In much of the United States, earning six figures indicates a high salary. median U.S. household income was $74,580 in 2022, as reported by the U.S. Census Bureau.
High six-figure salaries have become increasingly prevalent with time as wages increase. However, due to inflation, these earnings do not stretch as far as they once did. The question remains: How uncommon is it now to make $100,000 or above? Below you'll find the most recent statistics on this topic.
More than 30 percent of U.S. households make at least $100,000 annually.
According to data from the U.S. Census Bureau, 37.1% of American households had an annual income of at least $100,000 in 2022. Below is a more comprehensive distribution across various six-figure earning categories along with their respective percentages:
- $100,000 to $149,999: 16.9%
- $150,000 to $199,999: 8.7%
- $200,000 or more: 11.5%
Many homes continue to have average or lower-than-average earnings. In fact, just slightly above half (50.2%) receive less than $75,000 annually. However, high-income families are surprisingly prevalent — surprising because more than one in ten households actually take home $200,000 or higher each year.
It's not just about earnings; purchasing power is crucial as well.
It’s undeniable that income plays a crucial role. When you handle your finances wisely, life becomes more comfortable as your earnings go up.
However, when examining these income figures, remember that a six-figure salary does not carry the same weight across different locations. The purchasing power varies based on your area of residence. Numerous families with top-tier earnings reside in urban centers known for their elevated cost of living.
For instance, the median household income in San Francisco stood at $136,689 in 2022, which is an increase of 83% compared to the national median. However, the cost of living in San Francisco exceeds the national average by 79%, with housing expenses being exceptionally high at 207% above the norm, as reported by PayScale. This means that even a six-figure salary might not stretch very far in this city.
How you can boost your earnings
Although money is not the ultimate measure, increasing your earnings can provide significant financial benefits. Each year, I aim to boost my income. This allows me to keep pace with rising prices. Additionally, it enables me to put away more funds for savings and investments. Ultimately, this enhances my overall standard of living.
As a freelancer, I have some discretion over my earnings. This largely hinges on the amount of time I dedicate and how effectively I utilize that time. Below are several strategies you might consider to increase your personal income:
- Develop new skills. Explore training programs and courses you can join, whether within or outside your workplace. Enhancing your abilities in these areas might increase your worth, which significantly influences your earnings.
- Seek a salary increase through negotiation or pursue a higher position. Should you be excelling in your present position, consider discussing a salary increase with your supervisor. Additionally, stay informed about internal job postings within your organization to identify any newly available roles that might offer better compensation.
- Look for new jobs regularly. Occasionally, the most substantial raises can be obtained by changing positions. Explore employment websites and create notifications for openings that match your credentials.
- Introduce an additional revenue source. There are numerous side gigs available for earning additional income. Alternatively, you could launch your own small enterprise or provide freelance services.
Money management practices to adopt regardless of your earnings level
Regardless of your income level, what truly counts are your money management practices. Spending all that you earn will pose challenges irrespective of whether your annual salary is $50,000, $100,000, or even $200,000.
Several routines you ought to adopt regardless of your earnings level include:
- Earn more than you spend. It's one of the simplest money rules , and it might be the most crucial one. If your expenses are exceeding your income right now, begin searching for areas where you can reduce costs.
- Save money every month. Aim to save a minimum of 5%, and preferably 10%, of your earnings each month. Establish an automated transfer to a savings account. high-yield savings account To make sure this consistently occurs.
- Invest for the future. It's wise to allocate between 5% and 10% of your earnings towards stocks for your retirement fund. This can be achieved through various methods. retirement accounts Or a standard brokerage account.
- Create and sustain an emergency savings account. Emergencies are inevitable. Financial experts typically suggest setting aside funds enough to cover three to six months of your living costs. emergency fund .
All these practices are essential components of achieving financial security both presently and down the line. Begin implementing them immediately, continue adhering to them even as your earnings grow, and this will position you for prosperity.
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