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. A single person would bring home $3,800 per month after taxes. The next biggest changes in your budget are medical, insurance, food, and clothing. Are they hard at work, or are they stuffed under the mattress with your box full of keepsakes and bets with your wife? Mar. A good salary in the US to break even on average expenses is $78,700 per year. Plan your budget accordingly and move to a state where you can live within your means. There are 52 weeks in a year, and $60,000 divided by 52 is $1,154 per week. ($60,000 - $13,000) / 52 = $903.84. But overall, the average cost of goods is 14% less than the national average, according to the U.S. Bureau of Labor Statistics. Which is $8,260 less per year than the average salary in the US. All Rights Reserved. 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. You know what your opinion is on 60k a year. But after stopping in Colombia to take one week of salsa lessons, his life took a sharp left turn. 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 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. 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. But the older you get and the more responsibility you take on, earning $5,000 a month starts to look less and less. But the average state income tax is 5.99%. For a family of four, the estimated cost of living is $4,900 a month. Or maybe someone in the family has special diet needs. . A six figure salary, meaning one between $100,000 and $999,999, is a benchmark for many people who want to meet financial goals. Generally, $60,000 is a good salary. Is Earning $50,000 Considered Rich? Not at all. Chances are youll also be renting a private bedroom inside someone elses place. I think youll be shocked at what a $60,000 salary would get you. 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. Thats a fair amount of money. Is $60,000 a Year a Good Salary? 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. Start influencer marketing, sell homemade art or food, invest in bonds, rent out your extra space, etc. If youre not sure how youre lifestyle will affect your disposable income, try creating a list of your regular expenses and running some calculations. This is calculated by multiplying the hourly wage ($38) by the number of hours worked in a year (2,080). We can also do the math for getting paid twice a month. A family would bring home $1,015 weekly after taxes. In New York, $60,000 a year is $35,340 for a single person after taxes. Do you want to make money from your passion for photography? Is 60,000 dollars a good salary outside of the US? if you are making $60,000 a year you are making 20% over the average salary in the US. While some of these factors may feel more intuitive than others, theyll all have an effect on you. We all gotta eat. 60K may or may not be a good salary. Answer (1 of 372): Yes $60,000 a year is considered a reasonably good income. 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. Food costs are similar to California at roughly $250 per month. 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. Households earning $60,000 are unlikely to be housing cost-burdened. Just being able to pay for your expenses isnt a good salary for a single person. However, it all depends on your lifestyle and expenses. 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). Utilities run you around $200 a month. Which means that an average salary is typical or good. So you need to have a proper budget plan if your family is to live on that much money. With $30,000 in savings every 12 months, you can live comfortably without worrying about emergency funds. With a 22% income tax bracket, the net income for a single person is $62,400. If your dollars arent working for you, they are working for someone else. ), 35 Best-Selling Printables on Etsy (That Practically Sell Themselves). This site is for informational purposes only and is not intended to provide financial advice. Fill out the form above for your FREE consultation. 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. People may receive compensation for some links to products and services on this website. Therefore, a starting salary of $60,000 for a teacher would be excellent. With that in mind, lets cover everything you should consider when assessing the quality of a $60,000 salary. Lets dive in. With a 22% income tax bracket, this income will cover the average expenses of $78,000. The average rent for an apartmentin the US is $1,124 per month, or $13,488 per year. This is especially true if you have a family to take care of as well. There are many side-hustles you can try to earn a passive income along with your full-time $60k salaried job. With a 22% income tax bracket, this income will cover the average expenses of $90,100. Its personal. 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. The median salary of 35- to 44-year-olds is $1,197 per week or $62,244 per year. After taxes, making $60,000 a year leaves a family of 3 with $52,800. You probably won't be buying a mansion, but the person making $100,000 a year won't be either. 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. In this situation, $60,00 a year would not be enough. Yes, a $60,000 salary is typically a great salary when you have roommates. Contents1 What is considered [] The average weekly pay for men is $1,144 and $943 for women. You are earning 86% of theaverage annual salary. ($60,000 - $13,000) / 24 = $1,958.33. Just remember to pick good roommates if you can. It does not take into account taxes, bonuses, or vacation time. We and our partners use cookies to Store and/or access information on a device. The average salary in the US is $51,000 a year. A salary of $65,000 can be a high income in many parts in the United States but below average in other parts. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. You probably wont be buying a mansion, but the person making $100,000 a year wont be either. 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. This is a good wage for many jobs, but it may vary depending on your position and experience. If you earn $60,000, youre paying $3,720 in social security per year. Money Peoples is a free resource for anyone looking to make an income in the gig economy. 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. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . People that earn $60,000 per year dont bring that money home. Average Salary for Ages 35-44. If youre applying to a job or considering a job offer that pays $60,000, you may be wondering whether thats a good salary. If youre lucky enough to work from home or have a digital nomad-friendly job, search out parts of the world where your family can live an amazing life for less. 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. 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. With a median salary of $63,293, the average resident of the Badger State is in a relatively good financial spot . 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. Hey you! If youre a part-time 17-year-old high schooler making $40,000 a year, this is really good. But in high cost of living cities, a $60k salary is just barely scraping by. A year has 52 weeks, so that means that we can divide $60,000 by 52 to find how much $60k is a week. As long as you keep expenses low, you should be able to live comfortably on this salary. Toronto ranks 74 on the Numbeo cost of living index, meaning costs are roughly 74% of New York City. So, how much will you bring home after all of the taxes and social security? Another important aspect of your location are taxes, as certain states and cities can be drastically different. 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. If you made it this far in this article, you have been through the math. After taxes that amount could be between $3,500 - $4,250. When youre growing up, $60k a year can seem like a ton of money. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. Yes, $60,000 a year is good for a single person. That is just under $25 an hour, and just about $51,000 a year. In Alcona and Alger County in Michigan, the average monthly rent for a house of the same size stands at $750. Again, that sums up to $9,000 per year, which is about $33,000 less what youd pay in DC. You are earning 20.6% more than the average annual salary. Making $60,000 a year is an hourly rate of $30 per hour. 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. Sixty thousand dollars a year is good for a single person in most of the world. Unlike adults, kids run through clothes fast. Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. clever ways to make $10,000 per month online. You deserve reliable attorneys who get results. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . The most important rule of life is to live within your means. If you live in a low cost of living area or you are single your salary will stretch further. There are also other extra expenses to keep in mind when living in Canada. Making 60k a year is 20% higher than the median household income in the US. Lets backtrack a little to find out how we got to this number. 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. 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. In other words, $60,000 is the amount of money your employer pays you per year before tax deductions. Yes, $60,000 a year is good for a family of 3. A single person earning $60k a year should have an extra $845 left over each month. Personally, if your life circumstances allow it and you are comfortable with it I would look into buying over renting. So its important to determine whats more essential and whats not then plan accordingly. CONTACT: Calle 6 #39-25 Office 402 Cali, Valle del Cauca, Colombia +1 616-210-3320 (U.S.) Contact Me | Terms of Service | Privacy Policy | Affiliate Disclosure | Hire me ProjectUntethered.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. The median living wage for a family of 3 is $19.20 per hour. This is why I added the three-bedroom option to each destination. Sign up to make sure you get your free consultation. Which is $18,260 less per year than the average salary in the US. The $60,000 may be a good income for a single person living in West Virginia, but it wont be enough for a family residing in Washington DC. 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. So living in such cities would be a dream come true for most, if not all, people. Where should I send your packing checklist? But you want your family to be healthy. 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. Assuming you work a full-time schedule (40 hours a week) for 52 weeks out of the year, $60,000 is about $30 an hour before taxes. Rather, they plan their wages accordingly and live within their means. As mentioned, there are many things to consider when you want to know whether or not your $60,000 salary is good. 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. 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. 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. ($60,000 - $9,000) / 52 = $980.77 $44,000 per year (-$16,000 tax reduction). ($60,000 - $13,000) / 26 = $1,807.69. $60,000 a year is $38,286 for a single person after taxes. The median salary in the US is $1,041 per week. In cheap third-world countries, youll live like royalty. Are you single? The median living wage for a single person is $17.74 per hour. 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. On a global scale, the middle class is between $4,000 and $40,000 per year depending on where you live. $40,000 is the minimum wage in some parts of the country. (Free $350 value.). If you are living in a low cost of living area you will be able to stretch your dollars even further. The amount of tax you will pay depends on your taxable income and your filing status. Is Amazon FBA Worth It in 2023? The following states do not collect state income tax: Combine this with a great salary and youll be taking home quite a bit of money. 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. (The impossible question). Yes! West Virginia's median annual salary of $48,037 is one of just a few that earn less than $50,000 in the survey. In this case, we are working with $1,400. And they're a follows: 1. Now, if you are raising a family that might make things more difficult. Write down a list and work backward from there. However, certain areas are also far more expensive than others, which can have complicated explanations. You can afford a $1,250 mortgage payment on a house making $60,000 a year. Although you make $50,000 a year, the amount you have to spendyour take-home payis less. We have articles on everything from making extra money to how you can make $100,000 a year. Its a decent salary in a lower cost of living area and is a more difficult salary in higher cost of living areas. Take 40 hours times 52 weeks and that equals 2,080 working hours. 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. 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. Career Level. Keep in mind that this is an estimate and your personal situation may vary. In general, urban areas are far more expensive than rural ones, particularly due to access and additional amenities. Someone making $60K a year doesnt have a lot to spend compared to someone who earns a salary of $100K. The average 15-24-year-old only makes half that of the average 45-54-year-old ($43,500 to $84,400). In the US, the average cost of insurance is under $500 per month for an individual and more than $1,000 for a family. Toronto and Vancouver are pretty expensive. A single person would bring home $1,754 biweekly after taxes. Copyright 2023. So $80K would be an upper-middle class. But education and future earnings will most likely. In his professional career hes written over 100 research papers, articles and blog posts. In comparison, the median annual salary in the US is $70,784 or $1,361.23 per week. 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. Do you want to live like a king or queen? Additionally, you should always consult a tax professional to get an accurate estimate of how much you will pay in taxes. Overall, a $60,000 salary is perfectly healthy for your average individual American. link to How to Make a Fortune Selling Your Photos Online. 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. Which is $12,740 more per year than the average salary in the US. More money has been made in real estate than in all industrial investments combined.. Meaning, one person could be paying $4,200 extra per year in taxes. High-speed internet in India also costs a fraction of the U.S. were talking 10 bucks a month. You can control your food budget to a degree, but once you start a family, plan on doubling your food expenses. That means that a $60,000 a year salary is about 20% more than the median salary in the US. Were also going to look at the different tax rates between single and married people. Of course, you can live anywhere on any salary, but some places are more expensive than others. You can also save money by contributing to a 401k or IRA. You would need to make closer to $100,000 a year in household income to cover all of your expenses. This would leave a single person with $45,650 after expenses and taxes each year. On the other hand, certain states have very high taxes. Is $60,000 a good salary in India? This comes out to be $35,480 per year. Consult an attorney if you are seeking legal advice. There are dozens of countries where a 60K yearly salary would afford you an amazing lifestyle. Generally, you should only spend about 28% of your gross monthly income on housing expenses. Look into all of your investing potentials and do your own research. Or, do you have a family looking up to you on a monthly basis? The estimated cost of living for a family of four is $4,900 a month. You wouldnt make enough to save or even cover your expenses. 7 Best Dash Cams For Delivery Drivers (2022), 7 Best Times to Do Uber Eats (2022 Guide), 7 Best Apps Like Airbnb to Make Money (Alternatives in 2022). There are a ton of places where you can live on $60k a year and live a comfortable lifestyle. The final verdict is this: Is $60,000 a good salary? Unfortunately either of these factors will raise your cost of living rather significantly. If you get paid on a biweekly schedule you will have roughly 26 pay periods throughout the year. Its easier to afford things when you have more money around to use. Cost of Living. If you have a kid or two or a spouse that does not work, youre responsible for providing. The tool provides information for individuals, and households with one or two working adults and . 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. Your $60,000 annual income can only be good enough if you live in a state where the cost of living isnt insanely high. 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. This can include factors like your age, location, taxes, lifestyle, family status, and more. You have to pay Social Security tax, Federal Income tax, and Medicare tax. The answer is yes, you can save money if you make $60,000 a year. For more information, please read our privacy policy. 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. Then next month find one area in your life that you can cut back on. You want to invest into your future. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Since each state has different tax rates, your final take-home pay depends on which state you live in. Instead of breaking down all the numbers for you, Ill leave you with this video. It doesnt matter whether theyre long-term or short-term. A good salary for a single person would be $80,000 or more. Utilities are more than reasonable. Having enough money often comes down to how you spend rather than how much you make. "Is $60,000 a Good Salary?" But $40,000 a year makes you a low earner if your job is full-time. If you are living in a low cost of living area you will be able to stretch your dollars even further. More often than not, a 60K annual salary may be middle class for someone who lives in the United States of America.