is $60,000 a good salary for a single person

Your Demography 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. But with an average house in an average neighborhood with two cars, two kids and a mortgage, that is a. This would mean that a family making $60,000 a year could afford a mortgage of $1800 a month. 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. A six figure salary, meaning one between $100,000 and $999,999, is a benchmark for many people who want to meet financial goals. Another reason is taxes are higher. In fact, many lower earners dream to make such an amount. When youre growing up, $60k a year can seem like a ton of money. 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. You can invest while making any salary. In California, $60,000 a year is $41,100 for a married couple after taxes. Which is $12,740 more per year than the average salary in the US. 60,000 is a good salary for the UK. 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. The average salary in the US is $51,000 a year. Youll earn a net income of $45,000 a year if youre in the 25% tax bracket and $51,000 a year if youre in the 15% tax bracket. 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. According to Andrew Carnegie, Ninety percent of all millionaires became so through owning real estate. 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. 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. Another factor that determines whether 60K is a good salary is the number of people in your household. 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. Now if that is good money for you, then you shouldnt worry about what others say. Your cost of living varies depending on whether youre single or a family of 3. According to the US Census Bureau, the average annual salary in the US is $102,316, equating to $1,967.62 per week. link to How to Make a Fortune Selling Your Photos Online. Mitch is your typical nomadic backpacker. There are 52 weeks in a year, and $60,000 divided by 52 is $1,154 per week. By signing up, you'll also be added to my legendary travel lifestyle email list. These help support GiveWell charities and keep lights on at Project Untethered. Starting monthly salary: $5,000 USD (~$6,257 CAD)After taxes: ~$3,553 USD (~$4,447 CAD)Rent for a one-bedroom apartment: $1,500 USDRent for a three-bedroom apartment: $2,750 USD. So its important to determine whats more essential and whats not then plan accordingly. The estimated cost of living for a family of four is $4,900 a month. Living Wage Calculation for Kentucky. Look into all of your investing potentials and do your own research. 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. The best stay at home jobs generally have a few common features. You can afford a $177,000 house if youre: Your mortgage payment should not exceed 28% of your gross monthly income. Unfortunately, LA and DC are some of the most expensive places in the United States of America. The assumption is the sole provider is working full-time (2080 hours per year). Having a good education is usually helpful but not always necessary, and certain jobs are more likely to come with six figure salaries. Is $60,000 a good salary in todays day and age? Want to learn how to travel for free? The 60K is your gross income. In addition to meeting your housing, food, healthcare, and commuting expenses easily, you may be able to pay off debt, save, or invest if you budget properly. That means that you are working 2000 hours a year. Your rent payment should not exceed 28% of your gross monthly income. if you are making $60,000 a year you are making 20% over the average salary in the US. Most people, me included, recommend spending no more than one-third of your income on housing. You are earning 12% more than the average annual salary. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. Now I know that all the digital nomads and the majority of the Financial Independence community will squawk at this. Recommended Reading: Overview of Real Estate Investing. Yes! In New York, $60,000 a year is $42,540 for a married couple after taxes. In general, you can live comfortably on this salary, but you may have to be careful with your spending. 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. Lets compare some cheap and expensive examples. Note that the average household income in America is $70,784. Additionally, you should always consult a tax professional to get an accurate estimate of how much you will pay in taxes. A salary of $65,000 can be a high income in many parts in the United States but below average in other parts. What are the best stay at home jobs that pay well ? That puts . A $65,000 salary may easily meet your . The median salary in the US is $1,041 per week. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . Your dollars will stretch much further if you avoid most coastal areas of the United States and larger metropolitan areas, otherwise known as high cost of living areas. Plus there are strategies like house hacking that can help bring your housing costs down, and some people can make a profit! In general, urban areas are far more expensive than rural ones, particularly due to access and additional amenities. 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 personal salary in the U.S. is $63,214, meaning that $60,000 is a healthy amount. If you want to live in the suburbs of Memphis, you may have to pinch some pennies. You should save until it hurts, and then back up off the gas a little bit. Age. For example, a law student may earn a modest graduate student stipend of $20,000 per year, which would put them in the low-income class. However, in most cases, earning $60,000 a year is enough to live comfortably. The median annual income in the US is $41,000. Of course, the quality of a $60,000 salary will also depend on several factors. Assuming a general tax reduction of around $16,000 a year, youd make around $44,000 a year after taxes. Making $60,000 a year is an hourly rate of $30 per hour. You are earning 2% more than the average annual salary working full-time. You can also save money by contributing to a 401k or IRA. Its a decent salary in a lower cost of living area and is a more difficult salary in higher cost of living areas. If you have a salary or income of $60,000, it means you're making 5 figures a year. The minimum wage in California is $14-15 an hour, which is roughly $30k a year. This is because the cost of living is typically higher when you have more people to support. Many people consider $70,000 to be at the high-end of the salary range in America today. Every goal you set in life requires some money to meet. 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. The average health insurance premium in California is $487 per month. You probably wont be buying a mansion, but the person making $100,000 a year wont be either. I would recommend investing at any and every stage of your life. After taxes that amount could be between $3,500 - $4,250. An example of data being processed may be a unique identifier stored in a cookie. As long as you keep expenses low, you should be able to live comfortably on this salary. Another important aspect of your location are taxes, as certain states and cities can be drastically different. Is $60,000 a good salary in Canada? We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Yes, a $60,000 salary is a great salary for most new graduates. But after stopping in Colombia to take one week of salsa lessons, his life took a sharp left turn. Its called personal finance for a reason. 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). 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. You also may need a car with AWD and switch from winter to summer tires every year. Of course, you can live anywhere on any salary, but some places are more expensive than others. A job that pays $60,000 a year is a great opportunity for someone just starting their career. 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. We have converted it to an hourly wage for the sake of comparison. A year has 52 weeks, so that means that we can divide $60,000 by 52 to find how much $60k is a week. Kids grow quickly, especially when theyre young. ($60,000 - $13,000) / 26 = $1,807.69. 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. A single person would bring home $22.80 per hour after taxes. Just think living off $60,000 annually is much harder in San Fransico than it would be in North Dakota. In other words, $60,000 is the amount of money your employer pays you per year before tax deductions. So, when looking at the country as a whole, a $60k salary is considered lower middle class. Using an FHA loan for example you can put down as low as 3.5% of the purchase price. But in others, youd barely scrape by. $60,000 a year breaks down to $28.84 per hour. I get paid twice a month, now what? This post contains affiliate links, which means I may receive a small commission, at no extra cost to you, when you make a purchase. A family would bring home $4,400 per month after taxes. You should only be spending 10%-15% of your monthly budget on a car. Many Americans ear $7.25 an hour, and they survive. But you want your family to be healthy. There are many jobs that pay $60,000 a year. Copyright 2023 Market Realist. As youll see, if youre single and living in a country with a low cost of living, then sixty thousand dollars a year is an awesome salary. 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. The average single person would have $10,120 left over after taxes and living expenses. The average 15-24-year-old only makes half that of the average 45-54-year-old ($43,500 to $84,400). 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. It can reduce the cost of real estate, property taxes, cost of living, and state income taxes. Starting monthly salary: $5,000 After taxes: ~$3,908 (Jackson) Rent for a one-bedroom apartment: $800 to $1,000 Rent for a three-bedroom apartment: $1,000 to $1,200 The above rent prices are for Jackson, Mississippi, but the cost of living varies widely throughout the state. Home loans providers have varying requirements. The Bureau of Labor Statistics (BLS) states that the median weekly income in the United States is $983. For example, states like South Dakota and Wyoming have no income tax. High-speed internet in India also costs a fraction of the U.S. were talking 10 bucks a month. Of course, your own everyday decisions can affect the quality of your $60,000 salary. Lifestyle. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. More importantly, is what you are doing with your money. This would leave them with $30,050 in extra money each year. If you make the average salary in the US thats great and all but what are your dollars doing while you are sleeping? Economists will tell you that human desire is unlimited, yet the resources needed to meet it are limited. Public transportation and cabs are cheap, especially when compared to major US metro areas. Now if you are paying taxes it will most likely be closer to $903 - $980. Depending on the job you take, $60,000 might be an excellent entry salary. But not all foreign countries are cheap. You can also get involved in various referral marketing programs and start earning cash, discounts, and free products. There are small towns where itd work out, but if you want to live in any major city, youre going to need more money. You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. 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. 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. If you mean Melbourne USA then yes you should be able. 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. You wont be able to eat out, and youll more than likely have to get rid of your vehicle and opt for the bus. 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. Thats almost an extra thousand dollars a month you could put towards investments, paying off debts, or living large. No matter what your salary is, the most important thing you can be doing is saving and investing your money. You deserve reliable attorneys who get results. The estimated cost of livingfor a single person in the US is $2,836 a month. If you are making $60k a year, you will be making around $4,250 a month after taxes. If you are worried about what you can afford, I would look into increasing your income through side hustles. Utilities and food cost more. Your average tax rate is 22.8% and your marginal tax rate is 39.6%. Whether a 60K a year salary is middle class depends on a number of factors. 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. There are also other extra expenses to keep in mind when living in Canada. If youre not sure how youre lifestyle will affect your disposable income, try creating a list of your regular expenses and running some calculations. The median living wage for a family of 3 is $19.20 per hour. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. 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. Do you want to live like a king or queen? Generally speaking, $60k a year is excellent for a single person. With that in mind, a $60,000 salary is a great start for most college grads. Fill out the form above for your FREE consultation. In expensive cities like San Francisco, you cant afford much. 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. Lets look at the different taxes and how much youll bring home when you make $60,000 a year. Sixty thousand dollars a year is good for a single person in most of the world. 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. There are a ton of places where you can live on $60k a year and live a comfortable lifestyle. 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. 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. The consent submitted will only be used for data processing originating from this website. That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. That leaves $30,512 for other expenses after taxes. Mar. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. On $60,000, the average state income tax youll pay is $3,594. The average weekly pay for men is $1,144 and $943 for women. People that earn $60,000 per year dont bring that money home. 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 overall, the average cost of goods is 14% less than the national average, according to the U.S. Bureau of Labor Statistics. Most likely a six-figure salary. With that said, everyone will have a different idea of what makes a comfortable life ($60,000 - $9,000) / 26 = $1,961.54 Or at least, he was. Just in case you are worried about what your budget would look like, I figured I could give you a good example. Or, do you have a family looking up to you on a monthly basis? Many of us believe that making 6 figures a year is what qualifies an individual for financial freedom. 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. If you are 30 years into your career, or just starting the answer is different. A good salary for a single person would be $80,000 or more. This is a good wage for many jobs, but it may vary depending on your position and experience. It will surprise you! Utilities run you around $200 a month. Generally, $60,000 is a good salary. ($60,000 - $13,000) / 24 = $1,958.33. But just how good enough is 60K as an annual salary in the first place? According to their own estimates, this tax only covers ~10% of the $3.5 trillion spending bill. To budget this salary, you need to first figure out your monthly expenses. That entirely depends on your cost of living. Lets crunch the numbers to see what type of lifestyle a $60,000 salary buys you around the world. Is it a very high income? After taxes, $78,700 turns into $61,386 and lands you in the middle class. $60,000 a year is $45,486 for a married couple after taxes. West Virginia's median annual salary of $48,037 is one of just a few that earn less than $50,000 in the survey. Consult an attorney if you are seeking legal advice. Keep repeating that process until you find out what you need, and what you dont. People may receive compensation for some links to products and services on this website. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. 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. Contents1 What is considered [] 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. Even if youre a single person, rent may be a challenge to pay given the current average monthly rate. I know people making a lot less that are living a comfortable life. Where should I send your packing checklist? That depends on how frequently you get paid, and how much taxes you are liable for. 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. A good salary in America is $51,000. If youre a nomad or have a family and you want to go somewhere cheap, India might be the perfect spot for you. Having enough money often comes down to how you spend rather than how much you make. A single person would bring home $1,754 biweekly after taxes. Then next month find one area in your life that you can cut back on. You know what your opinion is on 60k a year. The above rent prices are for Jackson, Mississippi, but the cost of living varies widely throughout the state. The average salary for new college grads is $55,260, with many jobs paying as low as $40,000 for entry-level positions. If you have student loans or other debts, your monthly payments will reduce the amount of money you have for other expenses. Lets dive in. You can live comfortably on this salary if you budget properly and have no major expenses. $60k a year is a great salary for most areas of this state. 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. Which is $1,740 more per year than the average salary in the US. Based on the research done above, $60k a year is above the national average in the United States. And depending on where you live, sixty grand may not get you far. 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. If youre applying to a job or considering a job offer that pays $60,000, you may be wondering whether thats a good salary. Your $60,000 a year would be this much after taxes: $60,000 annual pre-tax income-$6,262 federal income taxes . But in high cost of living cities, a $60k salary is just barely scraping by. Here are some popular locations and their cost of living compared (by the average salary youd need to live comfortably): Taxes. That's a $350/month difference between the highest and lowest taxed state. 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. There are dozens of countries where a 60K yearly salary would afford you an amazing lifestyle. 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. Average Salary for Ages 35-44. However, once you start a family, its going to cost you more to survive. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. Your state income tax varies from 2.9% to 13.3%. In the US, a good salary is $78,700 before taxes. This is why I added the three-bedroom option to each destination. On the other hand, certain states have very high taxes. If you want to have lively nightlife, that helps narrow down your search as well. 60K may or may not be a good salary. A family of 3 earning $60k a year should have an extra $1,200 left over each month. It also assumes that you are a single adult. Food is going to run you a fraction of the cost. Keep in mind that the tax rate varies from state to state, so its unlikely theres a general chart to look up. . Choosing the right job opportunity for you will depend on your skills and past experience. Manage Settings Comfortable living means different things to different people, but generally, it means making enough to cover your expenses and save enough money for the life you want. At $40,000 a year, youre most likely below the living wage in your area. Also, this set includes many people who received professional degrees from graduate schools, further bringing up salaries. PhD grads earn 23% more than Masters Degrees. 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. Start out investing what you feel comfortable with and go from there. The best part about working from home is the How to Make a Fortune Selling Your Photos Online. But if you live in San Francisco and have a spouse and a couple of kids, youre going to struggle. We and our partners use cookies to Store and/or access information on a device. In more recent data, a good salary in Colorado is roughly $62,000 per year, or approximately $5,168 per month. While some of these factors may feel more intuitive than others, theyll all have an effect on you. 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. 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. Do you want to make money from your passion for photography? Generally, $60,000 is a good salary. Rather, they plan their wages accordingly and live within their means. Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). The answer to this question really depends on your personal circumstances. Yes, $60,000 a year is good for a single person. 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. Market Realist is a registered trademark. You can see the full breakdown by household status, gender, race and more on the US Census Bureau site. I'll also assume you have a simple tax situation and you only claim the standard deduction as a single person. 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. Your credit score and income can make a huge difference, in addition to other factors. 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. Someone making $60K a year doesnt have a lot to spend compared to someone who earns a salary of $100K. You should save as much as you possibly can. Theaverage monthly expenses per household are $5,111 per month or $61,332 per year. $60,000 is a good salary in most locations. Bachelors Degrees earn 24% more than those with non-college graduates. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. So if youre currently making $60,000 a year, its easy to wonder whether the amount is sufficient. You should reach out to a recruiter to see about getting a new job. More often than not, a 60K annual salary may be middle class for someone who lives in the United States of America. This is especially true if you have a family to take care of as well. It all depends on your lifestyle. Utilities are more than reasonable. If youre single, youll take home $38,286. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. If a common American earning a minimum hourly wage can make ends meet, you really should do well with an annual salary of $60,000. Therefore, you can never have enoughjust look at Elon Musk and Jeff Bezos, who still work to grow their wealth. And theyre a follows: States such as Washington DC and Los Angeles have some of the most beautiful cities in America. Jack received his BS from Hampshire College. In India this money will stretch far. Toronto is one of the most expensive cities to live in North America. You will also need to consider the cost of living in your area, your credit score, and other debts you may have. ($60,000 - $9,000) / 24 = $2,125 Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Generally, you should only spend about 28% of your gross monthly income on housing expenses. (Seefull disclosure). Speaking of which, here are some clever ways to make $10,000 per month online, which would make California living much more comfortable.