Americans Say They Need $150K in Savings To Feel Comfortable: How Much Do You Actually Need?

Many Americans have insufficient savings, which could be leading to feelings of anxiety and discomfort. A recent GOBankingRates survey found that half of Americans have less than $500 in savings, with 36% having $100 or less.

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While this doesn’t account for funds in retirement and investment accounts, it’s worth noting that those figures are a far cry from what Americans now see as the ideal. A new survey by Clarify Capital found that Americans believe they need to have $150,000 in savings to live comfortably.

Here’s a closer look at why Americans have latched onto this $150,000 figure, and how much you should actually have in savings to live comfortably.

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Why Americans Want $150K in Savings

While many Americans lack a financial safety net, that doesn’t mean that don’t want one. Having $150,000 saved up in various accounts is enough to give most Americans peace of mind, said Michael Baynes, co-founder and CEO of Clarify Capital.

⁤”Many Americans may consider $150,000 as a target savings goal because it gives a significant cushion for emergencies, retirement and major costs,” he said. “⁤⁤This statistic is most likely motivated by a need to feel safe in the face of economic uncertainty, such as job loss or health issues. ⁤⁤It also takes into account the rising cost of living.

⁤⁤”Additionally, $150,000 could represent a psychological milestone that represents financial success to many Americans,” Baynes added.

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Is $150K a Reasonable Target?

There may be some reasoning behind the $150,000 savings target, but how much do Americans actually need? A lot depends on the individual.

“⁤Individual circumstances, such as income, lifestyle and location, can impact the need for $150,000 in savings,” Baynes said. “⁤⁤In lower-cost areas, it may be enough to cover unexpected costs and provide a safety net. ⁤⁤However, in high-cost areas or for those with higher expenses, it may not provide long-term security. In addition, family size and health demands might have a big impact on whether $150,000 is sufficient.”

Instead of aiming for a popular savings goal, choose a target that actually works for you.

⁤⁤”Savings goals should be tailored to individual financial conditions — not a one-size-fits-all approach,” Baynes said.

How To Set a Savings Goal for Yourself

You might not need $150,000 in savings to live comfortably, or you might need more. To find out, it’s important to take a holistic view of your financial situation.

“⁤Americans can set personal savings goals by assessing their monthly spending, debt, lifestyle goals and retirement plans,” Baynes said. “⁤⁤Using budgeting applications, financial counselors and retirement calculators may assist in constructing a personalized savings plan. ⁤⁤Consider medical bills, children’s schooling fees and future lifestyle goals. ⁤⁤It might also be worth it to review and adapt the savings strategy on a regular basis to account for changes in life and financial goals.”⁤

This article originally appeared on GOBankingRates.com : Americans Say They Need $150K in Savings To Feel Comfortable: How Much Do You Actually Need?