It does not take into account things like vacations or other experience-related expenses.
Why People May Need Less to Make Them Feel Happy
Only 3.58% of respondents felt that they would need to make $150,001 to $175,000 in order to feel happy and even less (2.79%) felt they would need to have an annual salary of $175,001 to $200,000.
As discussed by our experts, it may be that people do not need a lot of money to make them happy. Today, there has been a huge shift in priorities including a focus on work-life balance.
What many of us think of as a good salary, helps us to live comfortably when you take into account spending on non-essentials. But that spending is not required in order to be happy if what makes you happy is spending time at home, in nature, or other low-cost settings.
Key Takeaways
One key takeaway from the survey is that not everyone feels they have to make six figures to be happy. Many people say a minimum salary under the national average is sufficient to make them feel content. Although, it isn’t as cut and dry with whether $50,000 would be sufficient to live comfortably in every state.
With so few people responding that they need to make a huge salary to feel happy, it seems that there may be a further shift away from traditional money mindsets into one where less can be more.
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This article originally appeared on GOBankingRates.com: What’s the Minimum Salary Americans Need To Feel Happy in 2024? The Answer Might Surprise You
