Despite seeing real wage gains this year, Americans must contend with a higher cost of living, which is growing at the fastest annual pace in more than four decades. As inflation outpaces wage growth, credit card balances jumped in the second quarter of 2022. Americans now say they need to be making about $107,800 a year to feel financially healthy, roughly double the national average.
“If everything is costing more, that may reset your expectations on what you need to feel financially healthy,” said Paul Deer, a certified financial planner and vice president of advisory service at Personal Capital.