Salaries, Net Worth & Contentment: Survey Reveals the Magic Number for Perceived Financial Happiness

Money can’t buy happiness, so the saying goes. Ask most Americans, however, and you’ll find a different story — one in which financial stability is one of the most important parts of feeling content in life.

We all dream of economic freedom, whether it’s retiring comfortably, affording a dream home, or simply living without the constant stress of bills. But how much money does it take to feel happy and secure? Is there a magic number that makes us feel as if we’ve “made it”?

Our survey found the number at which most Americans say they’d be content.

• Most Americans (56%) said they’d be happy with a $200k liquid net worth.
• People’s contentment with their salaries varies by current income. While 66% of those earning $40k would be happy with a $100k salary, only 39% of those earning $150k feel the same.
• Women generally report higher contentment at lower net worth levels compared to men. 
• Millennials prefer higher salaries, while Gen Zers focus on building a higher net worth.
• Millennials report higher contentment levels at increased salaries compared to Gen Zers. For instance, 75% of millennials surveyed would feel content with a $150k salary, compared to 71% of Gen Zers.
• Millennial and Gen Z women surveyed report higher contentment levels at $100k net worth than their male counterparts.
• Gen Z men significantly prefer a net worth of $1 million or more.

Have you ever wondered how much money it would take to feel genuinely content? 

You’re not alone. For many Americans, net worth plays a significant part in their contentment. However, the numbers aren’t as sky-high as some would assume.

Having upward of a million dollars in net worth places you well within the top 10% of wealth holders in the US. That’s a pretty exclusive club. Consequently, not everyone needs to belong to that club to feel happy.

For over half (56%), $200k is enough to keep them content — a significant cushion that can cover life’s unexpected expenses, provide a comfortable retirement, and allow for a few luxuries. 

$200k signifies financial freedom for many, especially when inflation is skyrocketing. This is a big jump from 2010 when the number associated with American happiness was $75k in yearly income.

Having a good chunk of liquid net worth can dial down financial anxiety. 

Knowing you’ve got money set aside can ease worries about future uncertainties, whether a medical emergency or a layoff. This peace of mind goes a long way in feeling happy overall.

The idea of financial cushioning is at play here — psychologists claim having solid savings can improve well-being by removing constant money worries. 

This ties into societal and cultural influences, too. In the U.S., where financial success often means personal success, having a hefty net worth can boost your social status. More than just keeping up with the Joneses, it helps you feel secure and respected in your community.

Although $200k is the sweet spot, many people would feel happier with less.

Intriguingly, contentment varies among different income groups. If you’re earning around $40k annually, reaching a salary of $100k can feel like hitting the jackpot. About 66% of those in this income bracket would be thrilled with that figure. 

It makes sense — doubling your income can drastically improve your quality of life, from affording better housing to enjoying more holidays abroad.

However, as incomes rise, so do expectations. 

People often overestimate the amount of money required to feel happy. This phenomenon, known as the Hedonic Treadmill, explains why people chase a higher income to achieve happiness, only to return to a baseline level of contentment after a short-lived boost.

Those making $75k a year (the median income for US households in 2022) show less excitement about $100k, with only 61% feeling satisfied, and it drops even further to 39% for those earning $150k (who are generally pretty satisfied with their own salary). 

It’s a given that most people wouldn’t welcome a 33% cut to their salary. However, it highlights just how sensitive our sense of satisfaction can be to changes in income. Even if we’re doing quite well by conventional standards.

Essentially, as our earnings go up, so do our desires, leading to a never-ending chase for more wealth.

This raises an interesting question: do men and women feel differently when it comes down to this?

Women generally report being content with lower net worth levels than men. Meanwhile, men seem happier at higher net worth levels than women.

Historically, women have been expected to prioritize family and home life, leading to different financial goals and definitions of success compared to men.

Psychological research suggests that women often derive a significant portion of their life satisfaction from relationships and social connections. Because of this, factors such as job security and work-life balance can be more critical to their overall happiness than simply the size of their paycheck.

Societal expectations and gender norms play a role, too. 

Men often feel pressure to be the primary breadwinners, driving them to seek higher earnings and greater wealth. Conversely, women might feel more societal acceptance in seeking a balance between work and personal life.

According to Maslow’s hierarchy of needs, once you’ve sorted your basic financial needs, you start aiming for higher things like esteem and self-actualization. Women tend to lean more into these higher-order areas compared to men. 

Even though the numbers show women are okay with earning less, they usually find happiness and satisfaction through a broader, more balanced approach to life. 

While men and women might have different financial goals, the $100k salary seems to be a sweet spot for both. It’s a level where everyone feels a sense of economic well-being — enough to cover the essentials and still leave room for some luxuries.

For many, hitting the $100k mark can feel like reaching a significant milestone. 

It’s a round, psychologically satisfying number that suggests you’ve “made it” to a degree of financial stability. Whether you’re paying for a mortgage, saving for your kid’s college fund, or planning that dream vacation, $100k seems to strike a balance that resonates with 37% of the people we surveyed.

Interestingly, in 2022, 37% of families earned $100k a year or more.

However, as the salary rises, women seem to appreciate it slightly more.

The relative income hypothesis suggests that people gauge their financial success relative to others rather than based on absolute numbers. Instead of focusing on how much they have, they compare their income to those around them.

Salaries greater than $100k are usually a point where that comparison feels good for people. You can pay bills on time, invest in hobbies, dine out occasionally, and put money away for a rainy day or retirement. 

It’s a point where financial concerns are less likely to dominate your daily thoughts, allowing you to focus more on personal growth and leisure activities.

However, not all generations see this the same way.

Millennials and Gen Zers seem to have different financial priorities, with Gen Zers focused on achieving a higher net worth. 

Having grown up during the economic upheaval of the COVID-19 pandemic, Gen Z has developed a unique perspective on financial security. Building a higher net worth — especially in liquid assets — feels safer. 

They value having a financial cushion they can dip into, whether for emergencies or new opportunities. This mindset makes sense in a world where the job market can feel unpredictable. 

When it comes to higher-than-average salaries, it’s a different story.

Millennials Happier With Higher Salaries Than Gen Z

Millennials report higher contentment levels at increased salaries — 75% of millennials would feel content with a $150k salary, compared to 71% of Gen Z. 

Scarred by the Great Recession, millennials often look to a high salary for a sense of security. They’ve learned firsthand that a steady paycheck can be a reliable anchor in uncertain economic waters. 

For them, a bigger paycheck is tied to feeling accomplished, especially since many face delays in reaching major financial milestones such as buying a home or starting a family during their 20s.

Conversely, Gen Z focuses on savings and investments over having a high salary. 

This shift toward valuing net worth over salary highlights how financial contentment evolves based on historical and economic contexts. 

Millennials, who witnessed more economic turbulence early in their careers, often prioritize job stability and benefits. In contrast, Gen Z is more willing to take risks in their careers if they have a solid financial safety net.

However, even taking the generational gap into account, gender preferences still play a major role in financial contentment. 

At $100k Net Worth, Women of Both Generations Report Higher Contentment Levels Compared to Men

Millennial and Gen Z women seem more content when they hit the $100k liquid net worth mark compared to their male counterparts.

For women, achieving this income milestone often represents more than money in the bank. They may feel more satisfied reaching this net worth level due to overcoming gender wage gaps and other workplace barriers. 

Hitting $100k symbolizes a hard-fought victory in a professional world where earning equal recognition and compensation has historically been more challenging.

Interestingly, these findings reflect broader generational shifts in how people approach financial goals. 

Women today are navigating changing roles and expectations in both work and society. They prioritize work-life balance and job satisfaction as much as their bank balance. This approach makes the $100k mark significant for many women — it represents financial achievement and empowerment in their careers.

Gen Z Men Show Higher Interest for $1 Million+ in Liquid Net Worth

Gen Z men seem to find a sweet spot with 1 million dollars or more in liquid assets. 

More than just money, they’re likely focused on the freedom and independence that comes with it. With their entrepreneurial goals and tech-savvyness, Gen Zers see financial independence as a gateway to flexibility and opportunity.

Being a young millionaire has a particular draw for many — it’s a lifestyle that offers the ability to take risks, innovate, and adapt. 

For many Gen Zer men, having substantial liquid assets means they can pursue entrepreneurial ventures or invest in new technologies without being tied down by financial constraints.

What’s interesting is how this generation is building their wealth. 

Many Gen Z men use cryptocurrencies and other digital assets as part of their investment strategies. They’re no strangers to new financial technology and are not afraid to use it to build wealth.

Social comparison is also at play. While women aim for $100k in net worth to symbolize progress and parity, Gen Z men look at their peers and societal standards. Accumulating significant wealth early on helps them stand out in their social and professional circles. 

Here, it may be about keeping up with the Joneses — or perhaps, in this case, outpacing them.

Let’s crunch some numbers:

• 60% of respondents would feel content with a $100k salary, which varies by current income. For example, 66% of those earning $40k are content with $100k, while only 39% of those earning $150k feel the same.

• More than half of the survey respondents find happinness at $200k in liquid net worth. Contentment rises steadily with net worth, from 31% at $100k to 82% at $1 million.

While $200k marks the threshold at which over half of Americans find financial happiness, contentment varies widely based on current earnings, gender, and generational perspectives.  

Financial contentment is a complex, multifaceted goal shaped by everyone’s unique experiences and aspirations. For some, it’s the security and freedom money brings. Others want to reach personal milestones and feel a sense of achievement.

“A good exercise is to look at the question of whether or not money equals happiness in reverse: Does not having enough money for essentials equal misery? For most, the answer is a definite, ‘yes.’ It’s stressful, depressing, and sometimes embarrassing,” said CardRates Finance Expert Erica Sandberg.

“The sum people consider markers of success and evidence of stability vary greatly,” Sandberg continued. “For some, it’s $200k, but, as the data shows, that is absolutely not always the case. I encourage everyone to carefully consider their magic number. When you come up with it, ask yourself, ‘Why?’ Where does it come from, and what will it do for you?” 

Regardless of everything, it seems that, in the end, money may indeed buy happiness or, at the very least, contentment.

This data comes from a survey examining American financial attitudes and preferences. We analyzed 786 responses from U.S. residents aged 18 to 43 who are currently employed and earning more than $30k per year. 

The survey respondents were asked about desired salary and liquid net worth levels. 

The presented data is a result of cumulative method reporting. It’s supported by various sources for a well-rounded examination.