Do you earn more or less money than the average middle-class American?

The middle class lifestyle in America is traditionally considered a pretty good one. If you’re middle class, hopefully you don’t have too many financial worries. Ideally, you have enough in the bank to cover your basic needs and some luxuries, like the occasional vacation. You can probably even save in a brokerage account for retirement.

The big question, however, is how much money do you need to be middle class? Let’s take a look at what people in this demographic make to see if you’re making more, less, or on your way to middle class living.

What Middle Class Americans Earn

According to Pew Research, the median income of middle-class households was $106,100 in 2022. This is a 60% increase from the median income of $66,400 in 1970.

While a 60% increase sounds good, it’s worth noting that the median income of high-income households increased by 78% over the same period. In contrast, the median income of low-income households increased by only 55% over that period.

Middle-class households have seen decent income growth, but not as much as the rich. This has widened the gap between the wealthiest Americans and those lower down the income ladder. It makes the middle-class lifestyle I mentioned above just a little harder to achieve.

Still, in many parts of the country, a median income of $106,100 should be enough to ensure a reasonable standard of living, with some money left over for perks.

How to Increase Your Income and Get the Most Out of Your Earnings

Whether you earn more or less than the average middle-class household is worth knowing, but it’s not the most important thing. Regardless of how much you earn, you can take steps to increase the money you bring in and make the most of what you’re already paid.

If you want to take steps to increase your income throughout your career, here are some techniques that can help you do so:

• Maintain a strong professional network to identify and capitalize on new opportunities.
• Improve your skills throughout your career so you can be more employable and earn more.
• Take advantage of the growth opportunities your job offers.
• Know what a fair wage is in your industry and advocate for appropriate pay when you are hired for a new job and during performance reviews.

Of course, it’s not just how much you earn that matters, it’s also what you do with your money. Try to spend wisely by living within a budget and saving 20% ​​of your income. This should go towards your retirement savings and other goals, from saving for a vacation to preparing for a new home or buying a car.

If you focus on increasing your income and spend it wisely using a detailed budget, you should be able to grow your wealth and develop financial independence over time. That is the ultimate goal, regardless of your income level.