What does it mean to have “made it” in life? Is it all about six-figure salaries, fancy cars, and dream job titles? According to recent research, for most Americans, it’s simpler than that—it’s about achieving financial independence. In a survey of 2,000 adults in the U.S. conducted by Empower financial services, a whopping 67% of respondents said that reaching financial independence was the most important marker of success.
Interestingly, financial independence doesn’t require as much wealth as you might think. While over half of those surveyed believed they needed $233,000 to live comfortably in today’s climate, the average American pegged the annual income needed to feel financially independent at about $94,000—still higher than the median household income of $74,580.
But achieving financial freedom can be challenging, especially for young people who face soaring rental costs and student debt while navigating a tough job market. Over half of the survey respondents admitted they rely on family and friends for financial support, especially for essentials like rent, internet, and phone bills.
So, how do people define financial independence? For some, it’s being able to live off passive income and enjoy a life without the daily grind. For most, it means not needing financial help from others, essentially establishing a life away from the family home. Surprisingly, 92% of financially independent adults surveyed said they didn’t achieve this status until they reached the age of 36.
Ultimately, the definition of financial independence may vary from person to person. Empower’s financial expert, Keith Jones, advises that individuals should focus on their own financial goals and clarity, as this provides direction and purpose in working toward a more secure and satisfying financial future………[read more]
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What role do changing economic circumstances, like soaring rental costs and student debt, play in redefining the concept of financial independence for today’s younger generation?
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