Is $60,000 a good salary? The answer to this question really depends on your personal circumstances.
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.
However, if you live in a more affordable area, like Tulsa or Wichita, $60,000 may be more than enough to cover your needs.
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.
In general, you can live comfortably on this salary, but you may have to be careful with your spending.
In this article, we will discuss what factors you need to consider when determining if $60,000 is a good salary for you.
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.
Let’s get started.
$60,000 a Year is How Much an hour?
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.
This is a good wage for many jobs, but it may vary depending on your position and experience.
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 is a further breakdown of a $60,000 a year salary before taxes:
- $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)
How much is $60,000 a year after taxes?
Now that we have discussed how much $60,000 is an hour, let’s take a look at how that income is taxed.
The amount of tax you will pay depends on your taxable income and your filing status.
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.
Assuming a general tax reduction of around $16,000 a year, you’d make around $44,000 a year after taxes. Here’s a general breakdown of what you can expect to make after taxes.
- $44,000 per year (-$16,000 tax reduction)
- $21.15 per hour (Annual ÷ 2080 hours)
- $169.20 per day (Hourly x 8 hours)
- $846.15 per week (Annual ÷ 52 weeks)
- $1,692.30 biweekly (Weekly x 2)
- $3,600 per month (Annual ÷ 12 months)
Is $60,000 a Year a Good Salary?
Now that we have looked at how much $60,000 is an hour, how much you get after taxes, and what jobs pay this salary, it is time to answer the question: is $60,000 a good salary?
Again, the answer to this question really depends on your personal circumstances.
However, in most cases, earning $60,000 a year is enough to live comfortably.
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.
Some people may find that they need more money while others may find that they can live comfortably on less. It all depends on your unique situation.
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.
Additionally, you should always consult a tax professional to get an accurate estimate of how much you will pay in taxes.
What can I afford with a $60,000 a year salary?
Now that we have answered the question is $60,000 a good salary, let’s take a look at what this income can afford.
Again, the answer to this question varies depending on your location and expenses.
However, in most cases, you can live comfortably on $60,000 a year.
This includes having enough money for rent or mortgage payments, food, transportation, and other necessary expenses.
You’d be taking home around $44,000 a year after taxes with a $60,000 a year salary.
The average rent for an apartment in the US is $1,124 per month, or $13,488 per year. That leaves $30,512 for other expenses after taxes.
If you have student loans or other debts, your monthly payments will reduce the amount of money you have for other expenses. The average monthly student loan payment is $460.
Assuming you don’t have any debt, you would have $24,992 leftover for savings and other living expenses such as:
- Groceries and other essentials
- Transportation costs
- Utility bills
- Phone bill
- Internet service
- Childcare or other family obligations
- Entertainment and leisure activities
It is important to remember that this is only an estimate and your actual expenses may vary.
Can You Save Money If You Make $60,000 a year?
The answer is yes, you can save money if you make $60,000 a year. However, it all depends on your lifestyle and expenses.
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.
The estimated cost of living for a single person in the US is $2,836 a month. 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.
For a family of four, the estimated cost of living is $4,900 a month. In this situation, $60,00 a year would not be enough. You wouldn’t make enough to save or even cover your expenses.
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. It all depends on your lifestyle.
How Can I Budget A $60,000 a year salary?
If you make $60,000 a year, you bring home $44,000 a year after taxes and other deductions.
To budget this salary, you need to first figure out your monthly expenses. 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.
Here are some tips on how to budget $60,000 a year:
- Invest in a 401k or IRA: You can automatically contribute $50 from each paycheck into your retirement account. This adds up to $200 per month, or $2400 per year.
- Save $50 from each paycheck: This equals $200 per month, or $2400 per year.
- Make a budget and stick to it: Track your spending for one month to see where your money goes. Then create a budget that allocates your spending in a way that allows you to save money.
- Find cheaper alternatives: If you have cable, consider switching to a streaming service like Netflix or Hulu. If you have a gym membership, cancel it and work out at home or outside. There are many ways to save money if you are willing to be creative
For the best ways to save $60,000 a year, check out my article on the best free printable budget templates to get your finances under control.
What Jobs make $60,000 a year?
There are many jobs that pay $60,000 a year. Choosing the right job opportunity for you will depend on your skills and past experience.
Here is a list of some jobs that pay $60,000 a year and do not require a college degree:
- Transportation, Storage, and Distribution Managers
- Salesperson
- Lighting Technicians
- Elevator Installers And Repairers
- Real Estate Agent
- Commercial Pilot
- Growth Marketer
- Web Developer
- Writer/Editor
- Graphic Designer
Where can I live comfortably on $60,000 a year?
It is important to remember that your cost of living may vary depending on your location. Of course, you can live anywhere on any salary, but some places are more expensive than others. 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.
If you are looking for a more affordable option, consider living in:
- Texas
- Oklahoma
- Missouri
- Arkansas
- Indiana
- Arizona
- New Mexico
- Virginia
Here is a list of some places that you might want to avoid due to the higher cost of living:
- Boston, MA
- Washington D.C.
- San Francisco, CA
- Chicago, IL
- New York, NY
- Los Angeles, CA
Ultimately, living in a higher cost of living location also opens the door for higher salaries so it is important to weigh your options.
FAQs on Making $60,000 a Year
Is 60k a Year Good if You’re Just Out of College?
As a student, you may not have a lot of experience in the workforce. This is why it is important to find a job that will allow you to grow and develop your skills. A job that pays $60,000 a year is a great opportunity for someone just starting their career.
As long as you keep expenses low, you should be able to live comfortably on this salary. You can also save money by contributing to a 401k or IRA.
Is 60k a Year Good for a Family of four?
A family of four may have a harder time living comfortably on $60,000 a year. This is because the cost of living is typically higher when you have more people to support.
The estimated cost of living for a family of four is $4,900 a month. In this situation, $60,00 a year would not be enough. You would need to make closer to $100,000 a year in household income to cover all of your expenses.
How much house can you afford making 60k a year?
It is important to remember that your salary is just one factor in determining how much house you can afford. You will also need to consider the cost of living in your area, your credit score, and other debts you may have.
Generally, you should only spend about 28% of your gross monthly income on housing expenses. This would mean that a family making $60,000 a year could afford a mortgage of $1800 a month. Keep in mind that this is an estimate and your personal situation may vary.
Conclusion
$60,000 is a good salary in most locations. You can live comfortably on this salary if you budget properly and have no major expenses. However, if you live in an expensive city or have a high cost of living, then you may need to make more money to cover your costs.
Overall, $60,000 is a solid salary that will allow you to live comfortably and save money with the correct planning and spending habits.
If you’re looking for more information on making money, be sure to check out our other blog posts on the subject. We have articles on everything from making extra money to how you can make $100,000 a year.
