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As mentioned, there are many things to consider when you want to know whether or not your $60,000 salary is good. If you work a position with no paid time off (PTO) then you are working 2080 hours a year. Lifestyle. People that earn $60,000 per year dont bring that money home. That's a $350/month difference between the highest and lowest taxed state. Welcome Home! Plan your budget accordingly and move to a state where you can live within your means. Living in these cities may be a struggle, especially if you have a family to support. There are other factors of course, but overall, these are some of the most prominent. But the older you get and the more responsibility you take on, earning $5,000 a month starts to look less and less. When you can earn more by switching jobs, side hustles are not worth it. By signing up, you'll also be added to my legendary travel lifestyle email list. You can literally live like a king. You can most definitely buy a house on $60,000 a year. By signing up, you'll be added to my legendary email list. Home loans providers have varying requirements. Lets backtrack a little to find out how we got to this number. In California, $60,000 a year is $33,900 for a single person after taxes. This is assuming you work 40 hours per week for 52 weeks per year. If you have student loans or other debts, your monthly payments will reduce the amount of money you have for other expenses. Food is another $200 minimum. Since each state has different tax rates, your final take-home pay depends on which state you live in. In some cities, the cost of living is outrageous. In the US, a good salary is $78,700 before taxes. You are earning 2% more than the average annual salary working full-time. You should be able to live in most places, and if youre a young new graduate, you can expect to make more in the future. You will be amazed at how many options are out there to invest in. That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. The median annual expenses for a single person is $32,352. In the end, you should be able to plan your finances accordingly if youre a professional who earns this much money in 12 months. Some considerations would include inflation over time, cost of living where you are employed, cost of housing and food, etc. Be the first to rate this post. With a 22% income tax bracket, the net income for a single person is $62,400. "Is $60,000 a Good Salary?" With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary. In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. Lenders typically allow you to take out a mortgage for about twice your annual income, so with a $60,000 salary, the allowable mortgage would likely be about $120,000$150,000. Money Peoples is a free resource for anyone looking to make an income in the gig economy. Lets dive in. 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. Lets look at how earning a yearly salary of $60,000 works out for different family sizes. Offers may be subject to change without notice. Recommended Reading: Overview of Real Estate Investing. Consult an attorney if you are seeking legal advice. 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. No matter what your salary is, the most important thing you can be doing is saving and investing your money. 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). If you want to have lively nightlife, that helps narrow down your search as well. 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. 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. Generally speaking, $60k a year is excellent for a single person. You would need to make closer to $100,000 a year in household income to cover all of your expenses. 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. Do you want to live like a king or queen? With a median salary of $63,293, the average resident of the Badger State is in a relatively good financial spot . Relocating could instantly upgrade your life. 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. All Rights Reserved. You also may need a car with AWD and switch from winter to summer tires every year. Is 60K a good salary or should you aim for more? That means youll be making $28.84 an hour if you make $60,000 a year and have no paid time off. Which means that an average salary is typical or good. Invest in a 401k or IRA: You can automatically contribute $50 from each paycheck into your retirement account. (Or Too Hard? $60k a year is a great salary for most areas of this state. There are 52 weeks in a year, and $60,000 divided by 52 is $1,154 per week. Take 40 hours times 52 weeks and that equals 2,080 working hours. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. The example above was for a single person with health insurance, but 60k a year works for a family as well. Is $60,000 a year a Good Salary in the US? A single person would bring home $877 weekly after taxes. . If your dollars arent working for you, they are working for someone else. If you mean Melbourne AUS, then no $60,000 isnt really enough for you to lead an average lifestyle. Is $60,000 a good salary in todays day and age? The average salary in the US is $51,000 a year. If you are not liable for any taxes your biweekly paycheck would be $2307.69. Again, the answer to this question varies depending on your location and expenses. Undoubtedly, those expenses will start to eat away at your salary and might make it more difficult to live comfortably with $60,000. Most likely a six-figure salary. 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. As you can see from the example above, $60,000 a year can be a livable wage or it could be barely enough to cover basic expenses. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. Some of his most popular published works include his writing about economic terms and research into job classifications. Which is $12,740 more per year than the average salary in the US. Mitch is your typical nomadic backpacker. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. ($60,000 - $13,000) / 52 = $903.84. Hey you! A good salary for a single person would be $80,000 or more. Its called personal finance for a reason. Is $60,000 a good salary in Canada? A family would bring home $26.40 per hour after taxes. 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). Save $50 from each paycheck: This equals $200 per month, or $2400 per year. Keep in mind that this is an estimate and your personal situation may vary. If you are considering a job that pays $60,000 a year, it is important to do your research and make sure that the salary is appropriate for your location and lifestyle. Note: Cost of living information was imported from Numbeo and after-tax pay was calculated with the SmartAsset calculator. If you work remotely and can live anywhere in the U.S., this may be eye-opening. A comfortable salary fora family is $116,000 before taxes. Then next month find one area in your life that you can cut back on. Now, what if you get paid biweekly? A salary of $65,000 can be a high income in many parts in the United States but below average in other parts. 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. High-speed internet in India also costs a fraction of the U.S. were talking 10 bucks a month. Your credit score and income can make a huge difference, in addition to other factors. Easy home jobs online that you need to know to earn extra money. For example, the average monthly rent for a 2-bedroom apartment in DC is $3,500. Additionally, you should always consult a tax professional to get an accurate estimate of how much you will pay in taxes. This can include factors like your age, location, taxes, lifestyle, family status, and more. 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. West Virginia's median annual salary of $48,037 is one of just a few that earn less than $50,000 in the survey. We all gotta eat. Fresh produce is going to cost you literal change. A small bedroom apartment in the city center runs you $150 (less outside the city), so you can guess how cheap everything else is going to be. 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. But just how good enough is 60K as an annual salary in the first place? Utilities and food cost more. You probably won't be buying a mansion, but the person making $100,000 a year won't be either. Keep in mind that the tax rate varies from state to state, so its unlikely theres a general chart to look up. You are earning 12% more than the average annual salary. It all depends on your lifestyle. Your $60,000 a year would be this much after taxes: $60,000 annual pre-tax income-$6,262 federal income taxes . But with an average house in an average neighborhood with two cars, two kids and a mortgage, that is a. Another important aspect of your location are taxes, as certain states and cities can be drastically different. If you mean Melbourne USA then yes you should be able. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. If youre financially responsible person, a $60,000 annual salary would give you a comfortable life in most cities. However, in places such as such as Los Angeles or New York City, no matter how responsible you are with your money, you may struggle live comfortably on a $60K salary. Is $60,000 a good salary? If youre not sure how youre lifestyle will affect your disposable income, try creating a list of your regular expenses and running some calculations. Your average tax rate is 22.8% and your marginal tax rate is 39.6%. If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. Its not that theyre survivalists by nature. The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. Keep in mind that youre taking $45,000 or $51,000 home depending on your tax bracket. Yes! Utilities run you around $200 a month. Lets compare some cheap and expensive examples. The estimated cost of living for a family of four is $4,900 a month. The next biggest changes in your budget are medical, insurance, food, and clothing. Another major factor is where you live and your responsibilities. It does not take into account taxes, bonuses, or vacation time. With this, you can afford a $500-$750 a month car payment. But $40,000 a year makes you a low earner if your job is full-time. You should save as much as you possibly can. 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. 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. But only 44% of poll participants said someone making $90,000 a year was rich. If your spending habits are not good, then itll be hard to live on $60,000 a year. 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. This adds up to $200 per month, or $2400 per year. And depending on where you live, sixty grand may not get you far. You can afford a $1,250 mortgage payment on a house making $60,000 a year. According to Andrew Carnegie, Ninety percent of all millionaires became so through owning real estate. We are dedicated to sharing the best ways to make money in the gig economy. 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. In others, its crazy cheap. Age. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Youd be taking home around $44,000 a year after taxes with a $60,000 a year salary. You know what your opinion is on 60k a year. But once you get closer to the Delta, things change, and not in a good way. Yes, $60,000 a year is good for a single person. A single person would bring home $22.80 per hour after taxes. Generally, you should only spend about 28% of your gross monthly income on housing expenses. Note that the average household income in America is $70,784. ), 35 Best-Selling Printables on Etsy (That Practically Sell Themselves). Generally, $60,000 is a good salary. However, the biggest concern, in my opinion, is housing. You are earning 37.3% more than the average annual salary. $50000 a year is $24.04 per hour Let's breakdown how that 50000 salary to hourly number is calculated. 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. Career Level. If you have a large family size and live in San Francisco or New York City, things might be a little tight. In California, $60,000 a year is $41,100 for a married couple after taxes. Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. (The impossible question). 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. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. That means buying what you can afford, planning, saving money, and never spending money that you dont have. If you live at home with your parents or have a small family, you could be swimming in cash. Yes, a $60,000 salary is a great salary for most new graduates. If you need a good idea after reading this article, make sure to set good financial goals. You wont be able to eat out, and youll more than likely have to get rid of your vehicle and opt for the bus. His advice has been featured in Forbes, USA Today, Yahoo, MSN, Readers Digest, Cond Nast Traveler, and more. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . if you are making $60,000 a year you are making 20% over the average salary in the US. An example of data being processed may be a unique identifier stored in a cookie. You should reach out to a recruiter to see about getting a new job. And they're a follows: 1. Youre also going to have to pay social security taxes, which are 6.2%. Want to learn how to travel for free? But the average state income tax is 5.99%. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. The best stay at home jobs generally have a few common features. Assuming you work full-time and make $3,600 a month after taxes, you would be left with $764 to save at the end of each month. Copyright 2023. In cities, having your own vehicle isnt necessary. When youre growing up, $60k a year can seem like a ton of money. Then create a budget that allocates your spending in a way that allows you to save money. $60,000 can be a good salary for a family. Even the cost of transportation, entertainment, and essential products and services vary based on demography. But in high cost of living cities, a $60k salary is just barely scraping by. Every goal you set in life requires some money to meet. Here are some tips on how to budget $60,000 a year: For the best ways to save $60,000 a year, check out my article on the best free printable budget templatesto get your finances under control. Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). This is calculated by multiplying the hourly wage ($38) by the number of hours worked in a year (2,080). Living Wage Calculation for Kentucky. Can You Make Good Money Fast As A Groceries Delivery Driver? Overall, a $60,000 salary is perfectly healthy for your average individual American. Here are the best places: In the end, it depends on what matters most to you. You are earning 20.6% more than the average annual salary. For example, states like South Dakota and Wyoming have no income tax. Most people, me included, recommend spending no more than one-third of your income on housing. Making $60,000 a year is an hourly rate of $30 per hour. New York and Hawaiis tax burdens are double that of Wyomings, at rates of 12.79% and 12.19%. This means that if you're earning $60k a year, which is very close to this amount, it can definitely be good. You can see the full breakdown by household status, gender, race and more on the US Census Bureau site. if you are making $60,000 a year you are making 20% over the average salary in the US. Now I know that all the digital nomads and the majority of the Financial Independence community will squawk at this. The average living wage is 245% of the minimum wage in America. Are they hard at work, or are they stuffed under the mattress with your box full of keepsakes and bets with your wife? Lets look at how much you can afford to pay for a house and a car on $60,000 a year. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. Market Realist is a registered trademark. 9, 2022, https://www.zippia.com/advice/is-60000-a-good-salary/, What Percentage Of Retail Sales Are Online, Are People More Productive Working From Home, What Percentage Of The Workforce Is Female. Just like rent, your mortgage payment should be a maximum of one-third of your income. The above rent prices are for Jackson, Mississippi, but the cost of living varies widely throughout the state. If youre a nomad or have a family and you want to go somewhere cheap, India might be the perfect spot for you. Many people consider $70,000 to be at the high-end of the salary range in America today. A salary of $60,000 a year, means that your net monthly income is approximately $4,250. However, it all depends on your lifestyle and expenses. While the pro of a cheap cost of living may be worth it in some parts of the state, the poverty in other parts is not something I would recommend being a part of by choice. This is why I added the three-bedroom option to each destination. That leaves $30,512 for other expenses after taxes. The following states do not collect state income tax: Combine this with a great salary and youll be taking home quite a bit of money. 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. Of course, the quality of a $60,000 salary will also depend on several factors. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. I'll also assume you have a simple tax situation and you only claim the standard deduction as a single person. Any time you add in extra variables, the data changes. I also know that your primary residence shouldnt count as an investment, but owning one home makes it much easier to buy another and another and another. However, in most cases, you can live comfortably on $60,000 a year. But you want your family to be healthy. Its easier to afford things when you have more money around to use. 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. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. A family earning $60,000 should be able to comfortably afford housing costs in cities where the median household income ranges from $55,000 to $65,000. It all depends on your unique situation. 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. We run out of free consultations every month. Your family of four should be okay provided you have a proper budget plan. I did some research to find out for myself. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu.