If you have ever applied for a new job, you know how difficult it can be to figure out what kind of money you will be making if you get it.
This is especially true when recruiters offer you an annual number that does not factor in any tax deductions, etc.
For this reason, it is vital to figure out just what you will be making at your new job in order to support yourself or your dependents.
So, if you apply for a job where you are told that you’ll make $60k a year, what does that really mean?
Is 60k a year a good salary to have?
How much is $60,000 a year per hour exactly?
Will you be able to meet your expenses in that kind of income or would you need some additional jobs to make ends meet?
Let’s start by figuring out how much is 60k a year hourly.
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- $40,000 a Year is How Much an Hour?
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- $15 An Hour Is How Much A Year (Is It Enough?)
$60000 a Year is How Much an Hour?
First of all, let us get some bases straight.
We will consider that your new job expects you to work 40 hours a week, for the whole year.
That means you will be working for 2080 hours each year (for a total of 52 weeks) and make a total of $60k a year. In such a scenario, you will be making around $28.85 per hour.
In terms of paychecks, this is what you would expect to receive:
- On a weekly basis: $1,153.84
- On a bi-weekly basis: $2,307
- On a monthly basis: $5,000
Now, let’s assume that this number includes all the taxes you would have to pay.
In that case, you would be expected to pay somewhere between $11,000 and $15,200 in taxes per year, depending on which state you live in.
Deduct that from your $60 a year salary and you’re left with an income of $44,800 – $49,000.
That is quite a big difference.
And that is exactly why you need to always clarify what your salary is going to be after tax deductions.
Otherwise, you may end up with much less money in your bank account than you had expected.
With this in mind, your actual paycheck will look something like this:
- On a weekly basis: between $861.53 and $942.30
- On a bi-weekly basis: between $1,723.07 and $1,884.61
- On a monthly basis: between $3,733.33 and $4,083.33
As you can see, when you convert a yearly 60000 salary to hourly after all tax deductions, there is a significant difference in what you can take home.
So, if you have ever asked someone “$30 an hour is how much a year?” and they’ve told you that it’s somewhere near $60,000, then the actual number after factoring in taxes may be much lower.
Is 60k a Year Good Enough to Live On?
While it depends a lot on your lifestyle and the number of people you’re supporting, generally speaking, it should be enough for a family.
All you need to do is create a budget based on your $60,000 salary after taxes so that you are always in control of your funds.
Knowing this will help you utilize your time better too. You can always rely on supplementing your income through doing some other side-hustle or sign up and get some free stuff from Amazon Direct Ship every month.
How to Make a 60000 Salary After Taxes?
Let’s say that your job does not actually require you to work 40 hours every week.
That means that while you’ll still be making $60k a year, you will actually earn more than $28.85 per hour. Now, you’ll be able to utilize the rest of your time to do some other work, like freelancing, to increase your annual income greatly.
A lot of people choose to do freelance writing on platforms like Writers Work.
It’s all about how you manage your time at your main job.
If you are a fast learner or you know how to properly delegate your work to others, you can save precious time from your main job and put that to use in other ways.
That way, when your overall earning increases, you can make something close to $60000 a year after paying all taxes.
How is $60000 Compared to Others in the US?
The median household income in the US, as per surveys done in 2018, was $63,179.
So, a $60k a year salary is very close to the median income.
While this is not a very useful measure for most people, it should give you an idea of where you stand in terms of annual income within the country.
It should be noted though that this number is based on one household, not an individual.
So, if you have more people in your household that make money, your household income could be significantly higher than the median amount.
Now that you know how much an hour is $60,000 a year and what you can really expect to earn after paying taxes, you should be in a better position to accept a new job or ask for a raise.
Figure out how much you need to earn every week, or every month, or every year in order to fulfill your needs and desires, and then use the breakdown in this guide to understand whether $60k is a good salary for you or not.
And once again, do not forget to clarify the tax situation with your employer in accordance with your state laws.
Once you do that, you will have much better control over your financial life and related decisions.