This would leave a single person with $45,650 after expenses and taxes each year. 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. Of course, your own everyday decisions can affect the quality of your $60,000 salary. On $60,000, the average state income tax youll pay is $3,594. 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. On the other hand, a $60,000 salary can start to become dicey when you add children to the equation. 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. Its easier to afford things when you have more money around to use. You can afford a $1,250 mortgage payment on a house making $60,000 a year. But in high cost of living cities, a $60k salary is just barely scraping by. Relocating could instantly upgrade your life. Food is going to run you a fraction of the cost. After taxes, making $60,000 a year leaves a single person with a take home pay of $45,600. Some people may find that they need more money while others may find that they can live comfortably on less. Meanwhile, hitting those six figures seems to make all the difference: 56% of those surveyed said they considered. But after stopping in Colombia to take one week of salsa lessons, his life took a sharp left turn. Theaverage monthly expenses per household are $5,111 per month or $61,332 per year. Contents1 What is considered [] Theaverage monthly student loan paymentis $460. 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. Most people, me included, recommend spending no more than one-third of your income on housing. If you make $60,000 a year, you bring home $44,000 a year after taxes and other deductions. 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. That comes out to exactly $30 an hour if you get 2 weeks of paid vacation each year. Also, this set includes many people who received professional degrees from graduate schools, further bringing up salaries. That means that you are working 2000 hours a year. That said, those higher taxes include universal healthcare, so it basically evens out in the end. That means that every month before taxes you will be bringing in a monthly salary of $5,000. To be abundantly clear, $51,000 a year may not be enough to cover everything you want, but it should meet the most common family needs and make ends meet. A family of 3 earning $60k a year should have an extra $1,200 left over each month. Comfortable living means different things to different people, but generally, it means making enough to cover your expenses and save enough money for the life you want. After taxes, making $60,000 a year leaves a family of 3 with $52,800. With a 22% income tax bracket, the net income for a single person is $32,350. We can quickly do the math by dividing the total amount paid minus taxes by the number of biweekly pay periods in a year. A comfortable salary for a family is about $116,000. This comes out to be $35,480 per year. A family earning $60,000 should be able to comfortably afford housing costs in cities where the median household income ranges from $55,000 to $65,000. There are small towns where itd work out, but if you want to live in any major city, youre going to need more money. Note: Cost of living information was imported from Numbeo and after-tax pay was calculated with the SmartAsset calculator. Median housing costs make up less than 24% of a $60,000 income, on average, across all 109 cities in our study. To budget this salary, you need to first figure out your monthly expenses. You can also get involved in various referral marketing programs and start earning cash, discounts, and free products. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. A family would bring home $2,031 biweekly after taxes. And they're a follows: 1. A job that pays $60,000 a year is a great opportunity for someone just starting their career. Yes. In general, you can live comfortably on this salary, but you may have to be careful with your spending. Weather can be extreme, so expect a hefty heat bill during the winter. In the budget provided above, I showed a sample of saving 20% a month. Another reason is taxes are higher. But the older you get and the more responsibility you take on, earning $5,000 a month starts to look less and less. A salary of $60,000 a year, means that your net monthly income is approximately $4,250. There are so many ways to buy a house so nothing should be stopping you, even the current housing prices. We have converted it to an hourly wage for the sake of comparison. $60,000 can be a good salary for a family. You also may need a car with AWD and switch from winter to summer tires every year. High-speed internet in India also costs a fraction of the U.S. were talking 10 bucks a month. 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. Most people become stagnant at their jobs and could increase their income by changing jobs. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . 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. The final verdict is this: Is $60,000 a good salary? Depending on the magnitude of what youd like to achieve in the future, a $60,000 salary may or may not be enough for you. Want to learn how to travel for free? Youre also going to have to pay social security taxes, which are 6.2%. Overall, $60,000 is a solid salary that will allow you to live comfortably and save money with the correct planning and spending habits. Then next month find one area in your life that you can cut back on. 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). Sixty thousand dollars a year is good for a single person in most of the world. Welcome Home! The 60K is your gross income. However, if you live in a more affordable area, like Tulsa or Wichita, $60,000 may be more than enough to cover your needs. It also assumes that you are a single adult. The average living wage is 245% of the minimum wage in America. For example, states like South Dakota and Wyoming have no income tax. You should save as much as you possibly can. And theyre a follows: States such as Washington DC and Los Angeles have some of the most beautiful cities in America. But anywhere else, youll be living well. Its a decent salary in a lower cost of living area and is a more difficult salary in higher cost of living areas. 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. We all gotta eat. If your dollars arent working for you, they are working for someone else. People may receive compensation for some links to products and services on this website. Continue with Recommended Cookies. if you are making $60,000 a year you are making 20% over the average salary in the US. Of course, the quality of a $60,000 salary will also depend on several factors. Or maybe someone in the family has special diet needs. The median salary of 35- to 44-year-olds is $1,197 per week or $62,244 per year. That leaves $30,512 for other expenses after taxes. 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. I did some research to find out for myself. Thats a fair amount of money. The most important rule of life is to live within your means. Yes, $60,000 a year is good for a family of 3. If you work remotely and can live anywhere in the U.S., this may be eye-opening. If you have a large family size and live in San Francisco or New York City, things might be a little tight. link to How to Make a Fortune Selling Your Photos Online. There are many ways to save money if you are willing to be creative, Transportation, Storage, and Distribution Managers. 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. It can reduce the cost of real estate, property taxes, cost of living, and state income taxes. The estimated cost of livingfor a single person in the US is $2,836 a month. Follow these rules and you will do just fine. It depends on your experience level, age, and how far out of high school you are. Therefore, a starting salary of $60,000 for a teacher would be excellent. Now if that is good money for you, then you shouldnt worry about what others say. 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. In cities, having your own vehicle isnt necessary. But not all foreign countries are cheap. You have to pay Social Security tax, Federal Income tax, and Medicare tax. Another major factor is where you live and your responsibilities. 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. 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. With a 22% income tax bracket, the net income for a single person is $62,400. Living in an area with moderately priced expenses as a single person is not just doable, but easy. To be clear, several factors determine whether $60,000 can be enough for you to live on. The average health insurance premium in California is $487 per month. Fresh produce is going to cost you literal change. This adds up to $200 per month, or $2400 per year. 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. Note that the average household income in America is $70,784. 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. The average family of 3 would have $14,400 left over after taxes and living expenses. As a general rule, earnings tend to rise in your 20s and 30s as you start to climb up the ladder. When you can earn more by switching jobs, side hustles are not worth it. In others, its crazy cheap. But education and future earnings will most likely. 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. 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. Lets look at how much youll bring home if you make $60,000 a year. You most definitely can afford to invest each month and it should be one of your highest priorities. . So living in such cities would be a dream come true for most, if not all, people. $60k a year is a great salary for most areas of this state. That means youll be making $28.84 an hour if you make $60,000 a year and have no paid time off. If youre financially responsible person, a $60,000 annual salary would give you a comfortable life in most cities. 9, 2022, https://www.zippia.com/advice/is-60000-a-good-salary/, What Percentage Of Retail Sales Are Online, Are People More Productive Working From Home, What Percentage Of The Workforce Is Female. According to the US Census Bureau, the average annual salary in the US is $102,316, equating to $1,967.62 per week. Manage Settings If you live in a low cost of living area or you are single your salary will stretch further. If you're financially. Yes! We and our partners use cookies to Store and/or access information on a device. However, Real Estate is a solid investment strategy that has stood the test of time. 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. link to What are the best stay at home jobs that pay well ? Keep in mind that this is an estimate and your personal situation may vary. Career Level. . 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. If you work a position with no paid time off (PTO) then you are working 2080 hours a year. It all depends on your unique situation. That said, this will depend on other factors, including the cost of living where you are and how you manage your finances. The average personal salary in the U.S. is $63,214, meaning that $60,000 is a healthy amount. Another factor that determines whether 60K is a good salary is the number of people in your household. You wouldnt make enough to save or even cover your expenses. It is important to remember that your salary is just one factor in determining how much house you can afford. Jack received his BS from Hampshire College. 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.. In some cities, the cost of living is outrageous. Be the first to rate this post. 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. You wont be able to eat out, and youll more than likely have to get rid of your vehicle and opt for the bus. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. A family would bring home $26.40 per hour after taxes. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. Utilities run you around $200 a month. If youre wondering how to live cheap and instantly slash expenses (without sacrificing quality of life), this is one epic way to do it. Making $60,000 a year is $5,000 per month. But once you get closer to the Delta, things change, and not in a good way. There are 52 weeks in a year, and $60,000 divided by 52 is $1,154 per week. 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. You can also save money by contributing to a 401k or IRA. Hey you! The average rent for an apartmentin the US is $1,124 per month, or $13,488 per year. However, there are plenty of towns in Canada where youll thrive as a single and be fine with a family. Earning $116,000 is 63.9% higher than the average household income in the US. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. These are the most common questions about earning this amount of money. Consult an attorney if you are seeking legal advice. 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. There are over 15.5 million digital nomads from the U.S. more than triple the amount from a few years ago. Kids grow quickly, especially when theyre young. Keep in mind that how much you get as your take home pay will vary depending on the tax rate in your state. Making 60k a year is 20% higher than the median household income in the US. Take 40 hours times 52 weeks and that equals 2,080 working hours. 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. 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. 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. If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. Which is $12,740 more per year than the average salary in the US. Toronto is one of the most expensive cities to live in North America. This post contains affiliate links, which means I may receive a small commission, at no extra cost to you, when you make a purchase. 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. A single person making $100,000 a year is good because it allows them to: You are earning 69% of the average annual salary. The above figures are in US dollars. If you earn $60,000, youre paying $3,720 in social security per year. $38 an hour annually is equivalent to an annual salary of $79,040, assuming a 40-hour work week. What are the best stay at home jobs that pay well ? Just like rent, your mortgage payment should be a maximum of one-third of your income. Those who earn less than the living wage need to: If possible, change jobs to become a higher earner. Generally, $60,000 is a good salary. A single person would bring home $3,800 per month after taxes. Answer (1 of 4): Melbourne, Florida USA Melbourne, Florida USA Melbourne, Victoria Australia Which Melbourne are you talking about? 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. The best stay at home jobs generally have a few common features. 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. 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. (Or Too Hard? Yes! The truth is, $60k a year can have you living like royalty in some parts of the world. 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. That means that a $60,000 a year salary is about 20% more than the median salary in the US. With a fairly easy to live with budget above, there was an excess of $4,250 - $3,260 = $990. These help support GiveWell charities and keep lights on at Project Untethered. This is especially true if you have a family to take care of as well. 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. 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. 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. Overall, a $60,000 salary is perfectly healthy for your average individual American. If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. The consent submitted will only be used for data processing originating from this website. Here are the best places: In the end, it depends on what matters most to you. There are many side-hustles you can try to earn a passive income along with your full-time $60k salaried job. That means that your net pay will be $46,347 per year, or $3,862 per month. Lets dive in. This is assuming you work 40 hours per week for 52 weeks per year. This can include factors like your age, location, taxes, lifestyle, family status, and more. It will buy you at least a middle-class lifestyle meaning you can afford basic living expenses plus a few luxuries in all but the most expensive cities around the globe. Lets backtrack a little to find out how we got to this number. That depends on how frequently you get paid, and how much taxes you are liable for. With that in mind, a $60,000 salary is a great start for most college grads. 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.