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. 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. A good salary in America is $51,000. Whether a 60K a year salary is middle class depends on a number of factors. However, each US dollar is roughly $1.25 Canadian at the current exchange rate, which can get slightly confusing. Make a budget and stick to it: Track your spending for one month to see where your money goes. According to the US Census Bureau, the average annual salary in the US is $102,316, equating to $1,967.62 per week. You should save until it hurts, and then back up off the gas a little bit. Is Earning $50,000 Considered Rich? If grocery store prices are too high then check out local farmers markets to find deals on quality produce. if you are making $60,000 a year you are making 20% over the average salary in the US. Answer (1 of 372): Yes $60,000 a year is considered a reasonably good income. From learning exactly how to travel the world full-time, earn money from anywhere, and live a completely "untethered" life. You would need to make closer to $100,000 a year in household income to cover all of your expenses. With a 22% income tax bracket, this income will cover the average expenses of $78,000. The U.S. is a huge place. There is an assortment of loan products currently available to people looking to buy a house. The example above was for a single person with health insurance, but 60k a year works for a family as well. Even in the cheapest states, its going to be hard to get by on $15,000 a year. While some of these factors may feel more intuitive than others, theyll all have an effect on you. A family of four may have a harder time living comfortably on $60,000 a year. So, when looking at the country as a whole, a $60k salary is considered lower middle class. $40,000 is the minimum wage in some parts of the country. Other than that though, $60,000 per year is a good salary in the U.S. No votes so far! Again, that sums up to $9,000 per year, which is about $33,000 less what youd pay in DC. The average living wage is 245% of the minimum wage in America. A salary of $65,000 can be a high income in many parts in the United States but below average in other parts. Its a decent salary in a lower cost of living area and is a more difficult salary in higher cost of living areas. Everything is relative to your unique situation. 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. That said, Mississippi is one of those states where $60k a year is a quality salary for both singles and families. Watch on. Now, what if you have a salaried position with two weeks of paid vacation each year? In this situation, $60,00 a year would not be enough. Having a good education is usually helpful but not always necessary, and certain jobs are more likely to come with six figure salaries. In the budget provided above, I showed a sample of saving 20% a month. This is assuming you work 40 hours per week for 52 weeks per year. Since each state has different tax rates, your final take-home pay depends on which state you live in. 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. $50000 a year is $24.04 per hour Let's breakdown how that 50000 salary to hourly number is calculated. 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. ($60,000 - $13,000) / 24 = $1,958.33. More money has been made in real estate than in all industrial investments combined.. As a general rule, earnings tend to rise in your 20s and 30s as you start to climb up the ladder. A comfortable salary for a family of 4 is about $116,000. 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 I would recommend saving what you think is comfortable right now. If you consider only federal taxes and FICA, the take-home pay for $60,000 is $49,222. As long as you keep expenses low, you should be able to live comfortably on this salary. For example, if you live in a high-cost city like New York or San Francisco, you may need more than $60,000 to cover your expenses. It doesnt matter whether theyre long-term or short-term. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Save $50 from each paycheck: This equals $200 per month, or $2400 per year. (The impossible question). If you have a large family size and live in San Francisco or New York City, things might be a little tight. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. To be abundantly clear, $51,000 a year may not be enough to cover everything you want, but it should meet the most common family needs and make ends meet. Overall, a $60,000 salary is perfectly healthy for your average individual American. That means buying what you can afford, planning, saving money, and never spending money that you dont have. Age. Your average tax rate is 22.8% and your marginal tax rate is 39.6%. The best part about working from home is the How to Make a Fortune Selling Your Photos Online. This website is for informational purposes only. This can include factors like your age, location, taxes, lifestyle, family status, and more. There are a ton of places where you can live on $60k a year and live a comfortable lifestyle. Well, that depends. Therefore, you can never have enoughjust look at Elon Musk and Jeff Bezos, who still work to grow their wealth. But with an average house in an average neighborhood with two cars, two kids and a mortgage, that is a. To cover the average expenses, a good salary is going to be $78,700 per year. This would leave a single person with $45,650 after expenses and taxes each year. A good salary for a single person would be $80,000 or more. 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 general, urban areas are far more expensive than rural ones, particularly due to access and additional amenities. Is $60,000 a good salary in Canada? Thats a fair amount of money. But overall, the average cost of goods is 14% less than the national average, according to the U.S. Bureau of Labor Statistics. What I found as I went through the corporate ladde. 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. You know what your opinion is on 60k a year. One key factor is controlling your lifestyle and avoiding lifestyle creep. A living wage is an hourly wage needed to cover your living expenses. 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. 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. 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. For every pro, there is a con. Whether thats protecting yourself with a prenup, getting a fresh start with divorce, or setting up your estate. Copyright 2023. You probably wont be buying a mansion, but the person making $100,000 a year wont be either. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. For example, the average monthly rent for a 2-bedroom apartment in DC is $3,500. Of course, the quality of a $60,000 salary will also depend on several factors. The Bureau of Labor Statistics (BLS) states that the median weekly income in the United States is $983. By signing up, you'll be added to my legendary travel lifestyle newsletter. If youre not after extravagant living, $60,000 may be enough for a family of four. If you avoid bad debt, your dollars will stretch even further and be able to be put to work. In the end, you should be able to plan your finances accordingly if youre a professional who earns this much money in 12 months. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . Many Americans ear $7.25 an hour, and they survive. Download this FREE travel hacks "cheat sheet" for my best secrets. Yes, a $60,000 salary is a great salary for most new graduates. If you work a position with no paid time off (PTO) then you are working 2080 hours a year. A salary of $60,000 a year, means that your net monthly income is approximately $4,250. The answer is you. It can reduce the cost of real estate, property taxes, cost of living, and state income taxes. You should save as much as you possibly can. We have articles on everything from making extra money to how you can make $100,000 a year. My plan is to use the money to get humanity to Mars and preserve the light of consciousness. 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. $60,000 a year is $38,286 for a single person after taxes. Lets crunch the numbers to see what type of lifestyle a $60,000 salary buys you around the world. Lets look at the different taxes and how much youll bring home when you make $60,000 a year. So if youre currently making $60,000 a year, its easy to wonder whether the amount is sufficient. Earning $116,000 is 63.9% higher than the average household income in the US. By signing up, I agree to receive your legendary travel emails. Its not that theyre survivalists by nature. Lastly, even for healthy people, adding a family to your insurance plan is going to cost you anywhere from a few hundred to thousands of dollars. Sign up to make sure you get your free consultation. Then create a budget that allocates your spending in a way that allows you to save money. Therefore, a starting salary of $60,000 for a teacher would be excellent. 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.. In comparison, the median annual salary in the US is $70,784 or $1,361.23 per week. 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. Some people may find that they need more money while others may find that they can live comfortably on less. Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). This can include factors like your age, location, taxes, lifestyle, family status, and more. "Is $60,000 a Good Salary?" But anywhere else, youll be living well. 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. The answer to this question really depends on your personal circumstances. Some considerations would include inflation over time, cost of living where you are employed, cost of housing and food, etc. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Public transportation and cabs are cheap, especially when compared to major US metro areas. The most important rule of life is to live within your means. Yes. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. With a fairly easy to live with budget above, there was an excess of $4,250 - $3,260 = $990. The poverty in this part of the country is one of the worst in the U.S. Public education is lacking, and its a situation most people would rather leave than embrace. If your spending habits are not good, then itll be hard to live on $60,000 a year. Which is $6,740 more per year than the average salary in the US. 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 estimated cost of living for a family of four is $4,900 a month. Again, the answer to this question really depends on your personal circumstances. Overall, $60,000 is a solid salary that will allow you to live comfortably and save money with the correct planning and spending habits. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. ($60,000 - $9,000) / 26 = $1,961.54 Keep in mind that how much you get as your take home pay will vary depending on the tax rate in your state. Jobs Where You Can Make $60,000 Per Year There are many jobs that pay $60k to $80k a year. It's significantly higher than the median full time earnings no matter which area of the country you live in, and therefore it puts your personal income at a higher level than many, many others. With a median salary of $63,293, the average resident of the Badger State is in a relatively good financial spot . I did some research to find out for myself. Yes, a $60,000 salary is typically a great salary when you have roommates. What are the best stay at home jobs that pay well ? You can literally live like a king. 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. Money Peoples is reader-supported. Of course, your own everyday decisions can affect the quality of your $60,000 salary. You should reach out to a recruiter to see about getting a new job. Just think living off $60,000 annually is much harder in San Fransico than it would be in North Dakota. Start influencer marketing, sell homemade art or food, invest in bonds, rent out your extra space, etc. 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. If youre looking for more information on making money, be sure to check out our other blog posts on the subject. Masters Degrees earn 29% more than Bachelors Degrees. A comfortable salary for a family is about $116,000. The consent submitted will only be used for data processing originating from this website. The average personal salary in the U.S. is $63,214, meaning that $60,000 is a healthy amount. Copyright 2023 Market Realist. 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. There are over 15.5 million digital nomads from the U.S. more than triple the amount from a few years ago. If you are living in a low cost of living area you will be able to stretch your dollars even further. ($60,000 - $13,000) / 26 = $1,807.69. A comfortable salary fora family is $116,000 before taxes. Those who earn less than the living wage need to: If possible, change jobs to become a higher earner. The average family of 3 would have $14,400 left over after taxes and living expenses. That entirely depends on your cost of living. A single person would bring home $877 weekly after taxes. (Or Too Hard? 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). 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. $60k a year is a ballers salary in India. 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. In the US, the average cost of insurance is under $500 per month for an individual and more than $1,000 for a family. After taxes, making $60,000 a year leaves a family of 3 with $52,800. But in high cost of living cities, a $60k salary is just barely scraping by. A family would bring home $2,031 biweekly after taxes. Your cost of living varies depending on whether youre single or a family of 3. (Free $350 value.). This comes out to be $35,480 per year. Food is another $200 minimum. This would mean that a family making $60,000 a year could afford a mortgage of $1800 a month. Living in these cities may be a struggle, especially if you have a family to support. West Virginia's median annual salary of $48,037 is one of just a few that earn less than $50,000 in the survey. 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. It depends on your experience level, age, and how far out of high school you are. I think youll be shocked at what a $60,000 salary would get you. Speaking of which, here are some clever ways to make $10,000 per month online, which would make California living much more comfortable. There are many side-hustles you can try to earn a passive income along with your full-time $60k salaried job. If the $60,000 is net of taxes, it would be a great amount to take home, but if that's a pre-tax amount, youd be left with about $45,000 after handing the IRS its dues. You can afford $1,250 in rent if youre making $60,000 a year. We and our partners use cookies to Store and/or access information on a device. Its called personal finance for a reason. In cheap third-world countries, youll live like royalty. That sums up to $42,000 in rent for 12 months, which someone who earns $60,000 a year would struggle to cover. The reason I bring this up is that there is no such thing as perfection. Your rent payment should not exceed 28% of your gross monthly income. It will surprise you! Yes, $60,000 is a good salary. If youre a married couple, youll take home $45,486. Rice, beans, and spaghetti are all cheap. 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. The median household income in 2023 is about $76,000. Were also going to look at the different tax rates between single and married people. Which is $8,260 less per year than the average salary in the US. That means youll be making $28.84 an hour if you make $60,000 a year and have no paid time off. The estimated cost of livingfor a single person in the US is $2,836 a month. This is why it is important to find a job that will allow you to grow and develop your skills. That leaves $30,512 for other expenses after taxes. If you made it this far in this article, you have been through the math. Making that kind of salary will make it nearly impossible for you to survive in the states most expensive cities. So for San Francisco, even as a single person with no kids, living on $60k a year is going to be a struggle. Disclosure. In others, its crazy cheap. Average rents and health insurance premiums ($217) are also less than half of California. The assumption is the sole provider is working full-time (2080 hours per year). If your dollars arent working for you, they are working for someone else. You can afford a $1,250 mortgage payment on a house making $60,000 a year. Another factor that determines whether 60K is a good salary is the number of people in your household. After taxes that amount could be between $3,500 - $4,250. 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. That comes out to exactly $30 an hour if you get 2 weeks of paid vacation each year. 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. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. However, it all depends on your lifestyle and expenses. Offers may be subject to change without notice. So today, well look at how good a $60k salary is in different places in the United States and more interestingly, different places in the world. The average weekly pay for men is $1,144 and $943 for women. Your spending habits can determine how much you spend on things like: A lot of people overspend in these areas, making it harder to afford a house. The above figures are in US dollars. 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. Maybe shopping is your spouses favorite hobby. The median annual expenses for a family of four is $90,100. The average single person would have $10,120 left over after taxes and living expenses. That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. If you want to live in the suburbs of Memphis, you may have to pinch some pennies. However, the biggest concern, in my opinion, is housing. But only 44% of poll participants said someone making $90,000 a year was rich. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. Unfortunately either of these factors will raise your cost of living rather significantly. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. if you are making $60,000 a year you are making 20% over the average salary in the US. 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. Its easier to afford things when you have more money around to use. Is $60,000 a Year a Good Salary? If youre lucky enough to work from home or have a digital nomad-friendly job, search out parts of the world where your family can live an amazing life for less.