The average American feels they need to earn over $180K to live comfortably, survey shows (2024)

FAQs

How much money does the average American need to live comfortably? ›

According to research published by the National Library of Medicine and the Social Security Administration, the lifetime earnings of the average U.S. citizen (over 50 years from age 20 to 69) vary substantially, depending on the various factors we will cover in this article, with an overall average median lifetime ...

What are the average expenses for a household? Average household earnings in 2022 were $94,003, while average total expenditures for the year were $72,967, according to the Bureau of Labor Statistics' Consumer Expenditure Survey.

Depending on the cost of living in your area, making ends meet on $50,000 a year might require sharing a living space, keeping close tabs on your spending, and forgoing some luxuries. However, you should still have enough to take care of your basic needs with some left over to put toward your future.

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

The Takeaway

For most individuals and small families, the answer to “Is $100,000 a good salary?” is a resounding “yes.” Cost of living and family size can affect how far $100,000 will go, but generally speaking, you can live comfortably on $100,000 a year. Are you hoping to make the most of your salary?

What is a good salary in the USA? In the year 2023, the average salary in US stood at USD 55,640 (INR 46.4 L). Whereas, the average weekly earnings were around USD 1,070 (INR 89.2 K). When it comes to the 50 US states, the salary amount ranges between USD 45,180 (INR 37.6 L) - USD 76,600 (INR 63.8 L).

How rich is the average American? ›

Between 2019 and 2022, the average American family's net worth increased by 23%. While the average net worth is upward of $1 million, the median net worth tells a very different story. Calculated this way, the typical American family has a net worth of $192,900.

Housing. Housing expenses frequently take up the largest chunk of monthly expenses and include monthly mortgage or rent payments, depending on whether you own or rent your home. It also includes any other extra costs for maintaining and using the home.

Pew Research releases new data showing that Californians are suffering the highest cost of living in the country. Earning as much as $180k would still put someone in the “Middle Class” in some parts of the state.

The salary you need to be considered middle class in every U.S. state—it's close to $200,000 in 2 of them. In the U.S., whether you're considered middle class or not may depend on where you live. In some states, you can earn over $150,000 and still be considered middle class.

If you had an income of $200,000, that would put you in the top 12% of household incomes or the top 5% of individual incomes in 2022.

A single person can usually live well on a $60,000 annual salary. However, if you have expensive tastes, are carrying a lot of debt, live in an area with a high cost of living, or are supporting multiple people, you may find it more challenging to get by on $60,000 a year.

$80,000 is about $5,000 higher than the U.S. median household income, so many people would consider it very good for a single person. “Good” is always a relative term when it comes to salary; whether or not the amount you earn covers your expenses is a highly personal dynamic.

California. California's living wage is $19.41, or $40,371 a year for an individual. A family of four requires $27.42, or $101,378 a year. Childcare costs will cost a family with two working adults $22,259 a year, slightly more than the $24,682 they can expect to spend on housing.

While it's not a six-figure salary, an annual salary of $80,000 is generally considered a respectable wage, especially for a single person. Of course, your local cost of living plays an important role in whether a salary is “good” for you or not.