That said, Mississippi is one of those states where $60k a year is a quality salary for both singles and families. 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). There are 52 weeks in a year, and $60,000 divided by 52 is $1,154 per week. If youre financially responsible person, a $60,000 annual salary would give you a comfortable life in most cities. If you are living in a low cost of living area you will be able to stretch your dollars even further. Someone making $60K a year doesnt have a lot to spend compared to someone who earns a salary of $100K. This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses. The median living wage for a single person is $17.74 per hour. That puts . You should save until it hurts, and then back up off the gas a little bit. Bachelors Degrees earn 24% more than those with non-college graduates. This post contains affiliate links, which means I may receive a small commission, at no extra cost to you, when you make a purchase. 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. An example of data being processed may be a unique identifier stored in a cookie. $60,000 is a good salary in most locations. Frugal digital nomads can buy a months worth of groceries here for about $100. For more information, please read our privacy policy. This can include factors like your age, location, taxes, lifestyle, family status, and more. You can live comfortably on this salary if you budget properly and have no major expenses. Again this is all dependent upon your tax liabilities. That data is provided by ssa.gov and is extrapolated across an entire year to then provide an average of $51k. Yes, $60,000 a year is good for a single person. That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. New York and Hawaiis tax burdens are double that of Wyomings, at rates of 12.79% and 12.19%. 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). The median annual income in the US is $41,000. Keep in mind that youre taking $45,000 or $51,000 home depending on your tax bracket. People may receive compensation for some links to products and services on this website. Those who earn less than the living wage need to: If possible, change jobs to become a higher earner. You should save as much as you possibly can. And spending a lot of money unnecessarily leads them to living paycheck to paycheck. In this article, we will take a look at if a salary of $44,000 good for a single person and which factors play into this. We have converted it to an hourly wage for the sake of comparison. If you want to be close to friends and family, then that helps you narrow down your list of where you want to live. Meanwhile, hitting those six figures seems to make all the difference: 56% of those surveyed said they considered. This would leave them with $30,050 in extra money each year. 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.. Lets compare some cheap and expensive examples. Economists will tell you that human desire is unlimited, yet the resources needed to meet it are limited. The current hourly rage in the U.S. is $7.25, so someone getting $30 an hour, without working an overtime, makes more money than most Americans do. Assuming a general tax reduction of around $16,000 a year, youd make around $44,000 a year after taxes. 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. While some of these factors may feel more intuitive than others, theyll all have an effect on you. 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. The final verdict is this: Is $60,000 a good salary? Or, do you have a family looking up to you on a monthly basis? Living in an area with moderately priced expenses as a single person is not just doable, but easy. Then next month find one area in your life that you can cut back on. Instead of breaking down all the numbers for you, Ill leave you with this video. The median household salary in the United States is $60,000. Your Demography Not at all. 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. We can also do the math for getting paid twice a month. I would recommend not spending more than one-third of your monthly income on housing expenses, which in this case would be $1400. Therefore, a starting salary of $60,000 for a teacher would be excellent. The cost of living can vary greatly between different areas, because of fluctuations in housing prices and availability, insurance pricing, healthcare costs, food pricing and availability and more. 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. The amount of tax you will pay depends on your taxable income and your filing status. Theaverage monthly student loan paymentis $460. That depends on how frequently you get paid, and how much taxes you are liable for. Some people may find that they need more money while others may find that they can live comfortably on less. All these little things can add up. A living wage is an hourly wage needed to cover your living expenses. When youre growing up, $60k a year can seem like a ton of money. It depends on the size of your family. if you are making $60,000 a year you are making 20% over the average salary in the US. Based on the research done above, $60k a year is above the national average in the United States. As a general rule, earnings tend to rise in your 20s and 30s as you start to climb up the ladder. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. Is $60,000 a good salary in Canada? The consent submitted will only be used for data processing originating from this website. A salary of $65,000 can be a high income in many parts in the United States but below average in other parts. $60k a year is a great salary for most areas of this state. This will ensure all of your bills are paid and still leave room for a bit of discretionary income. Mar. Keep in mind that the tax rate varies from state to state, so its unlikely theres a general chart to look up. If you made it this far in this article, you have been through the math. 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. It may be more difficult the more people in your family, but it is entirely possible. The median salary in the US is $1,041 per week. The average single person would have $10,120 left over after taxes and living expenses. The average family of 3 would have $14,400 left over after taxes and living expenses. Starting monthly salary: $5,000 USD (~$6,257 CAD)After taxes: ~$3,553 USD (~$4,447 CAD)Rent for a one-bedroom apartment: $1,500 USDRent for a three-bedroom apartment: $2,750 USD. Were also going to look at the different tax rates between single and married people. All Rights Reserved. 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. His advice has been featured in Forbes, USA Today, Yahoo, MSN, Readers Digest, Cond Nast Traveler, and more. If youre not after extravagant living, $60,000 may be enough for a family of four. That would mean that you can afford $4,250 / 3 = $1,400. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. We are dedicated to sharing the best ways to make money in the gig economy. It depends on your experience level, age, and how far out of high school you are. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. You also may need a car with AWD and switch from winter to summer tires every year. By signing up, you'll also be added to my legendary email list and receive handy travel lifestyle tips and inspiration I don't share anywhere else. 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. Lets look at how much youll bring home if you make $60,000 a year. A family of 3 earning $60k a year should have an extra $1,200 left over each month. By signing up, I agree to receive your legendary travel emails. When you can earn more by switching jobs, side hustles are not worth it. Your cost of living varies depending on whether youre single or a family of 3. The aim of this $60,000.00 salary example is to provide you detailed information on how income tax is calculated for Federal Tax and State Tax. Unfortunately, LA and DC are some of the most expensive places in the United States of America. A family would bring home $4,400 per month after taxes. With that said, everyone will have a different idea of what makes a comfortable life Your credit score and income can make a huge difference, in addition to other factors. If you avoid bad debt, your dollars will stretch even further and be able to be put to work. 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. So if youre currently making $60,000 a year, its easy to wonder whether the amount is sufficient. Sign up to make sure you get your free consultation. Thats definitely something you need to decide for yourself. Chances are youll also be renting a private bedroom inside someone elses place. But just how good enough is 60K as an annual salary in the first place? Thats a fair amount of money. You can live comfortably on $60,000 a year in most places in the world as a single person, and even as a family in many places. If you have state and local taxes, youd take home even less. Instead of working a minimum wage job, youre better picking up one of these online gigs to earn $2,000 a month (or more). A good salary in America is $51,000. In California, $60,000 a year is $41,100 for a married couple after taxes. I know people making a lot less that are living a comfortable life. But once you get closer to the Delta, things change, and not in a good way. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. On the contrary, an entry-level salary of $60,000 for a doctor would be unacceptable, as the average for the position is well over $100,000. 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. The average single person would have $10,120 left over after taxes and living expenses. You should only be spending 10%-15% of your monthly budget on a car. $38 an hour annually is equivalent to an annual salary of $79,040, assuming a 40-hour work week. The best stay at home jobs generally have a few common features. ($60,000 - $13,000) / 52 = $903.84. The average living wage is 245% of the minimum wage in America. With that in mind, a $60,000 salary is a great start for most college grads. Average rents and health insurance premiums ($217) are also less than half of California. Depending on your unique circumstances, you could have a good amount of money to invest each month. Which is $6,740 more per year than the average salary in the US. A good annual salary for a single person is anything above $41,500. Or at least, he was. 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. 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. Yes, $60,000 is a good salary. This is assuming you work 40 hours per week for 52 weeks per year. So, while the cost of living there is relatively low, a living wage is still $9,102 more than the typical salary. 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 and our partners use cookies to Store and/or access information on a device. Generally, $60,000 is a good salary. We have articles on everything from making extra money to how you can make $100,000 a year. Every goal you set in life requires some money to meet. The lifestyle you can afford with a 60k salary depends on where you live. Healthcare jobs earn up to 638% more than the average annual income in the US (Payscale). Do you want to make money from your passion for photography? Weather can be extreme, so expect a hefty heat bill during the winter. The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. You will be amazed at how many options are out there to invest in. To be clear, several factors determine whether $60,000 can be enough for you to live on. The average salary for new college grads is $55,260, with many jobs paying as low as $40,000 for entry-level positions. Jack Flynn is a writer for Zippia. 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. This is a good wage for many jobs, but it may vary depending on your position and experience. Typically, the average workweek is 40 hours and you can work 52 weeks a year. The average 15-24-year-old only makes half that of the average 45-54-year-old ($43,500 to $84,400). For a family of four, the estimated cost of living is $4,900 a month. 60,000 dollars may be a good salary for a single person, provided they dont reside in the most expensive states in the U.S. For what its worth, you wont live comfortably on a 60K salary if you reside in Los Angeles or DC. A family of four may have a harder time living comfortably on $60,000 a year. 60,000 is a good salary for the UK. 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. Again, the answer to this question varies depending on your location and expenses. Living in these cities may be a struggle, especially if you have a family to support. Here is a further breakdown of a $60,000 a year salary before taxes: Now that we have discussed how much $60,000 is an hour, lets take a look at how that income is taxed. $50000 a year is $24.04 per hour Let's breakdown how that 50000 salary to hourly number is calculated. This adds up to $200 per month, or $2400 per year. Generally speaking, $60k a year is excellent for a single person. In other words, $60,000 is the amount of money your employer pays you per year before tax deductions. Sixty thousand dollars a year is good for a single person in most of the world. Of course, the quality of a $60,000 salary will also depend on several factors. Another important aspect of your location are taxes, as certain states and cities can be drastically different. And depending on where you live, sixty grand may not get you far. Yes. In general, urban areas are far more expensive than rural ones, particularly due to access and additional amenities. West Virginia's median annual salary of $48,037 is one of just a few that earn less than $50,000 in the survey. There are other factors of course, but overall, these are some of the most prominent. This is why it is important to find a job that will allow you to grow and develop your skills. Here is a list of some jobs that pay $60,000 a year and do not require a college degree: It is important to remember that your cost of living may vary depending on your location. Copyright 2023. But in high cost of living cities, a $60k salary is just barely scraping by. You probably wont be buying a mansion, but the person making $100,000 a year wont be either. If you have a salary or income of $60,000, it means you're making 5 figures a year. Another reason is taxes are higher. A comfortable salary for a family is about $116,000. Making $60,000 a year is an hourly rate of $30 per hour. Recommended Reading: Overview of Real Estate Investing. 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. Cost of Living. Most likely a six-figure salary. You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. The average health insurance premium in California is $487 per month. With discipline and proper financial planning, you can get by comfortably. ($60,000 - $9,000) / 26 = $1,961.54 It all depends on your unique situation. Is $60,000 a good salary? Kids grow quickly, especially when theyre young. (Or Too Hard? Look into all of your investing potentials and do your own research. Of course, your own everyday decisions can affect the quality of your $60,000 salary. Again, the answer to this question really depends on your personal circumstances. Earning $116,000 is 63.9% higher than the average household income in the US. But anywhere else, youll be living well. Manage Settings I would recommend saving what you think is comfortable right now. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. 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. This is calculated by multiplying the hourly wage ($38) by the number of hours worked in a year (2,080). So, how much will you bring home after all of the taxes and social security? Of course, the quality of a $60,000 salary will also depend on several factors. It does not take into account taxes, bonuses, or vacation time. So for San Francisco, even as a single person with no kids, living on $60k a year is going to be a struggle. If your spending habits are not good, then itll be hard to live on $60,000 a year. With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary. (Seefull disclosure). There are dozens of countries where a 60K yearly salary would afford you an amazing lifestyle. Is it a very high income? The median annual expenses for a family of four is $90,100. But after stopping in Colombia to take one week of salsa lessons, his life took a sharp left turn. Undoubtedly, those expenses will start to eat away at your salary and might make it more difficult to live comfortably with $60,000. . 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. This is especially true if you have a family to take care of as well. When you get paid twice a month, youll see that you could get an average paycheck of anywhere between $1,958 - $2,125. Before you settle for an office job, consider the perks of a stay at home job. link to How to Make a Fortune Selling Your Photos Online. Is $60,000 a good salary in Mississippi? Now if that is good money for you, then you shouldnt worry about what others say. If you have student loans or other debts, your monthly payments will reduce the amount of money you have for other expenses. Using an FHA loan for example you can put down as low as 3.5% of the purchase price. In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. Plus there are strategies like house hacking that can help bring your housing costs down, and some people can make a profit! Lets look at how earning a yearly salary of $60,000 works out for different family sizes. How to negotiate a raise like a pro. Lets dive in. The median salary of 35- to 44-year-olds is $1,197 per week or $62,244 per year. The median household income in the US in 2018 was $63,179. Then, divide the yearly salary of $50000 by 2,080 working hours and the result is $24.04 per hour. PhD grads earn 23% more than Masters Degrees. Households earning $60,000 are unlikely to be housing cost-burdened. Zippia.com. The 60K is your gross income. In the US, a good salary is $78,700 before taxes. 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. Another factor that determines whether 60K is a good salary is the number of people in your household. This site is for informational purposes only and is not intended to provide financial advice. Home loans providers have varying requirements. The median household income in 2023 is about $76,000. 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. I may earn a commission (at NO cost to you) if you buy through links on this page. 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. Starting monthly salary: $5,000 USD (~4,576,008 INR)After taxes: ~$3500 USDRent for a one-bedroom apartment (downtown): $150 USDRent for a three-bedroom apartment (downtown): $350 USD. If you prefer to do a mix of eating out and cooking, $200 will have you eating whatever you want without hurting your budget. So its important to determine whats more essential and whats not then plan accordingly. It depends on the current cost of living, your demography, your lifestyle, and the number of people in your household. Here are the best places: In the end, it depends on what matters most to you. There are also other extra expenses to keep in mind when living in Canada. The answer is yes, you can save money if you make $60,000 a year. To cover the average expenses, a good salary is going to be $78,700 per year. 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. Earning $78,700 places you in the22% tax bracket. That means buying what you can afford, planning, saving money, and never spending money that you dont have. 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. 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. You are earning 20.6% more than the average annual salary. That seems fairly doable if you are a single person. This is because the cost of living is typically higher when you have more people to support. If you need a good idea after reading this article, make sure to set good financial goals. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. 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. 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. 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. Are they hard at work, or are they stuffed under the mattress with your box full of keepsakes and bets with your wife? Now, if you are raising a family that might make things more difficult. Is $60K a good salary for a single person? With a fairly easy to live with budget above, there was an excess of $4,250 - $3,260 = $990. You can afford $1,250 in rent if youre making $60,000 a year. This can include factors like your age, location, taxes, lifestyle, family status, and more. Where should I send your packing checklist? A comfortable salary for a family of 4 is about $116,000. In this case, we are working with $1,400. No one who goes through medical school for 8+ years is going to want to have a starting salary of $60,000. In towns like Oxford and the suburbs of Memphis, housing is expensive. Be the first to rate this post. The most important factor with any salary is to budget, invest and spend within your means. 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. Is $60,000 a year a Good Salary in the US? A family would bring home $2,031 biweekly after taxes. Public transportation and cabs are cheap, especially when compared to major US metro areas. Sounds right. To be clear, several factors determine whether $60,000 can be enough for you to live on. In some cities, the cost of living is outrageous. This comes out to be $35,480 per year. However, in most cases, you can live comfortably on $60,000 a year. Just remember to pick good roommates if you can. Want to learn how to travel for free? With the average annual housing rate standing at $9,000 at least, you can do really well if you have a budget plan. if you are making $60,000 a year you are making 20% over the average salary in the US. As an Amazon Associate I earn from qualifying purchases. So you need to have a proper budget plan if your family is to live on that much money. Thats almost an extra thousand dollars a month you could put towards investments, paying off debts, or living large. That means that a $60,000 a year salary is about 20% more than the median salary in the US. In more recent data, a good salary in Colorado is roughly $62,000 per year, or approximately $5,168 per month. Now if you are paying taxes it will most likely be closer to $903 - $980. For example, If you like to eat out and party regularly, as opposed to clipping coupons and making food at home, youll likely need more money coming in. 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. The example above was for a single person with health insurance, but 60k a year works for a family as well. Any time you add in extra variables, the data changes. Download this FREE travel hacks "cheat sheet" for my best secrets. Some people argue that you never really know how much you earn unless you know your hourly wage. For example, if you would like to buy an SUV in six months or less, but you live in an expensive state such as Washington, youre highly likely to hit rock bottom fast. 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 make the average salary in the US thats great and all but what are your dollars doing while you are sleeping? But only 44% of poll participants said someone making $90,000 a year was rich. Its a decent salary in a lower cost of living area and is a more difficult salary in higher cost of living areas. 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. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. If youre looking for more information on making money, be sure to check out our other blog posts on the subject.