Here’s how much money it takes to be considered 'financially comfortable’ in 12 major U.S. cities (2024)

FAQs

How much money do you need to be comfortable in the US? ›

An individual must earn $96,500 a year before taxes to afford housing, groceries, transportation and entertainment, while also paying off debt and putting some money into savings, according to personal finance website SmartAsset.

To live "comfortably" as a single person in 99 of the largest U.S. metro areas, you'll need a median income of $93,933, according to a recent SmartAsset analysis.

Put a number on financial security, and that may be a major six-figure annual income: Americans feel they'd need about $233,000 a year on average to be financially comfortable, Bankrate's poll found.

The amount of money needed to be considered financially stable is subjective and depends on a person's individual situation. But generally, having a net worth of $1 million or more can indicate that someone is financially stable or secure and has a good grasp of money management.

With the average rent costs in America topping $1,900 per month, according to Rent.com, there is no way to live on $1,000 per month unless you take some drastic measures around your housing costs.

Overall, Americans need an average post-tax income of $68,499 to live comfortably in the U.S., according to recent data from SmartAsset. SmartAsset's study analyzed the after-tax income needed to live in the nation's 25 largest metro areas comfortably.

How much money do you need to live a luxurious life in the USA? Maintaining a lavish lifestyle in the United States may entail earning anywhere from $500k to $1 million per year, according to recommendations from wealthy individuals.

Average living expenses for a single person

The average monthly living expenses for a single person in the USA are $3,189, which is $38,266 per year.

The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

How much money is considered financially free? ›

Americans say they'd need to earn about $94,000 a year on average to feel financially independent. That's about $20,000 more than the median household income of $74,580.

Just 1 in 10 respondents to a new survey said that they are living financially free as they see it. And that doesn't mean 'being rich' with just 12% stating that as their definition of financial freedom.

But it is possible to live well even on a small amount of money. Surviving on $1,000 a month requires careful budgeting, prioritizing essential expenses, and finding ways to save money. Cutting down on housing costs by sharing living spaces or finding affordable options is crucial.

According to a recent Ramsey Solutions study, 34% of survey respondents indicated that they were either facing financial struggles or were actively in crisis.

That said, the typical age of financial independence should be between 20-23 years old, according to a Bankrate survey.

A $100,000 salary is considered good in most parts of the country, and can cover typical expenses, pay down debt, build savings, and allow for entertainment and hobbies. According to the U.S. Census, only 15.3% of American households make more than $100,000 annually.

Yes, you can, in most places of the country. I'm not talking about New York City, LA, San Fran, or any other major city. You likely won't be able to afford to live in those places. But in average or lower cost areas, you should be able to.