Last Updated: March 4, 2022
Maybe you’ve calculated your annual expenses and savings goals, and now you’re looking for a new job that can gross you $60,000 a year. How much should you make an hour then, and do you qualify for the jobs offering this wage?
Let’s find out!
60k a Year is How Much an Hour?
While there are online converters that can give you the exact figure, we’ve done the research for you, elaborating on the topic for an as detailed answer as possible.
So, if we assume that you work 40 hours а week over 52 weeks of the year, you will work 2,080 hours a year. In this scenario, the hourly rate for 60k a year is $30.
This is toward the upper end of the hourly wage spectrum, yet it doesn’t fall within the most common ranges. Just around 13 million jobs pay between $30 and $40 an hour. Some of the professions in this bracket include accountants, registered nurses, and makeup artists.
How Much Is $60,000 a Week?
A salary of $30 an hour multiplied by eight hours a day equals $240 a day or $1,200 a week. And a 60k biweekly pay comes at $2,400.
Again, this is considering you work full-time with no overtime or vacations. If your workweek is 25 hours, your weekly pay will be $750.
But is this your 60k take-home pay? Have you forgotten about the taxes? Hope not, as tax evasion is a federal crime, and prosecutors wouldn’t accept any excuses.
$60,000 a Year After Taxes
You not only need to know your gross salary to determine whether you can live on it. You should also know the amount that’ll be in your pocket for your bills, food, and rent. Calculating your net salary will also help you determine whether you can afford to work less or more hours with your outgoings. So how much the income tax will bite out of your $60k annual salary?
According to the US tax system and the 2021 Federal income tax tables, your 60k salary after taxes is around $50,910 per year. But this depends on your residence too. Yes, some states have higher tax rates. So, making the most of your salary could mean moving to a different state that taxes less.
What Can You Afford with a $60k Annual Salary?
In 2020, the median household income was $67,521. This means that even for a single person, $60k a year is considered a comfortable amount. Of course, everyone has a different financial situation, and you have to assess your own to know whether $60,000 is good enough. Your spending habits and debt burden are all part of the equation. Whether you have children and where you reside also matter. Some states impose higher taxes and have different average salaries or living costs.
But, generally speaking, what can you afford with a 60k salary or a $30 hourly wage?
Every-day spendings aside, let’s talk about some of the major expenses we face – housing, car purchases, and savings.
The usual rule of thumb is that you can afford a mortgage of 2 to 2.5 times your annual income. With annual earnings of $60,000, that’s a $120,000 to $150,000 mortgage. And if you are a renter, your monthly housing expenses shouldn’t go higher than $1,500 per month.
When it comes to car-buying budget, most financial experts recommend spending half of your annual salary on your new vehicle. According to this rule, with a yearly salary of $60,000, you can spend up to $30,000 on your car purchase.
According to recent savings statistics, 38% of Americans can’t afford to save any money. Meanwhile, experts say your financial investments, including savings, should be about 20% of your income. With an annual salary of $60,000, you can set aside around $12,000 a year.
Let’s sum up: 60k a Year is How Much an Hour?
The 60k annual to hourly wage is $30. Is it enough?
When it comes to figuring out what salary is best for you, it’s about knowing your comfort level. For some people, their outgoings mean that a $60,000 per year salary wouldn’t be good enough. For others, it’s double their current annual income.
Regardless of your total income, it’s important to avoid living on less than you truly need. People end up in debt because they spend far more than their means. And believe us, $60,000 won’t be as much when you are living in debt with it!
You want a life of financial freedom, and the main steps to make that happen include creating a budget that is simple and easy to follow and a reasonable savings pattern.
When we convert a $60,000 salary to an hourly rate, the figure we get is around $30. This is considering you work full-time, or 40 hours a week.
If you work full-time and make 60k a year, your hourly rate after taxes is around $24.48.
$60,000 a year is a good salary for most people. Yet, your expenses, location, and household structure are all factors to weigh in.
With an annual salary of $60,000, a single person can live comfortably, considering the current living costs in the US.