economy
Net worth matters more than income when it comes to financial anxiety, survey finds
A new survey finds financial anxiety declines more with higher net worth than with higher income.
TL;DR
- Financial anxiety does not significantly decrease with rising incomes, according to a survey of U.S. adults.
- A higher net worth, calculated by subtracting liabilities from assets, was found to be more effective in easing financial anxiety.
- Respondents with negative net worth reported higher financial anxiety compared to those with positive net worth.
- Financial therapists suggest that net worth impacts security and the ability to access funds in emergencies, contributing to anxiety levels.
- High debt loads, monthly payments, and the fear of job loss can negate the stress-reducing effects of a high income.
- Financial anxiety can affect individuals across all income and net worth levels due to various external factors like economic instability and global events.
- Experts recommend making financial decisions from a place of clarity rather than fear, and avoiding monetary actions during periods of stress or crisis.