Here’s how much money it takes to be considered 'financially comfortable’ in 12 major U.S. cities (2024)

FAQs

How much money do you need to be comfortable in us? ›

Key Findings. On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.

An individual must earn $96,500 a year before taxes to afford housing, groceries, transportation and entertainment, while also paying off debt and putting some money into savings, according to personal finance website SmartAsset.

For example, individuals with $1 million in liquid assets are generally classified as having a high net worth. To be considered very high net worth, one might need assets ranging from $5 million to $10 million, while an ultra-high net worth status could require $30 million or more.

The amount of money needed to be considered financially stable is subjective and depends on a person's individual situation. But generally, having a net worth of $1 million or more can indicate that someone is financially stable or secure and has a good grasp of money management.

Getting by on $1,000 a month may not be easy, especially when inflation seems to make everything more expensive. But it is possible to live well even on a small amount of money. Surviving on $1,000 a month requires careful budgeting, prioritizing essential expenses, and finding ways to save money.

I believe the federal poverty line is around $14,500/yr. So, I wouldn't say that $10,000 is a living. I mean, in the right circ*mstances, I suppose one could live on that. But I wouldn't want to.

The survey revealed that many Americans are feeling defeated when it comes to their financial lives, with just 11% reporting that they are living their definition of economic freedom. 1 The most common definitions of this type of freedom include: Being debt-free: 54.2% Living comfortably, if not rich: 50%

Americans say they'd need to earn about $94,000 a year on average to feel financially independent. That's about $20,000 more than the median household income of $74,580.

According to the US Census Bureau, the majority of Americans (54.98%) make $50,000 per year or less, while only 18% of individual Americans make $100,000 per year or more. This means that over 80% of Americans make less than $100,000 per year.

Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.

What is considered rich in the USA? ›

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

Many have graduate degrees with educational attainment serving as the main distinguishing feature of this class. Household incomes commonly exceed $100,000, with some smaller one-income earners household having incomes in the high 5-figure range. "The upper middle class has grown...and its composition has changed.

That said, the typical age of financial independence should be between 20-23 years old, according to a Bankrate survey.

More than half of Americans (58%) report being able to live within their means and not worry about making ends meet, while fewer than half (40%) feel they are in good or great financial shape, and one in four (23%) say they are in poor shape.

$80,000 is about $5,000 higher than the U.S. median household income, so many people would consider it very good for a single person. “Good” is always a relative term when it comes to salary; whether or not the amount you earn covers your expenses is a highly personal dynamic.

Average living expenses for a single person

The average monthly living expenses for a single person in the USA are $3,189, which is $38,266 per year. The average cost for a family of four is $7,095 per month, which is $85,139 per year.

To give you a rough estimate, you might need an annual household income of $75,000 to $100,000 or more to comfortably support a family of four in many parts of the United States. This can be higher in expensive cities like New York or San Francisco and lower in more affordable areas.

Is it possible to live comfortably on 30,000 dollars a year in the United States? Yes. IF you have a very modest life style. You don't want or care about always having the new & trending things, remain single with no children & have loving & supporting family & friends.

While California ranks third-most expensive for a single adult to live comfortably at $113,652, it only ranks fifth-most expensive for two working adults raising two children. The total family income should be at least $276,724 in the latter case.