Quality of Life Assessment for a $118,235 Annual Income in the United States

Earning $118,235 annually places an individual or household in a comfortable financial position relative to the national average. This income allows for a decent quality of life in many parts of the United States, although the specifics can vary based on geographic location. Below is a structured assessment of various aspects of life for someone earning this salary.

Cost of Living

• Overall Affordability:

  • This income is above the national median household income, which hovers around $70,000 as of recent data. Therefore, an individual or household can generally afford a higher standard of living.
  • Discretionary spending remains feasible after covering essential expenses such as housing, utilities, groceries, and transportation.

• Regional Variations:

  • Coastal and metropolitan areas such as New York City, San Francisco, or Los Angeles have a much higher cost of living, which may limit disposable income.
  • Midwestern and Southern regions often offer a more affordable living situation, increasing purchasing power.

Housing Market

• Home Prices:

  • The median home price in the United States is roughly $374,000. With this income, securing a mortgage and handling monthly payments is manageable, especially outside high-cost cities.
  • Qualifying for mortgages in competitive markets might require careful financial planning due to rising interest rates and prices.

• Renting vs. Owning:

  • Renting may be more favorable in high-cost areas, where housing prices significantly outpace income levels.
  • In less expensive regions, owning a home becomes a feasible option that's achievable with this income.

Quality of Life

• Standard of Living:

  • The salary supports a lifestyle that includes dining out, entertainment, and vacations, depending on the individual's financial priorities.
  • Greater flexibility in choices, such as upgrading amenities or education-related expenses, boosts the overall quality of life.

• Work-Life Balance:

  • Opportunity to maintain a reasonable work-life balance, depending on job demands and commuting times, influenced by regional traffic and public transportation availability.

Access to Healthcare

• Healthcare Costs:

  • Access to employer-based health insurance is likely, which substantially reduces the out-of-pocket cost for medical care.
  • The ability to afford unexpected medical expenses is higher than for households earning below the national median.

• Quality of Care:

  • Income allows for access