An increasing number of Americans say they need more money to feel financially secure, a phenomenon that is only partly based on finances, experts say.
While salaries have risen since before the pandemic, so have the prices of some mainstays of American life such as homes and cars, which are both up double digits since 2019, said Pepperdine University business school professor Brandon Parsons.
“We experienced some of the highest inflation levels since the 1970s, and this shock has led to some of the perceptions of a higher cost of living, whether exaggerated or not,” Parsons told Fortune.
“When it comes to income, I think it’s human nature to always want at least a little more than what we have,” Renter told Fortune. “Lifestyle creep means that many of us end up spending more on housing, clothing, entertainment, and everything else as our income rises.”
However, people are still feeling the pressure of rising prices, and thanks to inflation, even the $150,000 wage survey respondents seek no longer affords the same luxuries as before, Bankrate economic analyst Sarah Foster told Fortune.
“As today’s pricey economy makes everything from housing and education to health care and childcare more expensive, many Americans are finding that they struggle to get by on even a six-figure income. In many high-cost cities and states, $150,000 is considered a middle-income salary,” she said.
