This is the average US household income, how do you compare? (USA Today article)

[EscapeVelocity2020]

Alright Mustachians, lets see how we compare to what USA Today says is average.  Also, the article does point out "It's not about your income, it's what you do with it.  It's entirely possible to become rich, even if your household income is well below average. Conversely, it's entirely possible to become poor if you earn a high income.  As long as you live within your means and make saving and investing a priority, you can attain financial freedom."

[Cassie]

we are semi-retired and make about 65k/year. We used to make double that when both working f.t.

[minority_finance_mo]

Interesting to see most mustachians are in the 125K+ range! For those who are below average (should this be median instead?), I wonder if there are some FIRE folk in that pool...


EDIT: Went back and actually read the article... yes, the median income would definitely have been the correct statistic... Damn it - what more did I expect from USAToday... (Median AGI is around 40K, with just over 50K gross...)

[AMandM]

Interesting.  We're MFJ with 3 kids still at home, and our income is just about average, but our net worth is solidly above the averages I've seen reported.

[sparkytheop]

I like that this shows income by tax filing status as well as just "household".  My income varies by how much overtime I have in a year (anywhere from 0 hours to 405 hours per year, over the last five years), but I do ok.  This year though, I'm about 3x the average for my filing status.

[Jaguar Paw]

170-180k for combined household plus low cost of living area Is cool.

[meadow lark]

I voted before I read the article - they are talking Adjusted Gross Income on your taxes.   I was thinking my actual total compensation, so I put myself in the wrong category.

[fattest_foot]

I voted before I read the article - they are talking Adjusted Gross Income on your taxes.   I was thinking my actual total compensation, so I put myself in the wrong category.

This. But that's actually incredibly stupid on their part. I'd imagine a good portion of us would be shaving off at least $47k (couples) by using AGI.

[Cranky]

More income, small family, LCOL.

[Davids]

This is the average but my guess is the median is probably at $50K.

[EscapeVelocity2020]

This is the average but my guess is the median is probably at $50K.

Always a problem knowing the right benchmark when outliers make multi-millions, but I still think that it's notable that Mustachians, in general, seem to be upper income folks.  That they hold their own against the average, to me, is more telling than the fact that they beat the median.  I have a suspiciion that those below median income aren't spending much time on a sophisticated financial independence forum.  They probably spend time watching TV and talking among their peer group, and it probably feels like a pretty good life.

[minority_finance_mo]

This is the average but my guess is the median is probably at $50K.

Always a problem knowing the right benchmark when outliers make multi-millions, but I still think that it's notable that Mustachians, in general, seem to be upper income folks.  That they hold their own against the average, to me, is more telling than the fact that they beat the median.  I have a suspiciion that those below median income aren't spending much time on a sophisticated financial independence forum.  They probably spend time watching TV and talking among their peer group, and it probably feels like a pretty good life.

Yeah, there's definitely some mustachians on the forum who make the median or below, but it feels like the majority are high income earners.

[Zikoris]

We make around that - about 80K combined for two low-level office grunts (the no-education-required variety of work). But we've consistently saved 55-65% for years, and are on track to hit 70% this year if December goes as planned.

[EscapeVelocity2020]

Spartana - another way to say what I meant is that Mustachians posting on the forum spend below median amounts of time watching TV.

Although, since you brought it up, I do personally imagine in general that below median income families spend above median time watching TV.  However, at the same time, I do not immediately assume that someone in a below median income household watches above median amounts of TV.  And certainly knowing you from the forums, I'd be shocked if you told me you sat around watching TV.

I dunno, was that any better?  I always get a vibe that I've said something that can be taken the wrong way.

[dogboyslim]

This is the average but my guess is the median is probably at $50K.

From the article, % making less.

Code: [Select]

Household Income(AGI)     Percent of Households With Lower AGI
$30,000                                      44.8%
$40,000                                      54.6%Median is 50%.  Median is more like $35k a/t the article data, but article quotes:

The median household income in 2014 was $53,719

so who knows.  They appear to be all messed up.

[2Birds1Stone]

About double, 2 FT workers in our 20's

[NESailor]

This is the average but my guess is the median is probably at $50K.

From the article, % making less.

Code: [Select]

Household Income(AGI)     Percent of Households With Lower AGI
$30,000                                      44.8%
$40,000                                      54.6%Median is 50%.  Median is more like $35k a/t the article data, but article quotes:

The median household income in 2014 was $53,719

so who knows.  They appear to be all messed up.

I think they explain themselves somewhere in there.  Median AGI is between 30 and 40.  Median GROSS is 54.

Cheers!

[rob in cal]

  Interesting that so many people came in as way above average household income.  No wonder so many people have been able to amass so much investment capital, with so much annual income.  I get almost giddy thinking what we'd be able to accomplish in the way of savings at 125k a year plus.

[arebelspy]

As of right now, with 350+ votes, about 10% are below.
20% are "at."
70% are above.

Damn, Mustachians are privileged.

Obviously a huge sample bias---most people looking to retire early make lots of income (not all, obviously--and this is the 30% that aren't "above"--but most looking to ER earn a good chunk above average).

Nice to remember this every once in awhile.

We're going to be in the "above" category while early retired.  It's hard to comprehend how lucky we are.  It's good to try, though, and to try and give to those less fortunate.

[Metric Mouse]

Early retirement is for the privileged few. I'm super privileged to be in that group, and have a massive abundance of income. It's always a little humbling to be reminded how lucky I am.

[VladTheImpaler]

Thank you for posting this poll.
I've forvever been curious about what my fellow mustachians make.

This is a great reminder that increasing my income increases my annual savings dollar for dollar.
(Barring any lifestyle creep of course.)

Ex: someone making 55k/year, living on 30k/year and saving the remaining 25k/year.
If they get a promotion or a new job that pays 80k/year, they double their annual savings dollar for dollar.
Pretty motivating stuff.

[arebelspy]

Thank you for posting this poll.
I've forvever been curious about what my fellow mustachians make.

This is a great reminder that increasing my income increases my annual savings dollar for dollar.
(Barring any lifestyle creep of course.)

Ex: someone making 55k/year, living on 30k/year and saving the remaining 25k/year.
If they get a promotion or a new job that pays 80k/year, they double their annual savings dollar for dollar.
Pretty motivating stuff.

There's other things besides lifestyle inflation that might not make this true.  Taxes being the primary one.

But increasing your income is certainly useful, regardless.  :)

[clarkfan1979]

we are semi-retired and make about 65k/year. We used to make double that when both working f.t.

That's a good point. My wife switched from full-time to part-time two years ago and we are very happy. I also switched to a full-time job that requires less hours. Our schedules are now more in sync so we can do more travel. I work around 900-1000 hours/year and she works around 600-650 hours/year. Each rental property requires 20-30 hours/year. Because I have the extra time, I have been choosing to do a few more repairs the last 2 years. If it's an opportunity to learn something new, I usually go for it.

I will make 60-65K, she will make 15-20K and we will make another 20K in rental property income.

We could make a lot more money by choosing jobs with higher pay. However, that would require more hours and more work related expenses. Overall, it wouldn't make a lot of sense.

[Goldielocks]

This is the average but my guess is the median is probably at $50K.

Always a problem knowing the right benchmark when outliers make multi-millions, but I still think that it's notable that Mustachians, in general, seem to be upper income folks.  That they hold their own against the average, to me, is more telling than the fact that they beat the median.  I have a suspiciion that those below median income aren't spending much time on a sophisticated financial independence forum.  They probably spend time watching TV and talking among their peer group, and it probably feels like a pretty good life.

And there's the flip side problem in calculating income for poverty line measures -- how to include (and which) government benefits and programs into income.   

My cousins, for example, have a small farm, and produce  / trade for a lot of the things they need, but do sell some animals, hay and work outside of the home.  I think that they record the farm as a net loss (including land and home rental) and are able to subtract it all from employment income for taxes.  This means that they have extremely low AGI and are well below any line that then provides them and kids with a lot of $ support, if they claim it.  (They don't, even though they need to, really)

[Kansas Beachbum]

Damn, Mustachians are privileged.

I know that's a tongue in cheek comment, but have heard the term "privilege" thrown about much of late, even by people close to me, the implication being that my "privilege" is largely why I'm where I am today.  Those people didn't see me figuring out how to put myself through college 35 years ago, sitting at the library every night until they turned out the lights working accounting problems, working weekends pushing pizza to pay my rent, etc., then busting my ass in my career.  No, has to be my "privilege" that accounts for my meager success in life.  Oh, or you're so "lucky"...that one irritates me too. 

Not trying to poke you rebel, I get what you said :-), just opened the door for me to vent. 

[arebelspy]

Damn, Mustachians are privileged.

I know that's a tongue in cheek comment, but have heard the term "privilege" thrown about much of late, even by people close to me, the implication being that my "privilege" is largely why I'm where I am today.  Those people didn't see me figuring out how to put myself through college 35 years ago, sitting at the library every night until they turned out the lights working accounting problems, working weekends pushing pizza to pay my rent, etc., then busting my ass in my career.  No, has to be my "privilege" that accounts for my meager success in life.  Oh, or you're so "lucky"...that one irritates me too. 

Not trying to poke you rebel, I get what you said :-), just opened the door for me to vent.

It wasn't a tongue-in-cheek comment.  Mustachians, on average, any way you measure it, lead very privileged lives.

Privilege doesn't mean there was no hard work.

I'm privileged to even be in the situation where hard work lets me FIRE.  I'm privileged to be born and raised in the US.  A white, cis, hetero male.  To be intelligent.  Able bodied.

I'm privileged that I had the notion to work hard.

None of those privileges completely explain where I am, nor do they preclude hard work.

Nor does "luck."  You need both luck (though I don't believe it luck, I'm using the term synonymous with "chance happening that is of a positive nature") and hard work.

Someone attributing it ALL to "luck" misses the bigger picture, but so does someone attributing it ALL to "hard work."

You don't need to get offended at having privilege.  Recognize that it's a great thing, and something you should use to help others.

Realizing you have privilege doesn't say anything negative about you, except by petty people who want to bring you down to their level.  Getting mad at it does exactly that.  Recognizing it, being grateful for what you have, and helping others... that rises above whatever advantages you have, to do good with it.

And now for my, very similar, disclaimer:
Not trying to poke you KBB, I get what you said :)  It's annoying when people try to use privilege to discredit your hard work.  Just opened the door for me to vent, because there's been an anti-privilege backlash, rather than just embracing it, accepting it, and moving on.

[Skyward]

Big difference between 1 and 2 earners in a household as the article stated but not reflected in the poll.

[Metric Mouse]

Big difference between 1 and 2 earners in a household as the article stated but not reflected in the poll.

But not big difference s in spending. But hardly insurmountable to do it on one's own.