When it comes to feeling wealthy, how much money do you think is necessary? $100,000? $1 million? A recent study by Charles Schwab found that many Americans believe that you need to have at least $774,000 to feel “financially comfortable” and $2.2 million to feel wealthy!
This may come as a surprise to some people, but it’s important to remember that wealth is relative. What matters most is how you feel about your finances – and if having less money makes you happy, then you are considered wealthy in your own right.
Making more money isn’t the only reason to change jobs
The study also found that as many as 59% of Americans say they would accept a lower salary to work for a company that better represents their personal values or interests. What’s more, nearly half of American workers (43%) are interested in changing employers over the next 12 months, with Gen Z even more likely to make a move (65%).
This is an interesting perspective, and one that I can certainly understand. After all, what good is having a lot of money if you have to compromise your values? I know that I would never be happy working for a company whose values didn’t align with my own. Money is important, but it should never be our only consideration.
How to make the most of what you value
The Charles Schwab study found that a whopping 82% of Americans agree that their personal values play an important role in how they manage their finances. Additionally, 73% of investors said that their values guide their investment choices. That’s a lot of people!
Rob Williams, CFP, Managing Director of Financial Planning and Wealth Management at Charles Schwab, states that investing and planning tools that help people personalize how they invest has never been more accessible. In the recent survey of Schwab clients, nearly a quarter say they’re already aligning their investments with values and causes that are important to them, while another 20 percent say they’re interested in making the shift.
This is an important development because it shows that people are increasingly interested in using their investments to support causes that are important to them.
Investing should be about more than just money
So what does this mean? Essentially, it means that if you want to be happy with your investments, you need to make sure that you’re investing in companies that align with your personal values. That might mean investing in companies that are environmentally friendly, or that have good track records when it comes to employee relations. Whatever your values are, there’s sure to be an investment out there that aligns with them.
Don’t forget: when it comes to your money, you should always make sure that you’re doing what’s right for you. And part of that is making sure that your investments reflect your personal values. After all, your money is a reflection of who you are – so make sure it’s saying the right things about you!
Customers support brands with aligned beliefs
The Charles Schwab survey also discovered that 79% of respondents said they try to use their purchasing power to support brands that are aligned with their beliefs. This includes 58% who intend to shop local, 55% who will reduce their use of plastic bags, and 54% who expect to resell or donate clothing. All of these behaviors demonstrate a commitment to supporting businesses and organizations that share the respondent’s values.
According to Jonathan Craig, Managing Director, Head of Investor Services & Marketing at Charles Schwab, the current trend is for Americans to invest in line with their passions and beliefs. This is especially true after the events of the past two years, when many people have reevaluated their priorities. Financial institutions need to provide services that help people invest in a way that aligns with their values.
The new “American Dream” is…
This survey provides an interesting look into how Americans think about their personal finances and what motivates them. It also has implications for businesses that want to market to American consumers. Sign up for our free newsletter to get more insights like this delivered straight to your inbox.
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This article is intended for informational, entertainment or educational purposes only and should not be construed as advice, guidance or counsel. It is provided without warranty of any kind.