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. Yes, $60,000 is a good salary. Its personal. As mentioned, there are many things to consider when you want to know whether or not your $60,000 salary is good. The state you live in if youre an American. Is 60,000 dollars a good salary outside of the US? 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. In general, urban areas are far more expensive than rural ones, particularly due to access and additional amenities. 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. Save $50 from each paycheck: This equals $200 per month, or $2400 per year. "Is $60,000 a Good Salary?" Which means that an average salary is typical or good. If you are living in a low cost of living area you will be able to stretch your dollars even further. The truth is, $60k a year can have you living like royalty in some parts of the world. A single person making $100,000 a year is good because it allows them to: You are earning 69% of the average annual salary. 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. $60,000 a year breaks down to $28.84 per hour. If you want to live in the suburbs of Memphis, you may have to pinch some pennies. 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. (Free $350 value.). If youre a part-time 17-year-old high schooler making $40,000 a year, this is really good. Jack received his BS from Hampshire College. Copyright 2023. Multiply that by 2 and you get $2,308. Fresh produce is going to cost you literal change. For every pro, there is a con. While some of these factors may feel more intuitive than others, theyll all have an effect on you. We run out of free consultations every month. Yes, a $60,000 salary is a great salary for most new graduates. That said, Mississippi is one of those states where $60k a year is a quality salary for both singles and families. In comparison, the median annual salary in the US is $70,784 or $1,361.23 per week. Write down a list and work backward from there. Now, if you are raising a family that might make things more difficult. Many location independent workers are realizing that their remote salary can buy them a shockingly extravagant lifestyle in other countries. Depending on the job you take, $60,000 might be an excellent entry salary. After contributing a healthy $16,000 to your tax-deferred 401 (k), you are left with $60,000 in gross income to live. This is a normal annual income for a family if you live in an inexpensive city and know how to manage and plan your finances wisely. More money has been made in real estate than in all industrial investments combined.. A comfortable salary for a family of 4 is about $116,000. There are other factors of course, but overall, these are some of the most prominent. Recommended Reading: Overview of Real Estate Investing. We and our partners use cookies to Store and/or access information on a device. Easy home jobs online that you need to know to earn extra money. You can live comfortably on this salary if you budget properly and have no major expenses. 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. 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). If so, then yes. Even if youre a single person, rent may be a challenge to pay given the current average monthly rate. This is why it is important to find a job that will allow you to grow and develop your skills. There are also other extra expenses to keep in mind when living in Canada. You can afford pretty much anything in moderation. 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. As long as you keep expenses low, you should be able to live comfortably on this salary. 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. A family would bring home $1,015 weekly after taxes. You will be amazed at how many options are out there to invest in. In general, you can live comfortably on this salary, but you may have to be careful with your spending. With discipline and proper financial planning, you can get by comfortably. A salary of $60,000 a year, means that your net monthly income is approximately $4,250. However, each US dollar is roughly $1.25 Canadian at the current exchange rate, which can get slightly confusing. Your $60,000 annual income can only be good enough if you live in a state where the cost of living isnt insanely high. You are earning 12% more than the average annual salary. Is $60,000 a good salary in Canada? Maybe shopping is your spouses favorite hobby. Then create a budget that allocates your spending in a way that allows you to save money. Money Peoples is a free resource for anyone looking to make an income in the gig economy. 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. Make a budget and stick to it: Track your spending for one month to see where your money goes. If you made it this far in this article, you have been through the math. Not at all. And theyre a follows: States such as Washington DC and Los Angeles have some of the most beautiful cities in America. By signing up, you'll also be added to my legendary travel lifestyle email list. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Do you want to make money from your passion for photography? If you need a good idea after reading this article, make sure to set good financial goals. The average salary in the US is $51,000 a year. One key factor is controlling your lifestyle and avoiding lifestyle creep. 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. Youll need to take your own personal finances and financial goals into account. Can You Make Good Money Fast As A Groceries Delivery Driver? If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. One reason things feel pricey in Canada is that many common items in the U.S. have to be imported to other countries. Your cost of living varies depending on whether youre single or a family of 3. To be clear, several factors determine whether $60,000 can be enough for you to live on. Another major factor is where you live and your responsibilities. My plan is to use the money to get humanity to Mars and preserve the light of consciousness. Now if you are paying taxes it will most likely be closer to $903 - $980. Want to learn how to travel for free? Your family of four should be okay provided you have a proper budget plan. ($60,000 - $13,000) / 24 = $1,958.33. Yes, $60,000 a year is good for a family of 3. The average health insurance premium in California is $487 per month. You are earning 20.6% more than the average annual salary. Chances are youll also be renting a private bedroom inside someone elses place. According to their own estimates, this tax only covers ~10% of the $3.5 trillion spending bill. Sign up to make sure you get your free consultation. PhD grads earn 23% more than Masters Degrees. As a student, you may not have a lot of experience in the workforce. Paying health insurance and adding to a retirement plan could have you eating ramen every day. Home loans providers have varying requirements. The average personal salary in the U.S. is $63,214, meaning that $60,000 is a healthy amount. That means that every month before taxes you will be bringing in a monthly salary of $5,000. Its not that theyre survivalists by nature. The average salary for new college grads is $55,260, with many jobs paying as low as $40,000 for entry-level positions. The final verdict is this: Is $60,000 a good salary? People that earn $60,000 per year dont bring that money home. The U.S. is a huge place. 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. Which is $12,740 more per year than the average salary in the US. You wouldnt make enough to save or even cover your expenses. In expensive cities like San Francisco, you cant afford much. Before you settle for an office job, consider the perks of a stay at home job. Yes, $60,000 a year is good for a single person. If you get paid weekly, you could get a check for $903 - $980, depending on your tax liabilities. Rather, they plan their wages accordingly and live within their means. Having a good education is usually helpful but not always necessary, and certain jobs are more likely to come with six figure salaries. 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. In 2020, the median household income in the United States was $67,521 which means that there are more households making above $60,000 than below it. 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. Food is going to run you a fraction of the cost. So today, well look at how good a $60k salary is in different places in the United States and more interestingly, different places in the world. Some considerations would include inflation over time, cost of living where you are employed, cost of housing and food, etc. This is especially true if you have a family to take care of as well. Personally, if your life circumstances allow it and you are comfortable with it I would look into buying over renting. Is Earning $50,000 Considered Rich? Do you want to live like a king or queen? 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. If youre not after extravagant living, $60,000 may be enough for a family of four. 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. The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. Plus there are strategies like house hacking that can help bring your housing costs down, and some people can make a profit! This adds up to $200 per month, or $2400 per year. While everyone understands the phrase middle class differently, it generally means you have more money to spend than those who earn the minimum hourly wage of $7.25 an hour and less money than those who make more. This is a good wage for many jobs, but it may vary depending on your position and experience. 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. But $40,000 a year makes you a low earner if your job is full-time. Making $60,000 a year is $5,000 per month. You are earning 2% more than the average annual salary working full-time. More importantly, is what you are doing with your money. The lifestyle you can afford with a 60k salary depends on where you live. Which is $8,260 less per year than the average salary in the US. Theaverage monthly expenses per household are $5,111 per month or $61,332 per year. Its important to always compare apples to apples. If youre not sure how youre lifestyle will affect your disposable income, try creating a list of your regular expenses and running some calculations. That depends on how frequently you get paid, and how much taxes you are liable for. Hey, I dont get paid weekly, or biweekly. 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). Meaning, one person could be paying $4,200 extra per year in taxes. 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. A salary of $65,000 can be a high income in many parts in the United States but below average in other parts. 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. The important thing to note for this sample budget is that it is based on the high end of the monthly take-home range at $4,250. The estimated cost of living for a family of four is $4,900 a month. However, in places such as such as Los Angeles or New York City, no matter how responsible you are with your money, you may struggle live comfortably on a $60K salary. The median household income in 2023 is about $76,000. $44,000 per year (-$16,000 tax reduction). A family would bring home $26.40 per hour after taxes. 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. Youd be taking home around $44,000 a year after taxes with a $60,000 a year salary. Your rent payment should not exceed 28% of your gross monthly income. 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. A living wage is an hourly wage needed to cover your living expenses. But in high cost of living cities, a $60k salary is just barely scraping by. Is $60,000 a good salary? In cities, having your own vehicle isnt necessary. 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.. Some people argue that you never really know how much you earn unless you know your hourly wage. This post contains affiliate links, which means I may receive a small commission, at no extra cost to you, when you make a purchase. Meanwhile, hitting those six figures seems to make all the difference: 56% of those surveyed said they considered. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. However, certain areas are also far more expensive than others, which can have complicated explanations. Zippia.com. 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. 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. But if you live in San Francisco and have a spouse and a couple of kids, youre going to struggle. Another reason is taxes are higher. With this salary, a person could expect to make $1,534 every week, or $6,223 per month. Lets look at how earning a yearly salary of $60,000 works out for different family sizes. Keep in mind that how much you get as your take home pay will vary depending on the tax rate in your state. If you live in a low cost of living area or you are single your salary will stretch further. I would recommend saving what you think is comfortable right now. We have articles on everything from making extra money to how you can make $100,000 a year. If you are worried about what you can afford, I would look into increasing your income through side hustles. According to data from the US Census Bureau, the median personal income for individuals in the United States was approximately $35,900 . With a median salary of $63,293, the average resident of the Badger State is in a relatively good financial spot . Where should I send your packing checklist? In this situation, $60,00 a year would not be enough. Most people, me included, recommend spending no more than one-third of your income on housing. With this, you can afford a $500-$750 a month car payment. 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. Continue with Recommended Cookies. The best part about working from home is the How to Make a Fortune Selling Your Photos Online. A year has 52 weeks, so that means that we can divide $60,000 by 52 to find how much $60k is a week. Lets backtrack a little to find out how we got to this number. In the United States, the median income is roughly $67,000. You wont live well on a $60,000 salary in DC, for example. (Or Too Hard? It may be more difficult the more people in your family, but it is entirely possible. You can also save money by contributing to a 401k or IRA. $60,000 a year comes out to $2,308 every two weeks. We all gotta eat. Be the first to rate this post. If youre looking for more information on making money, be sure to check out our other blog posts on the subject. 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