How to Reach Financial Happiness

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4 mins ago

January 12, 2024

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Alan Kennedy

The following content is sponsored by Empower

Nearly three-quarters of Americans believe that having more money would solve their problems. When pressed for a dollar figure, more than half said that $1.2 million would do the job.

And this raises the question: just how happy are Americans with their finances?

To help answer this question, Empower asked 2,034 adults from across the U.S. how they felt about their finances and what were the best ways to stay on the road to financial happiness.

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Not all Americans believe that financial happiness is tied to a specific net worth, just 17%. In fact, most of those surveyed agreed that paying bills on time and avoiding debt were the best ways to achieve financial joy, 67% and 65%, respectively.

But in today’s world, avoiding debt and successfully managing money can be challenging. Budgets are stretched so thin that 42% report that receiving a $25,000 one-off payment would keep them happy for only six months.

So, with this in mind, how do Americans feel about their finances compared to other aspects of their lives?

Determining Route

Americans tend to find happiness in areas other than their finances, and this cuts across generations. With 80% being happy at home and 72% happy in their relationships.

Financially, though, things aren’t so rosey. Only 58% of respondents being happy with their financial situation and allies.

Finances are even more of a challenge for Gen Z and X, with less than half of those generations reporting being satisfied with their finances.

So, with so many people unhappy about their financial lives, what’s standing in their way?

Roadblocks Ahead

While most agree that inflation and the rising cost of goods is a big stressor (81%), different trends emerge when we compare generations directly.

Aside from inflation and the rising cost of goods, the financial stress of older generations is mostly driven by politics and retirement worries. At the same time, job layoffs and elevated property prices cause more stress for Millennials and Gen Z, who struggle to get on the property ladder.

In fact, today’s economic conditions are such a challenge that many believe they will retire three years later than originally planned.

A Fork in the Road

Given stress levels, it’s not surprising that many would go to great lengths for happiness.

In fact, financial happiness is so valued that nearly three-quarters of those surveyed say they would give up social media, and almost 25% say they would give up on love.

Americans with a more detailed financial plan are three times more likely than those with a less detailed plan to report greater economic freedom and better financial health. They are also three times more likely to be happy with their ability to achieve their financial goals.

This is especially important for younger generations, as many report a lack of financial education and that they have received poor financial advice.

80% say a financial plan would help them reach their goals in life.
65% wish they had received financial advice sooner.
56% say they haven’t received the financial advice they need.

Final Destination

So what results from more widespread financial happiness?

It enables people to change the world.

Financial happiness enables people to build wealth for those who come after them, lead a more creative life, and be more willing to “pay it forward.” So, while the journey can be challenging, financial happiness is worth the trip.

Navigating the roadblocks to financial happiness, from debt payoff to inflation, requires focus, planning, and support. But financial happiness is a destination within reach, given a clear plan and the right copilot.

That’s where Empower can help.

Related Topics: #financial planning #stress #tax #retirement #Finance #America #money #Interest #empower #financial plan #financial happiness #U.S.

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How to Reach Financial Happiness