Americans are experiencing some financial satisfaction from the number of job openings and from being able to make mortgage payments on time, according to the Q1 2019 Personal Financial Satisfaction Index from the American Institute of Certified Public Accountants.

But that doesn't mean everything is rosy.

The PFSI, which is calculated by subtracting the Personal Financial Pain Index from the Personal Financial Pleasure Index, still has a way to go to be that positive.

While a positive score does indicate that Americans are feeling more financial pleasure than pain, the Pain Index shows that they're still not happy with taxes.

The gain in the PFSI, which is up 11.3 percent (3.7 points) to 36.1 from last quarter, is due to a 2.4-point increase in the Pleasure Index combined with a 1.3-point decrease in the Pain Index.

Market gains help to boost the Pleasure Index, while market losses of course contribute instead to the Pain Index. And with the gains in Q1 of 2019, the Market Index “is once again the biggest contributor to financial pleasure.”

The job market is also boosting the Pleasure Index, with job openings exceeding the number of unemployed Americans since March 2018.

And a drop in loan delinquencies, another in underemployment and a third in the Inflation Index have all served to reduce the Pain Index, with more Americans paying their mortgages on time than they have in nearly two decades.

There was a 21.6 percent (8.4 point) drop in loan delinquencies, a 12.9 percent (4.8 points) drop in underemployment and a 5.5 percent (2.4 point) drop in the Inflation Index.

But when it comes to taxes—the fourth factor in calculating the Pain Index—the pain factor only fell one point (2.1 percent) compared with the same period last year. Says the report, the tax factor “continues to be an outsize contributor to financial pain. In fact, over the last three years, the personal taxes factor has been the largest contributor to financial pain for 9 of 12 quarters.”

The tax component of the Pain Index, according to the report, is highly important in calculating financial satisfaction, since it hits so many Americans—who notice when their takehome pay is affected.

And the fact that as of the report's issuance the average tax refund for 2018 was slightly smaller than that for 2017 has definitely not made people happy.

Instant Insights /

Financial pain: Where Americans stand so far this year

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