Here are some rough calculations for a few varying cases. That means that your net pay will be $46,347 per year, or $3,862 per month. More money has been made in real estate than in all industrial investments combined.. In moderately-priced cities, itll buy you a middle-class lifestyle. In short, do you want to My name is Alex Mwangi and I'm here to help you create more income and manage your wealth for continued prosperity. But if you give this one last thought, you'll realize that an annual salary of $80,000 is good enough for a single person to live on - especially if they don't have debts such as student loans. Even the cost of transportation, entertainment, and essential products and services vary based on demography. According to the US Census Bureau, the average annual salary in the US is $102,316, equating to $1,967.62 per week. Theaverage monthly expenses per household are $5,111 per month or $61,332 per year. This is because the cost of living is typically higher when you have more people to support. However, in most cases, earning $60,000 a year is enough to live comfortably. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. When you can earn more by switching jobs, side hustles are not worth it. If you made it this far in this article, you have been through the math. The estimated cost of living for a family of four is $4,900 a month. The cost of living can vary greatly between different areas, because of fluctuations in housing prices and availability, insurance pricing, healthcare costs, food pricing and availability and more. Many people consider $70,000 to be at the high-end of the salary range in America today. High-speed internet in India also costs a fraction of the U.S. were talking 10 bucks a month. In New York, $60,000 a year is $42,540 for a married couple after taxes. If youre not sure how youre lifestyle will affect your disposable income, try creating a list of your regular expenses and running some calculations. Now, what if you have a salaried position with two weeks of paid vacation each year? Career Level. You will be amazed at how many options are out there to invest in. You can literally live like a king. You wont be able to eat out, and youll more than likely have to get rid of your vehicle and opt for the bus. Yes, $60,000 is a good salary. Or maybe someone in the family has special diet needs. If grocery store prices are too high then check out local farmers markets to find deals on quality produce. Meaning, one person could be paying $4,200 extra per year in taxes. My plan is to use the money to get humanity to Mars and preserve the light of consciousness. Write down a list and work backward from there. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. In his professional career hes written over 100 research papers, articles and blog posts. If you earn $60,000, youre paying $3,720 in social security per year. Even if youre a single person, rent may be a challenge to pay given the current average monthly rate. When you are looking for a new job one of the most important factors is the amount of money you will be bringing home every month. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. We have articles on everything from making extra money to how you can make $100,000 a year. The minimum wage is only $7.25 an hour in Mississippi, which is less than half of California. Copyright 2023 Market Realist. You can live comfortably on this salary if you budget properly and have no major expenses. Lets look at how much youll bring home if you make $60,000 a year. Not anymore. The reason I bring this up is that there is no such thing as perfection. There are many ways to save money if you are willing to be creative, Transportation, Storage, and Distribution Managers. That said, Mississippi is one of those states where $60k a year is a quality salary for both singles and families. There are many side-hustles you can try to earn a passive income along with your full-time $60k salaried job. If you are looking for a more affordable option, consider living in: Here is a list of some places that you might want to avoid due to the higher cost of living: Ultimately, living in a higher cost of living location also opens the door for higher salaries so it is important to weigh your options. $60k a year is a great salary for most areas of this state. The average rent for an apartmentin the US is $1,124 per month, or $13,488 per year. Lifestyle. When you sign up through links on this post, we may receive compensation at no cost to you. If youre not after extravagant living, $60,000 may be enough for a family of four. 60,000 dollars may be a good salary for a single person, provided they dont reside in the most expensive states in the U.S. For what its worth, you wont live comfortably on a 60K salary if you reside in Los Angeles or DC. $60,000 a year breaks down to $28.84 per hour. But overall, the average cost of goods is 14% less than the national average, according to the U.S. Bureau of Labor Statistics. Remember that one of these factors can be more relevant to your situation than others, but all of them play a role in determining whether or not your $60,000 salary is good. This will ensure all of your bills are paid and still leave room for a bit of discretionary income. Is 60K a good salary or should you aim for more? Market Realist is a registered trademark. Invest in a 401k or IRA: You can automatically contribute $50 from each paycheck into your retirement account. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. Of course, your own everyday decisions can affect the quality of your $60,000 salary. For example, Yottleds referral program pays $40 to $1,000 for each referral and anybody can be part of it without any investment or commitment. Most likely a six-figure salary. And theyre a follows: States such as Washington DC and Los Angeles have some of the most beautiful cities in America. In other words, $60,000 divided by 2,080 hours. $40,000 is the minimum wage in some parts of the country. Food is going to run you a fraction of the cost. While you may be an average earner with such an annual income, it's possible to live on it comfortably. Making $60,000 a year is $2,308 biweekly. Households earning $60,000 are unlikely to be housing cost-burdened. I may earn a commission (at NO cost to you) if you buy through links on this page. If you ask for anyones opinion, theyll make it abundantly clear that you can do really well with a salary of $60K a year if you live in inexpensive states such as Alabama, Georgia, and Kansas. Bachelors Degrees earn 24% more than those with non-college graduates. if you are making $60,000 a year you are making 20% over the average salary in the US. Lets do some quick math here. Keep in mind that this can be situational, as high-paying jobs (doctors, aerospace engineering, etc. Is $60,000 a Year a Good Salary? If you want to live in the suburbs of Memphis, you may have to pinch some pennies. If you have a kid or two or a spouse that does not work, youre responsible for providing. If your spending habits are not good, then itll be hard to live on $60,000 a year. You probably wont be buying a mansion, but the person making $100,000 a year wont be either. The median salary of 35- to 44-year-olds is $1,197 per week or $62,244 per year. . Lets crunch the numbers to see what type of lifestyle a $60,000 salary buys you around the world. Mainly because the average income in the United States, even though a lot of people don't know about it, is only about $35, 000. Here are some popular locations and their cost of living compared (by the average salary youd need to live comfortably): Taxes. Frugal digital nomads can buy a months worth of groceries here for about $100. A $65,000 salary may easily meet your . The truth is, $60k a year can have you living like royalty in some parts of the world. Mar. The average living wage is 245% of the minimum wage in America. I would recommend saving what you think is comfortable right now. Again, the answer to this question really depends on your personal circumstances. This would leave a single person with $45,650 after expenses and taxes each year. But after stopping in Colombia to take one week of salsa lessons, his life took a sharp left turn. Of course, the quality of a $60,000 salary will also depend on several factors. Unfortunately, LA and DC are some of the most expensive places in the United States of America. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. Of course, you can live anywhere on any salary, but some places are more expensive than others. But only 44% of poll participants said someone making $90,000 a year was rich. Many location independent workers are realizing that their remote salary can buy them a shockingly extravagant lifestyle in other countries. Yes, $60,000 is a good salary. You should only be spending 10%-15% of your monthly budget on a car. Its important to always compare apples to apples. Depending on the job you take, $60,000 might be an excellent entry salary. Additionally, you should always consult a tax professional to get an accurate estimate of how much you will pay in taxes. Your total take-home paycheck would be: Whoa! Also, this set includes many people who received professional degrees from graduate schools, further bringing up salaries. That depends on how frequently you get paid, and how much taxes you are liable for. Every goal you set in life requires some money to meet. The example above was for a single person with health insurance, but 60k a year works for a family as well. You can afford a $1,250 mortgage payment on a house making $60,000 a year. But you want your family to be healthy. Here is a list of five cities in the US worth mentioning (in no particular order): As for places to live outside the US the world is your oyster. For example, If you like to eat out and party regularly, as opposed to clipping coupons and making food at home, youll likely need more money coming in. With a 22% income tax bracket, the net income for a single person is $62,400. This can include factors like your age, location, taxes, lifestyle, family status, and more. ($60,000 - $9,000) / 26 = $1,961.54 Depending on your unique circumstances, you could have a good amount of money to invest each month. Jack received his BS from Hampshire College. This site is for informational purposes only and is not intended to provide financial advice. Where will the other 90% come from? A salary of $60,000 a year, means that your net monthly income is approximately $4,250. Copyright 2023. Yes! Earning $78,700 places you in the22% tax bracket. However, certain areas are also far more expensive than others, which can have complicated explanations. It depends on your experience level, age, and how far out of high school you are. Now I know that all the digital nomads and the majority of the Financial Independence community will squawk at this. Overall, a $60,000 salary is perfectly healthy for your average individual American. In the end, you should be able to plan your finances accordingly if youre a professional who earns this much money in 12 months. If youre making $60,000 per year, the good news is youd rank far above many people. The average monthly rent for a 2-bedroom house alone is $3,500, which can be very difficult to keep up with for the long-term. You can afford a $177,000 house if youre: Your mortgage payment should not exceed 28% of your gross monthly income. You can live comfortably on $60,000 a year in most places in the world as a single person, and even as a family in many places. Or at least, he was. Consult an attorney if you are seeking legal advice. ), should pay more than $60,000, even entry-level. Starting monthly salary: $5,000 USD (~4,576,008 INR)After taxes: ~$3500 USDRent for a one-bedroom apartment (downtown): $150 USDRent for a three-bedroom apartment (downtown): $350 USD. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. Easy home jobs online that you need to know to earn extra money. Continue with Recommended Cookies. With that in mind, a $60,000 salary is a great start for most college grads. By signing up, I agree to receive your legendary travel emails. With $30,000 in savings every 12 months, you can live comfortably without worrying about emergency funds. There are small towns where itd work out, but if you want to live in any major city, youre going to need more money. The state you live in if youre an American. You should reach out to a recruiter to see about getting a new job. That's according to data from MIT's living wage calculator, which determines the minimum amount necessary to meet basic needs without relying on outside help. We achieve this in the following steps: The salary example begins with an overview of your $60,000.00 salary and deductions for income tax, Medicare, Social Security, Retirement plans and so forth. In general, you can live comfortably on this salary, but you may have to be careful with your spending. Yes, a $60,000 salary is a great salary for most new graduates. For every pro, there is a con. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. Living in these cities may be a struggle, especially if you have a family to support. Mississippi, overall, ranks 45th out of 50 when it comes to education. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. Welcome Home! A single person would bring home $877 weekly after taxes. You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. That means you save money, and also contributes to the fact that these states have some of the lowest tax burdens (7.37% and 6.14% respectively). This means that if you're earning $60k a year, which is very close to this amount, it can definitely be good. Please, read my affiliate disclaimer for more details. The poverty rate reflects a person's gross annual income. Generally, $60,000 is a good salary. The final verdict is this: Is $60,000 a good salary? The best part about working from home is the How to Make a Fortune Selling Your Photos Online. Which is $18,260 less per year than the average salary in the US. Choosing the right job opportunity for you will depend on your skills and past experience. People may receive compensation for some links to products and services on this website. It depends on the current cost of living, your demography, your lifestyle, and the number of people in your household. I think youll be shocked at what a $60,000 salary would get you. But in others, youd barely scrape by. ($60,000 - $13,000) / 26 = $1,807.69. In this article, we will take a look at if a salary of $44,000 good for a single person and which factors play into this. The average child costs $14,846 per year to take care of in the U.S. A job that pays $60,000 a year is a great opportunity for someone just starting their career. Generally, you should only spend about 28% of your gross monthly income on housing expenses. get a side hustle or part-time job (i.e., Amazon Associates) to earn more income, get a degree higher than high school (i.e., college or trade school), using 25% of your monthly income for a mortgage payment, accounting for housing costs like property taxes and insurance, paying the average state income tax of 5.99% (youre likely not). These are the most common questions about earning this amount of money. Instead of working a minimum wage job, youre better picking up one of these online gigs to earn $2,000 a month (or more). Yes. Youd be taking home around $44,000 a year after taxes with a $60,000 a year salary. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. Now, what if you get paid biweekly? There are other factors of course, but overall, these are some of the most prominent. Which is $21,740 more per year than the average salary in the US. The average personal salary in the U.S. is $63,214, meaning that $60,000 is a healthy amount. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. To cover the average expenses, a good salary is going to be $78,700 per year. Depending on the magnitude of what youd like to achieve in the future, a $60,000 salary may or may not be enough for you. If youre a single person earning $60,000, your rule of thumb should be to save at least 50% of the income. In that scenario, keep in mind that your rent cost will likely stay the same, and only your food and utility costs will see major increases. A year has 52 weeks, so that means that we can divide $60,000 by 52 to find how much $60k is a week. $44,000 per year (-$16,000 tax reduction). What are the best stay at home jobs that pay well ? The average salary for new college grads is $55,260, with many jobs paying as low as $40,000 for entry-level positions. But that doesnt mean 60K isnt a good salary. The consent submitted will only be used for data processing originating from this website. There are over 15.5 million digital nomads from the U.S. more than triple the amount from a few years ago. Any time you add in extra variables, the data changes. Your state income tax varies from 2.9% to 13.3%. You can afford a $27,000 $40,500 car if you make $60,000 per year. People that earn $60,000 per year dont bring that money home. You most definitely can afford to invest each month and it should be one of your highest priorities. You can afford $1,250 in rent if youre making $60,000 a year. A good salary in America is $51,000. This is calculated by multiplying the hourly wage ($38) by the number of hours worked in a year (2,080). While you can get by as a single person on a $22,000 annual salary in Kentucky or Arkansas, you'll need at least $30,000 in Hawaii or Maryland. In cities, having your own vehicle isnt necessary. His advice has been featured in Forbes, USA Today, Yahoo, MSN, Readers Digest, Cond Nast Traveler, and more. If you have student loans or other debts, your monthly payments will reduce the amount of money you have for other expenses. Thats a fair amount of money. These may include: Other factors include your lifestyle, the number of people who look up to you, and the amount of expenses you have to cover every month. A study by Policy Advice shows that $60,000 is the median US income as of 2021, with the median weekly earnings being as high as $1,250 for men and women in the 35 and 65 years age bracket. If youre financially responsible person, a $60,000 annual salary would give you a comfortable life in most cities. This is a good wage for many jobs, but it may vary depending on your position and experience. For example, nurses and doctors can make much more than $30 an hour, while retail workers and customer service representatives may only make around $15 an hour. Your Demography Toronto and Vancouver are pretty expensive. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. A $60K salary may be more than enough for a recent college graduate living with their parents on the family farm, but a large family in a buzzing city may struggle to get by on it. A comfortable salary for a family of 4 is about $116,000. Keep in mind that the tax rate varies from state to state, so its unlikely theres a general chart to look up. Whether its helpful guides, reviews, or tools, we share firsthand experience and rigorous research on the best ways to make money in the gig economy. Depending on your answer to this question, you should be able to determine whether its possible to live on an annual salary of $60,000. There are also other extra expenses to keep in mind when living in Canada. It can reduce the cost of real estate, property taxes, cost of living, and state income taxes. If youre a nomad or have a family and you want to go somewhere cheap, India might be the perfect spot for you. In other words, $60,000 is the amount of money your employer pays you per year before tax deductions. It will surprise you! Thats almost an extra thousand dollars a month you could put towards investments, paying off debts, or living large. But just how good enough is 60K as an annual salary in the first place? The United States is a big country, and where you live can have a profound effect on your cost of living. We actually lived in Bangkok for a few months, and in the video, we share how much we spent on living expenses and what our lifestyle looked like. Your $60,000 annual income can only be good enough if you live in a state where the cost of living isnt insanely high. Instead of breaking down all the numbers for you, Ill leave you with this video. $60,000 a year is $45,486 for a married couple after taxes. Making 60k a year is 20% higher than the median household income in the US. That's according to data from MIT's living wage calculator, which determines the minimum amount necessary to meet basic needs without relying on outside help. Do you want to live like a king or queen? You can see the full breakdown by household status, gender, race and more on the US Census Bureau site. Is $60,000 a good salary? We can also do the math for getting paid twice a month. The $60,000 may be a good income for a single person living in West Virginia, but it wont be enough for a family residing in Washington DC. So, if you are a single person (or even a couple) who can be happy living in a nice, but That means that a $60,000 a year salary is about 20% more than the median salary in the US. If these numbers dont work for you, feel free to change them up and let me know what you did! With a 22% income tax bracket, this income will cover the average expenses of $78,000. By signing up, you'll be added to my legendary email list. The median annual expenses for a single person is $32,352. A family of four may have a harder time living comfortably on $60,000 a year. Just in case you are worried about what your budget would look like, I figured I could give you a good example. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. With this salary, a person could expect to make $1,534 every week, or $6,223 per month. That leaves $30,512 for other expenses after taxes. If you get paid weekly, you could get a check for $903 - $980, depending on your tax liabilities. Food is another $200 minimum. For example, if you are single and earn $60,000 a year, your federal tax would be different than a married couple who earns the same amount. Paying health insurance and adding to a retirement plan could have you eating ramen every day. I get paid twice a month, now what? You know what your opinion is on 60k a year. That said, this will depend on other factors, including the cost of living where you are and how you manage your finances. I would say a great salary puts you in a position to invest or save 50% of your income without you having to penny-pinch, only eat ramen noodles, or avoid enjoying your life. There are dozens of countries where a 60K yearly salary would afford you an amazing lifestyle. Recommended Reading: Overview of Real Estate Investing. This website is for informational purposes only. Or, do you have a family looking up to you on a monthly basis? According to Andrew Carnegie, Ninety percent of all millionaires became so through owning real estate. If you get paid biweekly, you could get a check for $1,807 - $1,961, it all depends on how much taxes you owe the government. That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. The above statistics are averages for the entire country of India, and may be more or less depending on which city you live in. After taxes, $78,700 turns into $61,386 and lands you in the middle class. Its nearly impossible to factor all of these possibilities into the equation. If you have state and local taxes, youd take home even less. I did some research to find out for myself. A single person would bring home $3,800 per month after taxes. At least you can pay rent, buy food, save for retirement, invest in new skills, and leave room for saving. The median household income is decreasing by 2.9% per year due to inflation. Most people become stagnant at their jobs and could increase their income by changing jobs. Utilities and food cost more. With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. Based on the research done above, $60k a year is above the national average in the United States. You have to pay Social Security tax, Federal Income tax, and Medicare tax. If you live at home with your parents or have a small family, you could be swimming in cash. If youre being paid $60k a year USD and paying taxes like a US citizen is supposed to, you should have roughly $3,500 a month after taxes. This is why it is important to find a job that will allow you to grow and develop your skills. Public transportation and cabs are cheap, especially when compared to major US metro areas. In cheap third-world countries, youll live like royalty. For a family of four, the estimated cost of living is $4,900 a month. But once you get closer to the Delta, things change, and not in a good way. Thats not too shabby and makes for easy math if you are wanting to calculate how many more hours of work until you can afford to buy another share of TSLA or more BTC. Some of his most popular published works include his writing about economic terms and research into job classifications. That would mean that you can afford $4,250 / 3 = $1,400. The median living wage for a single person is $17.74 per hour. It does not take into account taxes, bonuses, or vacation time. Remember, your demography, lifestyle, future goals, tax bracket, and the current cost of living in your state are the factor that will determine whether $60,000 is a good salary or otherwise. Yes! This is assuming you work 40 hours per week for 52 weeks per year. Your cost of living varies depending on whether youre single or a family of 3. Offers may be subject to change without notice. One key factor is controlling your lifestyle and avoiding lifestyle creep. $60k a year is a ballers salary in India. Your $60,000 a year would be this much after taxes: $60,000 annual pre-tax income-$6,262 federal income taxes . In general, urban areas are far more expensive than rural ones, particularly due to access and additional amenities. If you want to be close to friends and family, then that helps you narrow down your list of where you want to live. I know people making a lot less that are living a comfortable life. With discipline and proper financial planning, you can get by comfortably. While you can get by as a single person on a $22,000 annual salary in Kentucky or Arkansas, you'll need at least $30,000 in Hawaii or Maryland. This would leave them with $30,050 in extra money each year. Start influencer marketing, sell homemade art or food, invest in bonds, rent out your extra space, etc. The median living wage for a single person is $17.74 per hour. How to negotiate a raise like a pro. An example of data being processed may be a unique identifier stored in a cookie. Now that we have answered the question is $60,000 a good salary, lets take a look at what this income can afford. The tool provides information for individuals, and households with one or two working adults and . The average single person would have $10,120 left over after taxes and living expenses. If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. But anywhere else, youll be living well. A good salary in the US to break even on average expenses is $78,700 per year. Again, the answer to this question varies depending on your location and expenses. State minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). For example, if you would like to buy an SUV in six months or less, but you live in an expensive state such as Washington, youre highly likely to hit rock bottom fast. Chances are youll also be renting a private bedroom inside someone elses place. A good salary for a single person would be $80,000 or more. Of course, this also depends on your location, age, etc., but as a single person, you should be able to live comfortably in most places. In 2020, the median household income in the United States was $67,521 which means that there are more households making above $60,000 than below it. Many of us believe that making 6 figures a year is what qualifies an individual for financial freedom.