For the past several years, my salary has been exactly $60,000. That extra money every month you could put towards investments, paying off debts, or living large. Now, what if you have a salaried position with two weeks of paid vacation time each year? 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. For example, the average monthly rent for a 2-bedroom apartment in DC is $3,500. Using the same assumptions as above, you'll need to earn $30.88 per hour to get to this level. Cost of Living in Croatia: A Complete Guide, Cost of Hyperbaric Oxygen Therapy: A Complete Guide, Buying a $250,000 House- Everything You Need to Know, Buying a $300,000 House: Everything You Need to Know, Cost of Living in Norfolk, VA: A Complete Guide, Average Salary for MLS A Complete Guide. This is why it is important to find a job that will allow you to grow and develop your skills. In the end, you should be able to plan your finances accordingly if youre a professional who earns this much money in 12 months. 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. Some considerations would include inflation over time, cost of living where you are employed, cost of housing and food, etc. $60,000 is a good salary in most locations. $60,000 per year breaks down to: $28.85 per hour (Annual 2080 hours) $230.80 per day (Hourly x 8 hours) $1,153.84 per week (Annual 52 weeks) $2,307 biweekly (Weekly x 2) $5,000 per month (Annual 12 months) Lets be conservative and estimate based on the higher taxes of $14.4k. But in others, you'd barely scrape by. Prospective homeowners now need to save for an average of 10 years for a mortgage deposit, according to new research. Victorian mansions in Louisville, Kentucky. You have to pay Social Security tax, Federal Income tax, and Medicare tax. Using an FHA loan for example you can put down as low as 3.5% of the purchase price. However, in most cases, earning $60,000 a year is enough to live comfortably. 60k a year is how much a month after taxes? That comes out to exactly $30 an hour if you get 2 weeks of paid vacation each year. Disclosure. Make a budget and stick to it: Track your spending for one month to see where your money goes. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. The jobs site came up with a cost of living ratio a city's median base salary divided by its median home value. 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. Some folks circumstances make that difficult or impossible to achieve, but we feel blessed to be here. Jack received his BS from Hampshire College. The average personal salary in the U.S. is $63,214, meaning that $60,000 is a healthy amount. His passion is sharing solutions to problems he encountered, to spread knowledge and make the world a more educated place. Best Places to Live on a $60,000 Salary - 2020 Edition . However, everyones situation and finances are different. Yes, a $60,000 salary is a great salary for most new graduates. Delve into the details of your income as we analyze the precise amounts you can expect to earn on a daily, weekly, and monthly basis with an annual salary of $62,000. And is that even a livable wage? Choosing the right job opportunity for you will depend on your skills and past experience. My bills are generally 2-3x all your estimates today and it barely covers cost without any savings. Because the cost of living in New York is 129% higher than the national average and is 136.4% higher than in Detroit. Redittors who make $60k a year, what do you even do with $5000 a month Keep repeating that process until you find out what you need, and what you dont. Is 60k A Good Salary in the UK? - The Wallet Moth Get this delivered to your inbox, and more info about our products and services. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. If you take on a job that offers $60,000, you will be getting just under the national average annual income but not by much. That means that you are working 2000 hours a year, and increases your hourly rate. Now, what if you get paid biweekly? Is $60k a Year Good? Can You Even Live Off of $60k a Year? - LogicalDollar You probably wont be buying a mansion, but the average person making $120000 a year wont be either. Source: Old Louisville Neighborhood Council. So if youre currently making $60,000 a year, its easy to wonder whether the amount is sufficient. To be clear, several factors determine whether $60,000 can be enough for you to live on. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Thank you for catching that, it has been corrected. At that level of income, your household is higher than the median household income. Now that we have answered the question is $60,000 a good salary, lets take a look at what this income can afford. Take a closer look at your financial snapshot as we assess the daily, weekly, and monthly take-home pay you can anticipate with an annual salary of $65,000. Home prices are averaging around $250k and those upper middle class homes start at $550k easily. The main reason why people end up in debt is because they are spending more than they earn; that is not good if you want to live a life of financial freedom. 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. If your dollars arent working for you, they are working for someone else. What if I Refuse to Pay my Ambulance Bill? $3,558 per month; $1642 bi-weekly; $821 weekly; $164.19 per day; $20.52 per hour; If you would like to run the numbers yourself, check out this salary calculator. Necessary cookies are absolutely essential for the website to function properly. We can quickly do the math by dividing the total amount paid minus taxes by the number of biweekly pay periods in a year. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. I will base it on the lower after-tax monthly paycheck of $3,733.33. 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. $30 an hour is how much a year? To find the best cities in America to live on a $60,000 salary, we compared 97 cities (all with a population of at least 60,000 and a median household income of between $55,000 and $65,000) across the following nine metrics: median household income, median monthly housing costs, housing costs as a percentage of a $60,000 income, entertainment establishments per 10,000 residents, civic . Try $90 a week in gas at $360 a month or $4320 a year. The consent submitted will only be used for data processing originating from this website. There are dozens of countries where 60k US dollars a year would afford you an amazing lifestyle. These cookies do not store any personal information. This can include factors like your age, location, taxes, lifestyle, family status, and more. The answer is yes, you can save money if you make $60,000 a year. 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. While 60K is an okay salary, I find that saving even 300 a month is nearly impossible and I am one of the most frugal people around. That's if we assume that you work all the 12 months in a year. On the other hand, a $60,000 salary can start to become dicey when you add children to the equation. That means buying what you can afford, planning, saving money, and never spending money that you dont have. You wouldnt make enough to save or even cover your expenses. Its helpful and useful. 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. This article is wildly inaccurate. We are also going to assume that you get two weeks of paid vacation per year. The estimated cost of living for a family of four is $4,900 a month. Depending on the job you take, $60,000 might be an excellent entry salary. Your dollars will go much further if you live in a rural area vs living in a high-cost-of-living area. 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. Opt-in when your employer offers a 401K match program with the minimum you need to qualify. If you want to have lively nightlife, that helps narrow down your search as well. ( : Hi Susie. While in high school, each student is asked what they want to do as a career? However, thats hard to judge just off the numbers alone. This site is for informational purposes only and is not intended to provide financial advice. After taxes, that amount would be reduced to $44,900 to $49,300 per year. We have articles on everything from making extra money to how you can make $100,000 a year. List all of your monthly expenses to see how much you spend each month then take that number and subtract it against your monthly take-home pay. The 15 cities where you can live really well on $60,000 - CNBC However, after taxes, $60000 would be reduced to $21.54 $23.56 per hour and $44,800 $49,000 per year depending on the state you live in. The MLSPAs guaranteed pay formula does not provide a completely accurate picture of how much a player will, If the thought of doing a job that requires face-to-face human interaction feels you with dread, youre not, Mortgages can be complex. If you want to be close to friends and family, then that helps you narrow down your list of where you want to live. After paying taxes, your monthly income comes down. The most important factor with any salary is to budget, invest and spend within your means. Here are some popular locations and their cost of living compared (by the average salary youd need to live comfortably): Taxes. 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. But it does show some useful advice. I would recommend investing at any and every stage of your life. If you make $29 per hour, your yearly salary would be about $60,320 before taxes. 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. Youre correct to point out that each individual case is different. Yes, $60,000 is a good salary. In the United States, the average annual personal salary is $63,214, meaning that a $60,000 salary is perfectly normal and healthy. Overall, $60,000 is a solid salary that will allow you to live comfortably and save money with the correct planning and spending habits. Making $60,000 a year, your biweekly salary is $2307. To stretch your dollar further in a high-cost-of-living place, youd have to live a very modest lifestyle and prioritize where you want to spend your money and where you dont. A few other income data points for people of retirement age are illustrated below. Most notably $150 for groceries. Then next month find one area in your life that you can cut back on. With $30,000 in savings every 12 months, you can live comfortably without worrying about emergency funds. This was supposed to be a quick example of a possible budget, which is why I didnt go into too much detail for utilities. If you do not already have one, create an emergency fund. We and our partners use cookies to Store and/or access information on a device. You can afford pretty much anything in moderation. Many Americans ear $7.25 an hour, and they survive. -Martina. $60,000 A Year Is How Much An Hour? And Why It's Great You may have to be careful with your spending and save for larger expenses like a car or a home, but overall you should be able to survive on this income. You also have the option to opt-out of these cookies. 60,000 breaks down to 43,850 net pay annually after income tax and national insurance. The dreaded D word. if you are making $60,000 a year you are making the average salary in the US. It is using simple tax scenarios. 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. If you make $30 per hour, your yearly salary would be about $62,400 before taxes. In other words, $60,000 is the amount of money your employer pays you per year before tax deductions. Because the cost-of-living ins Memphis is 17% lower than the national average and 8.5 % lower than in Detroit. It also matters where you live and how you budget your monthly expenses. If you moved from Detroit, Michigan, to New York, New York, you would need to make a yearly salary of $141,818 to maintain how you lived back in Michigan with a $60,000 salary. Why? We are dedicated to sharing the best ways to make money in the gig economy. Top cities where you can live well on a $60K salary Looking to do better in the year ahead? ($60,000 - $9600) / 26 = $1938 per paycheck, ($60,000 - $14400) / 26 = $1753 per paycheck. How Much Is 60k a Year per Month? Unfortunately, LA and DC are some of the most expensive places in the United States of America. So its important to determine whats more essential and whats not then plan accordingly. If you live a life free of debt and have smart money management skills, you can make almost any income level work for whatever lifestyle you want. 1962 Cost of Living How Did it Compare? On what planet are you living that $60k a year is upper middle class?? According to the wage statistics for 2020, 67.6% of wage earners in the US made less than or equal to $53,383.18. This is because the cost of living is typically higher when you have more people to support. For my family of 2, we live on half of that amount. After youve paid off your debt, start putting 15% of your monthly income into a ROTH IRA until you max it out for the year. This breakdown sheds light on how your income is allocated over various time periods. 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. 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. Its easy to focus only on covering your monthly expenses and taking care of debt, but you will truly never get anywhere unless you start paying yourself. And theyre a follows: States such as Washington DC and Los Angeles have some of the most beautiful cities in America. Average Retirement Income. For example, if you live in a high-cost city like New York or San Francisco, you may need more than $60,000 to cover your expenses. Look into all of your investing potentials and do your own research. 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. 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. Just think living off $60,000 annually is much harder in San Fransico than it would be in North Dakota. How does a $60,000 salary compare to the average wage in the US? Is 60K A Good Salary In 2022 (What You Need to Know!) - FINANCIAL CREATIVES ), You based your budget off the 65K not the 60K, Wow, at least you know its a human writing these posts! In the year 2023, in the United States, $60,000 a month gross salary, after-tax, is $466,885 annual, $36,888 monthly, $8,484 weekly, $1,697 daily, and $212.09 hourly gross based on the information provided in the calculator above. The advantage of being single while making $60,000 a year is that your salary can stretch much further than if you had a family because you only need to cover the expenses of one person. I appreciate your kind words. This post contains affiliate links, which means I may receive a small commission, at no extra cost to you, when you make a purchase. 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. With discipline and proper financial planning, you can get by comfortably. All Rights Reserved. If youve got the time, take on a side hustle. Youre also correct to say that living a good life is possible here in California. As a Financial Coach and budget-savvy military wife, I love showing others how to make the most of their money. Money Peoples is reader-supported. If you dont, this will show you how much more you need to bring in. However, real estate is a solid investment strategy that has stood the test of time. Yes, it is possible to live off $60,000 a year, but your comfort depends on your location and lifestyle. If youre not sure how youre lifestyle will affect your disposable income, try creating a list of your regular expenses and running some calculations. Yes unfortunately there are a significant amount of deductions that will happen on your payslip before the money actually reaches your bank account. This means the bi-weekly earnings for 60k are $2,307.69, which amount to a monthly salary of $4,615.38 before taxes, that is. Visitors walk in front of the Sixteenth Street Baptist Church in Birmingham, Alabama. Hi Ken! ($60,000 - $9600) / 52 = $969 per paycheck, ($60,000 - $14400) / 52 = $876 per paycheck. Monthly housing cost: $1,800. I also will not recommend anything solely for potential earnings, I promise to try and provide the cheapest options I know of. ), should pay more than $60,000, even entry-level. If you are supporting a family on $60,000 a year, things get more complicated. You can also view my actual $2,500/mo budget for two from when I lived in California along with my $200 grocery budget for 2. The 4 main steps to being financially secure with your income are to: Learn more tips with my guide: How To Live On A Budget. Therefore, a salary of 60,000 USD per year is equivalent to a monthly income of 5,000 USD. By understanding the breakdown of your income across different timeframes, you can gain a clearer perspective on your financial landscape. After taxes, that amount would be reduced to $46,200 to $50,800 per year. Car payment of $200 is never going to happen for most people, however it is possible to keep avg auto exp in tht range by purchasing an older car with low miles. In this situation, $60,00 a year would not be enough. You can use whats left in your first bank account as house expenses like groceries or spending money. No matter what income level you have, as long as you know how much money is coming in and how much money is going out and making your money work for you, you will live the kind of lifestyle you want. Most people, myself included, recommend spending no more than one-third of your income on housing. Heres the whole breakdown: Assuming you work 40 hours every single week of the year (52 weeks), you would be working 2080 hours per year. You can find your weekly salary by dividing your yearly income by 52. This breakdown will provide you with a comprehensive understanding of how your income is distributed across different timeframes. That seems fairly doable if you are a single person. Setting money aside to cover such expenses will protect your bank account and help keep you out of living paycheck to paycheck. Here are the top 15 places where an average paycheck goes a very long way and the quality of life is great (even without a view of the Golden Gate).