They say the grass is always greener on the other side, but this may not always be true. If your personal income is above the average two-person household, then the grass may likely be browner. This only applies if you consider your income as an indicator of "how green your grass is." While money can't buy happiness, it can lead to a comfortable life and the time to explore what really makes you happy.
The average household income
When referring to the average American household's income, people generally use the median income. This approach minimizes the impact of outliers, such as households that make millions of dollars every year or are below the poverty level. The median household income is at the mid point of all American household income. According to the US Census, this number was $60,336 in 2017.
If we consider average income, household income goes up to $86,220 because now all income ranging from million dollar and poverty level households, is factored in the calculation. This 40% jump shows the disparity between the top earners in the U.S. and everyone else.
Factors that affect income
Of course, there are still a lot of factors that will affect how much a household makes. One of the largest factors is Americans' level of education. High school graduates can expect to earn an average of $33,669 per year, while those with a Bachelor's degree earn an average of $61,440. Of course, if you get an advanced or professional degree, your income will be even higher. In general, more education leads to higher earnings.
Another big factor that can affect how much money you earn is your age. Income normally peaks when you're between the age of 45-54, averaging around $80,671 a year per household. After that, it begins to decline, due to factors such as retirement. Until then, your income is expected to grow as you get experience in your field.
If you're not above the average income, don't worry, especially if you're young. There are plenty of ways to increase your income like going back to school. If you're interested in getting an education but are worried about taking on debt to do so, an income share agreement (ISA) may be a good alternative for you. An ISA is a debt-free alternative to loans, which gives you protection if you don't have a job. The payment varies with income, so if you're not earning at least $24,000, you don't have to make a payment.
