The best part about working from home is the How to Make a Fortune Selling Your Photos Online. Again, that sums up to $9,000 per year, which is about $33,000 less what youd pay in DC. Youd be taking home around $44,000 a year after taxes with a $60,000 a year salary. Copyright 2023. The state you live in if youre an American. Every goal you set in life requires some money to meet. A family would bring home $4,400 per month after taxes. Well, that depends. 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). And talk to them about what skills you can gain to get a higher-paying job offer. There is an assortment of loan products currently available to people looking to buy a house. 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. Market Realist is a registered trademark. Invest in a 401k or IRA: You can automatically contribute $50 from each paycheck into your retirement account. Even in the cheapest states, its going to be hard to get by on $15,000 a year. But if you live in San Francisco and have a spouse and a couple of kids, youre going to struggle. Copyright 2023 Market Realist. Yes, a $60,000 salary is a great salary for most new graduates. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. The median annual expenses for a family of four is $90,100. Making $60,000 a year is $5,000 per month. 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. On a global scale, the middle class is between $4,000 and $40,000 per year depending on where you live. While you may be an average earner with such an annual income, it's possible to live on it comfortably. Where should I send your packing checklist? 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. You can live comfortably on this salary if you budget properly and have no major expenses. Frugal digital nomads can buy a months worth of groceries here for about $100. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. If these numbers dont work for you, feel free to change them up and let me know what you did! The above rent prices are for Jackson, Mississippi, but the cost of living varies widely throughout the state. 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. Can You Make Good Money Fast As A Groceries Delivery Driver? He met a cute Colombian girl in dance class, fell in love, and got married. For a family of four, the estimated cost of living is $4,900 a month. If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. (Or Too Hard? You could easily save over two-thirds of your paycheck each month, and youll never get bored exploring all that India is famous for. Meaning, one person could be paying $4,200 extra per year in taxes. Continue with Recommended Cookies. 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. In that scenario, keep in mind that your rent cost will likely stay the same, and only your food and utility costs will see major increases. Relocating could instantly upgrade your life. Again this is all dependent upon your tax liabilities. Is $60,000 a good salary in Mississippi? Now if you are paying taxes it will most likely be closer to $903 - $980. His advice has been featured in Forbes, USA Today, Yahoo, MSN, Readers Digest, Cond Nast Traveler, and more. A $60,000 annual pay works out to about $30 per hour, which is four times the federal minimum wage of $7.25 per hour. Your state income tax varies from 2.9% to 13.3%. All Rights Reserved. $40,000 is the minimum wage in some parts of the country. What I found as I went through the corporate ladde. A good salary in America is $51,000. However, the biggest concern, in my opinion, is housing. The minimum wage is only $7.25 an hour in Mississippi, which is less than half of California. To budget this salary, you need to first figure out your monthly expenses. The median household income in 2023 is about $76,000. 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. Another factor that determines whether 60K is a good salary is the number of people in your household. A comfortable salary for a family of 4 is about $116,000. If you need a good idea after reading this article, make sure to set good financial goals. A comfortable salary fora family is $116,000 before taxes. If youre single, youll take home $38,286. Food is going to run you a fraction of the cost. Look into all of your investing potentials and do your own research. The median living wage for a single person is $17.74 per hour. 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? 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 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. Yes, $100,000 a year is a good salary for a single person. Now that we have answered the question is $60,000 a good salary, lets take a look at what this income can afford. Utilities run you around $200 a month. By signing up, you'll be added to my legendary email list. That means that every month before taxes you will be bringing in a monthly salary of $5,000. That means you save money, and also contributes to the fact that these states have some of the lowest tax burdens (7.37% and 6.14% respectively). That means buying what you can afford, planning, saving money, and never spending money that you dont have. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. 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. If you are living in a low cost of living area you will be able to stretch your dollars even further. Lets look at the different taxes and how much youll bring home when you make $60,000 a 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. This adds up to $200 per month, or $2400 per year. Lets look at how earning a yearly salary of $60,000 works out for different family sizes. How a Salary of $44,000 Compares to the National Median Personal Income for Individuals. In California, $60,000 a year is $41,100 for a married couple after taxes. As mentioned, there are many things to consider when you want to know whether or not your $60,000 salary is good. Jack received his BS from Hampshire College. Youll need to take your own personal finances and financial goals into account. Money Peoples is a free resource for anyone looking to make an income in the gig economy. Utilities are more than reasonable. The median living wage for a family of 3 is $19.20 per hour. 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. That means that your net pay will be $46,347 per year, or $3,862 per month. Any time you add in extra variables, the data changes. In New York, $60,000 a year is $35,340 for a single person after taxes. In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. 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. Age. 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. For more information, please read our privacy policy. Which is $12,740 more per year than the average salary in the US. $60,000 a year comes out to $2,308 every two weeks. Answer (1 of 372): Yes $60,000 a year is considered a reasonably good income. Another issue with the "40 times rent" rule is that it is a general rule and doesn't take into. The average 15-24-year-old only makes half that of the average 45-54-year-old ($43,500 to $84,400). The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. Due to the fact that the quality of a $60,000 salary can change depending on your circumstances, its good to analyze your situation. However, once you start a family, its going to cost you more to survive. If you live in a low cost of living area or you are single your salary will stretch further. Average Salary for Ages 35-44. I only recommend bomb-dot-com products I love. The average health insurance premium in California is $487 per month. It all depends on your unique situation. But the older you get and the more responsibility you take on, earning $5,000 a month starts to look less and less. Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). 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. Depending on the magnitude of what youd like to achieve in the future, a $60,000 salary may or may not be enough for you. 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. To determine if that amount can afford you the life you want, youd need to consider various factors. Easy home jobs online that you need to know to earn extra money. Contents1 What is a livable wage in Colorado?2 How much does a single person need to make [] 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. $60,000 a year is $38,286 for a single person after taxes. In comparison, the median annual salary in the US is $70,784 or $1,361.23 per week. 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. I think youll be surprised at the stark differences in lifestyle. This would mean that a family making $60,000 a year could afford a mortgage of $1800 a month. Please, read my affiliate disclaimer for more details. Your cost of living varies depending on whether youre single or a family of 3. 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. if you are making $60,000 a year you are making 20% over the average salary in the US. The Bureau of Labor Statistics (BLS) states that the median weekly income in the United States is $983. Are you single? Of course, the quality of a $60,000 salary will also depend on several factors. You can also save money by contributing to a 401k or IRA. In the end, you should be able to plan your finances accordingly if youre a professional who earns this much money in 12 months. We are dedicated to sharing the best ways to make money in the gig economy. 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). Most likely a six-figure salary. If you have a gym membership, cancel it and work out at home or outside. And they're a follows: 1. Since each state has different tax rates, your final take-home pay depends on which state you live in. Is $60k a year good? That seems fairly doable if you are a single person. You know what your opinion is on 60k a year. Making 60k a year is 20% higher than the median household income in the US. From learning exactly how to travel the world full-time, earn money from anywhere, and live a completely "untethered" life. While some of these factors may feel more intuitive than others, theyll all have an effect on you. 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. In the US, a good salary is $78,700 before taxes. Continue with Recommended Cookies. What are the best stay at home jobs that pay well ? 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. You can most definitely buy a house on $60,000 a year. However, certain areas are also far more expensive than others, which can have complicated explanations. We can quickly do the math by dividing the total amount paid minus taxes by the number of biweekly pay periods in a year. This will ensure all of your bills are paid and still leave room for a bit of discretionary income. You are earning 86% of theaverage annual salary. Kids grow quickly, especially when theyre young. 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. If youre not after extravagant living, $60,000 may be enough for a family of four. In this situation, $60,00 a year would not be enough. Overall, a $60,000 salary is perfectly healthy for your average individual American. You may have to be careful with your spending and save for larger expenses like a car or a home, but overall you should be able to survive on this income. A salary of $60,000 a year, means that your net monthly income is approximately $4,250. The most important rule of life is to live within your means. Is Earning $50,000 Considered Rich? If you are worried about what you can afford, I would look into increasing your income through side hustles. An example of data being processed may be a unique identifier stored in a cookie. A good salary in the US to break even on average expenses is $78,700 per year. However, in most cases, earning $60,000 a year is enough to live comfortably. That leaves $30,512 for other expenses after taxes. With a 22% income tax bracket, the net income for a single person is $62,400. With a fairly easy to live with budget above, there was an excess of $4,250 - $3,260 = $990. So, how much will you bring home after all of the taxes and social security? 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. 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. Lets crunch the numbers to see what type of lifestyle a $60,000 salary buys you around the world. Be the first to rate this post. You can invest while making any salary. If youre financially responsible person, a $60,000 annual salary would give you a comfortable life in most cities. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. The estimated cost of living for a family of four is $4,900 a month. Depending on the job you take, $60,000 might be an excellent entry salary. In New York, $60,000 a year is $42,540 for a married couple after taxes. We and our partners use cookies to Store and/or access information on a device. That is just under $25 an hour, and just about $51,000 a year. This comes out to be $35,480 per year. So for San Francisco, even as a single person with no kids, living on $60k a year is going to be a struggle. As a student, you may not have a lot of experience in the workforce. So, while the cost of living there is relatively low, a living wage is still $9,102 more than the typical salary. However, after taxes, $60000 would be reduced to $21.54 - $23.56 per hour and $44,800 - $49,000 per year depending on the state you live in. The median annual expenses for a single person is $32,352. Then create a budget that allocates your spending in a way that allows you to save money. But in others, youd barely scrape by. 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. Lets compare some cheap and expensive examples. In California, $60,000 a year is $33,900 for a single person after taxes. The most important factor with any salary is to budget, invest and spend within your means. Plan your budget accordingly and move to a state where you can live within your means. Not anymore. By signing up, I agree to receive your legendary travel emails. A job that pays $60,000 a year is a great opportunity for someone just starting their career. If youre looking for more information on making money, be sure to check out our other blog posts on the subject. Sign up to make sure you get your free consultation. A comfortable salary for a family is about $116,000. There are many ways to save money if you are willing to be creative, Transportation, Storage, and Distribution Managers. Masters Degrees earn 29% more than Bachelors Degrees. In other words, $60,000 divided by 2,080 hours. If you made it this far in this article, you have been through the math. How to negotiate a raise like a pro. . If you want to live in the suburbs of Memphis, you may have to pinch some pennies. But you want your family to be healthy. The truth is, $60k a year can have you living like royalty in some parts of the world. This can include factors like your age, location, taxes, lifestyle, family status, and more. Which is $21,740 more per year than the average salary in the US. So $80K would be an upper-middle class. Median housing costs make up less than 24% of a $60,000 income, on average, across all 109 cities in our study. ), 35 Best-Selling Printables on Etsy (That Practically Sell Themselves). Its nearly impossible to factor all of these possibilities into the equation. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. Multiply that by 2 and you get $2,308. Here are the best places: In the end, it depends on what matters most to you. The average personal salary in the U.S. is $63,214, meaning that $60,000 is a healthy amount. These are the most common questions about earning this amount of money. $60,000 can be a good salary for a family. Assuming a general tax reduction of around $16,000 a year, youd make around $44,000 a year after taxes. $60,000 a year is $45,486 for a married couple after taxes. You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. 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. People may receive compensation for some links to products and services on this website. That would mean that you can afford $4,250 / 3 = $1,400. Thats the average, and average according to Merriam-Webster means, a level (as of intelligence) typical of a group, class, or series. If you earn $60,000, youre paying $3,720 in social security per year. 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. That sums up to $42,000 in rent for 12 months, which someone who earns $60,000 a year would struggle to cover. Therefore, a starting salary of $60,000 for a teacher would be excellent. But anywhere else, youll be living well. If youre wondering how to live cheap and instantly slash expenses (without sacrificing quality of life), this is one epic way to do it. Disclosure. Unlike adults, kids run through clothes fast. 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. But after stopping in Colombia to take one week of salsa lessons, his life took a sharp left turn. Based on the research done above, $60k a year is above the national average in the United States. Making $60,000 a year is $2,308 biweekly. With a library of comprehensive articles covering anything from starting an Airbnb to driving for Uber, our mission is to be the ultimate resource for increasing your income in the gig economy. That depends on how frequently you get paid, and how much taxes you are liable for. After taxes, $78,700 turns into $61,386 and lands you in the middle class. 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 prefer to do a mix of eating out and cooking, $200 will have you eating whatever you want without hurting your budget. 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. You can afford a $27,000 $40,500 car if you make $60,000 per year. To be clear, several factors determine whether $60,000 can be enough for you to live on. This post contains affiliate links, which means I may receive a small commission, at no extra cost to you, when you make a purchase. 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. 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. Public transportation and cabs are cheap, especially when compared to major US metro areas. Having enough money often comes down to how you spend rather than how much you make. In this case, we are working with $1,400. Do you want to make money from your passion for photography? For every pro, there is a con. $60k a year is a great salary for most areas of this state. 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). Some people argue that you never really know how much you earn unless you know your hourly wage. Another important aspect of your location are taxes, as certain states and cities can be drastically different. 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. Lets look at how much youll bring home if you make $60,000 a year. But with an average house in an average neighborhood with two cars, two kids and a mortgage, that is a. ($60,000 - $13,000) / 24 = $1,958.33. Generally speaking, $60k a year is excellent for a single person. In fact, many lower earners dream to make such an amount. Whether a 60K a year salary is middle class depends on a number of factors. One key factor is controlling your lifestyle and avoiding lifestyle creep. Typically, the average workweek is 40 hours and you can work 52 weeks a year. I know people making a lot less that are living a comfortable life. Therefore, you can never have enoughjust look at Elon Musk and Jeff Bezos, who still work to grow their wealth. Are they hard at work, or are they stuffed under the mattress with your box full of keepsakes and bets with your wife? Note: Cost of living information was imported from Numbeo and after-tax pay was calculated with the SmartAsset calculator. Households earning $60,000 are unlikely to be housing cost-burdened. You are earning 37.3% more than the average annual salary. Your rent payment should not exceed 28% of your gross monthly income. According to the US Census Bureau, the average annual salary in the US is $102,316, equating to $1,967.62 per week.
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