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. You most definitely can afford to invest each month and it should be one of your highest priorities. 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. link to What are the best stay at home jobs that pay well ? 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). If you are worried about what you can afford, I would look into increasing your income through side hustles. If youre looking for more information on making money, be sure to check out our other blog posts on the subject. That means that every month before taxes you will be bringing in a monthly salary of $5,000. $60,000 a year comes out to $2,308 every two weeks. Unlike adults, kids run through clothes fast. If you prefer to do a mix of eating out and cooking, $200 will have you eating whatever you want without hurting your budget. 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. If you avoid bad debt, your dollars will stretch even further and be able to be put to work. If youre not after extravagant living, $60,000 may be enough for a family of four. As a general rule, earnings tend to rise in your 20s and 30s as you start to climb up the ladder. 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? These may include: Other factors include your lifestyle, the number of people who look up to you, and the amount of expenses you have to cover every month. If you get paid on a biweekly schedule you will have roughly 26 pay periods throughout the year. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . Sounds right. You know what your opinion is on 60k a year. The median annual expenses for a family of four is $90,100. Answer (1 of 4): Melbourne, Florida USA Melbourne, Florida USA Melbourne, Victoria Australia Which Melbourne are you talking about? The only time you should be concerned about a $60,000 salary is if you have children, and/or live in one of the most expensive locations in the U.S. If you live at home with your parents or have a small family, you could be swimming in cash. Whether a 60K a year salary is middle class depends on a number of factors. Even in the cheapest states, its going to be hard to get by on $15,000 a year. Keep in mind that how much you get as your take home pay will vary depending on the tax rate in your state. link to How to Make a Fortune Selling Your Photos Online. I may earn a commission (at NO cost to you) if you buy through links on this page. As long as you keep expenses low, you should be able to live comfortably on this salary. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. No matter what your salary is, the most important thing you can be doing is saving and investing your money. There is an assortment of loan products currently available to people looking to buy a house. So living in such cities would be a dream come true for most, if not all, people. Which is $8,260 less per year than the average salary in the US. This is why it is important to find a job that will allow you to grow and develop your skills. You probably won't be buying a mansion, but the person making $100,000 a year won't be either. 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. With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary. My plan is to use the money to get humanity to Mars and preserve the light of consciousness. 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. In more recent data, a good salary in Colorado is roughly $62,000 per year, or approximately $5,168 per month. 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. 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. 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. The average single person would have $10,120 left over after taxes and living expenses. You can minimize these costs buy using hand-me-downs or buying second-hand, but expect to be dropping money on clothes on a monthly basis especially with babies and younger kids. You wont be able to eat out, and youll more than likely have to get rid of your vehicle and opt for the bus. Many of us believe that making 6 figures a year is what qualifies an individual for financial freedom. Also, this set includes many people who received professional degrees from graduate schools, further bringing up salaries. We all gotta eat. Yes, $60,000 a year is good for a family of 3. (Free $350 value.). The average child costs $14,846 per year to take care of in the U.S. Make a budget and stick to it: Track your spending for one month to see where your money goes. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . We will also look at different jobs that pay 60000 a year and how that income can change depending on your location, lifestyle, and expenses. Copyright 2023. This adds up to $200 per month, or $2400 per year. Mitch is your typical nomadic backpacker. A six figure salary, meaning one between $100,000 and $999,999, is a benchmark for many people who want to meet financial goals. The median annual expenses for a family is $90,100. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. That entirely depends on your cost of living. Once you know how much you spend each month, you can create a budget that allocates your spending in a way that allows you to save money. The median household salary in the United States is $60,000. People may receive compensation for some links to products and services on this website. 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. Some people may find that they need more money while others may find that they can live comfortably on less. 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. Plan your budget accordingly and move to a state where you can live within your means. Generally speaking, $60k a year is excellent for a single person. The example above was for a single person with health insurance, but 60k a year works for a family as well. Is $60,000 a good salary in Canada? In general, you can live comfortably on this salary, but you may have to be careful with your spending. You can see the full breakdown by household status, gender, race and more on the US Census Bureau site. I'll also assume you have a simple tax situation and you only claim the standard deduction as a single person. So for San Francisco, even as a single person with no kids, living on $60k a year is going to be a struggle. Yes, $60,000 is a good salary. Thats almost an extra thousand dollars a month you could put towards investments, paying off debts, or living large. $60,000 a year breaks down to $28.84 per hour. Sixty thousand dollars a year is good for a single person in most of the world. Mississippi, overall, ranks 45th out of 50 when it comes to education. The United States is a big country, and where you live can have a profound effect on your cost of living. The most important rule of life is to live within your means. In California, $60,000 a year is $33,900 for a single person after taxes. It also assumes that you are a single adult. The tool provides information for individuals, and households with one or two working adults and . 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. From learning exactly how to travel the world full-time, earn money from anywhere, and live a completely "untethered" life. That means that you are working 2000 hours a year. The above statistics are averages for the entire country of India, and may be more or less depending on which city you live in. However, in most cases, you can live comfortably on $60,000 a year. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. A good salary in the US to break even on average expenses is $78,700 per year. Again this is all dependent upon your tax liabilities. If you want to be close to friends and family, then that helps you narrow down your list of where you want to live. Lets look at how much youll bring home if you make $60,000 a year. We have articles on everything from making extra money to how you can make $100,000 a year. You wont live well on a $60,000 salary in DC, for example. Lastly, even for healthy people, adding a family to your insurance plan is going to cost you anywhere from a few hundred to thousands of dollars. The assumption is the sole provider is working full-time (2080 hours per year). In the United States, the median income is roughly $67,000. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. All these little things can add up. Undoubtedly, those expenses will start to eat away at your salary and might make it more difficult to live comfortably with $60,000. Be the first to rate this post. Theaverage monthly expenses per household are $5,111 per month or $61,332 per year. Utilities and food cost more. 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. A family of 3 earning $60k a year should have an extra $1,200 left over each month. 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. You are earning 20.6% more than the average annual salary. 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. In cheap third-world countries, youll live like royalty. Yes. Due to the fact that the quality of a $60,000 salary can change depending on your circumstances, its good to analyze your situation. Zippia.com. You would need to make closer to $100,000 a year in household income to cover all of your expenses. However, each US dollar is roughly $1.25 Canadian at the current exchange rate, which can get slightly confusing. Are they hard at work, or are they stuffed under the mattress with your box full of keepsakes and bets with your wife? Write down a list and work backward from there. Then, divide the yearly salary of $50000 by 2,080 working hours and the result is $24.04 per hour. While you may be an average earner with such an annual income, it's possible to live on it comfortably. These are the most common questions about earning this amount of money. You can also determine whether or not your $60,000 salary is healthy based on your age, as the average income in the U.S. changes significantly based on that. You can literally live like a king. For more information, please read our privacy policy. If youre a single person earning $60,000, your rule of thumb should be to save at least 50% of the income. Some of his most popular published works include his writing about economic terms and research into job classifications. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. It will surprise you! You should save as much as you possibly can. I would recommend saving what you think is comfortable right now. Yes, $100,000 a year is a good salary for a single person. A single person earning $60k a year should have an extra $845 left over each month. The Bureau of Labor Statistics (BLS) states that the median weekly income in the United States is $983. Theaverage monthly student loan paymentis $460. Just think living off $60,000 annually is much harder in San Fransico than it would be in North Dakota. 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. Other than that though, $60,000 per year is a good salary in the U.S. No votes so far! With a 22% income tax bracket, this income will cover the average expenses of $90,100. In other words, $60,000 divided by 2,080 hours. In India this money will stretch far. Now, what if you get paid biweekly? 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. Its nearly impossible to factor all of these possibilities into the equation. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. Again, the answer to this question really depends on your personal circumstances. Do you want to live like a king or queen? To determine if that amount can afford you the life you want, youd need to consider various factors. There are small towns where itd work out, but if you want to live in any major city, youre going to need more money. Using an FHA loan for example you can put down as low as 3.5% of the purchase price. Do you want to make money from your passion for photography? Of course, the quality of a $60,000 salary will also depend on several factors. Meanwhile, hitting those six figures seems to make all the difference: 56% of those surveyed said they considered. 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. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. Continue with Recommended Cookies. Its called personal finance for a reason. 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. You could easily save over two-thirds of your paycheck each month, and youll never get bored exploring all that India is famous for. So, when looking at the country as a whole, a $60k salary is considered lower middle class. If you work a position with no paid time off (PTO) then you are working 2080 hours a year. Living in an area with moderately priced expenses as a single person is not just doable, but easy. If grocery store prices are too high then check out local farmers markets to find deals on quality produce. The next biggest changes in your budget are medical, insurance, food, and clothing. Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. Manage Settings Your credit score and income can make a huge difference, in addition to other factors. If youre wondering how to live cheap and instantly slash expenses (without sacrificing quality of life), this is one epic way to do it. A single person would bring home $3,800 per month after taxes. That said, Mississippi is one of those states where $60k a year is a quality salary for both singles and families. The average 15-24-year-old only makes half that of the average 45-54-year-old ($43,500 to $84,400). 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. There are many jobs that pay $60,000 a year. Or, do you have a family looking up to you on a monthly basis? But the average state income tax is 5.99%. 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. Is $60,000 a good salary? $60,000 a year is $38,286 for a single person after taxes. Lets crunch the numbers to see what type of lifestyle a $60,000 salary buys you around the world. High inflation is eating away at the earnings power of all individuals. After taxes, $78,700 turns into $61,386 and lands you in the middle class. I would recommend investing at any and every stage of your life. New York and Hawaiis tax burdens are double that of Wyomings, at rates of 12.79% and 12.19%. So its important to determine whats more essential and whats not then plan accordingly. 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. For every pro, there is a con. We and our partners use cookies to Store and/or access information on a device. If so, then yes. 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. However, if you live in a more affordable area, like Tulsa or Wichita, $60,000 may be more than enough to cover your needs. If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. Food costs are similar to California at roughly $250 per month. The best part about working from home is the How to Make a Fortune Selling Your Photos Online. If you mean Melbourne AUS, then no $60,000 isnt really enough for you to lead an average lifestyle. Earning $116,000 is 63.9% higher than the average household income in the US. At least you can pay rent, buy food, save for retirement, invest in new skills, and leave room for saving. Another reason is taxes are higher. Now if that is good money for you, then you shouldnt worry about what others say. 60,000 is a good salary for the UK. On a global scale, the middle class is between $4,000 and $40,000 per year depending on where you live. There are 52 weeks in a year, and $60,000 divided by 52 is $1,154 per week. Just like rent, your mortgage payment should be a maximum of one-third of your income. What is a good salary? Overall, $60,000 is a solid salary that will allow you to live comfortably and save money with the correct planning and spending habits. 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. 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. Is $60,000 a good salary in California? . With a fairly easy to live with budget above, there was an excess of $4,250 - $3,260 = $990. If youre a part-time 17-year-old high schooler making $40,000 a year, this is really good. 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. I know people making a lot less that are living a comfortable life. But in others, youd barely scrape by. 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. If you are considering a job that pays $60,000 a year, it is important to do your research and make sure that the salary is appropriate for your location and lifestyle. So, if you are a single person (or even a couple) who can be happy living in a nice, but 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. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. I only recommend bomb-dot-com products I love. This will ensure all of your bills are paid and still leave room for a bit of discretionary income. Now, what if you have a salaried position with two weeks of paid vacation each year? With this, you can afford a $500-$750 a month car payment. 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. For a family of four, the estimated cost of living is $4,900 a month. And they're a follows: 1. 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 You also may need a car with AWD and switch from winter to summer tires every year. I think youll be surprised at the stark differences in lifestyle. With discipline and proper financial planning, you can get by comfortably. 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. Yes! Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. The lifestyle you can afford with a 60k salary depends on where you live. Jobs Where You Can Make $60,000 Per Year There are many jobs that pay $60k to $80k a year. ($60,000 - $13,000) / 26 = $1,807.69. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. People also buy too much car, trapping themselves into debt. According to the US Census Bureau, the average annual salary in the US is $102,316, equating to $1,967.62 per week. Recommended Reading: Overview of Real Estate Investing. 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. 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. Whether thats protecting yourself with a prenup, getting a fresh start with divorce, or setting up your estate. If you make the average salary in the US thats great and all but what are your dollars doing while you are sleeping? Again, that sums up to $9,000 per year, which is about $33,000 less what youd pay in DC. And talk to them about what skills you can gain to get a higher-paying job offer. Just being able to pay for your expenses isnt a good salary for a single person. Your Demography Average Salary for Ages 35-44. Even if youre a single person, rent may be a challenge to pay given the current average monthly rate. Economists will tell you that human desire is unlimited, yet the resources needed to meet it are limited. Every goal you set in life requires some money to meet. A good salary for a single person would be $80,000 or more. If you make $60,000 a year, you bring home $44,000 a year after taxes and other deductions. A good annual salary for a single person is anything above $41,500. The above rent prices are for Jackson, Mississippi, but the cost of living varies widely throughout the state. The answer is yes, you can save money if you make $60,000 a year. The above figures are in US dollars. Is 60,000 dollars a good salary outside of the US? I get paid twice a month, now what? And depending on where you live, sixty grand may not get you far. The median household income in the US in 2018 was $63,179. $38 an hour annually is equivalent to an annual salary of $79,040, assuming a 40-hour work week. However, in most cases, earning $60,000 a year is enough to live comfortably. There are a ton of places where you can live on $60k a year and live a comfortable lifestyle. If you have state and local taxes, youd take home even less. Mitch's Travel Recommendations:Travel Planning Resources - Everything you need to plan your trip on one convenient page.Safetywing Insurance - This cheap travel insurance has saved me over $15,000 in medical bills.Booking.com - Book accommodation without adding your credit card (in case you need to cancel).Skyscanner - Find cheap flights.Trusted House Sitters - Take care of pets in exchange for free (sometimes luxury) accommodation.Flexjobs - Find remote jobs without having to sift through crappy ones.Skillshare - Free trial to take unlimited classes that teach digital nomad skills.Anytime Mailbox - Virtual mail service that can handle your mail while youre away.Wise - Send and receive money abroad cheaply (great for freelancers). Your cost of living varies depending on whether youre single or a family of 3. In the budget provided above, I showed a sample of saving 20% a month. Home loans providers have varying requirements. An example of data being processed may be a unique identifier stored in a cookie. Based on the research done above, $60k a year is above the national average in the United States. No one who goes through medical school for 8+ years is going to want to have a starting salary of $60,000. Making 60k a year is 20% higher than the median household income in the US. As mentioned, there are many things to consider when you want to know whether or not your $60,000 salary is good. Its personal. We can quickly do the math by dividing the total amount paid minus taxes by the number of biweekly pay periods in a year. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. Instead of breaking down all the numbers for you, Ill leave you with this video. Yes. Average rents and health insurance premiums ($217) are also less than half of California. The average rent for an apartmentin the US is $1,124 per month, or $13,488 per year. Depending on your unique circumstances, you could have a good amount of money to invest each month. Youll need to take your own personal finances and financial goals into account. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. Keep in mind that this is an estimate and your personal situation may vary. how $60,000 compares to the average cost of living and income, if its good for a single person or a family, how much youll earn per month, bi-weekly, weekly, and hourly. Chances are youll also be renting a private bedroom inside someone elses place. You can invest while making any salary. At $40,000 a year, youre most likely below the living wage in your area. Thats a fair amount of money. Masters Degrees earn 29% more than Bachelors Degrees. There are dozens of countries where a 60K yearly salary would afford you an amazing lifestyle. To be clear, several factors determine whether $60,000 can be enough for you to live on. How a Salary of $97,000 Compares to the National Median Personal Income for Individuals. clever ways to make $10,000 per month online.