After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. Again this is all dependent upon your tax liabilities. I get paid twice a month, now what? 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). link to How to Make a Fortune Selling Your Photos Online. In others, its crazy cheap. The median household income in the US is $70,784 (Census Bureau). If you are living in a low cost of living area you will be able to stretch your dollars even further. So for San Francisco, even as a single person with no kids, living on $60k a year is going to be a struggle. Living Wage Calculation for Kentucky. The median household salary in the United States is $60,000. 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. Here are some rough calculations for a few varying cases. However, it all depends on your lifestyle and expenses. I would recommend saving what you think is comfortable right now. A good salary for a single person would be $80,000 or more. You have to pay Social Security tax, Federal Income tax, and Medicare tax. 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. Plus there are strategies like house hacking that can help bring your housing costs down, and some people can make a profit! Keep repeating that process until you find out what you need, and what you dont. $50000 a year is $24.04 per hour Let's breakdown how that 50000 salary to hourly number is calculated. Which is $6,740 more per year than the average salary in the US. If you make the average salary in the US thats great and all but what are your dollars doing while you are sleeping? 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. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. With a 22% income tax bracket, this income will cover the average expenses of $90,100. Depending on your unique circumstances, you could have a good amount of money to invest each month. Also, this set includes many people who received professional degrees from graduate schools, further bringing up salaries. 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. Be the first to rate this post. 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? Weather can be extreme, so expect a hefty heat bill during the winter. That means that every month before taxes you will be bringing in a monthly salary of $5,000. Is $60,000 a Year a Good Salary? Chances are youll also be renting a private bedroom inside someone elses place. You should save until it hurts, and then back up off the gas a little bit. Instead of working a minimum wage job, youre better picking up one of these online gigs to earn $2,000 a month (or more). Relocating could instantly upgrade your life. Economists will tell you that human desire is unlimited, yet the resources needed to meet it are limited. For a family of four, the estimated cost of living is $4,900 a month. Its not that theyre survivalists by nature. And talk to them about what skills you can gain to get a higher-paying job offer. It also assumes that you are a single adult. If youre wondering how to live cheap and instantly slash expenses (without sacrificing quality of life), this is one epic way to do it. The average rent for an apartmentin the US is $1,124 per month, or $13,488 per year. You want to invest into your future. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. Lets dive in. In some cities, the cost of living is outrageous. You can literally live like a king. Living in an area with moderately priced expenses as a single person is not just doable, but easy. Even if youre a single person, rent may be a challenge to pay given the current average monthly rate. Or maybe someone in the family has special diet needs. ), should pay more than $60,000, even entry-level. A family would bring home $2,031 biweekly after taxes. 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. In this article, we will discuss what factors you need to consider when determining if $60,000 is a good salary for you. That depends on how frequently you get paid, and how much taxes you are liable for. Generally, you should only spend about 28% of your gross monthly income on housing expenses. 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. You can afford pretty much anything in moderation. Many people consider $70,000 to be at the high-end of the salary range in America today. In his professional career hes written over 100 research papers, articles and blog posts. Most people become stagnant at their jobs and could increase their income by changing jobs. However, once you start a family, its going to cost you more to survive. Undoubtedly, those expenses will start to eat away at your salary and might make it more difficult to live comfortably with $60,000. A family of 3 earning $60k a year should have an extra $1,200 left over each month. Using an FHA loan for example you can put down as low as 3.5% of the purchase price. 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. In moderately-priced cities, itll buy you a middle-class lifestyle. Now, what if you have a salaried position with two weeks of paid vacation each year? With that said, everyone will have a different idea of what makes a comfortable life 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. Where will the other 90% come from? Lets look at the different taxes and how much youll bring home when you make $60,000 a year. Fill out the form above for your FREE consultation. Living in these cities may be a struggle, especially if you have a family to support. Lets do some quick math here. 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. Fresh produce is going to cost you literal change. If you avoid bad debt, your dollars will stretch even further and be able to be put to work. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. In cheap third-world countries, youll live like royalty. ), 35 Best-Selling Printables on Etsy (That Practically Sell Themselves). Its easier to afford things when you have more money around to use. Living in states with a low cost of living can help you bring more money home. No matter how you spin it, $60k a year isnt going to hack it in Cali. Follow these rules and you will do just fine. Age. High-speed internet in India also costs a fraction of the U.S. were talking 10 bucks a month. What I found as I went through the corporate ladde. Were also going to look at the different tax rates between single and married people. If you get paid weekly, you could get a check for $903 - $980, depending on your tax liabilities. Theaverage monthly student loan paymentis $460. For example, the average monthly rent for a 2-bedroom apartment in DC is $3,500. Is Earning $50,000 Considered Rich? 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. As long as you keep expenses low, you should be able to live comfortably on this salary. 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. So you need to have a proper budget plan if your family is to live on that much money. Some of his most popular published works include his writing about economic terms and research into job classifications. The average single person would have $10,120 left over after taxes and living expenses. The state you live in if youre an American. State minimum wages are determined based on the posted value of the minimum wage as of January one of the coming year (National Conference of State Legislatures, 2019). The lifestyle you can afford with a 60k salary depends on where you live. Every person is different, and every job is different, but the real question at hand is if earning 60k a year in 2023 is good or not. $60,000 a year is $45,486 for a married couple after taxes. Yes, a $60,000 salary is typically a great salary when you have roommates. You can afford a $1,250 mortgage payment on a house making $60,000 a year. Rather, they plan their wages accordingly and live within their means. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. A small bedroom apartment in the city center runs you $150 (less outside the city), so you can guess how cheap everything else is going to be. That means buying what you can afford, planning, saving money, and never spending money that you dont have. If youre a nomad or have a family and you want to go somewhere cheap, India might be the perfect spot for you. Start influencer marketing, sell homemade art or food, invest in bonds, rent out your extra space, etc. Musk has even complained about the proposal to target the rich with a special tax. 60K may or may not be a good salary. Yes! Another important aspect of your location are taxes, as certain states and cities can be drastically different. Which is $12,740 more per year than the average salary in the US. Its called personal finance for a reason. Pew defines "middle class" as a person earning between two-thirds and twice the median American household income, which in 2019 was $68,703, according to the United States Census Bureau. Please, read my affiliate disclaimer for more details. $60,000 a year breaks down to $28.84 per hour. With a fairly easy to live with budget above, there was an excess of $4,250 - $3,260 = $990. 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. And depending on where you live, sixty grand may not get you far. Thats definitely something you need to decide for yourself. Lets look at how much you can afford to pay for a house and a car on $60,000 a year. 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). That comes out to exactly $30 an hour if you get 2 weeks of paid vacation each year. Assuming a general tax reduction of around $16,000 a year, youd make around $44,000 a year after taxes. New York and Hawaiis tax burdens are double that of Wyomings, at rates of 12.79% and 12.19%. No one who goes through medical school for 8+ years is going to want to have a starting salary of $60,000. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. ($60,000 - $9,000) / 52 = $980.77 Is $60,000 a good salary in Mississippi? You would need to make closer to $100,000 a year in household income to cover all of your expenses. If you are not liable for any taxes your biweekly paycheck would be $2307.69. 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. If you are asking what a great salary is, that is a completely different answer. It may be more difficult the more people in your family, but it is entirely possible. With a 22% income tax bracket, the net income for a single person is $62,400. The next biggest changes in your budget are medical, insurance, food, and clothing. There are also other extra expenses to keep in mind when living in Canada. But in others, youd barely scrape by. The answer is you. 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. It depends on your experience level, age, and how far out of high school you are. That means the following equation will help you determine how much $60,000 a year is biweekly. Of course, you can live anywhere on any salary, but some places are more expensive than others. The answer to this question really depends on your personal circumstances. As an Amazon Associate I earn from qualifying purchases. Nowadays, hes the blogger behind Project Untetheredwhere he runs an awesome email newsletter and Youtube channel teaching adventure-craved wanderlusters how to escape the rat race, earn money from anywhere, and build an untethered life. Start out investing what you feel comfortable with and go from there. His advice has been featured in Forbes, USA Today, Yahoo, MSN, Readers Digest, Cond Nast Traveler, and more. Meanwhile, hitting those six figures seems to make all the difference: 56% of those surveyed said they considered. link to What are the best stay at home jobs that pay well ? But the average state income tax is 5.99%. Typical Annual Salary; Management $105,083 . If you make $60,000 a year, you bring home $44,000 a year after taxes and other deductions. There are small towns where itd work out, but if you want to live in any major city, youre going to need more money. In this article, we will take a look at if a salary of $97,000 good for a single person and which factors play into this. Watch on. That entirely depends on your cost of living. Sign up to make sure you get your free consultation. Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). Manage Settings However, each US dollar is roughly $1.25 Canadian at the current exchange rate, which can get slightly confusing. Median housing costs make up less than 24% of a $60,000 income, on average, across all 109 cities in our study. You could easily save over two-thirds of your paycheck each month, and youll never get bored exploring all that India is famous for. Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. Your average tax rate is 22.8% and your marginal tax rate is 39.6%. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. That means that you are working 2000 hours a year. Posted on June 9, 2022 Author Comments Off on is $60,000 a good salary for a single person June 9, 2022 Author Comments Off on is $60,000 a good salary for a single person If you are making $60k a year, you will be making around $4,250 a month after taxes. Or, do you have a family looking up to you on a monthly basis? At least you can pay rent, buy food, save for retirement, invest in new skills, and leave room for saving. Some people may find that they need more money while others may find that they can live comfortably on less. $38 an hour annually is equivalent to an annual salary of $79,040, assuming a 40-hour work week. Is $60K a good salary for a single person? In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. $60,000 is a good salary in most locations. While you may be an average earner with such an annual income, it's possible to live on it comfortably. This website is for informational purposes only. In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. Market Realist is a registered trademark. The best stay at home jobs generally have a few common features. However, if you live in affordable states such as Michigan, where the average annual rent for a 2-bedrooom house is $9,000, you can live comfortably on a 60K salary and even save some money for future personal project. Do you want to live like a king or queen? In this situation, $60,00 a year would not be enough. With discipline and proper financial planning, you can get by comfortably. Manage Settings ($60,000 - $9,000) / 24 = $2,125 However, if you live in an expensive city or have a high cost of living, then you may need to make more money to cover your costs. if you are making $60,000 a year you are making 20% over the average salary in the US. Everything is relative to your unique situation. "Is $60,000 a Good Salary?" Lets compare some cheap and expensive examples. You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. In 2020, the median household income in the United States was $67,521 which means that there are more households making above $60,000 than below it. The truth is, $60k a year can have you living like royalty in some parts of the world. This would mean that a family making $60,000 a year could afford a mortgage of $1800 a month. Which is $21,740 more per year than the average salary in the US. Jack Flynn is a writer for Zippia. The average salary in the US is $51,000 a year. Whether a 60K a year salary is middle class depends on a number of factors. Toronto is one of the most expensive cities to live in North America. 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. If your dollars arent working for you, they are working for someone else. I'll also assume you have a simple tax situation and you only claim the standard deduction as a single person. Now, if you are raising a family that might make things more difficult. 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. There are many ways to save money if you are willing to be creative, Transportation, Storage, and Distribution Managers. 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. All these little things can add up. 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. 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. Just think living off $60,000 annually is much harder in San Fransico than it would be in North Dakota. So living in such cities would be a dream come true for most, if not all, people. The median salary in the US is $1,041 per week. On a global scale, the middle class is between $4,000 and $40,000 per year depending on where you live. Starting monthly salary: $5,000After taxes: ~$3,916 (San Francisco)Rent for a one-bedroom apartment: $2,500Rent for a three-bedroom apartment: You dont wanna know, After taxes and rent, you have roughly $1,400 a month for food, clothes, utilities, cell phone, insurance, transportation, and entertainment.