But with an average house in an average neighborhood with two cars, two kids and a mortgage, that is a. The average rent for an apartmentin the US is $1,124 per month, or $13,488 per year. Now, if you are raising a family that might make things more difficult. However, in most cases, you can live comfortably on $60,000 a year. Before you settle for an office job, consider the perks of a stay at home job. Want to learn how to travel for free? Due to the fact that the quality of a $60,000 salary can change depending on your circumstances, its good to analyze your situation. This comes out to be $35,480 per year. However, Real Estate is a solid investment strategy that has stood the test of time. 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. But the older you get and the more responsibility you take on, earning $5,000 a month starts to look less and less. Here are two extremes California and Mississippi. Or maybe someone in the family has special diet needs. The state you live in if youre an American. 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. It also assumes that you are a single adult. Fresh produce is going to cost you literal change. 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. You most definitely can afford to invest each month and it should be one of your highest priorities. 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. This would leave them with $30,050 in extra money each year. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. Mar. Meaning, one person could be paying $4,200 extra per year in taxes. All these little things can add up. On the other hand, certain states have very high taxes. You know what your opinion is on 60k a year. 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. Some people may find that they need more money while others may find that they can live comfortably on less. If grocery store prices are too high then check out local farmers markets to find deals on quality produce. To determine if that amount can afford you the life you want, youd need to consider various factors. A family would bring home $4,400 per month after taxes. If youre financially responsible person, a $60,000 annual salary would give you a comfortable life in most cities. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. This site is for informational purposes only and is not intended to provide financial advice. By signing up, I agree to receive your legendary travel emails. Yes, $60,000 a year is good for a single person. 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. Instead of working a minimum wage job, youre better picking up one of these online gigs to earn $2,000 a month (or more). Some of his most popular published works include his writing about economic terms and research into job classifications. Its easier to afford things when you have more money around to use. Are you single? $60k a year is a great salary for most areas of this state. 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. With discipline and proper financial planning, you can get by comfortably. Is 60,000 dollars a good salary outside of the US? That puts . This would leave a single person with $45,650 after expenses and taxes each year. Additionally, you should always consult a tax professional to get an accurate estimate of how much you will pay in taxes. You can afford a $177,000 house if youre: Your mortgage payment should not exceed 28% of your gross monthly income. If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. Contents1 What is considered [] You wont be able to eat out, and youll more than likely have to get rid of your vehicle and opt for the bus. Copyright 2023 Market Realist. To be clear, several factors determine whether $60,000 can be enough for you to live on. If you need a good idea after reading this article, make sure to set good financial goals. If youre a nomad or have a family and you want to go somewhere cheap, India might be the perfect spot for you. Invest in a 401k or IRA: You can automatically contribute $50 from each paycheck into your retirement account. If you made it this far in this article, you have been through the math. $60k a year is a ballers salary in India. The final verdict is this: Is $60,000 a good salary? There are so many ways to buy a house so nothing should be stopping you, even the current housing prices. You are earning 2% more than the average annual salary working full-time. That said, this will depend on other factors, including the cost of living where you are and how you manage your finances. The lifestyle you can afford with a 60k salary depends on where you live. In the budget provided above, I showed a sample of saving 20% a month. Is $60,000 a good salary in India? More importantly, is what you are doing with your money. Not anymore. 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. 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. Is $60,000 a good salary in Mississippi? Some of our partners may process your data as a part of their legitimate business interest without asking for consent. (Free $350 value.). Is $60,000 a good salary in California? 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. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. For more information, please read our privacy policy. Heres a general breakdown of what you can expect to make after taxes. Thats a fair amount of money. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Those who earn less than the living wage need to: If possible, change jobs to become a higher earner. Just being able to pay for your expenses isnt a good salary for a single person. Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). "Is $60,000 a Good Salary?" Some considerations would include inflation over time, cost of living where you are employed, cost of housing and food, etc. People that earn $60,000 per year dont bring that money home. So check the following table to know how much you earn every hour if you make $60K a year.PeriodSalaryYearly$60,000Monthly$5,000Biweekly$2,300Weekly$1,150Daily$720Hourly$30. In California, $60,000 a year is $33,900 for a single person after taxes. Weather can be extreme, so expect a hefty heat bill during the winter. Yes, a $60,000 salary is a great salary for most new graduates. More money has been made in real estate than in all industrial investments combined.. If your spending habits are not good, then itll be hard to live on $60,000 a year. The reason I bring this up is that there is no such thing as perfection. It may be more difficult the more people in your family, but it is entirely possible. Take 40 hours times 52 weeks and that equals 2,080 working hours. The median annual expenses for a single person is $32,352. I would recommend saving what you think is comfortable right now. So its important to determine whats more essential and whats not then plan accordingly. Yes, a $60,000 salary is typically a great salary when you have roommates. 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. Please, read my affiliate disclaimer for more details. Toronto and Vancouver are pretty expensive. What I found as I went through the corporate ladde. Keep in mind that the tax rate varies from state to state, so its unlikely theres a general chart to look up. A salary of $60,000 a year, means that your net monthly income is approximately $4,250. That's a $350/month difference between the highest and lowest taxed state. Youll need to take your own personal finances and financial goals into account. A single person would bring home $877 weekly after taxes. 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. The poverty rate reflects a person's gross annual income. Now, what if you have a salaried position with two weeks of paid vacation each year? The average salary for new college grads is $55,260, with many jobs paying as low as $40,000 for entry-level positions. Follow these rules and you will do just fine. Note that the average household income in America is $70,784. After taxes, $78,700 turns into $61,386 and lands you in the middle class. CONTACT: Calle 6 #39-25 Office 402 Cali, Valle del Cauca, Colombia +1 616-210-3320 (U.S.) Contact Me | Terms of Service | Privacy Policy | Affiliate Disclosure | Hire me ProjectUntethered.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. Is $60,000 a year a Good Salary in the US? In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. $40,000 is the minimum wage in some parts of the country. According to Andrew Carnegie, Ninety percent of all millionaires became so through owning real estate. For a family of four, the estimated cost of living is $4,900 a month. 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. Chances are youll also be renting a private bedroom inside someone elses place. Yes! Lifestyle. Starting monthly salary: $5,000After taxes: ~$3,908 (Jackson)Rent for a one-bedroom apartment: $800 to $1,000Rent for a three-bedroom apartment: $1,000 to $1,200. Meanwhile, hitting those six figures seems to make all the difference: 56% of those surveyed said they considered. That means the following equation will help you determine how much $60,000 a year is biweekly. 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 are making $60,000 a year you are making 20% over the average salary in the US. Utilities run you around $200 a month. People also buy too much car, trapping themselves into debt. If you get paid weekly, you could get a check for $903 - $980, depending on your tax liabilities. ($60,000 - $9,000) / 26 = $1,961.54 At $40,000 a year, youre most likely below the living wage in your area. Which is $12,740 more per year than the average salary in the US. if you are making $60,000 a year you are making 20% over the average salary in the US. Many location independent workers are realizing that their remote salary can buy them a shockingly extravagant lifestyle in other countries. Food costs are similar to California at roughly $250 per month. I think youll be shocked at what a $60,000 salary would get you. The median household salary in the United States is $60,000. Overall, a $60,000 salary is perfectly healthy for your average individual American. The average salary in the US is $51,000 a year. I'll also assume you have a simple tax situation and you only claim the standard deduction as a single person. Of course, the quality of a $60,000 salary will also depend on several factors. The $60,000 may be a good income for a single person living in West Virginia, but it wont be enough for a family residing in Washington DC. You should reach out to a recruiter to see about getting a new job. Then create a budget that allocates your spending in a way that allows you to save money. There are other factors of course, but overall, these are some of the most prominent. Your $60,000 annual income can only be good enough if you live in a state where the cost of living isnt insanely high. 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. As a general rule, earnings tend to rise in your 20s and 30s as you start to climb up the ladder. Look into all of your investing potentials and do your own research. Relocating could instantly upgrade your life. If youre not after extravagant living, $60,000 may be enough for a family of four. This is a normal annual income for a family if you live in an inexpensive city and know how to manage and plan your finances wisely. It depends on your experience level, age, and how far out of high school you are. $60,000 can be a good salary for a family. If the typical dual-income household includes two people making between $20,000 and $25,000 per year, their combined income would add up to about $45,000 to $49,499 for their household. 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. These different tax rates determine the amount of money youll bring home. 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. However, certain areas are also far more expensive than others, which can have complicated explanations. 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. 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. 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 should only be spending 10%-15% of your monthly budget on a car. Yes! Make a budget and stick to it: Track your spending for one month to see where your money goes. We are dedicated to sharing the best ways to make money in the gig economy. Jack received his BS from Hampshire College. You wouldnt make enough to save or even cover your expenses. Generally speaking, $60k a year is excellent for a single person. 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. This can include factors like your age, location, taxes, lifestyle, family status, and more. You are earning 12% more than the average annual salary. 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. Note: Cost of living information was imported from Numbeo and after-tax pay was calculated with the SmartAsset calculator. That said, Mississippi is one of those states where $60k a year is a quality salary for both singles and families. The median living wage for a family of 3 is $19.20 per hour. Depending on the job you take, $60,000 might be an excellent entry salary. A good salary for a single person would be $80,000 or more. Median housing costs make up less than 24% of a $60,000 income, on average, across all 109 cities in our study. Musk has even complained about the proposal to target the rich with a special tax. The median household income in 2023 is about $76,000. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. I may earn a commission (at NO cost to you) if you buy through links on this page. Yes. In cities, having your own vehicle isnt necessary. If you have a large family size and live in San Francisco or New York City, things might be a little tight. If youre making $60,000 per year, the good news is youd rank far above many people. Whether thats protecting yourself with a prenup, getting a fresh start with divorce, or setting up your estate. If you have a kid or two or a spouse that does not work, youre responsible for providing. You should save until it hurts, and then back up off the gas a little bit. But anywhere else, youll be living well. You will be amazed at how many options are out there to invest in. $38 an hour annually is equivalent to an annual salary of $79,040, assuming a 40-hour work week. If you mean Melbourne AUS, then no $60,000 isnt really enough for you to lead an average lifestyle. Then next month find one area in your life that you can cut back on. In this article, we will take a look at if a salary of $44,000 good for a single person and which factors play into this. Is $60,000 a Year a Good Salary? With discipline and proper financial planning, you can get by comfortably. The median salary of 35- to 44-year-olds is $1,197 per week or $62,244 per year. 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 you prefer to do a mix of eating out and cooking, $200 will have you eating whatever you want without hurting your budget. At least you can pay rent, buy food, save for retirement, invest in new skills, and leave room for saving. Assuming a general tax reduction of around $16,000 a year, youd make around $44,000 a year after taxes. Thats the average, and average according to Merriam-Webster means, a level (as of intelligence) typical of a group, class, or series. Making $60,000 a year is $5,000 per month. The median household income in the US is $70,784 (Census Bureau). 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. So living in such cities would be a dream come true for most, if not all, people. Here is a list of some jobs that pay $60,000 a year and do not require a college degree: It is important to remember that your cost of living may vary depending on your location. That comes out to exactly $30 an hour if you get 2 weeks of paid vacation each year. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. Assuming you work a full-time schedule (40 hours a week) for 52 weeks out of the year, $60,000 is about $30 an hour before taxes. Overall, $60,000 is a solid salary that will allow you to live comfortably and save money with the correct planning and spending habits. Yes. Keep repeating that process until you find out what you need, and what you dont. You also may need a car with AWD and switch from winter to summer tires every year. The average health insurance premium in California is $487 per month. 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. Its important to always compare apples to apples. The important thing to note for this sample budget is that it is based on the high end of the monthly take-home range at $4,250. There are 52 weeks in a year, and $60,000 divided by 52 is $1,154 per week. Many Americans ear $7.25 an hour, and they survive. 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 would mean that you can afford $4,250 / 3 = $1,400. Consult an attorney if you are seeking legal advice. You can see the full breakdown by household status, gender, race and more on the US Census Bureau site. (The impossible question). West Virginia's median annual salary of $48,037 is one of just a few that earn less than $50,000 in the survey. Sixty thousand dollars a year is good for a single person in most of the world. We achieve this in the following steps: The salary example begins with an overview of your $60,000.00 salary and deductions for income tax, Medicare, Social Security, Retirement plans and so forth. PhD grads earn 23% more than Masters Degrees. In this situation, $60,00 a year would not be enough. Now that we have looked at how much $60,000 is an hour, how much you get after taxes, and what jobs pay this salary, it is time to answer the question: is $60,000 a good salary? The minimum wage is only $7.25 an hour in Mississippi, which is less than half of California. Here is a list of five cities in the US worth mentioning (in no particular order): As for places to live outside the US the world is your oyster. Which is $21,740 more per year than the average salary in the US. 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). A year has 52 weeks, so that means that we can divide $60,000 by 52 to find how much $60k is a week. 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. High inflation is eating away at the earnings power of all individuals. 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. Utilities are more than reasonable. Answer (1 of 372): Yes $60,000 a year is considered a reasonably good income. To be clear, several factors determine whether $60,000 can be enough for you to live on. Living in states with a low cost of living can help you bring more money home.