Is Your Income Above Average for Your Age?

Your income isn't everything, but it's definitely important. If you earn an above average income, that makes it much easier to manage your personal finances. You'll have more money to pay your bills, save, and treat yourself on occasion.

The median U.S. income is $70,300, according to the latest Survey of Consumer Finances (by the Federal Reserve). But income also varies by age. To get an accurate idea of how your income compares, you can look at the average for your age range.

The average income by age

Here are the median incomes in the United States, broken down by age range:

• Less than 35: $60,500
• 35 to 44: $85,900
• 45 to 54: $91,900
• 55 to 64: $81,900
• 65 to 74: $60,900
• 75 or older: $49,100

On average, people earn less as young adults in their 20s and early 30s. At that age range, most are starting the process of building their careers and don't have too much extra money to fill out their bank accounts.

By the mid-30s to the 40s, incomes go up significantly. The 45-to-54 range is when the average worker is at their earnings peak. The average income declines from there as people work less and eventually rely on money from their retirement accounts once they're done working.

Keep in mind that these are just averages, and everyone's career path is different. For example, if you make a mid-life career change, then your income might peak later in life. There's nothing wrong with that. If you're in the NFL, there's a good chance your income peaks in your 20s, not your 40s (unless you're Tom Brady).

What can you do to increase your income?

If you're not quite earning an average income for your age, or even if you are, you may be interested in increasing it. This can be one of the best ways to improve your financial situation.

There are lots of ways to earn more money. Some of them only require small adjustments to your lifestyle, while others involve more serious changes. For starters, here are a few of the easier ways to boost your income:

• Increase your hours. Even working an extra 30 minutes per day adds up. For example, if you earn $40 an hour, then working another 30 minutes per day will make you an extra $100 per week.
• Raise your rates. You could talk to your employer about a raise if you have a full-time job or let your clients know you'll be increasing your rates if you're a freelancer.
• Improve your productivity. If you're paid per job, then finding ways to work more efficiently will help you earn more. Better time management often makes a big difference -- you may want to try strategies like time blocking.

In some cases, the best option could be to make a more drastic change. For example, if you're not satisfied with your current job and don't see much room for advancement, then working a little more or asking for a raise probably aren't the right options. You may want to consider one or more of the following:

• Make a career change. Your profession plays a big role in how much you earn. Think about what skills you have that you could leverage into a higher-paying job.
• Build your skillset. If you can't think of any skills you can use to earn more, dedicate some time to building one. You could start taking courses in web design, copywriting, or digital marketing, to give a few examples, and then use what you learn to get a new job.
• Start a new business or a side hustle. Striking out on your own could make a big difference in your earning potential. I know from experience -- I would've never earned as much money working as an employee compared to what I make now as a freelancer.

The key ingredients to raising your income are hard work and patience. If you're willing to put in the time, and you understand that results usually don't happen overnight, you should be able to grow your earnings.