All Rights Reserved. "Is $60,000 a Good Salary?" 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. Living in states with a low cost of living can help you bring more money home. By signing up, you'll be added to my legendary email list. Even if youre a single person, rent may be a challenge to pay given the current average monthly rate. You also may need a car with AWD and switch from winter to summer tires every year. Which is $6,740 more per year than the average salary in the US. Is $60,000 a good salary? Start influencer marketing, sell homemade art or food, invest in bonds, rent out your extra space, etc. You probably wont be saving thousands of dollars a month, but you can still make a solid contribution to your future each and every month. As a general rule, earnings tend to rise in your 20s and 30s as you start to climb up the ladder. Or, do you have a family looking up to you on a monthly basis? You are earning 12% more than the average annual salary. This is why it is important to find a job that will allow you to grow and develop your skills. If you are not liable for any taxes your biweekly paycheck would be $2307.69. 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. A living wage is an hourly wage needed to cover your living expenses. Hey you! Write down a list and work backward from there. The most important factor with any salary is to budget, invest and spend within your means. I may earn a commission (at NO cost to you) if you buy through links on this page. In cheap third-world countries, youll live like royalty. Keep in mind that this is an estimate and your personal situation may vary. With a 22% income tax bracket, the net income for a single person is $62,400. Invest in a 401k or IRA: You can automatically contribute $50 from each paycheck into your retirement account. A single person earning $60k a year should have an extra $845 left over each month. The median household income is decreasing by 2.9% per year due to inflation. If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. The median annual expenses for a single person is $32,352. Bachelors Degrees earn 24% more than those with non-college graduates. 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 living in such cities would be a dream come true for most, if not all, people. I think youll be shocked at what a $60,000 salary would get you. There are so many ways to buy a house so nothing should be stopping you, even the current housing prices. $38 an hour annually is equivalent to an annual salary of $79,040, assuming a 40-hour work week. In this situation, $60,00 a year would not be enough. On $60,000, the average state income tax youll pay is $3,594. After taxes, making $60,000 a year leaves a family of 3 with $52,800. Making 60k a year is 20% higher than the median household income in the US. This means that if you're earning $60k a year, which is very close to this amount, it can definitely be good. A salary of $60,000 a year, means that your net monthly income is approximately $4,250. However, there are plenty of towns in Canada where youll thrive as a single and be fine with a family. But not all foreign countries are cheap. A family would bring home $4,400 per month after taxes. Is it a very high income? With a 22% income tax bracket, the net income for a single person is $32,350. Making $60,000 a year is $5,000 per month. If you are living in a low cost of living area you will be able to stretch your dollars even further. Here are two extremes California and Mississippi. This website is for informational purposes only. It is not legal advice. However, if you live in an expensive city or have a high cost of living, then you may need to make more money to cover your costs. An example of data being processed may be a unique identifier stored in a cookie. In towns like Oxford and the suburbs of Memphis, housing is expensive. If youre a nomad or have a family and you want to go somewhere cheap, India might be the perfect spot for you. If you mean Melbourne USA then yes you should be able. You can afford to spend a ton on Amazon each month or have a cool car with a payment that goes along with it, but probably not both. However, if you live in an expensive city or have a high cost of living, then you may need to make more money to cover your costs. You probably wont be buying a mansion, but the person making $100,000 a year wont be either. So you need to have a proper budget plan if your family is to live on that much money. While everyone understands the phrase middle class differently, it generally means you have more money to spend than those who earn the minimum hourly wage of $7.25 an hour and less money than those who make more. With the average annual housing rate standing at $9,000 at least, you can do really well if you have a budget plan. If youre not sure how youre lifestyle will affect your disposable income, try creating a list of your regular expenses and running some calculations. Undoubtedly, those expenses will start to eat away at your salary and might make it more difficult to live comfortably with $60,000. People also buy too much car, trapping themselves into debt. PhD grads earn 23% more than Masters Degrees. Answer (1 of 372): Yes $60,000 a year is considered a reasonably good income. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. The median household income in the US is $70,784 (Census Bureau). Utilities run you around $200 a month. 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. Overall, a $60,000 salary is perfectly healthy for your average individual American. The final verdict is this: Is $60,000 a good salary? Your $60,000 annual income can only be good enough if you live in a state where the cost of living isnt insanely high. You will be amazed at how many options are out there to invest in. The average family of 3 would have $14,400 left over after taxes and living expenses. Cost of Living. Instead of breaking down all the numbers for you, Ill leave you with this video. While you may be an average earner with such an annual income, it's possible to live on it comfortably. If youre a married couple, youll take home $45,486. A comfortable salary for a family of 4 is about $116,000. In other words, $60,000 is the amount of money your employer pays you per year before tax deductions. $60,000 a year breaks down to $28.84 per hour. For every pro, there is a con. The minimum wage in California is $14-15 an hour, which is roughly $30k a year. It depends on your experience level, age, and how far out of high school you are. And theyre a follows: States such as Washington DC and Los Angeles have some of the most beautiful cities in America. $60,000 a year is $38,286 for a single person after taxes. Using an FHA loan for example you can put down as low as 3.5% of the purchase price. That puts . Yes, $60,000 a year is good for a single person. If your dollars arent working for you, they are working for someone else. That sums up to $42,000 in rent for 12 months, which someone who earns $60,000 a year would struggle to cover. Is $60k a year good? Then next month find one area in your life that you can cut back on. That means that your net pay will be $46,347 per year, or $3,862 per month. link to What are the best stay at home jobs that pay well ? Be the first to rate this post. You will also need to consider the cost of living in your area, your credit score, and other debts you may have. You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. With a 22% income tax bracket, this income will cover the average expenses of $90,100. The poverty rate reflects a person's gross annual income. Do you want to know what kinds of photos are in high demand and how to get top dollar when you sell them online? A $65,000 salary may easily meet your . 7 Best Dash Cams For Delivery Drivers (2022), 7 Best Times to Do Uber Eats (2022 Guide), 7 Best Apps Like Airbnb to Make Money (Alternatives in 2022). That would mean that you can afford $4,250 / 3 = $1,400. Is $60,000 a good salary in Mississippi? We can also do the math for getting paid twice a month. if you are making $60,000 a year you are making 20% over the average salary in the US. In the US, a good salary is $78,700 before taxes. Sign up to make sure you get your free consultation. To decide on whether $60,000 a year is enough for your particular lifestyle, it is essential that you calculate your monthly expenses and see how much is left over. This will ensure all of your bills are paid and still leave room for a bit of discretionary income. I did some research to find out for myself. 6 Tips On How To Address Your Cover Letter, 11 Tips For Decorating Your Office Cubicle, 5 Tips For Getting Hired At A Remote Customer Service Job, Zippia. One key factor is controlling your lifestyle and avoiding lifestyle creep. If you live at home with your parents or have a small family, you could be swimming in cash. At least you can pay rent, buy food, save for retirement, invest in new skills, and leave room for saving. Theaverage monthly expenses per household are $5,111 per month or $61,332 per year. Just remember to pick good roommates if you can. If you have a gym membership, cancel it and work out at home or outside. This is calculated by multiplying the hourly wage ($38) by the number of hours worked in a year (2,080). Again, that sums up to $9,000 per year, which is about $33,000 less what youd pay in DC. In this article, we will discuss what factors you need to consider when determining if $60,000 is a good salary for you. 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. The example above was for a single person with health insurance, but 60k a year works for a family as well. However, if you live in a more affordable area, like Tulsa or Wichita, $60,000 may be more than enough to cover your needs. If you work a position with no paid time off (PTO) then you are working 2080 hours a year. This comes out to be $35,480 per year. Musk has even complained about the proposal to target the rich with a special tax. link to How to Make a Fortune Selling Your Photos Online. 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. There are 52 weeks in a year, and $60,000 divided by 52 is $1,154 per week. We will also look at different jobs that pay 60000 a year and how that income can change depending on your location, lifestyle, and expenses. Not at all. Keep in mind that youre taking $45,000 or $51,000 home depending on your tax bracket. Multiply that by 2 and you get $2,308. Assuming you dont have any debt, you would have $24,992 leftover for savings and other living expenses such as: It is important to remember that this is only an estimate and your actual expenses may vary. In the budget provided above, I showed a sample of saving 20% a month. It all depends on your unique situation. Here are some popular locations and their cost of living compared (by the average salary youd need to live comfortably): Taxes. Public transportation and cabs are cheap, especially when compared to major US metro areas. Toronto is one of the most expensive cities to live in North America. Zippia.com. Many of us believe that making 6 figures a year is what qualifies an individual for financial freedom. If you want to be close to friends and family, then that helps you narrow down your list of where you want to live. Youre also going to have to pay social security taxes, which are 6.2%. Just think living off $60,000 annually is much harder in San Fransico than it would be in North Dakota. Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). New York City, San Francisco, Hawaii, and Massachusetts have the highest housing costs. With a 22% income tax bracket, this income will cover the average expenses of $78,000. There are other factors of course, but overall, these are some of the most prominent. If you're financially. And if you have a car, tack on an additional $500 a month on top of insurance, property taxes if you own a home, etc. Mitch's Travel Recommendations:Travel Planning Resources - Everything you need to plan your trip on one convenient page.Safetywing Insurance - This cheap travel insurance has saved me over $15,000 in medical bills.Booking.com - Book accommodation without adding your credit card (in case you need to cancel).Skyscanner - Find cheap flights.Trusted House Sitters - Take care of pets in exchange for free (sometimes luxury) accommodation.Flexjobs - Find remote jobs without having to sift through crappy ones.Skillshare - Free trial to take unlimited classes that teach digital nomad skills.Anytime Mailbox - Virtual mail service that can handle your mail while youre away.Wise - Send and receive money abroad cheaply (great for freelancers). New York and Hawaiis tax burdens are double that of Wyomings, at rates of 12.79% and 12.19%. Paying health insurance and adding to a retirement plan could have you eating ramen every day. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . Pew defines "middle class" as a person earning between two-thirds and twice the median American household income, which in 2019 was $68,703, according to the United States Census Bureau. The average health insurance premium in California is $487 per month. 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. In this situation, $60,00 a year would not be enough. The average living wage is 245% of the minimum wage in America. Before you settle for an office job, consider the perks of a stay at home job. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. The areas with the highest average annual salary are Massachusetts and Washington D.C. Maryland, New Jersey, and Massachusetts are the highest median household income states. 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. Answer (1 of 4): Melbourne, Florida USA Melbourne, Florida USA Melbourne, Victoria Australia Which Melbourne are you talking about? Unlike adults, kids run through clothes fast. 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. The aim of this $60,000.00 salary example is to provide you detailed information on how income tax is calculated for Federal Tax and State Tax. Therefore, you can never have enoughjust look at Elon Musk and Jeff Bezos, who still work to grow their wealth. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. Welcome Home! 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. If youre making $60,000 per year, the good news is youd rank far above many people. Posted on June 9, 2022 Author Comments Off on is $60,000 a good salary for a single person June 9, 2022 Author Comments Off on is $60,000 a good salary for a single person Utilities are more than reasonable. Nowadays, hes the blogger behind Project Untetheredwhere he runs an awesome email newsletter and Youtube channel teaching adventure-craved wanderlusters how to escape the rat race, earn money from anywhere, and build an untethered life. Contents1 What is a livable wage in Colorado?2 How much does a single person need to make [] (Free $350 value.). Is $60,000 a good salary in Mississippi? Is 60,000 dollars a good salary outside of the US? To be clear, several factors determine whether $60,000 can be enough for you to live on. However, after taxes, $60000 would be reduced to $21.54 - $23.56 per hour and $44,800 - $49,000 per year depending on the state you live in. You are earning 20.6% more than the average annual salary. Every person is different, and every job is different, but the real question at hand is if earning 60k a year in 2023 is good or not. The current hourly rage in the U.S. is $7.25, so someone getting $30 an hour, without working an overtime, makes more money than most Americans do. Lets do some quick math here. Another factor that determines whether 60K is a good salary is the number of people in your household. If you make the average salary in the US thats great and all but what are your dollars doing while you are sleeping? These are the most common questions about earning this amount of money. Yes, a $60,000 salary is typically a great salary when you have roommates. In this case, we are working with $1,400. This would mean that a family making $60,000 a year could afford a mortgage of $1800 a month. Lets look at how much you can afford to pay for a house and a car on $60,000 a year. As you can see from the table above, the hourly rate for someone earning $60,000 a year is $30, which is far above the rate many people earn in the United States of America. No one who goes through medical school for 8+ years is going to want to have a starting salary of $60,000. Even in the cheapest states, its going to be hard to get by on $15,000 a year. So, if you are a single person (or even a couple) who can be happy living in a nice, but Toronto and Vancouver are pretty expensive. The median annual expenses for a family of four is $90,100. Depending on your unique circumstances, you could have a good amount of money to invest each month. . We all gotta eat. A $60,000 annual pay works out to about $30 per hour, which is four times the federal minimum wage of $7.25 per hour. That said, this will depend on other factors, including the cost of living where you are and how you manage your finances. Yes! Just like rent, your mortgage payment should be a maximum of one-third of your income. Median housing costs make up less than 24% of a $60,000 income, on average, across all 109 cities in our study. 60K may or may not be a good salary. If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. Unfortunately either of these factors will raise your cost of living rather significantly. ), 35 Best-Selling Printables on Etsy (That Practically Sell Themselves). $40,000 is the minimum wage in some parts of the country. The median living wage for a family of 3 is $19.20 per hour. In New York, $60,000 a year is $42,540 for a married couple after taxes. The answer is you. You probably won't be buying a mansion, but the person making $100,000 a year won't be either. If you avoid bad debt, your dollars will stretch even further and be able to be put to work. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. You can afford a $177,000 house if youre: Your mortgage payment should not exceed 28% of your gross monthly income. In general, you can live comfortably on this salary, but you may have to be careful with your spending. For more information, please read our privacy policy. But education and future earnings will most likely. 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. If you are worried about what you can afford, I would look into increasing your income through side hustles. Speaking of which, here are some clever ways to make $10,000 per month online, which would make California living much more comfortable. Living in an area with moderately priced expenses as a single person is not just doable, but easy. People that earn $60,000 per year dont bring that money home. You are earning 37.3% more than the average annual salary. If you earn $60,000, youre paying $3,720 in social security per year. The median household salary in the United States is $60,000. The answer to this question really depends on your personal circumstances. High-speed internet in India also costs a fraction of the U.S. were talking 10 bucks a month. If youre applying to a job or considering a job offer that pays $60,000, you may be wondering whether thats a good salary. A good salary in the US to break even on average expenses is $78,700 per year. Which is $1,740 more per year than the average salary in the US. How a Salary of $44,000 Compares to the National Median Personal Income for Individuals. So its important to determine whats more essential and whats not then plan accordingly. 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. 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). So, how much will you bring home after all of the taxes and social security? Not anymore. Any time you add in extra variables, the data changes. But in others, youd barely scrape by. Which is $21,740 more per year than the average salary in the US. There are a ton of places where you can live on $60k a year and live a comfortable lifestyle. Thats almost an extra thousand dollars a month you could put towards investments, paying off debts, or living large. That means that a $60,000 a year salary is about 20% more than the median salary in the US. That's a $350/month difference between the highest and lowest taxed state. Is $60,000 a good salary in India? Career Level. Save $50 from each paycheck: This equals $200 per month, or $2400 per year. Youll need to take your own personal finances and financial goals into account. 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.. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. Is 60K a good salary or should you aim for more? In California, $60,000 a year is $41,100 for a married couple after taxes. The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. Now, what if you get paid biweekly? Due to the fact that the quality of a $60,000 salary can change depending on your circumstances, its good to analyze your situation. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. Fresh produce is going to cost you literal change. But anywhere else, youll be living well. Jack Flynn is a writer for Zippia. ($60,000 - $13,000) / 26 = $1,807.69. The reason I bring this up is that there is no such thing as perfection. It will buy you at least a middle-class lifestyle meaning you can afford basic living expenses plus a few luxuries in all but the most expensive cities around the globe. Manage Settings So $80K would be an upper-middle class. If youre looking for more information on making money, be sure to check out our other blog posts on the subject. Is $60,000 a year a Good Salary in the US? What are the best stay at home jobs that pay well ? On the contrary, an entry-level salary of $60,000 for a doctor would be unacceptable, as the average for the position is well over $100,000. Some people may find that they need more money while others may find that they can live comfortably on less. Were also going to look at the different tax rates between single and married people. But the older you get and the more responsibility you take on, earning $5,000 a month starts to look less and less. In expensive cities like San Francisco, you cant afford much. There are small towns where itd work out, but if you want to live in any major city, youre going to need more money. Overall, $60,000 is a solid salary that will allow you to live comfortably and save money with the correct planning and spending habits. From learning exactly how to travel the world full-time, earn money from anywhere, and live a completely "untethered" life. He met a cute Colombian girl in dance class, fell in love, and got married. This is a good wage for many jobs, but it may vary depending on your position and experience. Its called personal finance for a reason. By signing up, you'll also be added to my legendary email list and receive handy travel lifestyle tips and inspiration I don't share anywhere else. However, the biggest concern, in my opinion, is housing. To be clear, several factors determine whether $60,000 can be enough for you to live on. The median annual income in the US is $41,000. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. However, if you live in affordable states such as Michigan, where the average annual rent for a 2-bedrooom house is $9,000, you can live comfortably on a 60K salary and even save some money for future personal project. More importantly, is what you are doing with your money. You wont live well on a $60,000 salary in DC, for example. $60,000 is a good salary in most locations. The state you live in if youre an American. A job that pays $60,000 a year is a great opportunity for someone just starting their career. If you want to live in the suburbs of Memphis, you may have to pinch some pennies. Assuming a general tax reduction of around $16,000 a year, youd make around $44,000 a year after taxes. If these numbers dont work for you, feel free to change them up and let me know what you did! With a fairly easy to live with budget above, there was an excess of $4,250 - $3,260 = $990. 60,000 dollars yearly is considered a good salary in the United States, but whether it's enough for you depends on your individual circumstances. Your Demography $60,000 a year is $45,486 for a married couple after taxes. Economists will tell you that human desire is unlimited, yet the resources needed to meet it are limited.