Mar 11, 2025
If your household income is high and you're still struggling to get by, you're not alone. A report from Bank of America shows around 20% of homes earning more than $150,000 per year live paycheck to paycheck.
Let's say you earn a $172,000 salary from your job, which is far above the typical American, but you're burdened by the costs of raising a family along with a mortgage, auto loan and credit card debt. Making ends meet can be a challenge. On top of that, you're worried about the stability of the U.S. economy under the Trump administration.
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But you have a potential opportunity back in your home country. Your parents are aging and looking to hand off the family business to somebody — and you're their first choice. However, taking them up on this offer would mean uprooting your own family.
So, should you leave your high-paying job in the U.S. to return to your home country, or is it too big a risk?
Can you make life work in the U.S.?
The first thing to consider is whether you can make the math work to stay in the U.S. and escape your paycheck-to-paycheck lifestyle.
Many high earners struggle because they live in an expensive area or have given into lifestyle creep and increased their expenses as their earnings increased. Look closely at why you are having difficulty saving despite earning a lot.
If you track your spending for 30 days, you may notice areas where you spend too much, such as entertainment or eating out. Once you know where your money is going, create a budget and set spending limits for yourself on categories that you have control over so you can find money to save.
As for your debt, traditionally, experts have advised keeping essential expenses to 50% of your income (30% toward housing). This should include the mortgage and auto loan. If the essentials far exceed these figures, it might be time to consider downsizing your lifestyle. But if you find extra space in your non-essential spending, which should be about 30% of income, this money could be put toward paying down debt, starting with credit card debt. The last 20% of household income ideally goes toward savings and investments. It can also pay to set up an emergency fund in case of unexpected expenses.
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If you can tighten up your budget and cut expenses, you can start paying down debt more aggressively and even start saving for your future. It can also help you escape the cycle of living paycheck to paycheck, and you'll be better positioned to withstand any potential adverse effects the Trump administration might have on the U.S. economy, including increased inflation, rising prices or a potential stock market crash.
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Should you leave for your home country?
Of course, your other option is to move to your home country and take over the family business. Whether that's a good idea or not is going to depend on factors such as:
- How stable the family business is and your desire to run it
- The type of lifestyle you can afford in your home country
- Whether you and your family want to go to your home country
- The opportunities there that exist for your kids
Moving may make sense if you can maintain a high quality of life, make good money and enjoy more stability. But what if you have no experience running your own business or lack industry expertise? Do you have what it takes to maintain the family business's success?
There may also be tax implications to consider. U.S. citizens and resident aliens are generally subject to taxes on global income, regardless of where they are living. That means you may have to continue filing tax returns to the IRS after moving, even if your home country has a tax treaty with the U.S. Navigating multi-jurisdictional tax regimes can be complicated and may require the use of a tax professional to minimize potential double taxation. In addition, the sale of property while living abroad can also come with unique challenges that may require the help of a tax expert.
You may also want to speak with an immigration lawyer about the impact that leaving could have on your family if you ever want to return. Green card holders must meet certain requirements to maintain their status.
Both of these choices come with risk, although choosing to go may come with more unknowns than staying. Ultimately, however, only you can decide what's best for you and your family's happiness.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
