Anyone who makes 80 K a year is considered to be in the middle class no matter where they live in the US. This is because you only go above the middle class if you are making $175,000 a year on average.
Most middle-class households earn around $80,000 a year. However, you could fall into this category if you make anywhere from $45,000 to $145,000 annually, according to H&R Block. Also See: How Big Is the Average Social Security Check of a Middle-Class Retiree?
One common way to classify the upper middle class is based on income. The upper middle class is often defined as the top 15% to 20% of earners. According to the Social Security Administration's 2022 wage data, the average upper-middle-class income was roughly between $80,000 and $100,000.
A single person needs upwards of $80,000 a year to live comfortably in California, survey data shows. California is not known for its affordability, but exactly how much it takes for a single person to live comfortably here might surprise you.
Income Thresholds for the Upper Class
In the U.S., for example, the median household income stands at around $75,000, according to the Census Bureau. Households greatly surpassing this amount, typically around $250,000 or more, are often considered upper class.
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 annual salary needed to afford a $400,000 home is about $127,000. Over the past few years, prospective homeowners have chased a moving target: homeownership. The median sales price of houses sold in the U.S. stood at $417,700 in the fourth quarter of 2023—down from a peak of $479,500 in Q4 2022.
$80,000 a year is how much an hour? If you make $80,000 a year, your hourly salary would be $38.46.
According to research from MIT, the living wage in the United States was $25.02 per hour ($104,077.70 per year) before taxes per year in 2022 for a family of four (two working adults with two children). That's an increase from $24.16 ($100,498.60 per year) in 2021.
Southern California
In Orange County, one-person households making less than $80,000 a year are considered low-income, according to the California Department of Housing and Community Development.
Depending on the size of your family or household, an $80,000 salary may comfortably cover your living expenses. If other people in your household, such as children, depend on your income, consider how much it costs to pay for their living expenses in addition to your own.
According to the Bureau of Labor Statistics, the average American earns $54,132, while those who have the top ten highest-earning jobs take home more than $120,000 a year or at least $10,000 a month. A number of those in the top tier are in the field of health care.
If you're earning $75,000 each year, you're doing a bit better than half the country. According to data from the U.S. Census Bureau, the median household income in 2021 stood at $70,784, so that extra $4,216 puts you in the upper 50 percent of earners.
I've broken this down befote 75k with California taxes is doable. 85k is more comfortable but I'd look for a place with rent of 2k max. 95k is comfortable 5k take home monthly. I do this on 57k with a 1.4K apartment.
Fidelity recommends a savings rate of 15%, inclusive of your employer's match, if available. But you don't have to start at that level right away. Instead, start where you can and increase your contributions by 1% each year until you reach the recommended savings rate.
If I Make $80,000 A Year What Mortgage Can I Afford? You can afford a home price up to $335,000 with a mortgage of $328,932. This assumes a 3.5% down FHA loan at 7%, a base loan amount of $323,275, financed upfront mortgage insurance premium of 1.75%, low debts, good credit, and a total debt-to-income ratio of 50%.
If you make $80,000 per year, your Biweekly salary would be $3,077.
To afford a $500,000 house, you need to make a minimum of $91,008 a year — and probably more to make sure you're not house-poor and can afford day-to-day expenses, maintenance and other debt, like student loans or car payments. One good guideline to follow is not to spend more than 28 percent of your income on housing.
On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.
An individual earning $60,000 a year may buy a home worth ranging from $180,000 to over $300,000. That's because your wage isn't the only factor that affects your house purchase budget. Your credit score, existing debts, mortgage rates, and a variety of other considerations must all be taken into account.
“In order to be considered "well off" how much money does one need to make a week in America on average?” The median household income in America is about $60,000/yr. If we take “well off” to mean “above average”, then the 75% percentile of the income distribution is about $110,000/yr. But this varies a lot by location.
In December 2022, 51% of people who earn more than $100,000 reported living paycheck to paycheck, which is 7% more than the previous year, according to a survey from financial insight and advising companies PYMNTS and Lending Club.