Income + Financial Stability in America (2024)

FAQs

What is a stable income in America? ›

In fact, fewer than 1 in 3 adults in the U.S. say they are completely financially secure, according to a new Bankrate survey of more than 2,500 adults. To feel comfortable or financially secure, Americans need a salary of roughly $233,000 a year on average, Bankrate found.

The most common signs of a financially stable person include having little to no debt, being able to make and stick to a budget, having a healthy amount of money in savings, and having a good credit score.

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.

About 72% of adults were “doing at least OK financially” as of October 2023, little changed from 73% in 2022 but down from a 78% high in 2021, according to the central bank's Survey of Household Economics and Decisionmaking, published Tuesday.

Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.

By just about any measure, earning $80,000 a year is a good salary. It's about $5,000 higher than the U.S. median household income, per Census data.

Most Americans Are Still Struggling Post COVID-19

Contrarily, the wealthiest 20% of households still maintain cash savings at approximately 8% above pre-pandemic levels. Ultimately, with inflation taken into account, the majority of Americans are worse off financially compared with before the start of the pandemic.

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more.

Trend from 2022 to 2023 in percentage of U.S. adults reporting they have enough money to live comfortably. This has varied between a high of 73% in 2007 to a low of 60% in 2012. It is 64% in the latest reading, in April 2023.

Inflation, lack of savings and credit card debt

Among those who consider themselves to be living paycheck to paycheck, financial stressors vary. Their worries are not surprising. Inflation has been rising in 2024, according to the Bureau of Labor Statistics, even if incrementally.

How much money does the average American have in total? ›

The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.

In the US, financial literacy is hovering at around 50%, according to an annual survey, with the EU also under-performing. The World Economic Forum's Future of Capital Markets initiative is promoting responsible investing across the retail investor ecosystem.

A good monthly income in California is $3,886, based on what the Bureau of Economic Analysis estimates that Californians pay for their cost of living. A good monthly income for you will depend on what your expenses are and how much you typically spend per month.

$25,500 is the 25th percentile. Salaries below this are outliers. $40,000 is the 75th percentile.

The median household income in the U.S. is just under $75,000, so it makes sense that the largest proportion of those surveyed (45%) said that it's possible to be financially stable by earning between $50,000 and $100,000 a year.

Stable income means income that is the same amount each time it is received.