In this article, we will discuss what factors you need to consider when determining if $60,000 is a good salary for you. The average 15-24-year-old only makes half that of the average 45-54-year-old ($43,500 to $84,400). We run out of free consultations every month. However, the biggest concern, in my opinion, is housing. 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. Instead of working a minimum wage job, youre better picking up one of these online gigs to earn $2,000 a month (or more). But that doesnt mean 60K isnt a good salary. In New York, $60,000 a year is $35,340 for a single person after taxes. What is a good salary for a single person in Arkansas? - 2023 For example, states like South Dakota and Wyoming have no income tax. Another important aspect of your location are taxes, as certain states and cities can be drastically different. Meaning, one person could be paying $4,200 extra per year in taxes. 15.5 million digital nomads from the U.S. how to live cheap and instantly slash expenses, Realistic advice on setting up life on the road (no hype). The state you live in if youre an American. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. 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. You wouldnt make enough to save or even cover your expenses. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. That means that every month before taxes you will be bringing in a monthly salary of $5,000. Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. Weather can be extreme, so expect a hefty heat bill during the winter. Youll need to take your own personal finances and financial goals into account. Your total take-home paycheck would be: Whoa! if you are making $60,000 a year you are making 20% over the average salary in the US. 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. If you made it this far in this article, you have been through the math. After taxes that amount could be between $3,500 - $4,250. You can minimize these costs buy using hand-me-downs or buying second-hand, but expect to be dropping money on clothes on a monthly basis especially with babies and younger kids. You can see the full breakdown by household status, gender, race and more on the US Census Bureau site. Generally speaking, $60k a year is excellent for a single person. Now, what if you have a salaried position with two weeks of paid vacation each year? Answer (1 of 372): Yes $60,000 a year is considered a reasonably good income. If youre a married couple, youll take home $45,486. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. 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. The average single person would have $10,120 left over after taxes and living expenses. Are you single? Is Amazon FBA Worth It in 2023? Unfortunately, LA and DC are some of the most expensive places in the United States of America. (The impossible question). The average salary in the US is $51,000 a year. Theaverage monthly student loan paymentis $460. Contents1 What is a livable wage in Colorado?2 How much does a single person need to make [] Lets dive in. $44,000 per year (-$16,000 tax reduction). This is a normal annual income for a family if you live in an inexpensive city and know how to manage and plan your finances wisely. The 60K is your gross income. In moderately-priced cities, itll buy you a middle-class lifestyle. But the older you get and the more responsibility you take on, earning $5,000 a month starts to look less and less. This comes out to be $35,480 per year. Every goal you set in life requires some money to meet. $60k a year is a ballers salary in India. In the end, you should be able to plan your finances accordingly if youre a professional who earns this much money in 12 months. But once you get closer to the Delta, things change, and not in a good way. On the other hand, a $60,000 salary can start to become dicey when you add children to the equation. We can also do the math for getting paid twice a month. Is $60k a Year Good? Can You Even Live Off of $60k a Year? - LogicalDollar Is a salary of $60,000 adequate for a single person in Melbourne? If youre a nomad or have a family and you want to go somewhere cheap, India might be the perfect spot for you. Yes, $60,000 a year is good for a family of 3. What "Percent" Is Your Household? | Payscale - Salary Comparison Yes, a $60,000 salary is typically a great salary when you have roommates. $50000 a year is $24.04 per hour Let's breakdown how that 50000 salary to hourly number is calculated. The median household income in 2023 is about $76,000. Making $60,000 a year is $5,000 per month. Fresh produce is going to cost you literal change. Yes. Here's the Living Wage Needed in All 50 States (Study 2019 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). A single person would bring home $877 weekly after taxes. Do you want to live like a king or queen? There are so many ways to buy a house so nothing should be stopping you, even the current housing prices. In more recent data, a good salary in Colorado is roughly $62,000 per year, or approximately $5,168 per month. So for San Francisco, even as a single person with no kids, living on $60k a year is going to be a struggle. You can afford pretty much anything in moderation. You may have to be careful with your spending and save for larger expenses like a car or a home, but overall you should be able to survive on this income. Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). Also, this set includes many people who received professional degrees from graduate schools, further bringing up salaries. A family would bring home $26.40 per hour after taxes. That data is provided by ssa.gov and is extrapolated across an entire year to then provide an average of $51k. Which is $1,740 more per year than the average salary in the US. Do you want to know what kinds of photos are in high demand and how to get top dollar when you sell them online? Rather, they plan their wages accordingly and live within their means. 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. This post contains affiliate links, which means I may receive a small commission, at no extra cost to you, when you make a purchase. 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. Again this is all dependent upon your tax liabilities. In this article, we will take a look at if a salary of $97,000 good for a single person and which factors play into this. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. If you have a large family size and live in San Francisco or New York City, things might be a little tight. If you need a good idea after reading this article, make sure to set good financial goals. Generally, $60,000 is a good salary. You could easily save over two-thirds of your paycheck each month, and youll never get bored exploring all that India is famous for. I know people making a lot less that are living a comfortable life. The median living wage for a family of 3 is $19.20 per hour. By signing up, you'll be added to my legendary travel lifestyle newsletter. If you have a kid or two or a spouse that does not work, youre responsible for providing. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. Use this calculator to find out if you qualify as middle class - CNBC If you want to live in the suburbs of Memphis, you may have to pinch some pennies. Since each state has different tax rates, your final take-home pay depends on which state you live in. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. Of course, you can live anywhere on any salary, but some places are more expensive than others. At $40,000 a year, youre most likely below the living wage in your area. ($60,000 - $9,000) / 52 = $980.77 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. Assuming a general tax reduction of around $16,000 a year, youd make around $44,000 a year after taxes. The average living wage is 245% of the minimum wage in America. In the United States, the median income is roughly $67,000. $60,000 is a good salary in most locations. For example, the average monthly rent for a 2-bedroom apartment in DC is $3,500. The consent submitted will only be used for data processing originating from this website. Save $50 from each paycheck: This equals $200 per month, or $2400 per year. Be the first to rate this post. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. Federal Tax: $60k Salary Example | US Tax Calculator 2023 You should save as much as you possibly can. 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. But overall, the average cost of goods is 14% less than the national average, according to the U.S. Bureau of Labor Statistics. Just remember to pick good roommates if you can. I think youll be surprised at the stark differences in lifestyle. Just think living off $60,000 annually is much harder in San Fransico than it would be in North Dakota. With a library of comprehensive articles covering anything from starting an Airbnb to driving for Uber, our mission is to be the ultimate resource for increasing your income in the gig economy. Sixty thousand dollars a year is good for a single person in most of the world. The best stay at home jobs generally have a few common features. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. It is not legal advice. Which is $8,260 less per year than the average salary in the US. Paying health insurance and adding to a retirement plan could have you eating ramen every day. 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. Toronto and Vancouver are pretty expensive. Is $60,000 a good salary in Canada? The tool provides information for individuals, and households with one or two working adults and . You would need to make closer to $100,000 a year in household income to cover all of your expenses. People may receive compensation for some links to products and services on this website. Unfortunately either of these factors will raise your cost of living rather significantly. A good salary in the US to break even on average expenses is $78,700 per year. And depending on where you live, sixty grand may not get you far. Were also going to look at the different tax rates between single and married people. You are earning 12% more than the average annual salary. Yes! 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. But with an average house in an average neighborhood with two cars, two kids and a mortgage, that is a. You can also determine whether or not your $60,000 salary is healthy based on your age, as the average income in the U.S. changes significantly based on that. The median salary in the US is $1,041 per week. By signing up, you'll be added to my legendary email list. More importantly, is what you are doing with your money. Again, the answer to this question really depends on your personal circumstances. On $60,000, the average state income tax youll pay is $3,594. If you want to be close to friends and family, then that helps you narrow down your list of where you want to live. The lifestyle you can afford with a 60k salary depends on where you live. The above figures are in US dollars. Lets crunch the numbers to see what type of lifestyle a $60,000 salary buys you around the world. If you prefer to do a mix of eating out and cooking, $200 will have you eating whatever you want without hurting your budget. Is $60K a good salary for a single person? This is why I added the three-bedroom option to each destination. It is a highly affluent middle-level of income that allows those who earn it to afford high-quality homes, particularly outside of high-demand areas. The reason I bring this up is that there is no such thing as perfection. On a global scale, the middle class is between $4,000 and $40,000 per year depending on where you live. $60,000 a Year Is How Much an Hour? (Why a 60k Salary Is Good) Utilities and food cost more. According to their own estimates, this tax only covers ~10% of the $3.5 trillion spending bill. Earning $116,000 is 63.9% higher than the average household income in the US. You should only be spending 10%-15% of your monthly budget on a car. Invest in a 401k or IRA: You can automatically contribute $50 from each paycheck into your retirement account. ($60,000 - $13,000) / 26 = $1,807.69. To be clear, several factors determine whether $60,000 can be enough for you to live on. Some of his most popular published works include his writing about economic terms and research into job classifications. That said, this will depend on other factors, including the cost of living where you are and how you manage your finances. Disclosure. Want to learn how to travel for free? Jack received his BS from Hampshire College. The median annual expenses for a family of four is $90,100. 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. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. Which is $12,740 more per year than the average salary in the US. If you make the average salary in the US thats great and all but what are your dollars doing while you are sleeping? If grocery store prices are too high then check out local farmers markets to find deals on quality produce. All these little things can add up. But if you live in San Francisco and have a spouse and a couple of kids, youre going to struggle. You should reach out to a recruiter to see about getting a new job. With a 22% income tax bracket, the net income for a single person is $32,350. If youre wondering how to live cheap and instantly slash expenses (without sacrificing quality of life), this is one epic way to do it. Starting monthly salary: $5,000After taxes: ~$3,908 (Jackson)Rent for a one-bedroom apartment: $800 to $1,000Rent for a three-bedroom apartment: $1,000 to $1,200. Some people may find that they need more money while others may find that they can live comfortably on less. On the other hand, certain states have very high taxes. Is $60,000 a good salary in todays day and age? What is $38 an hour annually? - coalitionbrewing.com Best Places to Live on a $60,000 Salary - 2019 Edition link to How to Make a Fortune Selling Your Photos Online. 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. 60K may or may not be a good salary. Now that we have looked at how much $60,000 is an hour, how much you get after taxes, and what jobs pay this salary, it is time to answer the question: is $60,000 a good salary? Your rent payment should not exceed 28% of your gross monthly income. However, Real Estate is a solid investment strategy that has stood the test of time. 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. Is $60k a year good? You can live comfortably on this salary if you budget properly and have no major expenses. If youre married with no children, but youre supporting both you and your partner, youll probably be able to manage with a $60,000 salary. Where should I send your packing checklist? $50000 a Year is How Much an Hour? Is 50K a Year Good? Food is going to run you a fraction of the cost. A salary of $65,000 can be a high income in many parts in the United States but below average in other parts. But just how good enough is 60K as an annual salary in the first place? If you live at home with your parents or have a small family, you could be swimming in cash. Just being able to pay for your expenses isnt a good salary for a single person. Is $60,000 a Good Salary? - Zippia The poverty rate reflects a person's gross annual income. Age. Lets look at the different taxes and how much youll bring home when you make $60,000 a year. How to Make Money Building Websites A Step by Step Guide, 50 Crafts To Make And Sell For Extra Money, Savings / Investments - $850 (20% of total income), Mortgage / Rent - $1400 (33% of total income). You want to invest into your future. Youre also going to have to pay social security taxes, which are 6.2%. What are the best stay at home jobs that pay well ? The United States is a big country, and where you live can have a profound effect on your cost of living. how $60,000 compares to the average cost of living and income, if its good for a single person or a family, how much youll earn per month, bi-weekly, weekly, and hourly. What Income Level Is Considered Rich? - Financial Samurai But in others, youd barely scrape by. 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. A comfortable salary fora familyof 4 is $116,000 before taxes. Another reason is taxes are higher. $60,000 is a good salary in most locations. Personally, if your life circumstances allow it and you are comfortable with it I would look into buying over renting. 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.. Lets look at how earning a yearly salary of $60,000 works out for different family sizes. Another issue with the "40 times rent" rule is that it is a general rule and doesn't take into. I would recommend investing at any and every stage of your life. Many location independent workers are realizing that their remote salary can buy them a shockingly extravagant lifestyle in other countries. We have articles on everything from making extra money to how you can make $100,000 a year. 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.. Once you master the exchange rate in your head, youll start to realize the cost of living in Toronto is similar to most large US cities like Denver and Nashville. 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. Depending on the job you take, $60,000 might be an excellent entry salary.