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. 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. 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. You can afford a $177,000 house if youre: Your mortgage payment should not exceed 28% of your gross monthly income. Again, that sums up to $9,000 per year, which is about $33,000 less what youd pay in DC. The answer is you. ($60,000 - $13,000) / 26 = $1,807.69. Some people may find that they need more money while others may find that they can live comfortably on less. But just how good enough is 60K as an annual salary in the first place? A comfortable salary fora familyof 4 is $116,000 before taxes. Can You Make Good Money Fast As A Groceries Delivery Driver? Be the first to rate this post. Maybe shopping is your spouses favorite hobby. 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. A year has 52 weeks, so that means that we can divide $60,000 by 52 to find how much $60k is a week. You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. Before you settle for an office job, consider the perks of a stay at home job. Not anymore. Relocating could instantly upgrade your life. In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. Where will the other 90% come from? If you have a large family size and live in San Francisco or New York City, things might be a little tight. That means that your net pay will be $46,347 per year, or $3,862 per month. Many location independent workers are realizing that their remote salary can buy them a shockingly extravagant lifestyle in other countries. Depending on the job you take, $60,000 might be an excellent entry salary. Of course, the quality of a $60,000 salary will also depend on several factors. Is 60,000 dollars a good salary outside of the US? To be clear, several factors determine whether $60,000 can be enough for you to live on. (Or Too Hard? Yes, $60,000 a year is good for a family of 3. I did some research to find out for myself. We and our partners use cookies to Store and/or access information on a device. When you sign up through links on this post, we may receive compensation at no cost to you. Due to the fact that the quality of a $60,000 salary can change depending on your circumstances, its good to analyze your situation. Utilities run you around $200 a month. 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. Is $60,000 a Year a Good Salary? Heres a general breakdown of what you can expect to make after taxes. Then next month find one area in your life that you can cut back on. Jack received his BS from Hampshire College. An example of data being processed may be a unique identifier stored in a cookie. If you are getting paid monthly then you will have 12 pay periods in a year. This would leave a single person with $45,650 after expenses and taxes each year. What is a good 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. Manage Settings 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. 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). Of course, your own everyday decisions can affect the quality of your $60,000 salary. This adds up to $200 per month, or $2400 per year. Your $60,000 a year would be this much after taxes: $60,000 annual pre-tax income-$6,262 federal income taxes . Lets look at how much youll bring home if you make $60,000 a year. Now, if you are raising a family that might make things more difficult. Continue with Recommended Cookies. Or at least, he was. Again, the answer to this question really depends on your personal circumstances. 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. $60,000 a year breaks down to $28.84 per hour. Also, this set includes many people who received professional degrees from graduate schools, further bringing up salaries. Assuming you work full-time and make $3,600 a month after taxes, you would be left with $764 to save at the end of each month. 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. An example of data being processed may be a unique identifier stored in a cookie. A single person would bring home $877 weekly after taxes. Any time you add in extra variables, the data changes. Another important aspect of your location are taxes, as certain states and cities can be drastically different. I only recommend bomb-dot-com products I love. Yes! 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. Using an FHA loan for example you can put down as low as 3.5% of the purchase price. Which is $6,740 more per year than the average salary in the US. There are many ways to save money if you are willing to be creative, Transportation, Storage, and Distribution Managers. It also assumes that you are a single adult. Yes. Living in an area with moderately priced expenses as a single person is not just doable, but easy. However, Real Estate is a solid investment strategy that has stood the test of time. You can afford pretty much anything in moderation. But with an average house in an average neighborhood with two cars, two kids and a mortgage, that is a. 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. 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. 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. 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? Therefore, you can never have enoughjust look at Elon Musk and Jeff Bezos, who still work to grow their wealth. The median salary of 35- to 44-year-olds is $1,197 per week or $62,244 per year. 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. Personally, if your life circumstances allow it and you are comfortable with it I would look into buying over renting. If you are not liable for any taxes your biweekly paycheck would be $2307.69. Is $60,000 a good salary in California? Making 60k a year is 20% higher than the median household income in the US. (Seefull disclosure). The consent submitted will only be used for data processing originating from this website. As an example, while the average teacher in the U.S. makes $63,645, an entry-level teacher might expect only $30,000-$40,000. Is Earning $50,000 Considered Rich? Typical Annual Salary; Management $105,083 . In towns like Oxford and the suburbs of Memphis, housing is expensive. Fill out the form above for your FREE consultation. The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. Lets crunch the numbers to see what type of lifestyle a $60,000 salary buys you around the world. The most important factor with any salary is to budget, invest and spend within your means. It may be more difficult the more people in your family, but it is entirely possible. If you make the average salary in the US thats great and all but what are your dollars doing while you are sleeping? The next biggest changes in your budget are medical, insurance, food, and clothing. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. Frugal digital nomads can buy a months worth of groceries here for about $100. Choosing the right job opportunity for you will depend on your skills and past experience. We all gotta eat. The assumption is the sole provider is working full-time (2080 hours per year). $60,000 is a good salary in most locations. There is an assortment of loan products currently available to people looking to buy a house. He met a cute Colombian girl in dance class, fell in love, and got married. Whether its helpful guides, reviews, or tools, we share firsthand experience and rigorous research on the best ways to make money in the gig economy. Zippia.com. So, if you are a single person (or even a couple) who can be happy living in a nice, but Most likely a six-figure salary. "Is $60,000 a Good Salary?" Lets dive in. In addition to meeting your housing, food, healthcare, and commuting expenses easily, you may be able to pay off debt, save, or invest if you budget properly. A family would bring home $4,400 per month after taxes. That seems fairly doable if you are a single person. 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. So its important to determine whats more essential and whats not then plan accordingly. We can quickly do the math by dividing the total amount paid minus taxes by the number of biweekly pay periods in a year. With that said, everyone will have a different idea of what makes a comfortable life The estimated cost of livingfor a single person in the US is $2,836 a month. This comes out to be $35,480 per year. If youre a nomad or have a family and you want to go somewhere cheap, India might be the perfect spot for you. The above statistics are averages for the entire country of India, and may be more or less depending on which city you live in. Having a good education is usually helpful but not always necessary, and certain jobs are more likely to come with six figure salaries. That means that every month before taxes you will be bringing in a monthly salary of $5,000. What are the best stay at home jobs that pay well ? In cities, having your own vehicle isnt necessary. These help support GiveWell charities and keep lights on at Project Untethered. 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. If you are living in a low cost of living area you will be able to stretch your dollars even further. You can see the full breakdown by household status, gender, race and more on the US Census Bureau site. If you get paid weekly, you could get a check for $903 - $980, depending on your tax liabilities. But $40,000 a year makes you a low earner if your job is full-time. Instead of working a minimum wage job, youre better picking up one of these online gigs to earn $2,000 a month (or more). Are they hard at work, or are they stuffed under the mattress with your box full of keepsakes and bets with your wife? Food is another $200 minimum. There are many jobs that pay $60,000 a year. We are dedicated to sharing the best ways to make money in the gig economy. Making $60,000 a year is $2,308 biweekly. The final verdict is this: Is $60,000 a good salary? If you mean Melbourne USA then yes you should be able. So you need to have a proper budget plan if your family is to live on that much money. In general, you can live comfortably on this salary, but you may have to be careful with your spending. A comfortable salary fora family is $116,000 before taxes. Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. But you want your family to be healthy. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. This will ensure all of your bills are paid and still leave room for a bit of discretionary income. Or maybe someone in the family has special diet needs. 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. ), should pay more than $60,000, even entry-level. 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. Its easier to afford things when you have more money around to use. 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. 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. His advice has been featured in Forbes, USA Today, Yahoo, MSN, Readers Digest, Cond Nast Traveler, and more. Mitch is your typical nomadic backpacker. There are a ton of places where you can live on $60k a year and live a comfortable lifestyle. Someone making $60K a year doesnt have a lot to spend compared to someone who earns a salary of $100K. But if you live in San Francisco and have a spouse and a couple of kids, youre going to struggle. 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. $38 an hour annually is equivalent to an annual salary of $79,040, assuming a 40-hour work week. PhD grads earn 23% more than Masters Degrees. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. Lifestyle. However, if you live in a more affordable area, like Tulsa or Wichita, $60,000 may be more than enough to cover your needs. The average health insurance premium in California is $487 per month. So, while the cost of living there is relatively low, a living wage is still $9,102 more than the typical salary. If youre making $60,000 per year, the good news is youd rank far above many people. In other words, $60,000 is the amount of money your employer pays you per year before tax deductions. . Thats definitely something you need to decide for yourself. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. Another issue with the "40 times rent" rule is that it is a general rule and doesn't take into. My plan is to use the money to get humanity to Mars and preserve the light of consciousness. 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. With a 22% income tax bracket, this income will cover the average expenses of $78,000. To be clear, several factors determine whether $60,000 can be enough for you to live on. A family of four may have a harder time living comfortably on $60,000 a year. However, it all depends on your lifestyle and expenses. Yes, $60,000 a year is good for a single person. You should save until it hurts, and then back up off the gas a little bit. 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. This is why it is important to find a job that will allow you to grow and develop your skills. In others, its crazy cheap. Market Realist is a registered trademark. If you want to have lively nightlife, that helps narrow down your search as well. You can literally live like a king. If you have a salary or income of $60,000, it means you're making 5 figures a year. Or, do you have a family looking up to you on a monthly basis? No one who goes through medical school for 8+ years is going to want to have a starting salary of $60,000. Its nearly impossible to factor all of these possibilities into the equation. 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. While the pro of a cheap cost of living may be worth it in some parts of the state, the poverty in other parts is not something I would recommend being a part of by choice. Well, that depends. If you are making $60k a year, you will be making around $4,250 a month after taxes. If so, then yes. Then create a budget that allocates your spending in a way that allows you to save money. However, in most cases, earning $60,000 a year is enough to live comfortably. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . Making that kind of salary will make it nearly impossible for you to survive in the states most expensive cities. 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. 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. Every goal you set in life requires some money to meet. That means that you are working 2000 hours a year. The median annual expenses for a family is $90,100. If you live at home with your parents or have a small family, you could be swimming in cash. The median household income in the US is $70,784 (Census Bureau). Is it a very high income? The above figures are in US dollars. From learning exactly how to travel the world full-time, earn money from anywhere, and live a completely "untethered" life. People that earn $60,000 per year dont bring that money home. In India this money will stretch far. Of course, the quality of a $60,000 salary will also depend on several factors. Whether thats protecting yourself with a prenup, getting a fresh start with divorce, or setting up your estate. With a 22% income tax bracket, the net income for a single person is $32,350. Yes, a $60,000 salary is typically a great salary when you have roommates. We have converted it to an hourly wage for the sake of comparison. Lenders typically allow you to take out a mortgage for about twice your annual income, so with a $60,000 salary, the allowable mortgage would likely be about $120,000$150,000. We can also do the math for getting paid twice a month. 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. Your average tax rate is 22.8% and your marginal tax rate is 39.6%. The minimum wage is only $7.25 an hour in Mississippi, which is less than half of California. 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. Thats a fair amount of money. The average single person would have $10,120 left over after taxes and living expenses. 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). Thats almost an extra thousand dollars a month you could put towards investments, paying off debts, or living large. Its called personal finance for a reason. Not at all. 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. Kids grow quickly, especially when theyre young. Median housing costs make up less than 24% of a $60,000 income, on average, across all 109 cities in our study. You wont live well on a $60,000 salary in DC, for example. Meaning, one person could be paying $4,200 extra per year in taxes. 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. One reason things feel pricey in Canada is that many common items in the U.S. have to be imported to other countries. You probably wont be buying a mansion, but the person making $100,000 a year wont be either. Based on the research done above, $60k a year is above the national average in the United States. Watch on. As an Amazon Associate I earn from qualifying purchases. One key factor is controlling your lifestyle and avoiding lifestyle creep. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . 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). So for San Francisco, even as a single person with no kids, living on $60k a year is going to be a struggle. But overall, the average cost of goods is 14% less than the national average, according to the U.S. Bureau of Labor Statistics. 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. Another reason is taxes are higher. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Is Amazon FBA Worth It in 2023? In California, $60,000 a year is $33,900 for a single person after taxes. This site is for informational purposes only and is not intended to provide financial advice. Which is $8,260 less per year than the average salary in the US. By signing up, I agree to receive your legendary travel emails. You deserve reliable attorneys who get results. How a Salary of $97,000 Compares to the National Median Personal Income for Individuals. And talk to them about what skills you can gain to get a higher-paying job offer. The consent submitted will only be used for data processing originating from this website. Offers may be subject to change without notice. There are many side-hustles you can try to earn a passive income along with your full-time $60k salaried job. Hey, I dont get paid weekly, or biweekly. Typically, the average workweek is 40 hours and you can work 52 weeks a year. That leaves $30,512 for other expenses after taxes. If you get paid on a biweekly schedule you will have roughly 26 pay periods throughout the year. If you want to be close to friends and family, then that helps you narrow down your list of where you want to live. 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. That would mean that you can afford $4,250 / 3 = $1,400. A six figure salary, meaning one between $100,000 and $999,999, is a benchmark for many people who want to meet financial goals. Keep repeating that process until you find out what you need, and what you dont. We and our partners use cookies to Store and/or access information on a device. I would recommend saving what you think is comfortable right now. Take 40 hours times 52 weeks and that equals 2,080 working hours. A salary of $65,000 can be a high income in many parts in the United States but below average in other parts. The median salary in the US is $1,041 per week. Your rent payment should not exceed 28% of your gross monthly income. Age. Keep in mind that this is an estimate and your personal situation may vary. If youre not sure how youre lifestyle will affect your disposable income, try creating a list of your regular expenses and running some calculations. For example, Yottleds referral program pays $40 to $1,000 for each referral and anybody can be part of it without any investment or commitment. The truth is, $60k a year can have you living like royalty in some parts of the world. Keep in mind that youre taking $45,000 or $51,000 home depending on your tax bracket. With that in mind, a $60,000 salary is a great start for most college grads. That sums up to $42,000 in rent for 12 months, which someone who earns $60,000 a year would struggle to cover. In the end, you should be able to plan your finances accordingly if youre a professional who earns this much money in 12 months. If you consider only federal taxes and FICA, the take-home pay for $60,000 is $49,222. Assuming you dont have any debt, you would have $24,992 leftover for savings and other living expenses such as: It is important to remember that this is only an estimate and your actual expenses may vary. However, in most cases, you can live comfortably on $60,000 a year. 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. Your state income tax varies from 2.9% to 13.3%. That is just under $25 an hour, and just about $51,000 a year. Keep in mind that this can be situational, as high-paying jobs (doctors, aerospace engineering, etc. 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). In general, urban areas are far more expensive than rural ones, particularly due to access and additional amenities. A single person would bring home $3,800 per month after taxes. Contents1 What is a livable wage in Colorado?2 How much does a single person need to make [] 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. Starting monthly salary: $5,000After taxes: ~$3,908 (Jackson)Rent for a one-bedroom apartment: $800 to $1,000Rent for a three-bedroom apartment: $1,000 to $1,200. In more recent data, a good salary in Colorado is roughly $62,000 per year, or approximately $5,168 per month. The tool provides information for individuals, and households with one or two working adults and . If you make $60,000 a year, you bring home $44,000 a year after taxes and other deductions. ($60,000 - $9,000) / 24 = $2,125 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. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. The average family of 3 would have $14,400 left over after taxes and living expenses. A family of 3 earning $60k a year should have an extra $1,200 left over each month. Yes, $60,000 is a good salary. Keep in mind that how much you get as your take home pay will vary depending on the tax rate in your state. (The impossible question). It all depends on your lifestyle. Overall, a $60,000 salary is perfectly healthy for your average individual American. You can afford a $27,000 $40,500 car if you make $60,000 per year. If you are living in a low cost of living area you will be able to stretch your dollars even further. Want to learn how to travel for free? Instead of breaking down all the numbers for you, Ill leave you with this video. Your total take-home paycheck would be: Whoa! Living Wage Calculation for Kentucky. The median household income in 2023 is about $76,000. You are earning 12% more than the average annual salary. Earning $116,000 is 63.9% higher than the average household income in the US. $60,000 a year is $45,486 for a married couple 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. Bachelors Degrees earn 24% more than those with non-college graduates. Now that we have answered the question is $60,000 a good salary, lets take a look at what this income can afford. Note: Cost of living information was imported from Numbeo and after-tax pay was calculated with the SmartAsset calculator. By signing up, you'll also be added to my legendary travel lifestyle email list. With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary.