With this respect, someone who earns $60,000 a year pre-tax, or at least $51,000 a year after taxation, is an example of a middle class earner in the United States of America. We can also do the math for getting paid twice a month. This is why it is important to find a job that will allow you to grow and develop your skills. The median living wage for a single person is $17.74 per hour. If you are 30 years into your career, or just starting the answer is different. The median living wage for a family of 3 is $19.20 per hour. Mississippi, overall, ranks 45th out of 50 when it comes to education. Thats definitely something you need to decide for yourself. Households earning $60,000 are unlikely to be housing cost-burdened. Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. At least you can pay rent, buy food, save for retirement, invest in new skills, and leave room for saving. This comes out to be $35,480 per year. "Is $60,000 a Good Salary?" 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. Heres a general breakdown of what you can expect to make after taxes. But only 44% of poll participants said someone making $90,000 a year was rich. The above rent prices are for Jackson, Mississippi, but the cost of living varies widely throughout the state. Offers may be subject to change without notice. That sums up to $42,000 in rent for 12 months, which someone who earns $60,000 a year would struggle to cover. Again, the answer to this question really depends on your personal circumstances. Food is another $200 minimum. In expensive cities like San Francisco, you cant afford much. By signing up, you'll be added to my legendary travel lifestyle newsletter. A comfortable salary fora family is $116,000 before taxes. Sounds right. Your $60,000 a year would be this much after taxes: $60,000 annual pre-tax income-$6,262 federal income taxes . Overall, a $60,000 salary is perfectly healthy for your average individual American. The best stay at home jobs generally have a few common features. In the US, a good salary is $78,700 before taxes. 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. That puts . The average child costs $14,846 per year to take care of in the U.S. Easy home jobs online that you need to know to earn extra money. However, once you start a family, its going to cost you more to survive. Having enough money often comes down to how you spend rather than how much you make. Even in the cheapest states, its going to be hard to get by on $15,000 a year. At least you can pay rent, buy food, save for retirement, invest in new skills, and leave room for saving. A family of 3 earning $60k a year should have an extra $1,200 left over each month. Is $60,000 a good salary? That means that your net pay will be $46,347 per year, or $3,862 per month. Living in an area with moderately priced expenses as a single person is not just doable, but easy. Start out investing what you feel comfortable with and go from there. Again this is all dependent upon your tax liabilities. 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. The 60K is your gross income. Generally, you should only spend about 28% of your gross monthly income on housing expenses. Then create a budget that allocates your spending in a way that allows you to save money. Write down a list and work backward from there. Typical Annual Salary; Management $105,083 . 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.. 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 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. But the older you get and the more responsibility you take on, earning $5,000 a month starts to look less and less. The United States is a big country, and where you live can have a profound effect on your cost of living. Lets look at how earning a yearly salary of $60,000 works out for different family sizes. For more information, please read our privacy policy. It depends on your experience level, age, and how far out of high school you are. I'll expose you to great side hustle ideas, simple ways to make money online, work from home jobs, best saving and budgeting tips and how to create passive income towards achieving a more fulfilling financial independence. Generally, $60,000 is a good salary. The Bureau of Labor Statistics (BLS) states that the median weekly income in the United States is $983. Musk has even complained about the proposal to target the rich with a special tax. You should save until it hurts, and then back up off the gas a little bit. Some considerations would include inflation over time, cost of living where you are employed, cost of housing and food, etc. Lets look at the different taxes and how much youll bring home when you make $60,000 a year. A comfortable salary fora familyof 4 is $116,000 before taxes. Here are some common questions you might have about a $60,000 salary answered: Yes, a $60,000 salary is typically good for a single person. 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. Money Peoples is a free resource for anyone looking to make an income in the gig economy. With that said, everyone will have a different idea of what makes a comfortable life ($60,000 - $9,000) / 26 = $1,961.54 While some of these factors may feel more intuitive than others, theyll all have an effect on you. Depending on your answer to this question, you should be able to determine whether its possible to live on an annual salary of $60,000. Your $60,000 annual income can only be good enough if you live in a state where the cost of living isnt insanely high. This would leave them with $30,050 in extra money each year. There are 52 weeks in a year, and $60,000 divided by 52 is $1,154 per week. Its nearly impossible to factor all of these possibilities into the equation. If you have a kid or two or a spouse that does not work, youre responsible for providing. This can include factors like your age, location, taxes, lifestyle, family status, and more. That means youll be making $28.84 an hour if you make $60,000 a year and have no paid time off. But that doesnt mean 60K isnt a good salary. Now that we have answered the question is $60,000 a good salary, lets take a look at what this income can afford. You will be amazed at how many options are out there to invest in. 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. A job that pays $60,000 a year is a great opportunity for someone just starting their career. The next biggest changes in your budget are medical, insurance, food, and clothing. Average Salary for Ages 35-44. If you're financially. Consult an attorney if you are seeking legal advice. Typically, the average workweek is 40 hours and you can work 52 weeks a year. If you work a position with no paid time off (PTO) then you are working 2080 hours a year. It depends on the size of your family. If you are asking what a great salary is, that is a completely different answer. If you mean Melbourne USA then yes you should be able. If you avoid bad debt, your dollars will stretch even further and be able to be put to work. The most important factor with any salary is to budget, invest and spend within your means. If youre being paid $60k a year USD and paying taxes like a US citizen is supposed to, you should have roughly $3,500 a month after taxes. All Rights Reserved. Masters Degrees earn 29% more than Bachelors Degrees. 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. Mitch is your typical nomadic backpacker. Which means that an average salary is typical or good. You can live comfortably on this salary if you budget properly and have no major expenses. Is Earning $50,000 Considered Rich? Yes, $60,000 a year is good for a single person. After taxes, making $60,000 a year leaves a family of 3 with $52,800. If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. A family would bring home $2,031 biweekly after taxes. Kids grow quickly, especially when theyre young. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. 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). A single person would bring home $877 weekly after taxes. So $80K would be an upper-middle class. 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). Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. Many location independent workers are realizing that their remote salary can buy them a shockingly extravagant lifestyle in other countries. Keep in mind that the tax rate varies from state to state, so its unlikely theres a general chart to look up. That means that you are working 2000 hours a year. Is $60,000 a good salary in todays day and age? PhD grads earn 23% more than Masters Degrees. If you have a gym membership, cancel it and work out at home or outside. Hey you! To be clear, several factors determine whether $60,000 can be enough for you to live on. Now, if you are raising a family that might make things more difficult. Contents1 What is considered [] There are many ways to save money if you are willing to be creative, Transportation, Storage, and Distribution Managers. There are small towns where itd work out, but if you want to live in any major city, youre going to need more money. This site is for informational purposes only and is not intended to provide financial advice. According to their own estimates, this tax only covers ~10% of the $3.5 trillion spending bill. Which is $8,260 less per year than the average salary in the US. Theaverage monthly expenses per household are $5,111 per month or $61,332 per year. More often than not, a 60K annual salary may be middle class for someone who lives in the United States of America. (Or Too Hard? 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. 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. With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary. The lifestyle you can afford with a 60k salary depends on where you live. If you mean Melbourne AUS, then no $60,000 isnt really enough for you to lead an average lifestyle. If you want to live in the suburbs of Memphis, you may have to pinch some pennies. If you want to be close to friends and family, then that helps you narrow down your list of where you want to live. In California, $60,000 a year is $41,100 for a married couple after taxes. In the budget provided above, I showed a sample of saving 20% a month. Disclosure. 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. Lets look at how much youll bring home if you make $60,000 a year. A family would bring home $4,400 per month after taxes. 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. As mentioned, there are many things to consider when you want to know whether or not your $60,000 salary is good. To budget this salary, you need to first figure out your monthly expenses. 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. ), should pay more than $60,000, even entry-level. If you have a large family size and live in San Francisco or New York City, things might be a little tight. On the other hand, certain states have very high taxes. If you consider only federal taxes and FICA, the take-home pay for $60,000 is $49,222. The amount of tax you will pay depends on your taxable income and your filing status. Thats almost an extra thousand dollars a month you could put towards investments, paying off debts, or living large. Copyright 2023 Market Realist. I think youll be shocked at what a $60,000 salary would get you. 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. Another issue with the "40 times rent" rule is that it is a general rule and doesn't take into. The median household income in 2023 is about $76,000. A six figure salary, meaning one between $100,000 and $999,999, is a benchmark for many people who want to meet financial goals. A single person making $100,000 a year is good because it allows them to: You are earning 69% of the average annual salary. Median housing costs make up less than 24% of a $60,000 income, on average, across all 109 cities in our study. Copyright 2023. High-speed internet in India also costs a fraction of the U.S. were talking 10 bucks a month. You should save as much as you possibly can. But $40,000 a year makes you a low earner if your job is full-time. If you live at home with your parents or have a small family, you could be swimming in cash. 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. $38 an hour annually is equivalent to an annual salary of $79,040, assuming a 40-hour work week. 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 youre a single person earning $60,000, your rule of thumb should be to save at least 50% of the income. For a family of four, the estimated cost of living is $4,900 a month. Jack received his BS from Hampshire College. 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 salary of $60,000 a year, means that your net monthly income is approximately $4,250. But not all foreign countries are cheap. Yes, $60,000 a year is good for a single person. He met a cute Colombian girl in dance class, fell in love, and got married. Another major factor is where you live and your responsibilities. A good salary for a single person would be $80,000 or more. I know people making a lot less that are living a comfortable life. We are dedicated to sharing the best ways to make money in the gig economy. We have articles on everything from making extra money to how you can make $100,000 a year. Market Realist is a registered trademark. And depending on where you live, sixty grand may not get you far. 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. 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. It is important to remember that your salary is just one factor in determining how much house you can afford. Unfortunately either of these factors will raise your cost of living rather significantly. How to negotiate a raise like a pro. If so, then yes. You want to invest into your future. Another reason is taxes are higher. In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. Yes! A living wage is an hourly wage needed to cover your living expenses. Assuming that your roommates work their own jobs, buy their own food, help pay rent, or offer any other kind of financial assistance, you might even be in a better situation than if you were living alone. But in others, youd barely scrape by. Utilities are more than reasonable. Just think living off $60,000 annually is much harder in San Fransico than it would be in North Dakota. However, in most cases, you can live comfortably on $60,000 a year. How a Salary of $44,000 Compares to the National Median Personal Income for Individuals. If you have state and local taxes, youd take home even less. You can afford to spend a ton on Amazon each month or have a cool car with a payment that goes along with it, but probably not both. The answer is yes, you can save money if you make $60,000 a year. So, when looking at the country as a whole, a $60k salary is considered lower middle class. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. While everyone understands the phrase middle class differently, it generally means you have more money to spend than those who earn the minimum hourly wage of $7.25 an hour and less money than those who make more. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. And theyre a follows: States such as Washington DC and Los Angeles have some of the most beautiful cities in America. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. Just in case you are worried about what your budget would look like, I figured I could give you a good example. A year has 52 weeks, so that means that we can divide $60,000 by 52 to find how much $60k is a week. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. You are earning 37.3% more than the average annual salary. If youre a part-time 17-year-old high schooler making $40,000 a year, this is really good. Starting monthly salary: $5,000 USD (~4,576,008 INR)After taxes: ~$3500 USDRent for a one-bedroom apartment (downtown): $150 USDRent for a three-bedroom apartment (downtown): $350 USD. $60,000 can be a good salary for a family. Yes! A family would bring home $1,015 weekly after taxes. Sign up to make sure you get your free consultation. While you may be an average earner with such an annual income, it's possible to live on it comfortably. That is just under $25 an hour, and just about $51,000 a year. My plan is to use the money to get humanity to Mars and preserve the light of consciousness. Hey, I dont get paid weekly, or biweekly. A small family can do just fine with a $60K salary in some areas, and that salary may qualify you for cheap rent under the tax credit apartment program. $60,000 a year is $38,286 for a single person after taxes. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. If grocery store prices are too high then check out local farmers markets to find deals on quality produce. With that in mind, a $60,000 salary is a great start for most college grads. As an Amazon Associate I earn from qualifying purchases. Making that kind of salary will make it nearly impossible for you to survive in the states most expensive cities. However, if you live in a more affordable area, like Tulsa or Wichita, $60,000 may be more than enough to cover your needs. One key factor is controlling your lifestyle and avoiding lifestyle creep. You most definitely can afford to invest each month and it should be one of your highest priorities. 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