Core Insights - A 2025 survey by FlexJobs indicates that 64% of Americans associate financial success with earning at least a six-figure salary, with 49% defining success as an income between $101,000 to $250,000 [1] Local Cost of Living - The cost of living varies significantly by location, with Kansas City being 48.3% less expensive than New York City. To maintain the same quality of life, one would need to earn $100,000 in New York compared to $51,700 in Kansas City [3] Debt Considerations - Individuals with substantial debt, such as $100,000 in student loans, require a higher income to feel financially successful. A survey by Citizens Bank found that 64% of young adults define financial success as living debt-free [4] Importance of Savings - Wealth accumulation is more influenced by savings than income level. A person earning $50,000 and saving $10,000 can build wealth faster than someone earning $250,000 and spending nearly all of it. Financial freedom is achieved through investments and passive income [5] Personal Definition of Success - Financial success is subjective and varies based on personal values. The desire for flexibility and freedom often underlies the financial goals individuals set for themselves [6]

Core Concept - The article emphasizes that financial success should be measured by net worth rather than just annual income, as income increases do not necessarily equate to improved financial health [1]. Income vs. Net Income - Net income, or take-home pay, is the amount available for spending after taxes and withholdings, which is crucial for understanding actual financial capacity [2]. - Gross income, the total earnings before deductions, can be misleading as it does not reflect the money available for spending [3]. - The difference between gross and net income can vary significantly among individuals, affecting their financial situations [4]. Understanding Net Worth - Net worth is defined as the total value of assets minus total liabilities, providing a comprehensive view of financial health [5][6]. - Unlike income, net worth accounts for all financial behaviors, including spending, saving, and borrowing [6]. Strategies to Increase Net Worth - Increasing net worth can be achieved by paying off debt or enhancing asset value without incurring new debt [7]. - A high net worth is generally more beneficial than a high income, as it indicates greater financial stability [7]. Lifestyle Inflation and Financial Stability - Lifestyle inflation can hinder financial progress, as increased income often leads to increased spending without a corresponding rise in savings [8]. - Accumulating debt faster than income growth can lead to negative net worth, where liabilities exceed assets [9]. Financial Independence - A high net worth can allow for financial independence, enabling individuals to live off savings or passive income sources [9]. - Strategies to enhance financial health include increasing income without raising spending, prioritizing debt repayment, and investing in high-yield savings or diverse asset portfolios [10].