Quality of Life for a U.S. Resident Earning $118,235 Annually

Overview

Earning $118,235 per year places an individual or household in an advantageous position relative to the national average income in the United States. This salary provides a comfortable lifestyle, with variability in living standards depending on regional cost differences.

Cost of Living

• National Context: The median household income in the U.S. is approximately $70,000 (as of 2021), making $118,235 significantly higher than the average.
• Regional Variation: Cost of living can vary greatly:
  • Urban Areas: Higher costs, especially in cities like New York, San Francisco, and Los Angeles.
  • Suburban/Rural Areas: Generally lower living expenses.
• Disposable Income: With this salary, individuals have a good amount of disposable income after covering essentials and taxes.

Housing Market

• Home Prices: Vary widely based on location.
  • High-Cost Areas: Urban centers with inflated housing markets can be challenging.
  • Affordable Areas: Many suburban and rural areas offer more reasonable housing prices.
• Mortgage Affordability: This income level allows for comfortable mortgage payments, particularly outside major metropolitan areas.
• Rent vs. Buy: Buying can often be a feasible option but renting in high-cost cities may still be preferable for flexibility or lower upfront costs.

Quality of Life

• Lifestyle Flexibility: Individuals can enjoy various amenities and activities, such as dining out, travel, and entertainment, without compromising savings and investments.
• Work-Life Balance: The income level allows for potential investments in work-life enhancements, such as paid professional development or enjoying a range of leisure activities.

Access to Healthcare

• Insurance Premiums: This income allows for accessing broad health insurance options, either employer-provided or private.
• Healthcare Costs: Even with insurance, out-of-pocket expenses can be substantial but manageable.
• Quality of Care: Access to quality healthcare facilities is generally good, though it may be higher in urban settings.

Quality of K-12 Schools

• Public Education: Funding and quality vary by district; suburban areas often have better-funded schools compared to inner-city districts.
• Private Education: Income allows for the consideration of private schooling options, which may offer enhanced educational resources and extracurricular opportunities.