Average Income Of Caucasian Americans Grows Rapidly

The average income of Caucasian Americans continues to be one of the highest among all races with a median household income of roughly $68,000. However, the average income of Caucasian Americans is not the highest. The average income of Asian Americans is highest.

Caucasian Americans, (Non-Hispanic whites), account for roughly 61% of the United States population as of 2022. Although Caucasians are still a majority, they are declining due to the rapid growth of other races.

Below is a more detailed racial breakdown by the Census Bureau with estimates on racial makeup through the year 2060.

Racial Makeup By Percentage In America for Whites, Blacks, Hispanics, Asians, And Other

Let's take a look at the average income for caucasians in America.

Average Net Worth And Income For Caucasian Americans

According to the Urban Institute, Caucasians have on average $130,472 in average family liquid retirement savings as of 2019 compared to $19,049 for African Americans, and $12,329 for Hispanics.

Average retirement savings by race

Now let's look at the Economic Policy Institute data for median and average wealth for Caucasians and Blacks. The average wealth for Caucasians is $678,737 and the median wealth for Caucasians is $134,230, which is likely a truer reflection of the Caucasian American population.

Median And Average Wealth For African Americans and Caucasians

Now let's look at the income by race data provided by the Census Bureau. Asian median household income of $81,331 leads the way at roughly 30% higher than Caucasian median household income of roughly $68,000.

African American income is the lowest at roughly $40,000 and Hispanic income is at roughly $50,000 which correlates with the retirement savings by race chart and wealth charts above.

A 100% difference between the highest income ($81,000) and the lowest income ($40,000) is significant. What is going on in this chart from the latest Census?

Income by race from 1967-2017

The Solution To Improving The Financial Health Of Our Country

As Black and Hispanic Financial Samurai personal finance readers appear underrepresented and correspond with Census Bureau-provided lower income and wealth figures, and as Asian readers appear overrepresented and correspond with higher income and wealth figures, it seems clear there's a correlation between higher income/wealth and reading personal finance articles.

Read more personal finance sites. It's that simple.

Anybody who started reading Financial Samurai since its 2009 beginning has probably crushed the average American in terms of wealth creation because we've been talking about investing in the stock market, bond market, and real estate market all this time.

In the new decade, we are talking about:

And much much more. If you haven't read Financial Samurai since 2009, as most people haven't, you will be much further behind, financially than the tens of millions who have.

Yes, we can hypothesize that those who are already financially savvy care more about financial information than those who aren't. But we should also conclude that over time, those who read personal finance websites tend to get richer than those who do not.

Education Will Improve Financial Health

Educational attainment by race
A strong correlation with education and wealth

You don't have to be rich to get a great education because access to information is now free. Soak up as much information as you can and share your favorite articles with as many people as possible.

Once you have your finances sorted out, you can focus your attention on more important things such as family, health, and happiness. And when your finances are really good, you can even spend your time and money helping other people.

Invest In Real Estate More Strategically

Real estate is my favorite way to achieving financial freedom because it is a tangible asset that is less volatile, provides utility, and generates income. Stocks are fine, but stock yields are low and stocks are much more volatile. 

The combination of rising rents and rising real estate prices builds tremendous wealth over the long term. Meanwhile, there are more ways to invest in areas of the country where valuations are lower and net rental yields are higher thanks to crowdfunding. 

Take a look at my two favorite real estate crowdfunding platforms. Both are free to sign up and explore.

Fundrise: A way for accredited and non-accredited investors to diversify into real estate through private eFunds. Fundrise has been around since 2012 and has consistently generated steady returns, no matter what the stock market is doing. The real estate platform has over 300,000 investors and manages over $3 billion. 

CrowdStreet: A way for accredited investors to invest in individual real estate opportunities mostly in 18-hour cities. 18-hour cities are secondary cities with lower valuations, higher rental yields, and potentially higher growth due to job growth and demographic trends.

I've personally invested $810,000 in real estate crowdfunding across 18 projects to take advantage of lower valuations in the heartland of America. My real estate investments account for roughly 50% of my current passive income of ~$300,000. 

Best Free Financial Management Software

The best way to build wealth is to get a handle on your finances by signing up with Personal Capital. They are a free online platform which aggregates all your financial accounts on their Dashboard so you can see where you can optimize.

Before Personal Capital, I had to log into eight different systems to track 33 different accounts (brokerage, multiple banks, 401K, etc) to track my finances. Now, I can just log into Personal Capital to see how my stock accounts are doing, how my net worth is progressing, and where my spending is going.

One of their best tools is the 401K Fee Analyzer which has helped me save over $1,700 in annual portfolio fees I had no idea I was paying. You just click on the Investment Tab and run your portfolio through their fee analyzer with one click of the button.

They’ve also come out with their incredible Retirement Planning Calculator that uses your linked accounts to run a Monte Carlo simulation to figure out your financial future. You can input various income and expense variables to see the outcomes. Definitely check to see how your finances are shaping up as it’s free.

Personal Capital Retirement Planner Tool
Are you on track? Sign up for free to plan for your retirement future

About the Author

Sam began investing his own money ever since he opened an online brokerage account in 1995. Sam loved investing so much that he decided to make a career out of investing by spending the next 13 years after college working at two of the leading financial service firms in the world. During this time, Sam received his MBA from UC Berkeley with a focus on finance and real estate. 

FinancialSamurai.com was started in 2009 and is one of the most trusted personal finance sites today with over 1.5 million organic pageviews a month. Financial Samurai has been featured in top publications such as the LA Times, The Chicago Tribune, Bloomberg and The Wall Street Journal. The average income of caucasian Americans is a FS original post.