Americans Struggle to Achieve Financial Freedom: Study by Achieve

The pursuit of financial freedom is a common goal for many Americans, but a recent study by Achieve reveals that over half of them feel they are nowhere near achieving it. Despite this, only 1 in 10 Americans say they are currently living their definition of financial freedom.

According to the study, Americans define financial freedom modestly, with half describing it as being comfortable, but not necessarily rich. Additionally, 49.3% believe it refers to meeting financial obligations and having some money left over each month, while 54.2% define it as living debt-free and 46.2% see it as never having to worry about money.

The economic landscape in the United States is causing financial insecurity among many, with a potential recession looming and credit card debt surpassing $1 trillion. Student loan debt is also a major concern for Americans, especially as repayments are expected to resume in the fall.

In the first quarter of 2023, American household debt reached a record $17 trillion, according to the Federal Reserve Bank of New York. Achieve co-founder and co-CEO Brad Stroh noted that more Americans are focused on making ends meet rather than becoming rich, as financial stability remains a challenge for those living with debt.

One major obstacle for consumers is the lack of adequate savings, with 40% admitting they don’t have a basic savings account. Among those who do, 36% have less than $1,000 saved. Rising prices and high interest rates are making it difficult for people to save money, leading many in the workforce to demand higher wages from employers.

Data from the Federal Reserve Bank of New York shows that the average lowest wage Americans are willing to accept for a new job has increased to $78,645 in July 2023, a nearly $6,000 jump from the previous year. As Americans continue to navigate financial challenges, achieving true financial freedom remains a distant goal for many.