That seems fairly doable if you are a single person. 6 Tips On How To Address Your Cover Letter, 11 Tips For Decorating Your Office Cubicle, 5 Tips For Getting Hired At A Remote Customer Service Job, Zippia. So, how much will you bring home after all of the taxes and social security? It will surprise you! There are many side-hustles you can try to earn a passive income along with your full-time $60k salaried job. Keep in mind that youre taking $45,000 or $51,000 home depending on your tax bracket. All these little things can add up. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. In the US, the average cost of insurance is under $500 per month for an individual and more than $1,000 for a family. Making that kind of salary will make it nearly impossible for you to survive in the states most expensive cities. Continue with Recommended Cookies. For example, the average monthly rent for a 2-bedroom apartment in DC is $3,500. Weather can be extreme, so expect a hefty heat bill during the winter. There are small towns where itd work out, but if you want to live in any major city, youre going to need more money. That leaves $30,512 for other expenses after taxes. With discipline and proper financial planning, you can get by comfortably. Another major factor is where you live and your responsibilities. This can include factors like your age, location, taxes, lifestyle, family status, and more. Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. A year has 52 weeks, so that means that we can divide $60,000 by 52 to find how much $60k is a week. Start influencer marketing, sell homemade art or food, invest in bonds, rent out your extra space, etc. You wont live well on a $60,000 salary in DC, for example. Yes, $60,000 is a good salary. For example, nurses and doctors can make much more than $30 an hour, while retail workers and customer service representatives may only make around $15 an hour. Take 40 hours times 52 weeks and that equals 2,080 working hours. How to Make Money Building Websites A Step by Step Guide, 50 Crafts To Make And Sell For Extra Money, Savings / Investments - $850 (20% of total income), Mortgage / Rent - $1400 (33% of total income). This site is for informational purposes only and is not intended to provide financial advice. Its personal. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. Hey, I dont get paid weekly, or biweekly. But not all foreign countries are cheap. . Now, what if you get paid biweekly? On a global scale, the middle class is between $4,000 and $40,000 per year depending on where you live. Is $60k a year good? Yes, $60,000 a year is good for a single person. The median salary in the US is $1,041 per week. Now if that is good money for you, then you shouldnt worry about what others say. As long as you keep expenses low, you should be able to live comfortably on this salary. You should save until it hurts, and then back up off the gas a little bit. is $60,000 a good salary for a single person is $60,000 a good salary for a single person 09 June 2022. dejounte murray sister / lake havasu city police scanner His advice has been featured in Forbes, USA Today, Yahoo, MSN, Readers Digest, Cond Nast Traveler, and more. The estimated cost of living for a family of four is $4,900 a month. 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. Musk has even complained about the proposal to target the rich with a special tax. Your family of four should be okay provided you have a proper budget plan. Utilities and food cost more. So you need to have a proper budget plan if your family is to live on that much money. Keep repeating that process until you find out what you need, and what you dont. A good annual salary for a single person is anything above $41,500. Cost of Living. So, while the cost of living there is relatively low, a living wage is still $9,102 more than the typical salary. 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. According to the US Census Bureau, the average annual salary in the US is $102,316, equating to $1,967.62 per week. Consult an attorney if you are seeking legal advice. With a fairly easy to live with budget above, there was an excess of $4,250 - $3,260 = $990. But overall, the average cost of goods is 14% less than the national average, according to the U.S. Bureau of Labor Statistics. Well, that depends. The median household income in the US in 2018 was $63,179. The consent submitted will only be used for data processing originating from this website. You are earning 20.6% more than the average annual salary. With a 22% income tax bracket, the net income for a single person is $32,350. After taxes that amount could be between $3,500 - $4,250. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. There are also other extra expenses to keep in mind when living in Canada. Here are the best places: In the end, it depends on what matters most to you. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. So $80K would be an upper-middle class. The average weekly pay for men is $1,144 and $943 for women. In others, its crazy cheap. Your average tax rate is 22.8% and your marginal tax rate is 39.6%. Be the first to rate this post. When you can earn more by switching jobs, side hustles are not worth it. We and our partners use cookies to Store and/or access information on a device. Note that the average household income in America is $70,784. Bachelors Degrees earn 24% more than those with non-college graduates. Many location independent workers are realizing that their remote salary can buy them a shockingly extravagant lifestyle in other countries. Your $60,000 a year would be this much after taxes: $60,000 annual pre-tax income-$6,262 federal income taxes . For example, if you are single and earn $60,000 a year, your federal tax would be different than a married couple who earns the same amount. Generally, $60,000 is a good salary. That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. Which means that an average salary is typical or good. In cities, having your own vehicle isnt necessary. Keep in mind that how much you get as your take home pay will vary depending on the tax rate in your state. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . Yes. Is $60K a good salary for a single person? As you can see from the example above, $60,000 a year can be a livable wage or it could be barely enough to cover basic expenses. It may be more difficult the more people in your family, but it is entirely possible. It is a highly affluent middle-level of income that allows those who earn it to afford high-quality homes, particularly outside of high-demand areas. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. ($60,000 - $9,000) / 24 = $2,125 The above rent prices are for Jackson, Mississippi, but the cost of living varies widely throughout the state. Overall, a $60,000 salary is perfectly healthy for your average individual American. You are earning 37.3% more than the average annual salary. Now I know that all the digital nomads and the majority of the Financial Independence community will squawk at this. Generally, you should only spend about 28% of your gross monthly income on housing expenses. You probably wont be saving thousands of dollars a month, but you can still make a solid contribution to your future each and every month. If you have a gym membership, cancel it and work out at home or outside. That comes out to exactly $30 an hour if you get 2 weeks of paid vacation each year. Other than that though, $60,000 per year is a good salary in the U.S. No votes so far! Yes! If you ask for anyones opinion, theyll make it abundantly clear that you can do really well with a salary of $60K a year if you live in inexpensive states such as Alabama, Georgia, and Kansas. If you are asking what a great salary is, that is a completely different answer. If youre single, youll take home $38,286. To budget this salary, you need to first figure out your monthly expenses. This comes out to be $35,480 per year. At $40,000 a year, youre most likely below the living wage in your area. Which is $6,740 more per year than the average salary in the US. What is a good salary? We run out of free consultations every month. A comfortable salary fora familyof 4 is $116,000 before taxes. But after stopping in Colombia to take one week of salsa lessons, his life took a sharp left turn. The final verdict is this: Is $60,000 a good salary? Even in the cheapest states, its going to be hard to get by on $15,000 a year. 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. 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 median household salary in the United States is $60,000. The current hourly rage in the U.S. is $7.25, so someone getting $30 an hour, without working an overtime, makes more money than most Americans do. Age. You also may need a car with AWD and switch from winter to summer tires every year. So living in such cities would be a dream come true for most, if not all, people. There is an assortment of loan products currently available to people looking to buy a house. In some cities, the cost of living is outrageous. Invest in a 401k or IRA: You can automatically contribute $50 from each paycheck into your retirement account. If your spending habits are not good, then itll be hard to live on $60,000 a year. A single person would bring home $22.80 per hour after taxes. Most people, me included, recommend spending no more than one-third of your income on housing. 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. Thats a fair amount of money. In this situation, $60,00 a year would not be enough. That means buying what you can afford, planning, saving money, and never spending money that you dont have. This would mean that a family making $60,000 a year could afford a mortgage of $1800 a month. You should reach out to a recruiter to see about getting a new job. With discipline and proper financial planning, you can get by comfortably. Another issue with the "40 times rent" rule is that it is a general rule and doesn't take into. Start out investing what you feel comfortable with and go from there. 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. You can literally live like a king. 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. Can You Make Good Money Fast As A Groceries Delivery Driver? In this case, we are working with $1,400. Is Amazon FBA Worth It in 2023? Some of his most popular published works include his writing about economic terms and research into job classifications. As mentioned, there are many things to consider when you want to know whether or not your $60,000 salary is good. A family of four may have a harder time living comfortably on $60,000 a year. The average single person would have $10,120 left over after taxes and living expenses. It all depends on your unique situation. Meaning, one person could be paying $4,200 extra per year in taxes. $50000 a year is $24.04 per hour Let's breakdown how that 50000 salary to hourly number is calculated. Remember that one of these factors can be more relevant to your situation than others, but all of them play a role in determining whether or not your $60,000 salary is good. You will be amazed at how many options are out there to invest in. Kids grow quickly, especially when theyre young. Meanwhile, hitting those six figures seems to make all the difference: 56% of those surveyed said they considered. But with an average house in an average neighborhood with two cars, two kids and a mortgage, that is a. Since each state has different tax rates, your final take-home pay depends on which state you live in. We are dedicated to sharing the best ways to make money in the gig economy. With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary. A job that pays $60,000 a year is a great opportunity for someone just starting their career. Depending on your unique circumstances, you could have a good amount of money to invest each month. Some considerations would include inflation over time, cost of living where you are employed, cost of housing and food, etc. Speaking of which, here are some clever ways to make $10,000 per month online, which would make California living much more comfortable. Is $60,000 a Year a Good Salary? The most important rule of life is to live within your means. Copyright 2023 Market Realist. if you are making $60,000 a year you are making 20% over the average salary in the US. link to How to Make a Fortune Selling Your Photos Online. 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. 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. Thats the average, and average according to Merriam-Webster means, a level (as of intelligence) typical of a group, class, or series. Which is $21,740 more per year than the average salary in the US. Zippia.com. A living wage is an hourly wage needed to cover your living expenses. 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. Toronto is one of the most expensive cities to live in North America. You wouldnt make enough to save or even cover your expenses. While some of these factors may feel more intuitive than others, theyll all have an effect on 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. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. That would mean that you can afford $4,250 / 3 = $1,400. However, once you start a family, its going to cost you more to survive. 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. Is 60,000 dollars a good salary outside of the US? Money Peoples is reader-supported. If you are getting paid monthly then you will have 12 pay periods in a year. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. A comfortable salary for a family is about $116,000. Your state income tax varies from 2.9% to 13.3%. It doesnt matter whether theyre long-term or short-term. Relocating could instantly upgrade your life. Yes! Many people consider $70,000 to be at the high-end of the salary range in America today. On the other hand, a $60,000 salary can start to become dicey when you add children to the equation. Earning $78,700 places you in the22% tax bracket. Unfortunately, LA and DC are some of the most expensive places in the United States of America. Not anymore. Mar. ($60,000 - $13,000) / 52 = $903.84. $60k a year is a ballers salary in India. Which is $1,740 more per year than the average salary in the US. Its important to always compare apples to apples. Or maybe someone in the family has special diet needs. $60,000 a year breaks down to $28.84 per hour. A good salary in the US to break even on average expenses is $78,700 per year. 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. With a 22% income tax bracket, the net income for a single person is $62,400. Fill out the form above for your FREE consultation. 7 Best Dash Cams For Delivery Drivers (2022), 7 Best Times to Do Uber Eats (2022 Guide), 7 Best Apps Like Airbnb to Make Money (Alternatives in 2022). In California, $60,000 a year is $33,900 for a single person after taxes. A family of 3 earning $60k a year should have an extra $1,200 left over each month. These are the most common questions about earning this amount of money. Here are some popular locations and their cost of living compared (by the average salary youd need to live comfortably): Taxes. That means youll be making $28.84 an hour if you make $60,000 a year and have no paid time off. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. A family would bring home $1,015 weekly after taxes. 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. Thats definitely something you need to decide for yourself. 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. If you earn $60,000, youre paying $3,720 in social security per year. 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. With a median salary of $63,293, the average resident of the Badger State is in a relatively good financial spot . Continue with Recommended Cookies. Again this is all dependent upon your tax liabilities. An example of data being processed may be a unique identifier stored in a cookie. Keep in mind that this can be situational, as high-paying jobs (doctors, aerospace engineering, etc. To decide on whether $60,000 a year is enough for your particular lifestyle, it is essential that you calculate your monthly expenses and see how much is left over. One reason things feel pricey in Canada is that many common items in the U.S. have to be imported to other countries. The most important factor with any salary is to budget, invest and spend within your means. Is Earning $50,000 Considered Rich? In fact, many lower earners dream to make such an amount. Assuming a general tax reduction of around $16,000 a year, youd make around $44,000 a year after taxes. 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. Depending on the job you take, $60,000 might be an excellent entry salary. $60,000 can be a good salary for a family. Are they hard at work, or are they stuffed under the mattress with your box full of keepsakes and bets with your wife? $44,000 per year (-$16,000 tax reduction). Yes, $60,000 a year is good for a single person. Toronto and Vancouver are pretty expensive. The answer is you. The above figures are in US dollars. Even if youre a single person, rent may be a challenge to pay given the current average monthly rate. The average family of 3 would have $14,400 left over after taxes and living expenses. Its nearly impossible to factor all of these possibilities into the equation. In his professional career hes written over 100 research papers, articles and blog posts. The Bureau of Labor Statistics (BLS) states that the median weekly income in the United States is $983. 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. 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. However, in most cases, you can live comfortably on $60,000 a year. That's according to data from MIT's living wage calculator, which determines the minimum amount necessary to meet basic needs without relying on outside help. With a 22% income tax bracket, this income will cover the average expenses of $90,100. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. Chances are youll also be renting a private bedroom inside someone elses place. You could easily save over two-thirds of your paycheck each month, and youll never get bored exploring all that India is famous for. Yes, a $60,000 salary is a great salary for most new graduates. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . 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. There are times when you may have to cut on the cost of some items to live within the means of the $60,000 annual gross salary. In expensive cities like San Francisco, you cant afford much. In cheap third-world countries, youll live like royalty. How a Salary of $97,000 Compares to the National Median Personal Income for Individuals. How a Salary of $44,000 Compares to the National Median Personal Income for Individuals. Plus there are strategies like house hacking that can help bring your housing costs down, and some people can make a profit! The average single person would have $10,120 left over after taxes and living expenses. Follow these rules and you will do just fine. I did some research to find out for myself. For every pro, there is a con. Welcome Home! $60,000 is a good salary in most locations. 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. If you have a large family size and live in San Francisco or New York City, things might be a little tight. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. Its easier to afford things when you have more money around to use. This is assuming you work 40 hours per week for 52 weeks per year. If you need a good idea after reading this article, make sure to set good financial goals. If youre a single person earning $60,000, your rule of thumb should be to save at least 50% of the income. Unfortunately either of these factors will raise your cost of living rather significantly. Making 60k a year is 20% higher than the median household income in the US. Undoubtedly, those expenses will start to eat away at your salary and might make it more difficult to live comfortably with $60,000. We all gotta eat. Most likely a six-figure salary. The tool provides information for individuals, and households with one or two working adults and .