How To Retire With $1.2 Million Off The Average American’s Salary | Personal finance

It should also be noted that while it may be interesting to see what an average income level is, it will be different for different types of workers. For example, the Bureau of Labor Statistics reported median weekly earnings for full-time workers of $1,010 in the fourth quarter of 2021. That’s $52,520 on an annual basis. But break it down by gender and women’s median earnings were $930 ($48,360 a year) — just 84.3% of the men’s median of $1,103 ($57,356). Black workers, meanwhile, earned a median income of $805 ($41,860 a year), Hispanics at $799 ($41,548), and Asians at $1,384 ($71,968).

These figures refer to all full-time workers. Many people work part-time and earn much less.

A median salary of $52,520

We need a single number to work here, so we’ll use that median salary of $1,010 per week, or $52,520 per year for full-time workers.

Everyone’s tax bite will be different, depending on their various circumstances. An estimate of the average effective federal tax rate in the United States was 8.2% for the years 2010 to 2018. Since many people also have to pay income taxes at the state level, let’s just use 10% for our total tax impact, which reduces our $52,520 salary by $5,252. and leaving us with $47,268. That works out to nearly $4,000 per month. Now let’s see what you can do with it.

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