One content creator took to TikTok to share his bewildered reaction after learning the average salary in the United States.
Given how much she and the people around her were making at work, she found it hard to believe that figure truly represented what most American workers make today.
When she found out that the average American made $45,000 a year, she argued that the figure must have been exaggerated.
“They always say the average American makes $45,000 a year. Where does the average American work?” Cheyenne Ray asked incredulously. “I want to make $45,000 a year. Are you kidding me?”
She admitted that the most she'd ever made in a job was $30,000 a year, and said she was a little shocked that some people were making more than that.
“Where do these people work? Is their job recruiting?” she asked. “I need more information!”
Ray wondered where these salaries were coming from, as he didn't know anyone around him making the $45,000 a year, and speculated that it was just the “average” based on the incomes of the wealthy in the country.
Ray hypothesizes that millionaires inflate the average because they earn so much a year, while he believes most “regular people” only make around $30,000 to $35,000 a year.
“I'm not making $45,000 an hour working fast food when I'm making $15 an hour. Where are the people making $45,000 a year working?” she asked.
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While Rae may be right that the average individual in this country doesn't earn $45,000, what's surprising is that it may actually be more, not less.
According to the U.S. Department of Labor, the average annual salary in the U.S. was $59,384 in the fourth quarter of 2023. This is a 5.4% increase from the same period in 2022, when the average American earned $56,316.
Average salaries also vary by age: For example, Gen Zers are entering the workforce with a salary of just $37,300, according to an analysis by GoBankingRates, which could be why young women are not surrounded by people making that average salary.
Despite how much Americans are making, a surprising number of people still cannot afford to live.
More Americans are struggling to make ends meet and running out of money before payday than last year, according to a recent Your Money International Financial Security Survey conducted by CNBC and SurveyMonkey among 498 U.S. adults.
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Among those who said they live paycheck to paycheck, 35% said they needed to earn $50,000 a year to be financially secure, 44% said they needed to earn $100,000 a year, and 11% said they needed to earn $500,000 a year.
Their stressors included inflation, lack of savings, credit card debt, medical and health care costs, layoffs or reduced income, and student loan debt.
People are struggling to pay for housing, rent, groceries, and other expenses, including retirement. Even though the average American salary is just over $45,000, people are not satisfied with their salary, especially considering how prices have risen over the past few years.
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A recent analysis by SmartAsset found that the average person needs to earn more than $89,000 to survive and live comfortably.
Regardless of what the average salary actually is, nearly everyone would agree that we should all be making more to keep up with this challenging and ever-changing economy in which we live.
Nia Tipton is a Chicago-based entertainment, news and lifestyle writer whose articles explore contemporary issues and experiences.