How much money do you need to earn to be considered rich in the United States?
The average household income in the United States is just over $70,000 a year. How much does a person need to earn annually to be considered rich?
The minimum hourly wage in the United States has been $7.25 for 15 years. Thankfully, many people earn more than this amount: higher base salaries exist in 30 states in the country as well as the District of Columbia.
In addition to where a person lives, there are other factors that account for differences in salaries, including the type of job, the worker’s educational level, among others.
According to the United States Census Bureau, median household income was $74,580 in 2022, a 2.3% decrease from the 2021 estimate of $76,330. Although this is the average, many people earn a lower amount, while others earn much more and are considered “rich.”
READ ALSO:Will that extra year of work be worth it for your retirement?
How much money do you need to be considered rich in the USA?
There are several economic classes in the country, depending on family income levels. According to the Census Bureau, the income for each class level is as follows:
- Lower class: less than or equal to $30,000
- Lower middle class: $30,001 – $58,020
- Middle class: $58,021 – $94,000
- Upper middle class: $94,001 – $153,000
- Upper class: more than $153,000
READ ALSO: Visa and Mastercard to pay nearly $200 million to merchants in class action settlement
Here is the median net worth for each class according to 2021 US Census data:
- Lower class: $12,000
- Lower middle class: $61,260
- Middle class: $145,200
- Upper middle class: $269,100
- Upper class: $805,400
When determining your net worth, you must take into consideration your assets and your liabilities. Add up everything you own, like your house, savings and investments, and subtract what you owe, like mortgages, loans and credit cards.
Being considered “rich” is a subjective matter and there is no metric to measure this exactly.The important thing is to feel comfortable with your financial situation and have the income or assets necessary to cover the cost of living and a reasonable amount of savings.
Furthermore, the amounts shared above cannot be applied in all cases. It’s important to take your location into account, as some places offer a lower cost of living, relatively affordable housing prices and lower taxes, while in big cities like New York or Los Angeles, everything is more expensive and consumes a larger share of your income.