Quality of Life for a $118,745 Annual Income in the United States

A salary of $118,745 places an individual or household in a relatively comfortable position in the United States, considering the median household income was approximately $68,700 according to the latest available census data. Below, we explore how this income supports various aspects of life in the context of cost of living, housing, healthcare, and education.

Cost of Living

• General Expenses:

  • Groceries and Dining: With an income significantly higher than the median, affording high-quality groceries and occasional dining out is manageable.
  • Utilities and Transportation: Costs such as electricity, water, and fuel or public transit are generally affordable without compromising other spending.
  • Discretionary Spending: Includes entertainment, travel, and leisure activities, which can comfortably be part of the lifestyle.

• Regional Variations:

  • Living in metropolitan areas like New York City or San Francisco might stretch the budget, as these areas have higher costs across all categories.
  • In more affordable regions, this salary can afford a higher standard of living, including more savings and investments.

Housing Market

• Home Buying:

  • This salary level can support purchasing a median-priced home in many parts of the country. According to October 2023 reports, the median home price in the U.S. is around $390,000.
  • In high-cost cities, such as San Francisco, purchasing may be challenging without significant savings or dual incomes.

• Renting:

  • Rent in less-expensive cities or towns is easily manageable. In larger metropolitan areas, rent could take a larger proportion of the income, but without significant financial strain.

Quality of Life

• Standard of Living:

  • This income allows for a comfortable lifestyle, with the ability to save and invest for future needs.
  • Leisure activities, vacations, and hobbies are affordable without major budgetary adjustments.

• Work-Life Balance:

  • The income may afford greater flexibility in job choice, possibly facilitating work-life balance by allowing for part-time work, remote jobs, or careers with better life fit over higher pay.

Access to Healthcare

• Healthcare Affordability:
  • Good health insurance can be obtained without dedicating a disproportionate amount of income to it.
  • Access to a wide range of healthcare services,