When it comes to how much we should get paid for the work that we do, most of us think about our hourly wage. For most people, having a job that pays well is a top priority, and they will do whatever it takes to make sure they are bringing in at least $60,000 each year.
But what if I told you that number is actually lower than what you are worth? Considering all the time and effort, you put into your job, you really need to know what this number is. So, let’s calculate how much you are worth per hour and see what you can do to increase your earnings.
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60k a Year Is How Much an Hour?
In order to answer this question, we need to first calculate your annual salary and then divide it by the number of hours you work in a year. For example, if you make $60,000 a year and work every week of the year (52) for 40 hours per week, your hourly wage would be $28.85.
However, if you only worked 37.5 hours per week, your hourly wage would be $30.77.
So, the answer to the question “60k a Year Is How Much an Hour?” really depends on how many hours you work in a year. If you work full-time, you can expect to make around $28.85 per hour, but if you work less, your hourly wage will be higher.
How Much Do You Earn After Taxes?
So, we all know the amount you earn as a salary is nowhere near the amount you can actually spend. If you make sixty thousand dollars a year, your take-home pay will vary depending on the tax bracket you are in. The United States has a progressive tax system, which means that the more money you make, the higher percentage of taxes you pay. It will also vary depending on the state you live in.
For example, in New York, the average tax rate is around 22.9%, so if you make $60,000 a year, your take home pay would be $46,140. In Rhode Island, the average tax rate is 21.3%, so if you make $60,000 a year, your take home pay would be $47,192.
Alaska has a lower average tax rate of 18%, so your take home salary would be $49,189. Florida is even lower at 17.6%, so you would make an extra $253 if you live there!
Is Sixty Thousand Dollars A Year a Good Salary?
This really depends on a few different factors. The cost of living in your area, your lifestyle, and the size of your family all play a role in whether or not it is a good salary.
For instance, if you live in a rural area with a low cost of living, sixty thousand dollars might go a lot further than if you lived in a big city with a much higher cost of living.
The same goes for your lifestyle…
If you are content with living simply and not spending a lot of money on luxury items, then it might be enough to easily support your way of life. However, if you have expensive tastes and enjoy going out often, you might find that the money does not go very far.
Lastly, the size of your family also plays a role in whether or it is a good salary. If you have a large family with many mouths to feed, you might find that it is more difficult to make ends meet on this salary. It is not just food you have to consider but home size, costs associated with school, extracurricular activities, medical and dental, etc.
How to Live on $60,000 a Year
If you find yourself earning this much but are still struggling to make ends meet, there are a few things you can do to ensure you are living within your means.
First, take a close look at your spending habits and see where you can cut back. Do you have any subscriptions or memberships that you can do without? Are there any luxuries that you can live without? Cutting back on your spending can free up more money to put towards essentials.
Secondly, make a budget and stick to it…
Determine how much you need to spend each month on essentials like rent, food, and utilities. Then, allocate a certain amount of money for discretionary spending. This will help you to stay on track of what you spend and make sure you are not overspending.
Make sure you are staying on top of your finances. Keep track of your income and expenses so that you can see where your money is going each month. This will help you make adjustments to your budget as necessary.
Last but not least, try to increase your income if possible. If you are able to bring in more money each month, it can help you to cover your expenses and even save money. There are a number of ways to do this, such as getting a raise at work, taking on a part-time job, or a side hustle.
Some day-by-day tips include:
- Make your coffee at home instead of buying it every day
- Pack your lunch instead of eating out
- Use coupons when grocery shopping
- Avoid buying things you do not need
- Comparison shop to get the best deals
- Bulk buy items when they are on sale
- Make a list before you go shopping
- Avoid using credit cards if possible
- Turn off electronics when you are not using them
So how does 60k compare to the average American salary?
In 2020 the average American full-time male worker earned $61,417 and $50,982 for women. So, if you are a man earning 60k, you are actually slightly below average. If you are a woman earning 60k, you are well above average.
The minimum wage in most states is around $7.25, so the $28.85 you could make if you work 40 hours a week is well over the minimum. But again, this really depends on the state you are living in.
Want to earn more?
Time is money, so they say! So, check out the Top Easy Jobs That Pay Well and some Flexible Jobs That Let You Set Your Own Hours for a few great job ideas, and if you’re on the hunt for work, then my guides on How Do I Convert Salary To Hourly To Calculate A Part Time Rate or the differences between Salary Vs Hourly Pay should come in handy in 2023!
Or, perhaps you’re not sure exactly how many hours you’d like to work? If so, take a look at Part Time And Full Time Hours, as well as our 15 Part Time Jobs That Pay More Than 40 Per Hour or 20 Part Time Jobs That Pay More Than 20 Per Hour to help you make up your mind.
Finally, during your next interview, you could well need to know how to answer What Are Your Salary Expectations, How To Answer Desired Salary or maybe How To Counteroffer Your Salary After A Job Offer.
60k a Year Is How Much an Hour – Final Thoughts
While sixty thousand dollars a year is not a high salary by any means, it is possible to make it work if you are mindful of your spending and take steps to live within your means. By following the tips I have included, you can make sure that you are making the most of your money and keeping your finances in order.
Happy spending and saving!