$350,000 in household income, and by the end of the month it feels like middle class.
$250,000 a year, and still not feeling rich
Part of the guide Moving to the USA as an entrepreneur
What affluent US families really face, and why newcomers shouldn't plan with rose-tinted glasses
Analysis based on a Wall Street Journal article of June 29, 2025
If you're thinking about moving to the USA, you probably picture greater prosperity, a better life and more freedom. And it's true: many Europeans earn considerably more in the United States than they did back home.
But look behind the scenes and you'll see that even earning $250,000 to $350,000 a year, which puts you in the top 10% of US households, doesn't automatically mean a carefree life.
A recent article in the Wall Street Journal shows vividly how quickly even high incomes in the USA melt away: into tuition, rent, insurance and everyday costs.
1Welcome to reality: top earners under pressure
Lauren Fichter and her husband earn around $350,000 a year. They own a house in Pennsylvania and a vacation property they rent out on Airbnb. Their kids play expensive club sports, and the family eats out regularly.
Even so, when their eldest son starts college next year, he'll need loans and scholarships, because $75,000 per child per year is more than even they can easily cover.
"I never thought I'd earn this much," says Lauren. "But today I feel like a completely ordinary average family."
2What newcomers need to know: income ≠ wealth
Many Europeans planning a move base their finances on target incomes like $120,000 or $150,000 a year. But the reality in the USA looks different:
Even at $250,000 a year, you're statistically at the top, yet it often isn't enough for:
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a home of your own in the big cities
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private university education for two children
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solid retirement savings
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comprehensive health coverage without a high deductible
3Big differences between city and country, and between states
Whether a six-figure income is enough in the USA depends hugely on where you live:
| Region | Typical cost of living | Housing costs | Typical lifestyle |
|---|---|---|---|
| New York City, San Francisco, L.A. | very high | Homes often >$1M | Full-time nanny, private schools, high taxes |
| Austin, Denver, Miami | high | Rents rising fast | Compromises needed |
| Midwestern suburbs | moderate | Houses from $300k to $400k | Classic suburban life |
| Rural South (Tennessee, Arkansas, Alabama) | affordable | Homes from $200k to $300k | Much lower expenses |
🔎 Tip for newcomers: It's not just the salary that counts, but above all where it's paid. Living on $200,000 in California often leaves you worse off than someone on $120,000 in Tennessee.
Visa, bank account, taxes and where to live: your move with Mount Bonnell Advisors.
4City comparison: Los Angeles vs. Zurich
For more perspective, compare Los Angeles and Zurich: two expensive urban centers with completely different conditions:
| Factor | Los Angeles | Zurich |
|---|---|---|
| Total income tax | up to 45% (state & federal combined) | approx. 25 to 28% (all levels combined) |
| Rent, 3 to 4 rooms | 4.000–7.000 $ | CHF 3,000 to 5,500 |
| Private school per child | 30.000–50.000 $ | CHF 20,000 to 35,000 |
| Healthcare costs | $1,500 to $2,500 per month | CHF 1,000–1,800 per month |
| Daycare/preschool | $2,000 to $3,500 per month | CHF 1,200–2,000 per month |
📌 The bottom line: in the US, especially in California, your money often buys you less in return than in Switzerland. The cost of living is just as high or higher, and the safety net is weaker.
5The biggest cost traps for expats in the US
The Wall Street Journal article names several concrete points that matter for anyone moving from Europe too:
5.1Housing
Home prices in popular regions such as Southern California have risen by more than 50% over the last five years. Rentals in good school districts cost $3,000 to $5,000 a month. Buying is often even more expensive.
5.2Education costs
A degree at a private university costs up to $75,000 a year, and government aid is only available on very low incomes. Three kids = more than $900,000 in college costs over twelve years.
🎓 Important tip for European families:
Let your kids go to university in Europe!
The quality is high and the costs are low or zero. A bachelor's degree in Europe followed by a later move to the US (for a master's or a job) is the smarter route.
5.3Health care
Even with good health insurance, high deductibles and co-pays remain. A normal birth can cost $5,000 to $15,000 depending on your insurance, or more if there are complications.
5.4Childcare & activities
Music lessons, club sports, summer camps: it all costs money. In the upper middle class, these expenses are practically a must. The price tag: several thousand dollars a year per child.
5.5Taxes & retirement
In states like California or New York, high state and local income taxes come on top of federal tax (up to 37%). At the same time, the government pension (Social Security) is much leaner than you may be used to, so private retirement saving is a must. If you compare the average US salary with your own income, always work out what is left after federal and local income tax, then subtract the private retirement saving you will need.
6Strategies to lower your cost of living
💡 You want to move to the US without feeling squeezed despite a high salary? Then keep these points in mind:
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✅ Choose your state wisely: Texas, Florida, Tennessee, Nevada and Wyoming have no income tax.
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✅ Combine remote work with a rural home: a job in New York, a house in North Carolina. That is not a pipe dream, it is reality.
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✅ Don't skimp on advice: tax advice, health insurance, the school system: get professional guidance.
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✅ Avoid American student debt: no US college for European kids!
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✅ Think long term, like an entrepreneur: the US is a country where initiative and structure can take you remarkably far, but only if you plan on a solid financial footing.
Your US tax question, answered by people who know both sides.
7Why the US can still be worth it
Whatever the challenges, the US offers huge opportunities for people with an entrepreneurial spirit:
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🔓 A bigger job market with better earning potential
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⚖️ Lower taxes in business-friendly states
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🚀 Less red tape, faster execution of ideas
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📈 Better access to capital, networks and investors
If you know what to expect and plan for it, you can achieve more in the US than in any other Western country.
📌 What this means for you:
The US is no wonderland, but it is a land of opportunity. Face the financial reality, plan smartly and live deliberately, and you can get ahead there. Arrive with the wrong expectations, though, and you will quickly find that even the rich often don't feel rich.
Note:
This article is based on the Wall Street Journal piece of June 29, 2025: “They’re in the Top 10% of Earners. They Still Don’t Feel Rich” by Rachel Louise Ensign.
- Even on $250,000 to $350,000 a year, putting them in the top 10% of US households, many families don't feel rich.
- Housing in good school districts, tuition of up to $75,000 a year, health costs and kids' activities eat up high incomes.
- Whether an income is enough depends above all on where you live: California and New York cost far more than the rural South.
- States without income tax, remote work from an affordable location and sending your kids to university in Europe bring costs down.
- Plan realistically and you will still find a bigger job market, better access to capital and less red tape in the US.
How we help you
- Moving to the USAVisa, bank account, taxes and where to live: your move with Mount Bonnell Advisors.
- Visa RoadmapIn writing: which visa fits you and your family, prepared with the immigration attorney on the firm's team.
- Your US Tax ReturnForm 1040 or 1040-NR, handled in English.
- US Bank Account OpeningYour own access to the American financial system, even without an SSN.
- ConsultationOne hour with the firm: your case, your questions, a clear answer.
