I may earn a commission (at NO cost to you) if you buy through links on this page. 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. The median annual expenses for a family of four is $90,100. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. Now I know that all the digital nomads and the majority of the Financial Independence community will squawk at this. But in others, youd barely scrape by. Is Amazon FBA Worth It in 2023? Mitch is your typical nomadic backpacker. Then create a budget that allocates your spending in a way that allows you to save money. Note that the average household income in America is $70,784. Age. A study by Policy Advice shows that $60,000 is the median US income as of 2021, with the median weekly earnings being as high as $1,250 for men and women in the 35 and 65 years age bracket. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. Other than that though, $60,000 per year is a good salary in the U.S. No votes so far! More often than not, a 60K annual salary may be middle class for someone who lives in the United States of America. Thats a fair amount of money. Note: Cost of living information was imported from Numbeo and after-tax pay was calculated with the SmartAsset calculator. Utilities run you around $200 a month. In towns like Oxford and the suburbs of Memphis, housing is expensive. I know people making a lot less that are living a comfortable life. You should save as much as you possibly can. In this case, we are working with $1,400. 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. But just how good enough is 60K as an annual salary in the first place? That leaves $30,512 for other expenses after taxes. 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. 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. At $40,000 a year, youre most likely below the living wage in your area. 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). These are the most common questions about earning this amount of money. Meaning, one person could be paying $4,200 extra per year in taxes. Someone making $60K a year doesnt have a lot to spend compared to someone who earns a salary of $100K. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . In general, urban areas are far more expensive than rural ones, particularly due to access and additional amenities. Additionally, you should always consult a tax professional to get an accurate estimate of how much you will pay in taxes. Lets crunch the numbers to see what type of lifestyle a $60,000 salary buys you around the world. Is $60,000 a good salary? Here are two extremes California and Mississippi. It is important to remember that your salary is just one factor in determining how much house you can afford. If you need a good idea after reading this article, make sure to set good financial goals. Instead of working a minimum wage job, youre better picking up one of these online gigs to earn $2,000 a month (or more). ($60,000 - $13,000) / 24 = $1,958.33. A single person would bring home $22.80 per hour after taxes. 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. To determine if that amount can afford you the life you want, youd need to consider various factors. That means that your net pay will be $46,347 per year, or $3,862 per month. For example, states like South Dakota and Wyoming have no income tax. 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. (The impossible question). Are you single? You know what your opinion is on 60k a year. If you get paid weekly, you could get a check for $903 - $980, depending on your tax liabilities. In New York, $60,000 a year is $42,540 for a married couple after taxes. If you are worried about what you can afford, I would look into increasing your income through side hustles. A single person would bring home $3,800 per month after taxes. The answer to this question really depends on your personal circumstances. That's a $350/month difference between the highest and lowest taxed state. 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. The poverty rate reflects a person's gross annual income. 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. 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. As mentioned, there are many things to consider when you want to know whether or not your $60,000 salary is good. In India this money will stretch far. Easy home jobs online that you need to know to earn extra money. My plan is to use the money to get humanity to Mars and preserve the light of consciousness. If so, then yes. And depending on where you live, sixty grand may not get you far. The average weekly pay for men is $1,144 and $943 for women. $60,000 is a good salary in most locations. Here are some popular locations and their cost of living compared (by the average salary youd need to live comfortably): Taxes. If you made it this far in this article, you have been through the math. Offers may be subject to change without notice. What are the best stay at home jobs that pay well ? That means that a $60,000 a year salary is about 20% more than the median salary in the US. Manage Settings Your rent payment should not exceed 28% of your gross monthly income. There are over 15.5 million digital nomads from the U.S. more than triple the amount from a few years ago. This is a good wage for many jobs, but it may vary depending on your position and experience. If these numbers dont work for you, feel free to change them up and let me know what you did! Depending on your unique circumstances, you could have a good amount of money to invest each month. For example, a law student may earn a modest graduate student stipend of $20,000 per year, which would put them in the low-income class. Multiply that by 2 and you get $2,308. The 60K is your gross income. Were also going to look at the different tax rates between single and married people. Weather can be extreme, so expect a hefty heat bill during the winter. 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. 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. That means that every month before taxes you will be bringing in a monthly salary of $5,000. If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. So its important to determine whats more essential and whats not then plan accordingly. 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. 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. The average family of 3 would have $14,400 left over after taxes and living expenses. However, Real Estate is a solid investment strategy that has stood the test of time. After taxes that amount could be between $3,500 - $4,250. To be clear, several factors determine whether $60,000 can be enough for you to live on. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. Thats almost an extra thousand dollars a month you could put towards investments, paying off debts, or living large. When you sign up through links on this post, we may receive compensation at no cost to you. If grocery store prices are too high then check out local farmers markets to find deals on quality produce. 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. But if you give this one last thought, you'll realize that an annual salary of $80,000 is good enough for a single person to live on - especially if they don't have debts such as student loans. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. Toronto is one of the most expensive cities to live in North America. With a fairly easy to live with budget above, there was an excess of $4,250 - $3,260 = $990. $60,000 can be a good salary for a family. However, if you are liable for taxes like the rest of us your check will most likely be $1,807 - $1,961 like we calculated above. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. Market Realist is a registered trademark. A family would bring home $4,400 per month after taxes. If you have student loans or other debts, your monthly payments will reduce the amount of money you have for other expenses. It does not take into account taxes, bonuses, or vacation time. Copyright 2023 Market Realist. Living in states with a low cost of living can help you bring more money home. We can also do the math for getting paid twice a month. Unfortunately either of these factors will raise your cost of living rather significantly. A comfortable salary for a family is about $116,000. The average single person would have $10,120 left over after taxes and living expenses. If you have a kid or two or a spouse that does not work, youre responsible for providing. You can afford a $177,000 house if youre: Your mortgage payment should not exceed 28% of your gross monthly income. Keep in mind that the tax rate varies from state to state, so its unlikely theres a general chart to look up. Even the cost of transportation, entertainment, and essential products and services vary based on demography. (Free $350 value.). His advice has been featured in Forbes, USA Today, Yahoo, MSN, Readers Digest, Cond Nast Traveler, and more. Now if you are paying taxes it will most likely be closer to $903 - $980. In others, its crazy cheap. The average salary for new college grads is $55,260, with many jobs paying as low as $40,000 for entry-level positions. 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. 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. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. In the budget provided above, I showed a sample of saving 20% a month. 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. You would need to make closer to $100,000 a year in household income to cover all of your expenses. The average child costs $14,846 per year to take care of in the U.S. Theaverage monthly student loan paymentis $460. Youre also going to have to pay social security taxes, which are 6.2%. PhD grads earn 23% more than Masters Degrees. Utilities and food cost more. Is $60K a good salary for a single person? Relocating could instantly upgrade your life. 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. Its a decent salary in a lower cost of living area and is a more difficult salary in higher cost of living areas. Many location independent workers are realizing that their remote salary can buy them a shockingly extravagant lifestyle in other countries. 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. By signing up, you'll be added to my legendary email list. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. On the other hand, certain states have very high taxes. 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. These help support GiveWell charities and keep lights on at Project Untethered. You are earning 37.3% more than the average annual salary. And theyre a follows: States such as Washington DC and Los Angeles have some of the most beautiful cities in America. And talk to them about what skills you can gain to get a higher-paying job offer. If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. Public transportation and cabs are cheap, especially when compared to major US metro areas. This is why it is important to find a job that will allow you to grow and develop your skills. 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. You can afford a $27,000 $40,500 car if you make $60,000 per year. Yes, $60,000 a year is good for a single person. A family would bring home $26.40 per hour after taxes. But education and future earnings will most likely. However, it all depends on your lifestyle and expenses. 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. Jobs Where You Can Make $60,000 Per Year There are many jobs that pay $60k to $80k a year. But once you get closer to the Delta, things change, and not in a good way. Toronto and Vancouver are pretty expensive. Rather, they plan their wages accordingly and live within their means. Many Americans ear $7.25 an hour, and they survive. $40,000 is the minimum wage in some parts of the country. The median living wage for a single person is $17.74 per hour. In other words, $60,000 is the amount of money your employer pays you per year before tax deductions. In this situation, $60,00 a year would not be enough. If you avoid bad debt, your dollars will stretch even further and be able to be put to work. That would mean that you can afford $4,250 / 3 = $1,400. Its easier to afford things when you have more money around to use. However, certain areas are also far more expensive than others, which can have complicated explanations. ($60,000 - $13,000) / 52 = $903.84. Is $60,000 a good salary in India? Fresh produce is going to cost you literal change. You most definitely can afford to invest each month and it should be one of your highest priorities. People that earn $60,000 per year dont bring that money home. Continue with Recommended Cookies. In moderately-priced cities, itll buy you a middle-class lifestyle. If you live at home with your parents or have a small family, you could be swimming in cash. In New York, $60,000 a year is $35,340 for a single person after taxes. In California, $60,000 a year is $33,900 for a single person after taxes. The consent submitted will only be used for data processing originating from this website. Making 60k a year is 20% higher than the median household income in the US. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. With a 22% income tax bracket, the net income for a single person is $32,350. But overall, the average cost of goods is 14% less than the national average, according to the U.S. Bureau of Labor Statistics. 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). But the average state income tax is 5.99%. Which means that an average salary is typical or good. If youre not sure how youre lifestyle will affect your disposable income, try creating a list of your regular expenses and running some calculations. ($60,000 - $13,000) / 26 = $1,807.69. The consent submitted will only be used for data processing originating from this website. It all depends on your unique situation. A good salary in the US to break even on average expenses is $78,700 per year. Write down a list and work backward from there. Can You Make Good Money Fast As A Groceries Delivery Driver? Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). Average Salary for Ages 35-44. Keep in mind that youre taking $45,000 or $51,000 home depending on your tax bracket. But $40,000 a year makes you a low earner if your job is full-time. Is it a very high income? So if youre currently making $60,000 a year, its easy to wonder whether the amount is sufficient. Lifestyle. The Bureau of Labor Statistics (BLS) states that the median weekly income in the United States is $983. I would recommend investing at any and every stage of your life. $60k a year is a ballers salary in India. All Rights Reserved. Since each state has different tax rates, your final take-home pay depends on which state you live in. 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. That means youll be making $28.84 an hour if you make $60,000 a year and have no paid time off. 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).