Back in the year 1950, the financial life of the average American looked quite a bit different. A family’s rent would amount to about $50. The same family would have lived on a salary of just over $3000 per year.
Fast-forward to the year 2022, and inflation has drastically changed the landscape of the American economy. As a result, the finances of the average American do not look even remotely similar to that of the 1950s.
The question is: what is considered to be a good salary in today’s economic climate? How much does the average American need to earn to afford the daily living costs? More specifically, is an annual salary of $75,000 enough to cover today’s average living costs?
In Which State Can You Live the Best with it?
In the year 2022, the cheapest states one can live in include the following: Indiana, Arkansas, Mississippi, Alabama, Georgia, Kansas, Missouri, Iowa, Tennessee, and West Virginia.
Where a $75,000 salary will earn you a modest apartment in Chicago or Los Angeles, chances are it can earn you a home in a far cheaper state. To increase one’s quality of life, lower earners often move to cheaper areas in order to increase the value of their dollars.
Where is This Amount Considered as a Low Income?
Having what is considered to be a “high” income is a very subjective term. The geographical disparity between living costs is very wide in certain areas of the nation.
In some major cities, an individual earning an annual salary that is well above average can be considered poor.
In the following cities, earning a salary in the neighborhood of $75,000 per year could even make you eligible for federal aid: New York City, Washington DC, Los Angeles, and Boston.
It seems almost unbelievable, but the rate of inflation has wreaked havoc on the housing market.
How to Make the Most of it?
There are several ways to stretch one’s income to meet their needs. While there is an increasing number of luxuries- and ever-increasing ways to spend money- it is possible to survive on a less extravagant income by being prudent.
Though it isn’t easy, the process is as simple as living within one’s means. Ways in which a person can stretch his or her income include budgeting, shopping sales, and living in an inexpensive area or home.
It is no secret that certain locations and types of homes are far more costly than others. However, living in some places is certainly less expensive than in others.
Is 75 000 Better than the Average Salary in the US?
The average personal income in the United States in 2022 is just over $63,000 annually. This figure makes an annual salary of $75,000 a better than average pay for the American worker.
That being said, different salaries are required in different areas of the country to cover the cost of living.
This information is, of course, subject to change. Inflation is constantly increasing the average costs of living in America, and the defining salaries of the middle class are constantly fluctuating.
Is this Middle-Class Earning?
The middle class is generally defined as making between two-thirds of and double the median annual income. However, the parameters for belonging to the middle class vary based on the state in which one lives.
In general, as of May 2022, the average middle-class single American earned an annual salary between $30,000 and $90,000. This economic group is, however, decreasing in size with the direction of the nation’s economy.
Final Thoughts on Is 75,000 A Year a Good Salary
The average American’s financial state looks far different than it did fifty years ago, twenty years ago, or even ten years ago. The economy will continue to change, and with it, income is needed to survive and thrive financially in different areas of the country.
Even if you are not earning within the higher brackets, there are still things that you can do to make the most of your income, even in this economy.