Yahoo Finance This Is the Salary Women Say They Need To Be Happy in 2024
When asked about the salary needed to be happy, women are more likely to be content with less. A recent GOBankingRates survey found that 30% of women would be happy making $50,000 or less versus 25% of men. Additionally, just under half of all women (49%) would be happy making $65,000 or less.
In this “Financially Savvy Female” column, we’re chatting with experts about the salary women actually need to be happy, and why women tend to have a lower threshold for happiness when it comes to income.
Read Next: 12 Key Ways the Rich Multiply Their Wealth
For You: 6 Unusual Ways To Make Extra Money (That Actually Work)
How Much Do Most Women Need To Be Happy?
There is no one-size-fits-all salary that would make every woman happy, but Kraig Kleeman, CEO and founder of The New Workforce, believes that regardless of gender, a salary in the range of $75,000 to $100,000 is the sweet spot.
“First, we’ve got to cover the basics — housing, food, healthcare and transportation,” he said. “On average, Americans spent about $63,036 on these essentials in 2020. So, a salary in that $75,000 to $100,000 zone should comfortably handle those needs while giving you a bit of financial cushion.”
That financial cushion allows you to stay out of debt or pay off existing debt, build an emergency fund and have room in your budget for guilt-free discretionary spending.
“Happiness isn’t just about covering bills — it’s also about enjoying life,” Kleeman said. “Whether dining out, traveling, pursuing hobbies or attending concerts, you want some money left over for these experiences. With $75,000 to $100,000 coming in, you’ve got room to treat yourself and enjoy the finer things in life.”
Robert R. Johnson, Ph.D., CFA, professor of finance at the Heider College of Business at Creighton University, is more hesitant to peg happiness to a specific salary range.
“A happy life is not achieved or ensured by earning a certain amount of money,” he said. “The problem with money is that it is an infinite series and, for some people, they always want more than they have. One of the greatest problems is that people ‘move the goalposts’ when it comes to financial goals. People say they will be happy when they earn $100,000 a year, and once they hit that level, their tastes change and they convince themselves they will be happy with an income of $150,000 or $200,000.”
Find Out: How I Make $5,000 a Month in Passive Income Doing Just 10 Hours of Work a Year
Why Women Are Content With Less
Although the largest proportion of both genders said they would be happy earning $50,000 or less, women were more likely to be happy with a lower salary. This may simply be because women generally make less, so have found ways to be content with a lower income.
“The gender wage gap still exists, with women making 80 to 85 cents for every dollar made by men,” said Corissa Peterson, career advisor at Resume Genius. “They may face lower starting wages and lack the same opportunities for advancement that men experience.”
Some women may also put a higher value on aspects of their careers outside of the salary.
“Women may lean more towards careers that fulfill them in non-monetary ways, like working in education, healthcare or the nonprofit sector,” Kleeman said. In addition, they “might value work-life balance and family time more than a bigger paycheck. They could be OK with a lower salary if it means more quality time with their loved ones.”
Finally, women might feel less external pressure to be high-income earners.
“Societal expectations matter,” Kleeman said. “There might be less pressure on women to achieve high earning levels, which could affect their responses in surveys like this.”
Survey methodology: GOBankingRates surveyed 1,005 Americans ages 18 and older from across the country between Jan. 23 and Jan. 26, 2024, asking six different questions: (1) What is more important to you in a job/career?; (2) What is the minimum annual salary that would make you feel happy?; (3) How much do you believe you will need in savings to retire comfortably?; (4) How much do you currently have saved for retirement?; (5) Do you think you will be able and prepared to retire at 65?; and (6) What percentage of your salary do you put towards a retirement plan, such as a 401(k)? GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
More From GOBankingRates
I'm a Shopping Expert: 9 Items I'd Never Put in My Grocery Cart
Avoid This Simple Banking Mistake That Could Cost You Over $1,000
6 Things You Should Never Do With Your Tax Refund (Do This Instead)
This article originally appeared on GOBankingRates.com: This Is the Salary Women Say They Need To Be Happy in 2024
