The majority of Americans view something other than wealth as the primary indicator of success.

• A report by Empower reveals that approximately 59% of surveyed Americans consider the ability to spend money on things that bring happiness as a key indicator of success.
• According to the report, only 27% consider wealth to be the ultimate indicator of success.
• One expert stated that Americans are equating success with happiness based on what money can buy.

Americans typically do not consider their net worth or bank balances when evaluating their success.

A recent report by Empower reveals that approximately 59% of polled Americans consider the ability to spend money on things that bring them happiness as the primary measure of success, among the top three types of success they value.

Physical wellbeing and having free time to pursue interests were cited by 35% of respondents.

Rebecca Rickert, head of communications at Empower, stated that wealth itself is not viewed as the best benchmark by many people.

According to the report, only 27% consider wealth to be the ultimate indicator of success.

Empower surveyed 2,203 U.S. adults in September.

'You have to strike a balance'

According to Rickert, Americans are equating success with happiness based on what money can buy.

Regular expenses consume most of people's income, leaving little room for savings.

A recent report by Bank of America revealed that nearly half of survey respondents in the third quarter agreed with the statement "I am living paycheck to paycheck."

Households earning less than $50,000 a year account for 35% of those living paycheck to paycheck, while 20% of households earning more than $150,000 also fall into this category.

The Empower report found that about 35% of polled Americans consider the economy as the top barrier to success, while 30% believe income instability is the biggest obstacle.

Rickert stated that those challenges are "out of your control forces."

"Success is a secret that only people hold," she stated.

A financial plan can assist you in saving for future objectives and accommodating short-term desires within your budget.

Striking a balance is crucial, advised Clifford Cornell, a certified financial planner and associate financial advisor at Bone Fide Wealth in New York City.

"While saving for retirement is crucial in financial planning, it's also important to enjoy life in the present, as the future is uncertain."

Instead of brewing coffee at home, going to a coffee shop occasionally can bring joy to one's purchases, according to Cornell.

"Some individuals find the experience to be almost therapeutic," he stated. "They truly relish it."

How to find room in your budget for joy

Experts suggest that often, obtaining things and experiences that bring joy involves managing your finances effectively.

The 50-30-20 rule is a budget framework that suggests allocating 50% of your income to necessities, 30% to discretionary spending, and the remaining 20% to savings and investments.

In 2022, half of U.S. renters were "cost burdened," meaning they spent more than 30% of their income on rent and utilities, according to the Joint Center for Housing Studies of Harvard University.

Cornell stated that it might not be practical for a young person beginning their career to save 20% of their income straight out of college.

He remarked, "Perhaps we're merely pushing the budget to achieve a 5% or 10% discount."

Shaun Williams, a private wealth advisor and partner at Paragon Capital Management in Denver, who is ranked No. 38 on CNBC's 2024 Financial Advisor 100 List, stated that he does not like the 50-30-20 rule and that almost no one follows it.

Instead of providing a specific proportion, it's best to determine what works best for your current financial situation.

To allocate money for expenses into different envelopes, another way to find room in your budget for joyful spending is to take inspiration from "cash stuffing," as suggested by Williams. Decide how much you plan to spend on a given activity for a certain time frame, whether that's a few months or years, and set up a savings account for that goal.

To achieve long-term plans, consider the lifestyle you desire and determine the expenses for your needs, desires, and dreams, advised Williams.