Rethinking the Value of a Day: How Americans Measure Time and Money

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Only a third of Americans feel financially free, but how they define that freedom varies widely, according to a new survey conducted by OnePoll on behalf of Experian.

2,000 adults across all generations most commonly defined financial freedom as having no debt (54%), a sizable nest egg (33%), or the ability to pay bills for six months without worry (33%). A quarter said they were just happy not to have to worry so much about their finances.

But the questions went deeper. Time is money, and the majority of Americans believe that an average day is worth $134 – outside of their work. The dollar amount is derived from respondents’ estimates of how much time they spend cleaning, cooking and driving. The average person spends about $35 a day.

Nearly four in 10 say they wish they had an additional source of income. They estimate that an extra $270 a day would provide them with financial security. Without extra income, they are basically hoping their boss will agree to a $34 an hour pay raise.

Of the 48% who feel financially constrained, 42% would welcome not having to stick to a budget every month, 38% say they still check their bank account before or after each purchase and would like to stop doing so, and 29% would simply like to have an “excellent” credit score (29%).

What does financial freedom mean?

Currently, the average American earns a salary of about $65,000 ($65,054.20) – only about two-thirds of the average salary they would need to earn to feel financially independent ($102,950.10).

This could be the reason why only 21 percent of the financially constrained respondents actually hold on to the hope of being free at some point. These respondents estimate that freedom will only come about 10 years before retirement age, i.e. at around 54 years of age.

“Financial freedom may be defined differently from person to person, but the common denominator is that people want to live more financially independent lives,” says Christina Roman, Consumer Education and Advocacy Manager at Experian. “Financial education is key to making this happen. Having access to tools and resources you can trust is the first step to expanding your financial knowledge and managing your unique situation.”

Financial education is a fundamental tool for managing personal finances. It includes understanding how money works, how to manage it, and how to grow it. Learning about personal finance from credible sources can empower individuals to make informed financial decisions.

While there are many places online to get free financial assistance and education, it is always best to seek the assistance of a professional, especially when it comes to understanding the reasons behind spending habits or making plans for the future.

Debt burden and financial constraints

The survey also looked at Americans’ debt. A quarter have no debt at all. Nearly half (47%) carry a credit card balance. Surprisingly, only 23% have a mortgage or home equity loan, while auto loans and medical debt round out the top five.

The road to debt freedom is not a short one. Respondents who have debt estimate that it will take them an average of six years to pay off their debts in full. 7% are convinced that their debts will outlive them.

The average American thinks about debt and finances about 120 times a month, or about four times a day. This worry influences how many Americans manage their finances.

Three in five respondents have become more cautious with their spending over the past five years. That’s partly because they’re saving for major purchases like a car or a down payment on a house. Home improvements and family vacations are also popular reasons to scrimp and save.

The average respondent assumes that he or she will be able to afford these purchases within the next four years.

Steps towards a financially free future

In 2024, Americans will take steps toward financial freedom, including working to pay off debt (58%), spending less on non-essentials (50%), and putting money into their savings account each month (42%).

“Financial freedom is a marathon, not a sprint, and there is no one-size-fits-all approach,” Roman explains. “Whether you’re managing existing debt, taking out loans, or saving for a home, it’s important to research and identify the steps that will put you on the path to greater financial independence and achieving your goals. There are resources available for consumers looking to improve their financial health, no matter what stage of the financial journey they’re in.”

The path to financial freedom is unique to each individual and requires patience, strategic planning, and continuous learning. By understanding and applying financial management principles, Americans can improve their financial health and move closer to achieving their financial goals.

This article was created by Media Decision and syndicated by Wealth of Geeks.