Rich, middle class or poor: how to understand if you have a high income in the US or not

The lines dividing Americans by economic class have always been blurred. For many families, their position on the income ladder is more about feelings than numbers. But how do you know if your feelings match reality? Pew Research Center Income Calculator - the fastest way to find the answer to this question, writes MSN. Let's figure out what kind of calculator it is and what class it can be attributed to.

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When you know how things are going for you, you will realize that the more important question is what you do with this information in order to safely continue climbing the stairs.

Upper

A family of three needs an income of $156 to qualify as upper class, more than double the national average, according to Pew analysis.

Analyzing trends, Pew notes that only the richest families have seen an increase in wealth since the start of the Great Recession. Between 2007 and 2016, the average net worth of the top 20% increased by 13% to $1,2 million.

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Meanwhile, the wealth of the people with the lowest incomes decreased by at least 20%.

As a result, the wealth gap between the richest and poorest households in the US has become a chasm, more than doubling between 198 and 2016.

Average

Many Americans consider themselves to be middle class. A 2022 Gallup poll shows that just over half of respondents identified as middle or upper middle class.

According to the Pew calculator, middle-class workers are actually those whose income ranges from $52 to $200, double the national average adjusted for local cost of living and family size. In 156, the median income was $600, according to the Census Bureau.

However, while incomes have trended upward since 1970, the Pew study shows that most of the increase occurred before 2000. In just three decades, median income has risen 41% to $70.

If income continued to grow at the same rate after 2000, the current average salary would be about $87, which is significantly more than it is now.

Lower

According to Pew's analysis, a family of three is considered low-income if it earns less than $52 a year. This group makes up a significant portion of the US population, with about 200% of households earning less than $38 in 50.

However, keep in mind that geography matters here: for example, in Kansas City, Missouri, this figure represents the income of the middle class, but in New York it would be considered quite low.

But what is important to highlight when discussing low-income families is the opportunity for advancement. While middle-class families rely on home equity and upper-class families rely on financial assets and investments to build their wealth, Pew found that low-income people have fewer opportunities to get ahead.

In fact, research shows that the wider the wealth gap, the more difficult it is for low-income Americans to move up the class ladder.

It's not just about the numbers

It is important to remember economic status as a holistic picture that takes into account much more than simple income.

Researchers have determined that education, location, social connections, and other factors can influence a person's class identification.

On top of that, less tangible indicators of holistic wealth—mental and physical well-being, access to cultural assets—can be as powerful as income and make someone with a technically low income feel just as satisfied as anyone else with high income.

Consider also that some people with high incomes can technically be classified as upper-class families, although debt and other financial obligations leave them in a very different situation.

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So do numbers matter? Quite possible. But they can always change.

What may be more important is to take advantage of the opportunities available to your family to further move your family up the hierarchy.

Protect your position

When it comes to creating wealth (and a secure financial future), you should never lose any position you have gained. But with inflation at 6,5% and a potential recession around the corner, this threat may keep you up at night.

One solution to help you sleep better is to find a financial advisor who can help you navigate your finances and ensure the safety of your assets.

If you're unsure how to protect your hard-earned savings, it's best to find answers early—while time is still on your side.

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