Put another way, if you're making less than $43,350 in your household, you are probably considered a low-income family. If you're making between $43,350 and $130,000, you're considered middle class. If you're earning $130,000 and above, you're likely considered upper class.
Middle class: Those in the 40th to 60th percentile of household income, ranging from $55,001 to $89,744. Upper middle class: Households in the 60th to 80th percentile, with incomes between $89,745 and $149,131. Upper class: The top 20% of earners, with household incomes of $149,132 or more.
Today, middle class describes a broad economic group making up roughly half of the U.S. population. Typically, it has consisted of those in white-collar jobs, small businesses or skilled trades. According to the Pew Research Center, the middle class includes Americans making between $38,133 and $114,400 in 2023.
According to Schwab's 2023 Modern Wealth Survey, Americans perceive an average net worth of $2.2 million as wealthy. Knight Frank's research indicates that a net worth of $4.4 million is required to be in the top 1% in America, a figure much higher than in countries like Japan, the U.K. and Australia.
$2.2 million
That's how much net worth an American needs to be considered wealthy in 2023, according to the Charles Schwab Modern Wealth Survey.
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.
An $80,000 annual salary might sound like a decent pile of money — and in fact it's about $10K higher than the national median household income of $70,784. However, a recent Bankrate study found that financial distress can strike even those making $80,000 per year.
You can afford a $635,000 home with a mortgage of $603,000. This assumes a 5% down conventional loan, low debts, good credit, and a rate of 7%, and a total debt-to-income ratio of 45%. Keep in mind that many factors can influence this number like property taxes, homeowner's insurance, HOA dues, credit score, and more.
Your income puts you in the upper half of American earners, well above the median household income of $74,580, per Census data.
As of 2023, the average salary in the USA varies largely across industries, job positions, age groups, levels of experience, and educational backgrounds. However, the average salary nationwide in the US, according to Forbes, is $59,428. On the other hand, median household income in the US was $70,784 in 2021.
Some or all studies may require download and/or purchase. U.S. respondents report, on average, a planned base salary increase of 3.8 percent in 2023. Among some industries, however, base salary increases reported by respondents may surpass 4.5 or even 5 percent for their employees.
United States Monthly Earnings stood at 4,702 USD in Dec 2023, compared with the previous figure of 4,695 USD in Nov 2023 See the table below for more data.
There is no official financial standard for what constitutes middle class. For most it's more about a standard of living—including owning a home, being able to afford to pay for a college education for your kids, and having enough disposable income to take a family vacation.
The lower middle class is often made up of less educated people with lower incomes, such as managers, small business owners, teachers, and secretaries. The upper middle class is often made up of highly educated business and professional people with high incomes, such as doctors, lawyers, stockbrokers, and CEOs.
That monthly payment comes to $36,000 annually. Applying the 28/36 rule, which states that you shouldn't spend more than around a third of your income on housing, multiply $36,000 by three and you get $108,000. So to afford a $500K house you'd have to make at least $108,000 per year.
A mortgage on 200k salary, using the 2.5 rule, means you could afford $500,000 ($200,00 x 2.5). With a 4.5 percent interest rate and a 30-year term, your monthly payment would be $2533 and you'd pay $912,034 over the life of the mortgage due to interest.
To be approved for a $200,000 mortgage with a minimum down payment of 3.5 percent, you will need an approximate income of $62,000 annually.
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.
$30 an hour is how much a year? If you make $30 an hour, your yearly salary would be $62,400.
$66,000 is the 25th percentile. Salaries below this are outliers. $80,000 is the 75th percentile. Salaries above this are outliers.
“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.
The median household income in the U.S. is just under $75,000, so it makes sense that the largest proportion of those surveyed (45%) said that it's possible to be financially stable by earning between $50,000 and $100,000 a year.