As many as 53 percent of Americans have no emergency savings, and of those who do, just over 25% have less than $5,000 saved up. Financial experts commonly recommend saving three to six months’ worth of expenses for emergencies.
According to a survey conducted by CNBC, 4,336 respondents was weighted to reflect the demographic composition of the United States for those aged 18 and over, using the Census Bureau’s American Community Survey for age, race, sex, education, and geography.
As per the survey, one in five Americans say they would need $1 million to feel “financially comfortable.” However, the definition of “financially comfortable” varies among individuals, depending on their financial circumstances and goals. While some might focus on paying off current bills or debt, others might prioritize long-term expenses or retirement plans.
The majority of respondents, about 75%, said they would need $100,000 or more to feel financially comfortable. This trend remained consistent across all income levels, though those earning six figures were more likely to select $100,000 or more. This is understandable, given that the average personal debt balance, including mortgages and student loans, was $101,915 in 2022, according to credit bureau Experian’s latest data.
Most Americans are feeling financially stressed, with 70% of respondents in the survey reporting feeling this way. This is unsurprising, considering that debt levels have risen due to interest rate hikes, and wage increases have not kept up with high inflation over the past two years.
Additionally, credit card debt reached an all-time high in 2022, and a growing number of people are struggling to pay their usual bills. Financial vulnerability is felt across income levels, with a majority of those earning less than $100,000 reporting that they live paycheck to paycheck. Even among those earning more than six figures, 32% report the same.
