Empower has officially published a report, which claimed that more than half of Americans feel there is a secret to success i.e. earning $270,000 per year and enjoying a $5.3 million in overall net worth.
Going by the available details, the stated report revealed how no more than 27% rank wealth as the highest measure of financial success. In fact, most Americans say happiness (59%) is the most important benchmark, being able to spend money on the things and experiences that bring the most joy and doing what you love; followed by the luxury of free time (35%) to pursue personal passions.
Furthermore, the surveyed contingent was found to believe that success is about the “Factor of Four”: hard work (84%); talent (65%); who you know (55%) or the network effect; and luck and circumstance (51%). Furthermore, these people believed how the secret is to be a visionary (36%), and then outwork everyone (32%), a belief held most firmly by those with incomes over $100k, rising to 40%.
On top that, the surveyed ground also said that one should pay themselves by putting money away and saving for retirement, with over one third of people (35%) sharing the opinion.
Despite the not-so-lofty definition of success, nearly half of Americans (47%) feel they’ll never achieve the exact level of it that they’re seeking. You see, only 37% of people reportedly consider themselves financially successful right now. This particular group included higher numbers of men than women (42% compared to 33%).
Staying along those lines, just half (50%) of people stated they are or will be better off financially than their parents, a long-held meterstick for generational success.
“Fortune favors the bold, and people feel success is within their grasp with the right combination of dreaming and planning,” said Rebecca Rickert, head of communications at Empower. “It’s about disciplined, smart money choices, but overall people define financial success as very meritocratic, and a little serendipitous. There’s a sense that effort and outperformance will take you far.”
Talk about why is that the case, over one third cited economy (35%) and income instability, irregular or insufficient income streams (30%) as a culprit, along with lack of knowledge about managing finances (20%). Moving on, an estimated third say the biggest obstacle to success is not setting clear financial goals (28%).
Then, we have over 1 in 4 (26%) saying that procrastination or delaying financial planning or decision-making gets in their way of achieving financial success. Beyond that, respondents were also found to see a lack of savings (35%), overspending and not budgeting effectively (37%), and debt (36%) as barriers to success.
On the other hand, most Americans (58%) believe that they will achieve financial success in their lifetime, with the younger generations most optimistic (Gen Z 71%, Millennials 70%, Gen X 53% and Baby Boomers 45%).
To expand upon the same, for most people (63%), financial success is found in tangible wins: being able to pay bills on time, owning a home (52%), affording experiences like travel and entertainment (47%). However, for 40%, it’s about retiring at a goal age, and while they are working, enjoying the job (42%).
Joining that would be a contingent of 45% respondents who said that having a financial plan was a top money move, whereas building up retirement plan savings like 401(k) investments (30%), and investing in stocks (27%) also made it to the list. Markedly enough, one in people (30%) even said that getting good financial advice is highly valuable.
Among other things, the survey in question found that, according to the consensus, surest path to success is a well-paying job (51%), saving as much as possible, using the power of compounding (46%), as well making smart investment decisions (46%).
Nearly 1 in 4 (23%) say taking risks is an important money move to get richer. A third (34%) also believe success means prioritizing your efforts because time is money.
