What is considered comfortable is a relative measure, and you have to take into account factors such as your geographical location, your spending habits, your debt, among others, dependents among other factors. However, several attempts have been made in the past to estimate the amount of income that can put one in the middle-income bracket or enable a man to live a moderate life across the length and breadth of the country.
As mentioned in the MagnifyMoney survey published in 2022, the optimal annual income per employee in America was calculated to be $ 102,000. It was estimated $174,000 per year for a family of four depending on the inflation rate. These income levels ensure most individuals within American society can afford housing, healthcare, transportation, food, and some level of savings with little or no debts. However, these cost discrepancies remain significantly influenced by regional disparities that stem from the remarkably diverse costs of living between states/territories and cities.
Shelter, or more specifically, housing is usually the single largest consumption of money for the mass majority of families. And, therefore, the current median home price and the average rent in your area directly affect the extent to which your salary would go. San Francisco and New York are some of the largest coastal cities that have made housing prices incredibly high, which would translate to a much higher income needed for comfort. Thus, when wages are compared in terms of their ability to support a quality lifestyle because of the difference in the cost of housing lower-cost cities in the South or Midwest can afford to pay less than those in the high-cost cities.
Other key costs that determine the percentage through which money contributes to comfort include healthcare, transportation, childcare, and taxes. Medical expenses continue to increase each year and adequate employer-sponsored or private health insurance should be seen as compulsory to provide for middle-class families. It also dictates how much people have to incur on transport expenses as well as personal means of transport. The same applies to people who work for families, as they need much more money due to the steady rise in childcare and education expenses. State, city, as well as local taxes also differ significantly from one state to another all over the country.
By analyzing all of the necessary expenses of living, some experts claim that the minimum wage required to maintain financial stability in the United States should be approximately $68,808. Nonetheless, comfort provides greater liberties and economic benefits. In other words, an adult without children is considered to have a good-paying job and can easily earn $25000 to $100000 and above depending on the state of residence in the metro area. Childless people, whether two or single individuals, can also earn $60,000-$80,000 in many small cities or towns to live a middle-class life. For a family of four, income above $130,000 per year is considered comfortable for housing and other expenses while $ 105,000 annually is considered adequate in low-cost regions. Indeed, inequalities in salaries are maintained based on geography thus, the incomes that can afford comfort range from $161,013 in San Francisco to about $ 95,168 in Tennessee.
Several fundamental changes can be made to help you get the most out of your lifestyle no matter what your income is. These include having and adhering to a sound and realistic budget, paying off expensive debts, having access to funds for emergencies, as well as participating in employer-sponsored retirement savings schemes. Reducing housing expenses to affordable neighborhoods also cuts down expenses since a secondhand car is cheaper than a new one, and also helps to make wages go further. Similarly, education, training, and careful career planning to secure a higher-paying position and then training to ensure that the job is stable and will provide the income that is required for a contented life also helps you to earn and maintain the income that you desire. As we have seen there are differences in the definition of comfort, however, the objective of making comfort attainable by enhancing income, avoiding or reducing expenditure, and balancing the budget makes it achievable at many earning points in America.
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