How much do you need to earn to live comfortably in the United States?

To live comfortably in the major cities of the United States, a significantly higher income is required. A recent study from the Personal Finance website SmartAsset states that a person needs to earn USD 96,500 before taxes to afford housing, food, transportation and entertainment in addition to paying off debt and saving money.

On the other hand, a family of four, with two parents supporting two children, needs a combined income of USD 235,000 to achieve a comfortable standard of living.

This income level applies only to the 99 largest cities in the United States. Big cities like Boston and New York also require higher salaries. One factor behind the need for higher incomes is the rise in housing prices and other consumer products, which have complicated the cost of living in cities.

Jacqueline D JohnEditor of Economic Analysis at SmartAssetpointed to CBS News That this increase in the cost of living significantly affects the scope of income in major cities, as salaries do not follow the same rate of increase.

In contrast to these findings, the most recent data United States Bureau of Labor Statistics suggests that the typical US citizen earns between USD 62,000 and USD 73,000 per year, while the median household income in the country is estimated to be USD 77,397. Only 18% of Americans earn more than $100,000 a year, and about 34% of households have more than $100,000 in 12-month income.

It’s worth noting that for many upper-income Americans, a six-figure income does not represent the expected level of comfort. 2023 study by Landingtree found that 4 in 10 Americans with incomes of $100,000 or more still live paycheck to paycheck.

Analysis of SmartAssetwhich uses living wage figures MIT and recognizes, applies the “50-30-20” budget rule New York and San Jose As the most expensive cities to live comfortably.

in NYAn individual needs USD 138,570, while a family of four needs USD 318,406. Saint Josephin CaliforniaCloser is $136,739 for an individual and $334,547 for a family of four.

Cyrus Purnell, an expert in personal finance, is not surprised by the high cost of living in these cities, largely attributed to housing costs. Additionally, he mentions that there are millions of Americans in major cities who do not earn the wages specified by. SmartAsset

But they may work another job to cover their basic needs.

This study, among others, is leading citizens to rethink what kind of income is necessary to be considered good. USAIt is noted that the concept of wealth has evolved beyond simply achieving a six-figure salary and is largely dependent on place of residence and lifestyle circumstances.