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Is 90k a Year Good for 2022? Full Guide to Answer that Question!10 min read

Reading Time: 8 minutes

Whether you’re working toward a specific financial goal or just daydreaming about the type of life you’d like, understanding how much you earn is essential. You must know if it’s enough or not!

Many people wonder if $90k a year is a good number for 2022, and others would like to know whether it’s convenient in the US overall. Do you want to find the right answer to those questions? Read on!

In the United States, the minimum hourly wage is $7.75. If you have an annual salary of $90,000, you’re making $43,27 an hour, which is almost six times the wage of the average person.

Your salary range will depend on many factors. People working odd jobs don’t make the same amount as a person with a steady one.

However, that doesn’t mean $90,000 a year is a good salary. To know whether your income is convenient, you need to look at more than just your bank account.

Among other factors, you must consider the number of people in your household, your financial goals, and demographic.

People who want to live in expensive states, such as New York or Washington D. C., sometimes need a median income of more than $90,000 since rent alone can cost more than $2,500. With a family to care for, monthly earnings of $5,700 may not be enough.

Overall, the average household income is way below, so earning a gross annual salary of $90,000 is not necessarily bad.

Nonetheless, as mentioned, how convenient it is for you will depend on your specific situation and financial goals.

To make more money than $90,000 a year, you should consider different income streams. It’s a fantastic alternative for people with numerous financial goals and those who wish to accomplish many things in life, such as owning properties or traveling.

After Taxes, How Much Is 90k a Year?

All Americans must pay income taxes. Therefore, if you earn $90,000 a year, you’ll take home less than that.

What you use to build your life and pay your bills is the money you get after making federal income tax, Social Security tax, Medicare, and other tax payments.

Let’s say your employer pays a specific amount on a monthly basis. After taxes, you’ll have much less money in your pocket.

Earning $90,000 a year means you’ll get an average income of $5,456 per month after taxes, for a sum of $65,466 annually.

A crucial aspect to remember is that each state has its tax rules (gold ira tax rules included). Therefore, the amount you pay will significantly depend on what your state requires.

You may earn good income even if your employer pays a specific amount and a significant part of it goes to paying tax rates. The most important part of this process is that you plan and manage your finances accordingly.

Calculate taxes

Is 90k a Year the Average Salary?

Earning $90,000 a year can be a good salary for some people, and in 2022, it’s nearly the average income.

In 2021, the national average was $97,962. However, the median was $69,617. In addition, nurse anesthetists and chief executives had the highest-paying positions.

Median Household Income

The average American has a median household income that’s much less than $90,000. They earn around $70,000.

Handling personal finance matters is often challenging because a person must consider their hourly pay, net worth, pre-tax contributions, disposable income, combined income, and many other factors, especially if they want to save money.

Understanding how much the average American family earns is a crucial part of this since it helps you determine whether you’re above or below this line, and allows you to plan for the future and cut unnecessary expenses.

Can You Comfortably Live on 90k a Year?

Only lucky and talented people can land jobs that pay $90,000 a year. If this is your case, you may be wondering if it’s a good salary or if you should think of ways to make more money.

Most Americans don’t consider $90,000 a good salary. They don’t believe it’s a lot of money. However, the assumption is that you should have a $1.9 million net worth to be wealthy.

Even so, keep in mind that it’s possible to make ends meet if you earn $90,000 a year and organize your personal finance matters.

A family of three can live off $90,000 a year if members in that household aren’t too demanding and you live in an affordable city. It’ll be enough to pay for living expenses and extras, and if you organize your finances, saving money would be possible too.

However, you won’t afford to live in the most expensive cities, such as Boston and San Francisco. You’d have to be in states such as Alabama, Indiana, West Virginia, or Michigan.

Three Factors You Should Consider

live comfortably

If you want to determine whether or not $90,000 a year is a good salary for you, you should consider different factors. Here are some of the most essential ones to keep in mind:

Where You Live

The number one factor that determines whether a $90k a year salary is enough is where you live.

The cost of living varies from state to state, and it will also change depending on how much money you spend on certain things.

If you earn a good income but you’re living in a costly area, for example, you may spend a lot on rent. Overall, rent is one of the most significant expenses people have. Thus, reducing these costs is crucial to effectively managing your money.

To make the most out of your living situation, you could consider splitting rent if you’re a single person. Many people do this to reduce their cost of living, even if they make a good income.

Your Lifestyle

Each person has different lifestyle desires. Some want to save for a college fund, while others just want to make it through the month and ensure they’re paying Medicare tax and Social Security tax without needing a second job.

The definition of a ‘good life’ is different for everyone. Thus, there is no way to determine what would be the best income level for a person – they must do that themselves.

Depending on the cost of living and demography, some may prefer traveling by plane instead of taking a train.

While some people enjoy going shopping every week, others prefer avoiding high-cost activities at all times. You may want to save for your next trip to Europe, while someone else may prefer low-cost options, such as adding a few meatless meals to their menu.

To determine whether or not $90,000 a year is enough for you, you have to consider your way of life. It’s a good salary for some, but not for others.

Your Expectations for the Future

Life is almost entirely unpredictable. Thus, it doesn’t matter if you’re a single person trying to live independently or a working mom who wants to save for her kid’s future. There’s no way to know for sure what will happen in the future.

Necessary expenses are a crucial part of determining whether or not $90k a year is enough. However, you also need to gauge future expectations since they can influence whether or not you’re content with this number.

If you consider what you want for your future, determining whether or not $90k a year is less challenging. You can plan ahead, lower your cost of living as much as you can, and make sure you have some wiggle room in case the worst-case scenario comes true.

Is 90k a Year Middle Class?

In the United States, you need to have a net worth of $1.9 million to consider yourself wealthy, as was mentioned before.

If you make anywhere from $54,000 and $120,000 a year, you’re a middle-class person. This is also likely if you rent a median house price where you live.

The category of rich people includes high earners, which are the ones who make between $107,000 and $374,000 a year. However, not many people make this much money, and they can still have a good salary.

According to the US Census Bureau, in 2018, only 38% of Americans made over $100,000 a year. Currently, the mean is around $106,000 annually.

As was mentioned before, if you make $90k a year, you’re earning a much higher hourly wage than the average American, even if you have to pay federal taxes.

You won’t be considered rich, but you’re likely able to take care of your home expenses, and even go out on a weekly basis, especially if you’re in a cheap state like West Virginia.

How Much Is it Per Month?

If you’re making $90k a year, it means you’re earning $7,500 a month, $3,462 bi-weekly, $1,731 a week, and $247 per day.

However, after tax deductions, you’ll take home less than that. Your monthly income will be around $5,700 a month.

Is it Enough for One Person?

The salary you earn and whether or not it’s enough for your life depends on your personal situation.

Some people try to cut down costs as much as they can, and they make sure their current lifestyle adapts to how much they mean and what they want for the future.

Moreover, the state you live in can also change your situation entirely. Residents in Hawaii, Kentucky, or Arkansas need between $22,000 and $30,000 a year, so if you’re there and make $90k annually, you’d be able to cover the basics and much more.

Why Does Someone with 90k a Year Doesn’t Feel Rich?

By now, you probably agree that $90k a year is a good salary for most people, considering that the minimum wage in America is much less than that.

Survey results say that most Americans think they’ve escaped the ‘poor’ threshold when they earn more than $30,000 a year.

However, even though $90k is not bad, they wouldn’t consider themselves rich if they earned that, either.

Part of the reason why this happens is due to the differences in the cost of living depending on the state you’re in.

If you’re in California, for example, the median home price is $547,000, while it’s $97,800 in all of West Virginia.

Considering yourself rich also depends on your relationship with your peers. Most people between 18 and 24 years old would think they’re wealthy if they can make $90k a year.

This happens a lot if they have a postgraduate degree such as a Masters’ in Business Administration, psychology, or something related to technology.

Feeling rich is challenging if you earn less than your peers. However, when you’re making more money and have also achieved your academic goals, you may feel like you’re in a better financial position, even if you’re earning just as much as them.

The last factor that plays a part in this is the hedonic treadmill. It’s an idea that says you’ll always return to a relatively stable state after a major positive or negative event happens in your life.

Although it’s not a rule, it does make a lot of sense. If you start earning more money, you spend more as well, and you adapt to that change. You’ll feel happy for a while, but then you’ll go back to feeling the way you did.

Knowing Your Annual Salary Is Not Enough

Understanding how much you earn is essential to make a financial plan, but knowing your annual salary is not enough.

You must understand many other things if you want to organize your finances and achieve long-term goals.

You must think about what you want for your future. Do you wish to travel, settle down, or have a family? If you want your finances to be in order, you must think about all of this before deciding whether or not $90k a year is enough.

Final Thoughts

The minimum wage in America is much less than $90k annually, but people who make this amount of money don’t consider they have a great salary due to different reasons.

If you want to determine whether or not this amount is enough for you, you have to keep various factors in mind. In addition, to plan, you’ll have to ponder what you want for your future.

About 

Edwin Cannon has spent his entire career in the financial industry and specializes in alternative investments and surviving marketing turbulence. He started My Retirement Paycheck to help educate consumers about retirement investment options that aren't typically introduced by advisors.