Getting paid a whopping $60,000 in a year might be a game changer for your finances, but there are several factors to consider when determining if $60,000 will be enough for your needs and expenses. And it starts with deciding how much an hour is 60000 a year.
It might not be enough for you depending on your financial situation, including the number of family members and unpaid debts. When you get a job offering this amount annually, it is always best to break this income into hourly, daily, weekly, and monthly rates, especially when considering tax.
In this blog post, I have decided to break down this amount to see if it will be enough to live by considering several factors. I also have tips you can use to live on this annual salary.
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How Much an Hour Is 60000 a Year?
The breakdown of a yearly salary will help you determine if it will be enough for you or not. Here’s my breakdown, assuming you work 8 hours a day for five days a week.
The total hours worked in a day is 8 hours.
5 working days a week make the total hours worked weekly = 40 hours.
In a year, we have 52 weeks, meaning the total hours worked yearly = 2,080 hours.
$60,000 / 2,080 = $28.85 hourly
$28.85 per hour * 8 hours in a day = $230.77 daily
$230.77 daily * 5 working days in a week = $1,153.85 weekly
$1,153.85 weekly * 2 biweekly = $2,307.69 biweekly
$2,307.69 biweekly *2 = $4,615.38 monthly pay
Note that this breakdown excludes tax, off days, overtime pay, and other holidays. The difference in countries that pay tax can be as high as $500 or even more.
Jobs That Pay You $60,000 a Year.
If you search online, several jobs can pay you as high as $29 per hour. You can also find some online and might not even require a degree to start.
Here is my list of the top viable jobs you can get that will pay you at least $30 per hour, excluding benefits and tips.
|JOB||AVG. PAY||TYPE||REQUIREMENT||JOB DESCRIPTION|
|Foreman||$30||Offline||High school diploma or training license||Plan and supervise electrical projects for clients.|
|Makeup artist||$30||Offline||Experience||Apply makeup for clients.|
|Photographer||$35||Offline||Experience||Take photographs of clients at events and edit.|
|Sales representative||$30||Offline & Online||Experience mostly or license for some specific niche||Sell goods or services on behalf of a manufacturer, wholesaler, or company.|
|IT Technician||$35||Offline||Bachelor’s degree is preferred. Still, some experience can be enough for some employers.||Resolving IT issues such as installing, repairing, and maintaining electronic gadgets.|
|Blogger||$30||Online||Training||Write blog content and upload it to a website.|
|Web developer||$35||Online & Offline||Bachelor’s degree or training license||Create and maintain websites and web applications.|
|Real Estate agent||$40||Offline||Experience||Buy, sell or rent housing properties.|
|Copywriter||$30||Online & Offline||Experience||Make sales copy that can convert clients.|
Most of these jobs do not require a bachelor’s degree, and you can get them based on experience and a good portfolio plus marketing.
Is $60,000 a Good Yearly Salary?
Yes, with 60k, you can live a comfortable life, but it can’t always work for everybody, especially if you live in a no-tax state and get to take home the entire income. Several other factors can affect what counts as a good yearly income.
Factors That Affect Living With $60,000 a Year
Tax is one of the things that significantly affect your income and how sufficient it will be for you. Some countries can tax you as high as 20% on a $60,000 salary, which means you will be deducted as much as $12,000!
- Number of dependents
If you have a large family or non-family that depends on you, it can also affect your yearly income. Where $60,000 can be enough for a family of 3 or 4, it might barely be enough for a family of 6.
- High cost of living
According to CNBC, here are the top 10 states in America with a high cost of living starting from the 10th:
- New Jersey
- Rhode Island
- New York
Living in these high-priced states might make your yearly salary seem like a chicken change.
Having unpaid debts from banks or private creditors will also affect the sufficiency of your yearly income. Let’s assume 60% of your monthly salary goes to debt; the rest will not be enough to care for your needs, talkless of wants and savings.
- Bad money habits
Living on $60,000 yearly might be challenging if you have bad money habits. You can try using budgeting apps and try some money-saving challenges to get you to save more.
How to Budget $60,000 a Year?
There are two basic methods to live on a $60,000 annual income:
50/30/20 is a form of budgeting that divides your yearly income into three categories. 50% goes to caring for your needs, 30% to your wants, and 20% to savings.
This method might work for you, especially if you do not have a lot of unpaid debts, so there is room for savings.
- Envelope budgeting
This more hands-on budgeting technique requires you to divide your income into several categories and put the cash into an envelope. So, if you have 12 income categories, you buy 12 envelopes, label them, and put the cash for the categories in each envelope.
Tips for Living on $60,000 a Year
- Get a side hustle: If you notice that your yearly income might not be enough for you to live on, it is always best to get a side hustle. Even if the income is enough, a side hustle will allow you to be able to save more.
- Automatic savings: Always automate your savings. Several saving and budgeting apps will help you do that, making saving easier.
- Always budget: Always create a budget for your monthly income and stick to it.
- Lower your expenses: Spend less on convenience and more on needs.
- Pay off existing debts: This is the first thing to do. You can learn how to live frugally and manage as hard as possible for the required months. When you have paid off your high-interest debts, you can focus on budgeting and saving.
- Stop borrowing: When you have debts off your mind, you should also cultivate good money habits like avoiding borrowing.
Conclusion– how much an hour is 60000 a year
Now that you know how much an hour is 60000 a year, you also know the daily, weekly, bi-weekly, and monthly rates for that yearly income.
This kind of annual salary will be enough to help you save, live in a decent neighborhood, and also be able to invest some of your money into a profitable business.
Of course, all these depend on several factors and may not suit everyone, as there are differences in tax and cost of living.
I would love to hear from you. Do you think $60,000 a year is a good salary? When do you think it is not a good salary?
READ ALSO: $40000 A YEAR IS HOW MUCH AFTER TAX (HOW TO BUDGET)
Michael launched Wealth of Geeks to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.