We run out of free consultations every month. 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. Which is $8,260 less per year than the average salary in the US. Multiply that by 2 and you get $2,308. We and our partners use cookies to Store and/or access information on a device. Lets do some quick math here. If you prefer to do a mix of eating out and cooking, $200 will have you eating whatever you want without hurting your budget. 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. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Again this is all dependent upon your tax liabilities. Easy home jobs online that you need to know to earn extra money. 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. A single person would bring home $1,754 biweekly after taxes. West Virginia's median annual salary of $48,037 is one of just a few that earn less than $50,000 in the survey. If you live in a low cost of living area or you are single your salary will stretch further. Is $60,000 A Year A Good Salary? (Can You Survive On It?) $60,000 a Year Is How Much an Hour? | Young & the Invested This comes out to be $35,480 per year. Plus there are strategies like house hacking that can help bring your housing costs down, and some people can make a profit! While you may be an average earner with such an annual income, it's possible to live on it comfortably. 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. That means buying what you can afford, planning, saving money, and never spending money that you dont have. Other than that though, $60,000 per year is a good salary in the U.S. No votes so far! The Average Salary by Age for Americans - SmartAsset 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.. It is important to remember that your salary is just one factor in determining how much house you can afford. The amount of tax you will pay depends on your taxable income and your filing status. You should save as much as you possibly can. And if you have a car, tack on an additional $500 a month on top of insurance, property taxes if you own a home, etc. That comes out to exactly $30 an hour if you get 2 weeks of paid vacation each year. Here is a further breakdown of a $60,000 a year salary before taxes: Now that we have discussed how much $60,000 is an hour, lets take a look at how that income is taxed. Most likely a six-figure salary. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. 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 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. You are earning 20.6% more than the average annual salary. 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. I would recommend saving what you think is comfortable right now. 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. When you are looking for a new job one of the most important factors is the amount of money you will be bringing home every month. Consult an attorney if you are seeking legal advice. If youre financially responsible person, a $60,000 annual salary would give you a comfortable life in most cities. 60K A Year Is How Much An Hour? - PolicyAdvice 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). The average single person would have $10,120 left over after taxes and living expenses. Yes, $60,000 a year is good for a family of 3. The median household income in the US in 2018 was $63,179. Your Demography I'll also assume you have a simple tax situation and you only claim the standard deduction as a single person. Based on the research done above, $60k a year is above the national average in the United States. Again, the answer to this question varies depending on your location and expenses. 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). if you are making $60,000 a year you are making 20% over the average salary in the US. $44,000 per year (-$16,000 tax reduction). If you are living in a low cost of living area you will be able to stretch your dollars even further. 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. One key factor is controlling your lifestyle and avoiding lifestyle creep. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. That data is provided by ssa.gov and is extrapolated across an entire year to then provide an average of $51k. Jack Flynn is a writer for Zippia. With that said, everyone will have a different idea of what makes a comfortable life 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. Thats definitely something you need to decide for yourself. $60,000 a year comes out to $2,308 every two weeks. If you get paid on a biweekly schedule you will have roughly 26 pay periods throughout the year. 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. 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. 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. A good salary in America is $51,000. Market Realist is a registered trademark. What is a good salary for a single person in Colorado? - 2023 Look into all of your investing potentials and do your own research. 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. Continue with Recommended Cookies. Is $60K a Good Salary for Single Person or Family? - Market Realist However, certain areas are also far more expensive than others, which can have complicated explanations. You are earning 2% more than the average annual salary working full-time. That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. You deserve reliable attorneys who get results. 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. 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). Keep in mind that how much you get as your take home pay will vary depending on the tax rate in your state. His advice has been featured in Forbes, USA Today, Yahoo, MSN, Readers Digest, Cond Nast Traveler, and more. Here are two extremes California and Mississippi. 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? This post contains affiliate links, which means I may receive a small commission, at no extra cost to you, when you make a purchase. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. Food is going to run you a fraction of the cost. 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. Depending on your unique circumstances, you could have a good amount of money to invest each month. In general, you can live comfortably on this salary, but you may have to be careful with your spending. That means that every month before taxes you will be bringing in a monthly salary of $5,000. ($60,000 - $9,000) / 52 = $980.77 Home loans providers have varying requirements. 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. The consent submitted will only be used for data processing originating from this website. By signing up, I agree to receive your legendary travel emails. With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. 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. Although you make $50,000 a year, the amount you have to spendyour take-home payis less. Here are some popular locations and their cost of living compared (by the average salary youd need to live comfortably): Taxes. 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. 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. Just remember to pick good roommates if you can. 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. Where should I send your packing checklist? When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. What "Percent" Is Your Household? | Payscale - Salary Comparison The best part about working from home is the How to Make a Fortune Selling Your Photos Online. Most people, me included, recommend spending no more than one-third of your income on housing. Lets look at how earning a yearly salary of $60,000 works out for different family sizes. The truth is, $60k a year can have you living like royalty in some parts of the world. The aim of this $60,000.00 salary example is to provide you detailed information on how income tax is calculated for Federal Tax and State Tax. The average single person would have $10,120 left over after taxes and living expenses. Of course, you can live anywhere on any salary, but some places are more expensive than others. In towns like Oxford and the suburbs of Memphis, housing is expensive. If youre wondering how to live cheap and instantly slash expenses (without sacrificing quality of life), this is one epic way to do it. Of course, the quality of a $60,000 salary will also depend on several factors. A family would bring home $4,400 per month after taxes. Using an FHA loan for example you can put down as low as 3.5% of the purchase price. Do you want to know what kinds of photos are in high demand and how to get top dollar when you sell them online? The state you live in if youre an American. Generally speaking, $60k a year is excellent for a single person. Your credit score and income can make a huge difference, in addition to other factors. Assuming a general tax reduction of around $16,000 a year, youd make around $44,000 a year after taxes. 60,000 dollars may be a good salary for a single person, provided they dont reside in the most expensive states in the U.S. For what its worth, you wont live comfortably on a 60K salary if you reside in Los Angeles or DC. Is $60,000 a good salary? Now, if you are raising a family that might make things more difficult. It can reduce the cost of real estate, property taxes, cost of living, and state income taxes. Copyright 2023. $40,000 is the minimum wage in some parts of the country. These different tax rates determine the amount of money youll bring home. If youre a part-time 17-year-old high schooler making $40,000 a year, this is really good. . Is $60k a year good? You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. Manage Settings is $60,000 a good salary for a single person Remember, your demography, lifestyle, future goals, tax bracket, and the current cost of living in your state are the factor that will determine whether $60,000 is a good salary or otherwise. Living in these cities may be a struggle, especially if you have a family to support. Its a decent salary in a lower cost of living area and is a more difficult salary in higher cost of living areas. Mississippi, overall, ranks 45th out of 50 when it comes to education. You should save until it hurts, and then back up off the gas a little bit. Which is $21,740 more per year than the average salary in the US. ($60,000 - $13,000) / 24 = $1,958.33. People also buy too much car, trapping themselves into debt. Watch on. Plan your budget accordingly and move to a state where you can live within your means. Is 60,000 dollars a good salary outside of the US? Another issue with the "40 times rent" rule is that it is a general rule and doesn't take into. The assumption is the sole provider is working full-time (2080 hours per year). Want to learn how to travel for free? Hey, I dont get paid weekly, or biweekly. You probably won't be buying a mansion, but the person making $100,000 a year won't be either. If youre married with no children, but youre supporting both you and your partner, youll probably be able to manage with a $60,000 salary. You can afford a $177,000 house if youre: Your mortgage payment should not exceed 28% of your gross monthly income. Please, read my affiliate disclaimer for more details. So living in such cities would be a dream come true for most, if not all, people. A salary of $60,000 a year, means that your net monthly income is approximately $4,250. Yes, $60,000 a year is good for a single person. 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 want to invest into your future. Many of us believe that making 6 figures a year is what qualifies an individual for financial freedom. ), should pay more than $60,000, even entry-level. The most important factor with any salary is to budget, invest and spend within your means. Utilities run you around $200 a month. The average salary for new college grads is $55,260, with many jobs paying as low as $40,000 for entry-level positions. Making $60,000 a year is an hourly rate of $30 per hour. Making $70,000 But Still 'Poor'? You're Not Alone | Kiplinger Additionally, you should always consult a tax professional to get an accurate estimate of how much you will pay in taxes. As a general rule, earnings tend to rise in your 20s and 30s as you start to climb up the ladder. Mar. Again, that sums up to $9,000 per year, which is about $33,000 less what youd pay in DC. link to How to Make a Fortune Selling Your Photos Online. Your rent payment should not exceed 28% of your gross monthly income. $60,000 a year breaks down to $28.84 per hour. 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. 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. The 60K is your gross income. Your total take-home paycheck would be: Whoa! 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. Is 60K a good salary or should you aim for more? If you made it this far in this article, you have been through the math. 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 As a student, you may not have a lot of experience in the workforce. Average Salary for Ages 35-44. You wont be able to eat out, and youll more than likely have to get rid of your vehicle and opt for the bus. But anywhere else, youll be living well. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. You know what your opinion is on 60k a year. And depending on where you live, sixty grand may not get you far. On the other hand, a $60,000 salary can start to become dicey when you add children to the equation. If you live at home with your parents or have a small family, you could be swimming in cash. We have articles on everything from making extra money to how you can make $100,000 a year. Now that we have answered the question is $60,000 a good salary, lets take a look at what this income can afford. Then, divide the yearly salary of $50000 by 2,080 working hours and the result is $24.04 per hour. How a Salary of $97,000 Compares to the National Median Personal Income for Individuals. The following states do not collect state income tax: Combine this with a great salary and youll be taking home quite a bit of money. Is it a very high income? The lifestyle you can afford with a 60k salary depends on where you live. Here are the best places: In the end, it depends on what matters most to you. Paying health insurance and adding to a retirement plan could have you eating ramen every day. Now, what if you have a salaried position with two weeks of paid vacation each year? The above rent prices are for Jackson, Mississippi, but the cost of living varies widely throughout the state. The median household salary in the United States is $60,000. But after stopping in Colombia to take one week of salsa lessons, his life took a sharp left turn. In California, $60,000 a year is $41,100 for a married couple after taxes. In India this money will stretch far. Answer (1 of 372): Yes $60,000 a year is considered a reasonably good income. Depending on the job you take, $60,000 might be an excellent entry salary. Zippia.com. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. This website is for informational purposes only. The consent submitted will only be used for data processing originating from this website. 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. So if youre currently making $60,000 a year, its easy to wonder whether the amount is sufficient. Some people argue that you never really know how much you earn unless you know your hourly wage. If you are asking what a great salary is, that is a completely different answer. There are dozens of countries where a 60K yearly salary would afford you an amazing lifestyle. New York and Hawaiis tax burdens are double that of Wyomings, at rates of 12.79% and 12.19%. Recommended Reading: Overview of Real Estate Investing. The average living wage is 245% of the minimum wage in America. 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. Disclosure. If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. If you are 30 years into your career, or just starting the answer is different. Of course, your own everyday decisions can affect the quality of your $60,000 salary.