Humphrey Yang Reveals What Income Puts You in The Top 10%, 5% and 1% of Earners
It comes as no surprise that the requirements for landing in the top 10%, 5%, and 1% of annual wage earners depend upon a host of factors. During an episode of his show, Humphrey Yang, the financial guru Forbes said is more trusted by Gen Z than Warren Buffett, and who has more than 4 million social media followers, broke down those factors along with what it takes to achieve these income levels.
Frugal Living YouTuber Kate Kaden: 5 Realistic Ways To Cut the Cost of Living Alone
I Grew Up Poor: Here Are 8 Things I Never Waste Money On
Factors to Consider
Age. The younger you are, the less it takes. The Survey of Consumer Finances, 2019, shows that for those aged 20-24, it takes an average annual income of $71,000 to hit the top 10%. By ages 45-49, it takes an income of $275,503.
Education. Income correlates highly with years of education and profession. Finishing high school is the first major factor, resulting in a difference of $12,000 to $50,000 per year. The same effect holds true for bachelor’s, master’s, professional, and doctorate degrees.
Occupation. Those with professional occupations like doctors, as well as those with doctorates, arrive in the top 1% of incomes with average annual incomes of $937,450 and more following years of study.
Location. Where you live also plays a part. The lower costs of living in places like Oklahoma City make it more possible to live well on a lower salary than in a place like New York City, where more than twice as much income is required to meet the same needs. On the other hand, the opportunities to earn the higher salaries needed to attain a place in the top ranks of earners are limited.
Read More: 7 Best Expensive-Looking Things You Can Buy at Dollar Tree
Where Is the Money?
Global. Yang said that Inequity Economist Branco Milanovic lists the U.S., Germany, France, Italy, UK, Canada, S. Korea, Japan, and Brazil among the world’s richest 1%. The standard of living and opportunities available in these countries foster an environment that makes access to the educational resources required to reach the top 10%, 5%, and 1% globally possible.
United States. Reaching the top 1% in the U.S. takes more money than in any other country. This is because nearly half of the world’s richest people live in the United States. While 53.2% of adult wage earners worldwide earn annual incomes of less than $10,000, the midpoint of adult earnings in the U.S. is $72,000, leaving 50% earning less and 50% earning more.
Region. The top 10% of U.S. wages average $191,000, the top 5% average $290,000, and the top 1% average $652,657. These figures are impressive, no doubt. However, those living on the East and West Coasts have higher incomes than those in the South and other regions.
Making It to the Top 1%
If you’ve set your sights on living large with a top income, your likelihood of success depends upon:
Getting off to a good start with a degree in a profession or area of expertise that matches your passions and abilities with career opportunities that bring you annual income that is as far above the median for your age as possible.
Picking an area of the country where the business environment makes it possible to earn the high salary you desire. Alternatively, working for an above-average salary in an area with a low cost of living will make it possible for you to save money to put toward your investment portfolio.
Paying attention to reports about career and income trends that are published by the Census Bureau and other reputable sources and making decisions for your future based in part on that information.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Humphrey Yang Reveals What Income Puts You in The Top 10%, 5% and 1% of Earners
