When we think about financial success, the first thing that comes to mind for many people is having a lot of money. However, according to a recent Empower survey, most Americans do not believe that having money is the most crucial component of success. Instead, 59% of people say happiness – being able to spend money on things that bring them joy – truly defines success.

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The results of Empower’s study challenge the widely held belief that having a sizable bank account is the key to financial success. Just 27% of Americans believe that having money is the best indicator of success. Most people believe that living a fulfilling life with your money is more important than how much money you have overall. This includes taking care of your health, having enough free time to engage in activities and being able to spend money on things that bring you joy.

Happiness Over Wealth

For many Americans, financial success is tied to happiness, not just wealth. About 59% of those surveyed said that having enough money to enjoy life – whether traveling, dining out or simply being able to afford small treats – is their number one indicator of success. In the meantime, 35% of respondents cited having enough free time to pursue their passions and the same proportion cited physical health as a key indicator of success.

Rebecca Rickert, head of communications at Empower, explained it well to CNBC: “Americans are equating success with happiness as to what money can buy.” The emphasis is not on accumulating wealth but on what that money can do to improve daily life.

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The Reality of Living Paycheck to Paycheck

Another reason happiness matters more than wealth might be because many Americans are focused on just getting by. A separate study by Bank of America found that almost half of survey respondents said they're living paycheck to paycheck. Even higher-income households, including 20% of those making over $150,000 a year, report struggling with high expenses that leave them little extra to save.

These pressures – made worse by rising costs and inflation – make it hard for many to think about wealth in the traditional sense. Instead, financial success becomes about finding some room to breathe: being able to pay bills on time, saving a bit for the future and having a chance to spend on something that makes life enjoyable.

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Where do You Stand?

According to recent data from the U.S. Census Bureau, to be in the top 10% of earners in the U.S., your household must make $191,406 or more annually. However, financial success isn’t just about reaching this number. Age and location significantly influence what is considered “top tier.”

For example, peak earning years for the top 10% of households are generally in the 45-54 age range, where an annual income of $255,000 places you at the top. The threshold for the top 10% is significantly greater in high-cost states like California, at about $341,276 annually than in places like Mississippi, where it is $189,922, as the location is an important factor.

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