TITLE: $186,000 a year: What Americans feel they need to earn to live comfortably
https://english.elpais.com/economy-and-business/2024-07-04/186000-a-year-what-americans-feel-they-need-to-earn-to-live-comfortably-in-the-us.html
EXCERPT: In these pre-election months, American consumers have been somewhat more cautious with their spending. Signs of a cooling economy and job market are beginning to be seen and, according to the latest poll by the investment bank Morgan Stanley, 23% of consumers expect their personal finances to deteriorate over the next six months. It is a better reading than the previous month (25% had that bad feeling). Is there any amount of income that would bring households peace of mind? Yes. The magic figure is just over $186,000 a year.
This is the conclusion reached by Bankrate’s personal finance specialists after they conducted their annual Financial Freedom Survey to understand what households feel they need, not to live in opulence, but just to feel comfortable and financially secure. This is an average amount—Latinos leave it at $173,000—that is far from the $79,000 a year that the average full-time worker earns annually, according to Census Bureau figures. To feel actually rich, the figure rises to $520,000.
Only 6% of respondents earn a figure that makes them feel financially secure. However, a good percentage remains optimistic: two out of every five people believe that at some point they will earn $186,000 a year. Meanwhile, 18% have resigned themselves to the fact that this is something they will never achieve.
TITLE: America’s Divided Summer Economy Is Coming to an Airport or Hotel Near You
https://www.nytimes.com/2024/07/03/business/economy/summer-travel-economy.html
EXCERPT: Rich people tend to spend a lot more on splurges like travel. The top two-fifths of the income distribution accounts for about 60 percent of spending in the economy; the bottom two-fifths, about 22 percent. The divide is more extreme when it comes to vacationing. Lower-income people have historically spent about 19 cents on the dollar that a high-income person devotes to lodging, transportation and other travel-related purchases, based on one analysis.
Recent economic trends could exacerbate that. Lashonda Barber, an airport worker in Charlotte, N.C., is among those feeling the pinch. She will spend her summer on planes, but she won’t be leaving the airport for vacation.
Ms. Barber, 42, makes $19 per hour, 40 hours per week, driving a trash truck that cleans up after international flights. It is a difficult position: The tarmac is sweltering in the Southern summer sun; the rubbish bags are heavy. And while it’s poised to be a busy summer, Ms. Barber’s job is increasingly failing to pay the bills. Both prices and her home taxes are up notably, but she is making just $1 an hour more than she was when she started the gig five years ago. While that is not the standard experience — overall, wages for lower-income people have grown faster than inflation since at least late 2022 — it is a reminder that behind the averages, some people are falling behind.
“I don’t take personal trips,” Ms. Barber said, explaining that it had been several years since she had taken a family vacation, and that when she did, she drove.
That comes in stark contrast to what is happening at the other end of the income spectrum.
Parker Hess is director of rooms at the Allison Inn & Spa in Oregon’s Willamette Valley, where rooms start at $645, amenities include plush robes and bucolic wine country surroundings, and business is booming.
“Our rates are the highest they’ve ever been,” Mr. Hess said, and while a customer will occasionally push back, many do not even ask about the price.
TITLE: WSJ Survey Finds Wealthy Readers Are Upbeat on Their Financial Situation
https://www.barrons.com/articles/wsj-survey-finds-wealthy-readers-are-upbeat-on-their-financial-situation-5f641a6e
EXCERPT: Among those with at least US$5 million, 38% of respondents said they were more likely to invest in secondary or vacation homes in the current economy, down eight points from 46% of those in this group who said the same in the previous quarterly survey. Only 21% of those with assets of less than US$5 million responded that they are more likely to invest in a second home, the same percentage as last quarter, the survey said.
Of readers who responded, 28% with assets of US$5 million or more say they are more likely to invest in jewelry in this economy compared to 17% of readers with assets below US$5 million. The responses for both groups were slightly down from last quarter.
Concerning art and collectibles, 27% of wealthy readers said they were more likely to invest in this sector compared with 18% of those with fewer investable assets. Last quarter, only 23% of wealthy readers said they were more likely to invest in art and collectibles compared to 20% of those with assets below US$5 million.
For the above questions regarding second homes and so-called passion assets such as art, responses were received by 714 readers with assets of up to US$5 million and 195 with assets over that threshold, according to the survey.
WSJ Intelligence also found that 41% of wealthier readers were more likely to support charitable events such as galas and dinners (although that figure is down 2 points from the last survey), and to direct their philanthropic giving through donor-advised funds (down six points from the last survey).