As you’ve grown older, perhaps your definition of financial success has changed. Your financial figure for what it means to have reached success may have gone down over the years.
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In fact, the salary you think defines financial success may have much more to do with your age than you think. Here’s a study from financial services company Empower, which showed huge differences in how much members of different generations think they need to make each year to be financially successful.
Average Expectations
Let’s start with the everyday American. According to the study, the average person in this country thinks a salary of just more than $270,000 a year qualifies them as financially successful.
You may think that’s quite high. In fact, according to the Bureau of Labor Statistics, the median weekly earnings of the nation’s more than 120 million full-time wage and salary workers were $1,165 in the third quarter of 2024 (not seasonally adjusted). That’s about $61,000 a year.
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Expectations by Generation
As you might expect, the amount varies greatly by generation. According to the study, here’s how much each generation needs you need to make in a year to be financially successful:
- Boomers: $99,900
- Gen X: $212,000
- Millennials: $181,000
- Gen Z: $588,000
The study showed it’s also about what you can buy with your money.
“Just 27% rank wealth as the highest measure of financial success,” according to Empower. “Rather, 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, doing what you love, followed by the luxury of free time (35%) to pursue personal passions.”
Why does it matter? Per Axios, “In an environment where workers are increasingly resentful, the study by financial services company Empower finds younger workers expect double the salary of their older peers to be successful.”
Ways to Increase Your Income
No matter your age, there are ways to try to secure a bigger salary or increase your overall income. Here are a few suggestions from United Way:
- Ask for a raise. You want to make sure you’re being paid fairly for what you’re worth in today’s market. You can ask a few times before deciding it might be time to move on to a different organization where you’ll be paid more.
- Go back to school. You may be able to find a higher-paying job if you have additional credentials or education, or you might be able to secure a raise and a higher position with your current employer.
- Turn a hobby into a money-making business. You might have skills, such as writing or painting, that could translate into big bucks.
You may find the best strategy depends upon your age. If you’re a younger worker, going back to school at night and in your free time may set you up for long-term success with higher-paying roles. If you’re an older worker, asking for a raise from your current employer or finding a way to turn a hobby into a money-making business may be an easier route.
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This article originally appeared on GOBankingRates.com: Here Are Every Generation’s Definitions of Financial Success — And How To Get There
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