Discover the best Financial Advisors Worldwide!

На информационном ресурсе применяются рекомендательные технологии (информационные технологии предоставления информации на основе сбора, систематизации и анализа сведений, относящихся к предпочтениям пользователей сети "Интернет", находящихся на территории Российской Федерации)

Retirely

5 подписчиков

Do You Make More or Less Money Than the Typical Middle-Class American?

A man sitting on his couch in his sunny living room and writing in a notebook.

Image source: Getty Images

The middle-class lifestyle in America is traditionally viewed as a pretty good one. When you’re in the middle class, you hopefully don’t have too many dire money worries. Ideally, you’ll have enough in the bank to cover the basics and some luxuries, like the occasional vacation.

You can likely even save in a brokerage account for retirement.

The big question, though, is how much money does it take to be in the middle class? Let’s look at what people in this demographic group earn to find out if you make more, less, or are on target for a middle-class life.

What middle-class Americans earn

The median income of middle-class households was $106,100 in 2022, according to Pew Research. This is up 60% from a median income of $66,400 in 1970.

While a 60% increase sounds good, it’s worth noting that the median income of upper-income households increased by 78% during the same period. By contrast, the median income of lower-income households only went up 55% in that time.

Middle-class households have experienced a good amount of income gains, but not as much as the rich. This has exacerbated a wealth gap that exists between the wealthiest Americans and those lower down on the income ladder. It’s making that middle-class lifestyle mentioned above just a little harder to achieve.

Still, a median income of $106,100 should be enough in many parts of the country to provide a reasonable standard of living, with some money left over for extras.

How to increase your income — and make the most of what you earn

Whether you earn more or less than the typical middle-class household is worth knowing, but not the most important thing.

No matter how much you’re earning, you can take steps to increase the money you have coming in and make the most of what you’re already getting paid.

If you want to take steps to increase your income throughout your career, here are a few techniques to help you:

  • Maintain a strong professional network to identify and take advantage of new opportunities.
  • Enhance your skills throughout your career to become more employable and earn higher pay.
  • Participate in workplace advancement opportunities offered at your job.
  • Understand what fair pay is within your industry and advocate for yourself to be paid appropriately when you’re hired for a new job and during performance reviews.

Of course, it’s not only how much you make that matters, but also what you do with your money. Aim to spend wisely by living on a budget and saving 20% of what you make. This should go to both retirement savings and other goals, from saving for a vacation to preparing for a new home or car purchase.

If you focus on increasing your income and spending it wisely using a detailed budget, you should be able to grow your wealth and develop financial independence over time. That’s the ultimate goal, no matter your income level.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

The post Do You Make More or Less Money Than the Typical Middle-Class American? appeared first on Retirely.

Ссылка на первоисточник
наверх