When Americans measure success, they’re not often thinking about their net worth or account balances.

About 59% of polled Americans say that happiness — specifically, the ability to spend money on things that make them happy — is the most important benchmark of success, according to a new report by Empower, a financial services company. Respondents were asked to pick the top three types of success they most valued.

Meanwhile, 35% of respondents pointed to having free time to pursue their interests. The same share cited physical wellbeing.

“Few people view wealth itself” as the best benchmark, said Rebecca Rickert, head of communications at Empower.

Only 27% believe wealth is the highest measure of success, the report found.

‘You have to strike a balance’

“Americans are equating success with happiness as to what money can buy,” said Rickert.

That’s not surprising, considering that many people live paycheck to paycheck — meaning regular expenses take up most of their income without much left over for savings.

In the third quarter of the year, almost half of survey respondents agreed with the statement “I am living paycheck to paycheck,” according to a recent report by Bank of America.

An analysis of the bank’s internal data found 26% of households are living paycheck to paycheck. That includes 35% of households earning less than $50,000 a year, and 20% of households earning more than $150,000.

Other factors, including inflation and higher interest rates, have made it more difficult for people to make ends meet. About 35% of polled Americans believe the economy is the top barrier to success, followed by income instability at 30%, the Empower report found.

Those challenges are inherently “forces that are out of your control,” Rickert said.

But in some ways, “people are their own secret to success,” she said. (Source: CNBC)

Story Date: December 1, 2024