How much money do you need to live comfortably for life?
On average, an individual needs $96,500 for sustainable comfort in a major U.S. city.
An individual needs $96,500, on average, to live comfortably in a major U.S. city. That figure is even higher for families, who need to earn an average combined income of about $235,000 to support two adults and two children.
To live “comfortably” as a single person in 99 of the largest U.S. metro areas, you'll need a median income of $93,933, according to a recent SmartAsset analysis.
While you might need $10 million to fund your ideal life in perpetuity, saving that amount of money is not a realistic goal for the vast majority of us. If you had a take-home pay of $100,000 per year and invested half of that at 8% per year, it would still take you 36 years to save $10 million.
The study found that a person needs an average of $96,500 for sustainable comfort in a major U.S. city. It's even more expensive for families, who need to make an average combined income of about $235,000 to support two adults and two children without the pressure of living paycheck to paycheck.
According to the latest figures by the Bureau of Labor and Statistics, the average salary in USA per month is $5,677 or $68,124 per year. As of 2023, the gross minimum salary in the USA is $32.75 per hour. Salaries range from $32,916 to $112,268 per year and include housing, transport, and other benefits.
Annual Salary | Hourly Wage | |
---|---|---|
Top Earners | $86,000 | $41 |
75th Percentile | $68,500 | $33 |
Average | $44,910 | $22 |
25th Percentile | $24,500 | $12 |
If you make $80,000 a year, your hourly salary would be $38.46.
How much does the average American make a year? According to the U.S. Bureau of Labor, the average U.S. annual salary in Q4 of 2023 was $59,384. This is up 5.4% from the same time period in 2022 when the average American was making $56,316 per year.
Depending on where you live in the United States, the amount needed to live comfortably can vary greatly. While you can get by as a single person on a $22,000 annual salary in Kentucky or Arkansas, you'll need at least $30,000 in Hawaii or Maryland.
What is the biggest life expense?
We don't put enough attention on taxes.
For most people, it is the single largest expense of your entire life. We tend to overlook this because it feels outside our control, but there are things we can do to optimize our tax burden, and it can be high-return work.
It's called the 25 times rule, and it's very simple. You multiply your annual spending by 25, and that is the minimum amount of money you would need invested to fund your lifestyle without working. (A word of caution: Like with any rule of thumb, the 25 times rule is not precise.
The average American earns approximately $1.7 million over their lifetime. This figure is derived from the median American salary, which hovers around $50,000 annually. Assuming an average working span of 20 years, this gives us our lifetime figure. But, as with all averages, this number can be deceptive.
The national median for living comfortably alone is $89,461, which suggests that a 50/30/20 budget might not be practical for most single people. Living alone comes with added costs that can be more than double what you'd spend if you lived with someone else — otherwise known as the “singles tax.”
Story at a glance
States that require the highest living wage for individuals are Hawaii ($112,411) followed by Massachusetts ($87,909) and then California ($80,013).
Saving $1,000 per month can be a good sign, as it means you're setting aside money for emergencies and long-term goals. However, if you're ignoring high-interest debt to meet your savings goals, you might want to switch gears and focus on paying off debt first.
These guidelines are adjusted each year for inflation. In 2023, the federal poverty level definition of low income for a single-person household is $14,580 annually. Each additional person in the household adds $5,140 to the total. For example, the poverty guideline is $30,000 per year for a family of four.
We've identified 10 cities where the typical salary for a 2K job is above the national average. Topping the list is Berkeley, CA, with New York City, NY and Renton, WA close behind in the second and third positions.
Therefore, for this study, the definition of a low wage worker is someone who earns an hourly wage of less than $15.81. We note that based on the California Poverty Measure, 22% of households in Santa Cruz County fall below the poverty line. Sources: 1.
As of 2022 (the most recent Census data), the average median household income in the U.S. was $73,914, meaning the national range for the middle class is roughly $49,271 to $147,828. Across the nation's largest cities, the range is between $51,558 and $154,590, according to SmartAsset.
How much money does it take for a family of four to live comfortably?
A family of four needs to make more than $275,000 to live comfortably in some of the most expensive U.S. cities, a recent SmartAsset analysis reveals. “Comfortable” is defined as the income needed to cover a 50/30/20 budget for a family of two adults and two kids.
But now, in 2024, many Americans who fit squarely the middle class income range (defined by Pew Research Center, about $52,000 to $156,000 for a household of three) are feeling less financially secure than in years past. One thing that hasn't changed: We all want to be middle class.
$100,000 a year is how much an hour? If you make $100,000 a year, your hourly salary would be $48.08.
Your household size
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.
If you make $25 an hour, your yearly salary would be $52,000.
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