Financial Comfort: More Costly Than One Would Think

New research by psychologist and author Jonathan Rich shows that feeling financially comfortable" may now require a six-figure income.

Irvine, CA (PRWEB) July 8, 2005 -- Couples who described themselves as financially comfortable" reported an average joint income of $107,000. Couples describing themselves as financially struggling reported joint incomes averaging $79,000.

These are the findings of an Internet survey conducted at www.MoneyWorkBook.com from November 2003 through June 2005. The survey was conducted by Jonathan Rich, Ph.D., author of The Couples Guide to Love & Money. The respondents were 219 United States residents who described themselves either as married or as in a long-term committed relationship. They reported their own annual income and their partners income, and described their financial situation as either comfortable" or struggling." Of the 219 respondents, 102, or 47%, described themselves as struggling."

Regardless of where the couples lived, roughly the same percentage described themselves as financially comfortable or struggling. However, income figures varied by region. Couples living in coastal states needed the most income for financial comfort. On the east coast (zip codes beginning with 0, 1, or 2) couples experienced financial comfort with annual incomes averaging $122,000, and those with average incomes of $79,000 described themselves as struggling. On the west coast (zip codes starting with 9), a lofty average of $127,000 was required for financial comfort. Even the west coast strugglers" reported respectable incomes of $106,000. Financial pressures ease to some extent with distance from the oceans. In the southern, central, and mid-west states, financial comfort was attained with an average income of $95,000, and couples struggled with incomes of $66,000.

According to the U.S. Census Bureau, the median income in the United States was $65,000 for a family of four in 2003. The survey participants were all Internet users, who tend to be more affluent. It is particularly noteworthy than nearly half of them saw themselves as financially struggling, in spite of their relative affluence.

Rich sees this as part of a dangerous trend. Financial peace is becoming increasingly elusive for Americans. There are two forces at work. On the one hand, were under increased financial pressure, due to soaring real estate prices, increasing taxes, and other economic realities. At the same time, our material expectations are increasing -- what used to be luxuries are now seen as necessities." Rich believes media images and our competitive nature fuels these ever-increasing expectations. He states, People believe they need more, but they can afford less. So theyre borrowing to the hilt, working to exhaustion, or looking for ways to drop out of the rat race altogether."

The solution, says Rich, is for couples and families to make conscious choices about their desired lifestyle and to look for creative ways to make ends meet. If you spend $50 more than you make each month youre headed for trouble and youll inevitably feel like youre struggling. But if youre ahead by $50 every month you can relax. For many who are struggling with finances, simple shifts in thinking and in lifestyle can help them join the 'financially comfortable' group."

About Dr. Rich
Jonathan Rich, Ph.D. is a clinical psychologist in private practice in Irvine, CA. More information about his book, The Couples Guide to Love and Money, can be found at www.MoneyWorkBook.com. The book has been featured extensively in national media, including Cosmopolitan magazine and the new PBS TV series, MoneyTrack. For interviews with Dr. Rich, review copies of his book, or a press kit, contact publicist Lorna Garano at (800) 748-6273 X107.

Title: The Couples Guide to Love and Money
Publisher: New Harbinger Publications, Oakland, CA.
Publication Date: February 2003.
ISBN: 1572243112
Format: 200 pp., 8½ x 11, Trade Paperback.

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