If you’re considering moving to Texas, it can be important to understand the financial landscape of the state.
Check Out: Here’s the Income Needed To Be in the Top 1% in All 50 States
Explore More: 6 Money Moves the Wealthy Make That You Can Make Too
Once you figure out how much it may cost, you may want to look at your own income level to see whether you’re considered poor, middle class or rich in Texas.
Poor Texans
For starters, let’s define net worth. In simple terms, your net worth is the value of all of your assets minus the total of all of your liabilities.
As you might expect, net worth would likely be quite low or even negative for individuals in Texas classified as poor. The net worth for this group could be estimated between $0 and $15,000. These numbers consider minimal or no significant assets, little to no home equity or retirement savings and possibly some debt.
Read Next: What the Upper Middle Class Make in Different US Cities
Middle-Class Texans
According to SmartAsset, the middle-income salary range for Texas is about $48k to $145k. In Texas, according to Zillow, the average home value is about $308,000. If you take these amounts and figure in retirement account savings, a safe estimate would be that the net worth for the middle class in Texas might range from $50k to $450k.
Upper Middle-Class and Rich Texans
Texas is no stranger to the rich. In fact, cities like Dallas and Houston are home to tens of thousands of millionaires and billionaires. While the rich category would start from around $1 million in Texas, you don’t need that much to be considered upper-middle-class in the state. For that category, you might have a net worth starting around $450,000 and going toward $1 million. For this category, an individual in Texas would likely have higher equity in real estate and have other investments.
The Cost of Living
So how do these levels compare to the cost of living in Texas? According to MERIC, Texans have the 14th lowest cost of living in the United States. The average total personal consumption cost in Texas is about $49,000, according to the Bureau of Economic Analysis.
More From GOBankingRates
- Mechanics Explain Why You Should Never Buy These 6 Popular Car Brands
- 5 Best Deals To Buy at Big Lots in August 2024
- 5 Genius Things People With Healthy Savings Do
- 9 Things the Middle-Class Should Consider Downsizing To Save on Monthly Expenses
This article originally appeared on GOBankingRates.com: Net Worth in Texas: What Makes You Poor, Middle Class or Rich?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
