Please… someone water the plants above while we are away. Thanks.
Now about this “How to be above average in life in income” topic… what does that mean? Well, there are 3 ways you live your life, below average, average, or above average.
“For the purpose of this post, we’ll use the abbreviation of below average, average or above average as BAAAA.”By Tom (TJ) Jones
Let’s not add the extreme side of those three areas like being even lower than below average (like being Poor) or being higher than above average (like being Rich) because let’s be honest. In the USA at least, the majority of people LIVE their life below average, average or above average… Because most of the USA is “Middle America”.. right?
So to give you some idea of averages in America, today we’re going to talk about AVERAGE incomes.
According to the U.S. Census Bureau, the average household income was $73,298 in 2014, the latest year for which complete data is available. However, this doesn’t tell the whole story. Depending on your family situation and where you live, average household income can vary dramatically.
The average American household income
As mentioned, the overall average household income was $65,751 in 2014. However, the average can vary significantly depending on your household’s composition. For example, a single-person household earning $65,751 could have a completely different financial situation than a family of five with the same income.
With that in mind, here’s the average American household income by tax filing status as AGI, or Adjusted Gross Income and the calculation is relatively straightforward.
- It is equal to the total income you report that’s subject to income tax—such as earnings from your job, self-employment, dividends and interest from a bank account—minus specific deductions, or “adjustments” that you’re eligible to take.
- Your AGI is calculated before you take the standard or itemized deductions —which you report in later sections of the return.
Adjusted Gross Income (AGI)
|MARRIED FILING JOINTLY||$117,795|
|Married filing separately||$64,819|
|Head of household||$35,876|
OK, so let’s just deal with the AVERAGE Head of Household which is $35,876. If you are making over that amount, your above average… under that amount you are below average. NOW where do you want to be? In a recent survey of my readers (which I really didn’t do), it shows that 90.375% want to be making above average income. OK, so why aren’t you.
I’m not talking above anything except income here. I’m not talking about whether you have an BAAAA attitude, house, or car. It’s about your Average income to pay bills, do things, etc.
So are you BA, A or AA? If you want to be AA (above average) and you’re not now. Read the next blog post here.