Yahoo Finance Are You Wealthier Than You Feel? A Shocking Amount Of People Consider Themselves 'Poor' Or 'Very Poor' But They're Actually In The Top 10%
Earning a high salary is one thing, but feeling wealthy is another.
A recent Bloomberg survey of 1,000 high earners in the U.S., those making at least $175,000 a year, revealed that many of these individuals do not feel financially secure.
In fact, one-quarter said they were either "very poor," "poor" or "getting by but things are tight," according to CNBC. This group, representing roughly the top 10% of tax filers, includes homeowners with six-figure salaries and solid retirement accounts. Despite these advantages, many feel they don't have enough.
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One major factor contributing to this sentiment is inflation. With the rising cost of essentials like gas, groceries, and college tuition, Americans need more money than ever to feel financially stable. Over half of the survey respondents expressed concern about their finances, highlighting the pervasive impact of increasing living costs.
Another significant issue is the tendency to compare oneself to others. Social media platforms amplify these comparisons, making it easy for individuals to feel inferior when they see the lifestyles of their peers. Additionally, higher incomes often lead to higher spending, a phenomenon summed up by the phrase "mo' money, mo' problems."
A notable aspect of the survey findings was the interest among high earners in relocating to areas where their money would stretch further. Many of these high earners, often referred to as HENRYs (High Earners, Not Rich Yet), are considering moves to states like Texas, Florida, and New Hampshire. For instance, a salary of $100,000 in New York City would be 15.7% higher than the area's median income, but in Albuquerque, New Mexico, it would be 71.4% higher. This geographic arbitrage highlights the disparity in the cost of living across different regions.
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These findings have significant implications. High earners often hold influential positions in society, such as business owners, doctors, and town mayors. Their financial insecurities can influence their political views and their contributions to charitable and social programs. These results suggest that achieving a sense of financial security may be more elusive than previously thought.
Persistent inflation has exacerbated financial pressures, making everything more expensive. Households now face higher child care costs, increased auto loans, high mortgage rates, and record rents. Consequently, many people rely more on credit cards to cover daily expenses. Over the past year, credit card debt has surged to an all-time high, while personal savings rates have declined.
Mark Hamrick, Bankrate's senior economic analyst, highlights that the erosion of the American dream has been decades in the making. There was a time when a single-wage earner could support a family, but those days are largely gone. Financial stress remains the top concern for households, and recent years have only intensified these worries.
This growing financial stress underscores the disconnect between high earnings and the feeling of wealth, highlighting the complexities of modern economic pressures. Even those with substantial incomes are not immune to financial worries, showing that financial security is challenging for many, regardless of income level.
So, whether you're rich and feel broke, or just trying to make ends meet, you may want to consult a financial advisor to help you plan for a more secure future.
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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.
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