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This is assuming you work 40 hours per week for 52 weeks per year. You are earning 20.6% more than the average annual salary. 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. As a student, you may not have a lot of experience in the workforce. 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. A family would bring home $26.40 per hour after taxes. People also buy too much car, trapping themselves into debt. This is especially true if you have a family to take care of as well. Food is another $200 minimum. In other words, $60,000 divided by 2,080 hours. Making that kind of salary will make it nearly impossible for you to survive in the states most expensive cities. With $30,000 in savings every 12 months, you can live comfortably without worrying about emergency funds. A single person would bring home $877 weekly after taxes. Which is $21,740 more per year than the average salary in the US. But the average state income tax is 5.99%. Depending on your unique circumstances, you could have a good amount of money to invest each month. If you have a kid or two or a spouse that does not work, youre responsible for providing. You wont live well on a $60,000 salary in DC, for example. 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. But the older you get and the more responsibility you take on, earning $5,000 a month starts to look less and less. That said, Mississippi is one of those states where $60k a year is a quality salary for both singles and families. Invest in a 401k or IRA: You can automatically contribute $50 from each paycheck into your retirement account. 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. We run out of free consultations every month. At least you can pay rent, buy food, save for retirement, invest in new skills, and leave room for saving. In some cities, the cost of living is outrageous. 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). Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. 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. (Or Too Hard? The median household income in the US is $70,784 (Census Bureau). Do you want to live like a king or queen? 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. Before you settle for an office job, consider the perks of a stay at home job. Which is $1,740 more per year than the average salary in the US. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. Jack received his BS from Hampshire College. To determine if that amount can afford you the life you want, youd need to consider various factors. Of course, you can live anywhere on any salary, but some places are more expensive than others. In India this money will stretch far. There are so many ways to buy a house so nothing should be stopping you, even the current housing prices. $44,000 per year (-$16,000 tax reduction). You can afford $1,250 in rent if youre making $60,000 a year. $60,000 a year comes out to $2,308 every two weeks. Yes! That means that your net pay will be $46,347 per year, or $3,862 per month. However, each US dollar is roughly $1.25 Canadian at the current exchange rate, which can get slightly confusing. Utilities are more than reasonable. You are earning 12% more than the average annual salary. That means youll be making $28.84 an hour if you make $60,000 a year and have no paid time off. All Rights Reserved. Keep in mind that this can be situational, as high-paying jobs (doctors, aerospace engineering, etc. Youre also going to have to pay social security taxes, which are 6.2%. If you get paid biweekly, you could get a check for $1,807 - $1,961, it all depends on how much taxes you owe the government. Or maybe someone in the family has special diet needs. Save $50 from each paycheck: This equals $200 per month, or $2400 per year. After taxes, $78,700 turns into $61,386 and lands you in the middle class. Keep in mind that how much you get as your take home pay will vary depending on the tax rate in your state. More money has been made in real estate than in all industrial investments combined.. Most people, me included, recommend spending no more than one-third of your income on housing. Keep repeating that process until you find out what you need, and what you dont. An example of data being processed may be a unique identifier stored in a cookie. 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. From learning exactly how to travel the world full-time, earn money from anywhere, and live a completely "untethered" life. As long as you keep expenses low, you should be able to live comfortably on this salary. The best stay at home jobs generally have a few common features. You should save until it hurts, and then back up off the gas a little bit. Now that we have answered the question is $60,000 a good salary, lets take a look at what this income can afford. And theyre a follows: States such as Washington DC and Los Angeles have some of the most beautiful cities in America. The reason I bring this up is that there is no such thing as perfection. It will surprise you! This is why it is important to find a job that will allow you to grow and develop your skills. When you can earn more by switching jobs, side hustles are not worth it. Therefore, you can never have enoughjust look at Elon Musk and Jeff Bezos, who still work to grow their wealth. Lets compare some cheap and expensive examples. 60K may or may not be a good salary. Which is $12,740 more per year than the average salary in the US. The average personal salary in the U.S. is $63,214, meaning that $60,000 is a healthy amount. Again, that sums up to $9,000 per year, which is about $33,000 less what youd pay in DC. Mississippi, overall, ranks 45th out of 50 when it comes to education. 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? Using an FHA loan for example you can put down as low as 3.5% of the purchase price. New York and Hawaiis tax burdens are double that of Wyomings, at rates of 12.79% and 12.19%. You can afford to spend a ton on Amazon each month or have a cool car with a payment that goes along with it, but probably not both. 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. It can reduce the cost of real estate, property taxes, cost of living, and state income taxes. You can also save money by contributing to a 401k or IRA. 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. However, there are plenty of towns in Canada where youll thrive as a single and be fine with a family. Another major factor is where you live and your responsibilities. Watch on. Please, read my affiliate disclaimer for more details. Food costs are similar to California at roughly $250 per month. 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. 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. One key factor is controlling your lifestyle and avoiding lifestyle creep. However, certain areas are also far more expensive than others, which can have complicated explanations. $60,000 a year is $45,486 for a married couple after taxes. In New York, $60,000 a year is $35,340 for a single person after taxes. A $65,000 salary may easily meet your . 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. If you want to have lively nightlife, that helps narrow down your search as well. A comfortable salary for a family of 4 is about $116,000. Home loans providers have varying requirements. If you have a salary or income of $60,000, it means you're making 5 figures a year. The tool provides information for individuals, and households with one or two working adults and . A good salary in the US to break even on average expenses is $78,700 per year. With the average annual housing rate standing at $9,000 at least, you can do really well if you have a budget plan. How to negotiate a raise like a pro. You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. With that in mind, a $60,000 salary is a great start for most college grads. In the United States, the median income is roughly $67,000. However, the biggest concern, in my opinion, is housing. Just in case you are worried about what your budget would look like, I figured I could give you a good example. The lifestyle you can afford with a 60k salary depends on where you live. Are you single? Is Earning $50,000 Considered Rich? Fresh produce is going to cost you literal change. If you're financially. 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. Here are some popular locations and their cost of living compared (by the average salary youd need to live comfortably): Taxes. If you have a large family size and live in San Francisco or New York City, things might be a little tight. What I found as I went through the corporate ladde. Yes, $60,000 is a good salary. 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. The average rent for an apartmentin the US is $1,124 per month, or $13,488 per year. Follow these rules and you will do just fine. 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). As mentioned, there are many things to consider when you want to know whether or not your $60,000 salary is good. Multiply that by 2 and you get $2,308. Then next month find one area in your life that you can cut back on. Its important to always compare apples to apples. . I would recommend investing at any and every stage of your life. If you make $60,000 a year, you bring home $44,000 a year after taxes and other deductions. Kids grow quickly, especially when theyre young. You should be able to live in most places, and if youre a young new graduate, you can expect to make more in the future. Some considerations would include inflation over time, cost of living where you are employed, cost of housing and food, etc. If you have a gym membership, cancel it and work out at home or outside. Cost of Living. So for San Francisco, even as a single person with no kids, living on $60k a year is going to be a struggle. As you can see from the table above, the hourly rate for someone earning $60,000 a year is $30, which is far above the rate many people earn in the United States of America. If you get paid weekly, you could get a check for $903 - $980, depending on your tax liabilities. The median annual expenses for a family is $90,100. West Virginia's median annual salary of $48,037 is one of just a few that earn less than $50,000 in the survey. It depends on the current cost of living, your demography, your lifestyle, and the number of people in your household. For example, nurses and doctors can make much more than $30 an hour, while retail workers and customer service representatives may only make around $15 an hour. The estimated cost of living for a family of four is $4,900 a month. Your $60,000 annual income can only be good enough if you live in a state where the cost of living isnt insanely high. In others, its crazy cheap. 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's significantly higher than the median full time earnings no matter which area of the country you live in, and therefore it puts your personal income at a higher level than many, many others. The assumption is the sole provider is working full-time (2080 hours per year). Mitch is your typical nomadic backpacker. 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. A family would bring home $4,400 per month after taxes. A comfortable salary fora familyof 4 is $116,000 before taxes. On the other hand, certain states have very high taxes. Plus there are strategies like house hacking that can help bring your housing costs down, and some people can make a profit! Which is $8,260 less per year than the average salary in the US. Based on the research done above, $60k a year is above the national average in the United States. Or, do you have a family looking up to you on a monthly basis? 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. If you are living in a low cost of living area you will be able to stretch your dollars even further. My plan is to use the money to get humanity to Mars and preserve the light of consciousness. That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. So, when looking at the country as a whole, a $60k salary is considered lower middle class. When youre growing up, $60k a year can seem like a ton of money. The average weekly pay for men is $1,144 and $943 for women. Economists will tell you that human desire is unlimited, yet the resources needed to meet it are limited. But only 44% of poll participants said someone making $90,000 a year was rich.