The U.S. government just released the median household income in America. Will you be behind in 2024?

How much money do you make, and how does that number compare to your fellow Americans? These are important questions to answer, since you work hard and want to simplify every aspect of your financial life.

In early September, the Census Bureau released data showing the new midpoint for household incomes in America — and it’s the first statistically significant change since 2019. See what people are earning to see if you’re falling behind or if your wages are keeping pace.

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Income to rise in 2024

According to the Census Bureau, real median household income before taxes reached $80,610 in 2023 — a 4% increase from 2022, when real median household income was $77,540. After-tax income also rose, albeit by a slightly smaller margin. Real median household income after taxes rose 3.7% from $66,800 in 2022 to $69,240 in 2023.

The good news is that household incomes rose at all income levels. It wasn’t just the highest earners who got a big raise. Earnings rose 6.7 percent for those in the 10th percentile and 4.6 percent for those in the 90th percentile. But only white and non-Hispanic white Americans saw significant income gains, while black, Asian and Hispanic households didn’t see much change.

With some Americans doing slightly better and others staying relatively the same, overall income inequality did not increase appreciably between 2022 and 2023. But the ratio of women’s to men’s earnings fell over this period, from 84% in 2022 to 82.7% — the first substantial decline since 2003.

In response to the news, President Joe Biden issued a statement saying that “we are making real progress growing the middle class, with incomes up by more than $3,000.”

Although incomes have risen, there are still many Americans who do not earn enough to live comfortably.

Read more: Wealthy, young Americans are ignoring the stormy stock market — these are the alternative assets they’re relying on instead

What can you do if you fall behind?

While it’s great news that Americans are seeing an increase in income, that doesn’t mean that every American is now earning a middle-class income. In fact, we’re still a long way off, with 36.8 million people expected to live in poverty in 2023.

If your income is below the median, or below where you would like it to be, there are a number of things you can do to improve your finances. Here are a few techniques:

• Search for new vacancies. If your current job isn’t paying as much as you’d like, look into what else is out there. It might be time to look at what the industry standard is for your role and find a better paying position.

• Negotiate your salary. If you haven’t gotten a raise lately, or if you feel like your job responsibilities have expanded or your performance has improved, it’s worth asking your company to pay you more.

• Develop additional skills. The more talents and skills you have, the more likely you are to get paid for them. Look into certification programs, courses, or job training to develop your skills.

• Start a side job. Having a side hustle can help you increase your income. And if all goes well, you might even be able to find a new full-time job that pays better.

It’s also important to remember that you can be financially successful even without a large income. It’s what you do with your money that counts. So exploring other avenues, like opening a brokerage account and investing as much as you can to build a more secure future, is something to consider. This will set you up for success even if your income is below the median, because you’ll be using your hard-earned money to grow your wealth over time.

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This article provides information only and should not be taken as advice. It is provided without warranty of any kind.