This Is the Salary Experts Say You Need To Be Comfortable
Written by
Martin Dasko
Edited by
Levi Leidy
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According to research published by Wise last year, it was estimated that the average American household spends $61,334 annually on their expenses, with housing being one of the most significant expenses. With stubborn inflation figures and higher interest rates, it’s no secret that living costs have increased in recent years. This means that you have to focus on bringing in more money if you want to live comfortably. We wanted to examine how much you really need to bring in to live a decent life.
What’s the salary that you need to feel comfortable about your situation?
Salary Needed: $90,000
“Based on a budget of 50% for necessities, 30% for discretionary spending, and 20% for savings and investing, the average person needs around $90,000 to live comfortably on their own in the United States,” said Scott Lieberman, founder of Touchdown Money.
While the cost of living will vary depending on your location and lifestyle, this figure is pretty accurate based on recent data. Part of this higher cost of living could be attributed to housing costs, with the median mortgage payment reaching $2,201 in March, according to the Mortgage Bankers Association (MBA). When you have to spend that much on just your mortgage, you’ll need a higher salary to cover your other bills, savings goals and discretionary spending.
Problems With Salary Figures
The biggest issue with the salary needed to live comfortably is that many Americans don’t earn this amount of money. According to a 2023 study from Zippia, only 18% of individuals earned over $100,000. Considering that the median American income is $60,000 based on recent data from the Labor Bureau, many people are struggling to live comfortably, and living paycheck to paycheck is more common.
If you don’t have the salary to live comfortably where you currently reside, you may want to look into relocating to save money on expenses and improve the quality of your life.
Liberman added, “One of the best choices is to cut back on discretionary spending and choose cheaper alternatives wherever you can. Regardless of your salary, savings should be one of the last things you cut.”
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