That said, this will depend on other factors, including the cost of living where you are and how you manage your finances. $60k a year is a great salary for most areas of this state. In other words, $60,000 divided by 2,080 hours. Unfortunately, LA and DC are some of the most expensive places in the United States of America. We are dedicated to sharing the best ways to make money in the gig economy. Hey you! An example of data being processed may be a unique identifier stored in a cookie. Plus there are strategies like house hacking that can help bring your housing costs down, and some people can make a profit! Having a good education is usually helpful but not always necessary, and certain jobs are more likely to come with six figure salaries. 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. If you consider only federal taxes and FICA, the take-home pay for $60,000 is $49,222. 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. According to Andrew Carnegie, Ninety percent of all millionaires became so through owning real estate. Generally, $60,000 is a good salary. Additionally, you should always consult a tax professional to get an accurate estimate of how much you will pay in taxes. Which is $6,740 more per year than the average salary in the US. If these numbers dont work for you, feel free to change them up and let me know what you did! That means that to calculate how much 60k a year is per month you will need to divide 60k by 12. You can afford pretty much anything in moderation. Offers may be subject to change without notice. Relocating could instantly upgrade your life. That data is provided by ssa.gov and is extrapolated across an entire year to then provide an average of $51k. In the end, you should be able to plan your finances accordingly if youre a professional who earns this much money in 12 months. However, it all depends on your lifestyle and expenses. If you want to live in the suburbs of Memphis, you may have to pinch some pennies. If you have state and local taxes, youd take home even less. Keep in mind that the tax rate varies from state to state, so its unlikely theres a general chart to look up. The best part about working from home is the How to Make a Fortune Selling Your Photos Online. Download this FREE travel hacks "cheat sheet" for my best secrets. Money Peoples is reader-supported. We all gotta eat. But just how good enough is 60K as an annual salary in the first place? Sign up to make sure you get your free consultation. Some of his most popular published works include his writing about economic terms and research into job classifications. Masters Degrees earn 29% more than Bachelors Degrees. This is assuming you work 40 hours per week for 52 weeks per year. Is 60K a good salary or should you aim for more? The poverty rate reflects a person's gross annual income. This is because the cost of living is typically higher when you have more people to support. 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. Here are some popular locations and their cost of living compared (by the average salary youd need to live comfortably): Taxes. $60,000 is a good salary in most locations. We at Financial Creatives want help you understand the conditions under which $60,000 a year is a good salary and when its not. Is Amazon FBA Worth It in 2023? Of course, the quality of a $60,000 salary will also depend on several factors. Theaverage monthly expenses per household are $5,111 per month or $61,332 per year. Fresh produce is going to cost you literal change. That seems fairly doable if you are a single person. 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. He met a cute Colombian girl in dance class, fell in love, and got married. Generally, you should only spend about 28% of your gross monthly income on housing expenses. Continue with Recommended Cookies. How to negotiate a raise like a pro. 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. Some considerations would include inflation over time, cost of living where you are employed, cost of housing and food, etc. 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. If a common American earning a minimum hourly wage can make ends meet, you really should do well with an annual salary of $60,000. To determine if that amount can afford you the life you want, youd need to consider various factors. Your credit score and income can make a huge difference, in addition to other factors. Toronto is one of the most expensive cities to live in North America. Again this is all dependent upon your tax liabilities. That would mean that you can afford $4,250 / 3 = $1,400. The answer is yes, you can save money if you make $60,000 a year. Start influencer marketing, sell homemade art or food, invest in bonds, rent out your extra space, etc. 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. Personally, if your life circumstances allow it and you are comfortable with it I would look into buying over renting. is $60,000 a good salary for a single person is $60,000 a good salary for a single person 09 June 2022. dejounte murray sister / lake havasu city police scanner A salary of $65,000 can be a high income in many parts in the United States but below average in other parts. That leaves $30,512 for other expenses after taxes. Living in states with a low cost of living can help you bring more money home. In this article, we will discuss what factors you need to consider when determining if $60,000 is a good salary for you. Which is $12,740 more per year than the average salary in the US. There are other factors of course, but overall, these are some of the most prominent. You should save as much as you possibly can. It is not legal advice. Musk has even complained about the proposal to target the rich with a special tax. how $60,000 compares to the average cost of living and income, if its good for a single person or a family, how much youll earn per month, bi-weekly, weekly, and hourly. 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. This can include factors like your age, location, taxes, lifestyle, family status, and more. 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. Mitch is your typical nomadic backpacker. Well, that depends. The median living wage for a single person is $17.74 per hour. If you have student loans or other debts, your monthly payments will reduce the amount of money you have for other expenses. $60,000 a year comes out to $2,308 every two weeks. With this salary, a person could expect to make $1,534 every week, or $6,223 per month. Save $50 from each paycheck: This equals $200 per month, or $2400 per year. Welcome Home! That said, Mississippi is one of those states where $60k a year is a quality salary for both singles and families. You wont live well on a $60,000 salary in DC, for example. Do you want to live like a king or queen? 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. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. Just remember to pick good roommates if you can. Continue with Recommended Cookies. 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. The median household salary in the United States is $60,000. Paying health insurance and adding to a retirement plan could have you eating ramen every day. Even the cost of transportation, entertainment, and essential products and services vary based on demography. The answer to this question really depends on your personal circumstances. It depends on your experience level, age, and how far out of high school you are. 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. Is $60,000 a good salary? I would recommend saving what you think is comfortable right now. If you live in a low cost of living area or you are single your salary will stretch further. So its important to determine whats more essential and whats not then plan accordingly. Living Wage Calculation for Kentucky. But once you get closer to the Delta, things change, and not in a good way. You are earning 20.6% more than the average annual salary. If your spending habits are not good, then itll be hard to live on $60,000 a year. Many Americans ear $7.25 an hour, and they survive. Here are some tips on how to budget $60,000 a year: For the best ways to save $60,000 a year, check out my article on the best free printable budget templatesto get your finances under control. There are a ton of places where you can live on $60k a year and live a comfortable lifestyle. A comfortable salary fora familyof 4 is $116,000 before taxes. Which is $21,740 more per year than the average salary in the US. A good salary for a single person would be $80,000 or more. If you earn $60,000, youre paying $3,720 in social security per year. This comes out to be $35,480 per year. Do you want to make money from your passion for photography? Yes. If youre wondering how to live cheap and instantly slash expenses (without sacrificing quality of life), this is one epic way to do it. This post contains affiliate links, which means I may receive a small commission, at no extra cost to you, when you make a purchase. You are earning 2% more than the average annual salary working full-time. Just being able to pay for your expenses isnt a good salary for a single person. If you mean Melbourne AUS, then no $60,000 isnt really enough for you to lead an average lifestyle. Lets do some quick math here. Over half a decade has passed since he left his career to travel the world as a digital nomad, and hes never looked back. 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. Its a different case if youre from Michigan, as you can save enough money within that period to buy yourself the car. However, Real Estate is a solid investment strategy that has stood the test of time. Some people may find that they need more money while others may find that they can live comfortably on less. A single person earning $60k a year should have an extra $845 left over each month. You can afford a $1,250 mortgage payment on a house making $60,000 a year. You should reach out to a recruiter to see about getting a new job. But after stopping in Colombia to take one week of salsa lessons, his life took a sharp left turn. Overall, a $60,000 salary is perfectly healthy for your average individual American. With a 22% income tax bracket, this income will cover the average expenses of $90,100. So, if you are a single person (or even a couple) who can be happy living in a nice, but So if youre currently making $60,000 a year, its easy to wonder whether the amount is sufficient. The above figures are in US dollars. 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. You can afford $1,250 in rent if youre making $60,000 a year. That comes out to exactly $30 an hour if you get 2 weeks of paid vacation each year. 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. If you are on your own and live alone, then $60,000 annually can be a good salary to support yourself. It's significantly higher than the median full time earnings no matter which area of the country you live in, and therefore it puts your personal income at a higher level than many, many others. I would recommend investing at any and every stage of your life. 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. 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. Manage Settings So, how much will you bring home after all of the taxes and social security? If you need a good idea after reading this article, make sure to set good financial goals. Speaking of which, here are some clever ways to make $10,000 per month online, which would make California living much more comfortable. Your $60,000 a year would be this much after taxes: $60,000 annual pre-tax income-$6,262 federal income taxes . Undoubtedly, those expenses will start to eat away at your salary and might make it more difficult to live comfortably with $60,000. That means the following equation will help you determine how much $60,000 a year is biweekly. ($60,000 - $13,000) / 24 = $1,958.33. You can live comfortably on this salary if you budget properly and have no major expenses. Follow these rules and you will do just fine. A good annual salary for a single person is anything above $41,500. Many of us believe that making 6 figures a year is what qualifies an individual for financial freedom. If you work remotely and can live anywhere in the U.S., this may be eye-opening. From learning exactly how to travel the world full-time, earn money from anywhere, and live a completely "untethered" life. Is $60k a year good? However, each US dollar is roughly $1.25 Canadian at the current exchange rate, which can get slightly confusing. The estimated cost of livingfor a single person in the US is $2,836 a month. If the typical dual-income household includes two people making between $20,000 and $25,000 per year, their combined income would add up to about $45,000 to $49,499 for their household. The Bureau of Labor Statistics (BLS) states that the median weekly income in the United States is $983.