Income in the U.S.

The median income of some 131mm households in America is $70,784. The median for married couples sits at $106,921, the median for single male households is $70,525, while single female households is just $51,168.

Looking at the data by race, half of 102mm white HHs earn more than $74k, while that number for 17mm black HHs is just $48k. Earning potential appears to be heavily dependent on educational attainment as the median of some 49mm HHs who have earned a bachelors or higher is $115k.

It is worth noting as individuals approach the age segment of 25-34 earnings seem to accelerate then plateau somewhere in the $90k area.

Consider where you are in your journey and set new goals to increase your chances for upward mobility.

Wealth: Net Worth and Liquid Net Worth

Assets – Liabilities = Net Worth (or Wealth)

Use our Financial Position Worksheet to calculate your net worth.

Liquid Assets – Liabilities = Liquid Net Worth

Liquid assets are those which you can easily convert to cash, usually within a week, without much change in their value. That excludes your house and car from the liquid asset calculation, meaning your liquid net worth is typically much lower than your net worth.

Having sufficient emergency funds in savings to cover three months to a year of expenses may be prudent in case of unemployment, illness or divorce.

Source: Federal Reserve Board Economic Well Being of U.S. Households in 2020

According to the U.S. Census Current Population Report The Wealth of Households 2020, while 83% of Americans own a car, 61.9% have equity in their homes, 25.1% have stocks in investment accounts, 15.5% have business assets, and just 6.9% own rental properties.

See Figure 2 from the Wealth of Households 2020 to get an idea about how your household compares to other Americans.

Happy Labor Day!

The first Labor Day holiday was celebrated on Tuesday, September 5, 1882, in New York City, in accordance with the plans of the Central Labor Union. The Central Labor Union held its second Labor Day holiday just a year later, on September 5, 1883.

By 1894, 23 more states had adopted the holiday, and on June 28, 1894, President Grover Cleveland signed a law making the first Monday in September of each year a national holiday.

Retrieved from the U.S. Department of Labor

As we approach a new season, I would like to once again thank our clients, family and friends. It has been a difficult road but as we overcome the challenges we face daily, the aureate beacon of CWM continues to brighten.

We are back at it next month!

Enjoy the Holiday!