Most financial advice is one-size-fits-all. But the skills that help you survive at low-income could be holding you back if you successfully climb up the income ladder. If your financial playbook isn’t constantly evolving or tailored to your current circumstances you could be sabotaging your progress without noticing it.
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With that in mind, here are the top financial strategies you need at three different income levels — $50,000, $75,000 and $100,000 or more.
$50,000 or less
According to Pew Research, an annual income below $56,600 is officially low-income. Roughly 28% of Americans fit into this category [1].
The primary concern at this income level is the lack of wriggle room, with the majority going to essential expenses like rent and groceries. Many low-income households are just one sudden or unexpected expense away from drawing in expensive debt. According to the Federal Reserve’s survey on American financial well being, 37% of adults across the country can’t handle a $400 emergency expense without relying on loans or credit cards. Another 13% said they can’t handle such an expense at all.
With this in mind, your top priority at this income level should be creating a financial buffer zone. If you save just 5% of your income per month, it would take you 5 months to create a $1,000 emergency fund. Keep going and you can accumulate a sizable emergency fund that covers living expenses for at least 2 months.
Not only does this fund serve as a safety net, it also helps you avoid expensive credit cards or personal loans when you face an emergency. Plus, these money-saving skills under extreme circumstances can be useful if you manage to climb into the middle class.
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Around $75,000
If you earn $75,000 or more, congratulations! You’re officially middle class, according to Pew Research. Based on 2022 data, Pew defines the middle class as households earning between $56,600 and $169,800, which encompasses 52% of the population.
At this mid-income level, you have more options and a greater financial buffer. A sudden emergency won’t push you into debt or ruin your finances. You may also have 3-5 months of emergency funds to give you some wriggle room if you lose your job.
You can now start accumulating wealth. Focus on acquiring some basic investing skills and start maxing out your tax-advantaged accounts, such as the 401(k) and Roth IRA. Empower reports that the average 401(k) balance in 2025 is $102,635 for workers in their 20s and peaks at $622,566 for those in their 50s — so start saving early if you want to keep pace with your peers [2].
$100,000 or more
In 2025, a six-figure salary is no longer a ticket out of the middle class. Pew Research suggests you’re still middle class if you earn less than $169,800. Nevertheless, this milestone is worth celebrating, given that only 18% of U.S. adults make this much money, according to YouGov [3].
This income bracket is still impressive, but it isn’t a financial silver bullet. In fact, 43% of adults who earn $100,000 or more, according to YouGov, say they are either coping or struggling financially.
High-income households may not have to struggle with expensive debt and unaffordable emergencies, but they may still struggle with inefficient tax planning and lifestyle inflation.
Avoid lifestyle inflation by living below your means. Before you buy a new car or expensive house, take the time to consider if you can really afford it over the long-term. As for taxes, consider hiring an expert accountant or tax planner to assist you. Roughly 56% of high income earners are not working with financial planners, according to YouGov, which leaves them vulnerable to paying too much in taxes or making avoidable money mistakes.
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[1]. Pew Research. “Are you in the American middle class? Find out with our income calculator”
[2]. Empower. “The average 401(k) balance by age”
[3]. YouGov. “Who are high income earners in the US and what do they think?”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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