So, you’re out with mates having a pleasant dinner and catching up.
Out of the blue, considered one of your mates tells you that she simply received a brand new job and he or she’s making $55,000 per 12 months.
She’s tremendous excited, in fact as a result of beginning a brand new job is a serious life occasion.
After she fills you in on all the small print of her new position, you begin questioning, is $55,000 per 12 months an excellent wage?
Ought to she be selecting up the test on your dinner out now that she’s making $55000 a 12 months?
Is 55,000 {dollars} per 12 months a livable wage in 2023? What can you actually afford when you make 55k per 12 months?
Let’s break down how a lot $55,000 a 12 months actually is:
55,000 per 12 months = 26.44 per hour (40 hours per week)
55,000 per 12 months = 211.54 per day (8 hours per day)
55,000 per 12 months = 1,057.69 per week (52 weeks per 12 months)
55,000 per 12 months = 4,583.33 monthly (12 months per 12 months)
Sadly, the numbers above aren’t your true take house pay. We nonetheless should issue within the taxes that can be taken out of every paycheck. As soon as you’re taking out taxes, what you could have left is your true take house or “web” pay.
I estimate that 25% of our gross paycheck goes in direction of taxes. This quantity is an estimate and the quantity you pay for taxes could possibly be increased or decrease, however 25% is an effective place to begin.
So after taking out 25% for taxes, right here’s what you’ll clear on $55,000 per 12 months after taxes:
Per Hour: 26.44 x 25% taxes = 6.61 for taxes. 26.44-6.61 = $19.83 Internet Per Hour after taxes.
Per Day: 211.54 x 25% taxes = 52.89 for taxes. 211.54-52.89 = $158.65 Internet Per Day.
Per Week: 1,057.69 x 25% taxes = 264.42 for taxes. 1,057.69-264.42 = $793.27 Internet Per Week.
Per Yr: 4,583.33 x 25% taxes = 1,145.83 for taxes. 4,583.33-1,145.83= $3,437.50 Internet Per Month
The dangerous information is that you simply’ll at all times should pay taxes. The excellent news is that some states don’t have a tax on wages, so you might keep away from paying the state wage tax when you stay in considered one of these states.
The states that don’t at the moment tax wages are: Alaska (really, you may even get paid to relocate to Alaska), Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee.
If you’re contemplating shifting to Tennessee, then you need to test these pros and cons of living in Tennessee.
Is 55,000 A Good Wage?
In line with the Bureau of Labor Statistics (BLS), the median wage for staff in the USA within the 4th quarter of 2022 was $1,084 per week or $56,368 per 12 months (assuming 52 weeks of labor per 12 months). Wages have been 7% increased than a 12 months earlier in 2021.
In your specific scenario, it’s onerous to say if 55,000 per 12 months is an effective wage as a result of it’s all relative. And it largely relies on what your accustomed to incomes. If you happen to’re used to making 40K a year, a wage of 55,000 might be unbelievable for you.
If nevertheless, you’re used to creating 70,000 per 12 months, getting used to a wage of 55,000 per 12 months will most likely take some changes.
The excellent news is that we are able to present you how one can finances to make 55,000 per 12 months be just right for you and your loved ones.
You’ll discover that the primary line of our finances is at all times financial savings. It is because we strongly imagine in paying your self first.
The one approach to get forward financially is to save lots of, save, and avoid wasting extra! In reality, we imagine in saving a minimum of 15% of your revenue, and 20% is even higher.
This finances exhibits how one can save 15% and nonetheless be capable to pay for day-to-day life:
Internet Month-to-month Earnings: $3,437
Month-to-month Price range For A Couple
- Financial savings: $800
- Housing: $1,000
- Automobile Fee: $350
- Utilities: $200
- Insurance coverage: $200
- Cellphone: $50
- Meals: $350
- Private: $250
- Leisure: $225
Right here is similar $3,437, this time budgeted for a household of 4:
- Financial savings: $562
- Housing: $1,000
- Automobile Fee: $300
- Utilities $250
- Insurance coverage: $200
- Cellphone: $50
- Meals: $600
- Private: $250
- Leisure: $225
So you may see that $55,000 per 12 months is a livable wage for {couples} or households however you’ll should put forth some effort to make it work. First, you’ll wish to arrange a finances so you already know the place your cash goes.
Why Ought to I Have A Price range?
Folks hate the phrase finances, however with a finances you’re telling your cash what to do; not the opposite method round. If in case you have a month-to-month finances, you could have energy over your cash.
A easy finances could be very simple to create. Try our simple budget templates.
Lots of people suppose making a finances limits them to what they’ll do with their cash. In my expertise, it’s simply the other. A finances is releasing!
What Precisely Is A Price range?
Merely write down your month-to-month revenue and subtract your month-to-month bills.
Don’t overlook to pay your self first and record your financial savings as the primary merchandise in your finances. That is your finances. The fantastic thing about a finances is that you simply’re in management and you’ll change up your finances at any time.
As an example, when you had a automobile mortgage and simply paid it off, guess what? Now you resolve what you wish to do with that cash that was going in direction of your automobile cost.
I’d at all times recommend placing any cash you now not want for payments straight into financial savings. Even when you don’t suppose it’s a lot cash, imagine me, it is going to add up over time!
What If I Can’t Afford To Save Cash?
You may’t afford NOT to economize.
If you happen to don’t get monetary savings, you’ll by no means have cash. Do you actually wish to stay paycheck to paycheck? No method!
You’re too good for that. So even when you’ve by no means been ready to economize previously, beginning now, you may practice your self to economize.
Begin Small
Step one to saving is to ascertain an emergency fund.
This can be a fund to pay for any emergency so that you don’t should borrow cash or use a bank card. Everyone knows that monetary troubles pop up on a regular basis so that you must be ready.
Open a separate financial savings account that’s ONLY for use for emergencies. Goal to construct up the fund so you could have a minimum of $1,000.00.
How Do You Enhance Financial savings?
When you get the grasp of sticking to your month-to-month finances and saving cash each month, you’ll most likely wish to improve your financial savings charge.
There are many alternative ways you may improve the sum of money you save every month. You will have to get artistic, or drastically cut your expenses however it is going to positively repay.
Strive a Aspect Hustle
Proper now I’m working a few aspect gigs that to assist pay for my journey to Florida this spring. I made a decision I didn’t wish to use my pay from my full-time job and challenged myself to earn sufficient cash with a aspect gig to pay for the apartment we’ll be staying at for a month this spring.
I’ve been working about 15-20 hours per week at my aspect gig since mid-September. I’m effectively on my method and it hasn’t been that tough! A few of the aspect gigs I’ve picked up are seasonal and solely momentary; others are everlasting part-time gigs.
If you happen to’re undecided what sort of aspect hustle is best for you, use these lists to get the ball rolling:
Wrap Up
Now that you understand how a lot $55,000 per 12 months actually is, you may resolve whether or not that could be a good wage for you and your loved ones. If you happen to suppose that you must earn extra to have the approach to life you want, you may at all times choose up a aspect gig.
Another choice to contemplate is shifting to a metropolis and state the place the price of dwelling is decrease in order that the $55,000 per 12 months will go additional for you and your loved ones
So, you’re out with mates having a pleasant dinner and catching up.
Out of the blue, considered one of your mates tells you that she simply received a brand new job and he or she’s making $55,000 per 12 months.
She’s tremendous excited, in fact as a result of beginning a brand new job is a serious life occasion.
After she fills you in on all the small print of her new position, you begin questioning, is $55,000 per 12 months an excellent wage?
Ought to she be selecting up the test on your dinner out now that she’s making $55000 a 12 months?
Is 55,000 {dollars} per 12 months a livable wage in 2023? What can you actually afford when you make 55k per 12 months?
Let’s break down how a lot $55,000 a 12 months actually is:
55,000 per 12 months = 26.44 per hour (40 hours per week)
55,000 per 12 months = 211.54 per day (8 hours per day)
55,000 per 12 months = 1,057.69 per week (52 weeks per 12 months)
55,000 per 12 months = 4,583.33 monthly (12 months per 12 months)
Sadly, the numbers above aren’t your true take house pay. We nonetheless should issue within the taxes that can be taken out of every paycheck. As soon as you’re taking out taxes, what you could have left is your true take house or “web” pay.
I estimate that 25% of our gross paycheck goes in direction of taxes. This quantity is an estimate and the quantity you pay for taxes could possibly be increased or decrease, however 25% is an effective place to begin.
So after taking out 25% for taxes, right here’s what you’ll clear on $55,000 per 12 months after taxes:
Per Hour: 26.44 x 25% taxes = 6.61 for taxes. 26.44-6.61 = $19.83 Internet Per Hour after taxes.
Per Day: 211.54 x 25% taxes = 52.89 for taxes. 211.54-52.89 = $158.65 Internet Per Day.
Per Week: 1,057.69 x 25% taxes = 264.42 for taxes. 1,057.69-264.42 = $793.27 Internet Per Week.
Per Yr: 4,583.33 x 25% taxes = 1,145.83 for taxes. 4,583.33-1,145.83= $3,437.50 Internet Per Month
The dangerous information is that you simply’ll at all times should pay taxes. The excellent news is that some states don’t have a tax on wages, so you might keep away from paying the state wage tax when you stay in considered one of these states.
The states that don’t at the moment tax wages are: Alaska (really, you may even get paid to relocate to Alaska), Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee.
If you’re contemplating shifting to Tennessee, then you need to test these pros and cons of living in Tennessee.
Is 55,000 A Good Wage?
In line with the Bureau of Labor Statistics (BLS), the median wage for staff in the USA within the 4th quarter of 2022 was $1,084 per week or $56,368 per 12 months (assuming 52 weeks of labor per 12 months). Wages have been 7% increased than a 12 months earlier in 2021.
In your specific scenario, it’s onerous to say if 55,000 per 12 months is an effective wage as a result of it’s all relative. And it largely relies on what your accustomed to incomes. If you happen to’re used to making 40K a year, a wage of 55,000 might be unbelievable for you.
If nevertheless, you’re used to creating 70,000 per 12 months, getting used to a wage of 55,000 per 12 months will most likely take some changes.
The excellent news is that we are able to present you how one can finances to make 55,000 per 12 months be just right for you and your loved ones.
You’ll discover that the primary line of our finances is at all times financial savings. It is because we strongly imagine in paying your self first.
The one approach to get forward financially is to save lots of, save, and avoid wasting extra! In reality, we imagine in saving a minimum of 15% of your revenue, and 20% is even higher.
This finances exhibits how one can save 15% and nonetheless be capable to pay for day-to-day life:
Internet Month-to-month Earnings: $3,437
Month-to-month Price range For A Couple
- Financial savings: $800
- Housing: $1,000
- Automobile Fee: $350
- Utilities: $200
- Insurance coverage: $200
- Cellphone: $50
- Meals: $350
- Private: $250
- Leisure: $225
Right here is similar $3,437, this time budgeted for a household of 4:
- Financial savings: $562
- Housing: $1,000
- Automobile Fee: $300
- Utilities $250
- Insurance coverage: $200
- Cellphone: $50
- Meals: $600
- Private: $250
- Leisure: $225
So you may see that $55,000 per 12 months is a livable wage for {couples} or households however you’ll should put forth some effort to make it work. First, you’ll wish to arrange a finances so you already know the place your cash goes.
Why Ought to I Have A Price range?
Folks hate the phrase finances, however with a finances you’re telling your cash what to do; not the opposite method round. If in case you have a month-to-month finances, you could have energy over your cash.
A easy finances could be very simple to create. Try our simple budget templates.
Lots of people suppose making a finances limits them to what they’ll do with their cash. In my expertise, it’s simply the other. A finances is releasing!
What Precisely Is A Price range?
Merely write down your month-to-month revenue and subtract your month-to-month bills.
Don’t overlook to pay your self first and record your financial savings as the primary merchandise in your finances. That is your finances. The fantastic thing about a finances is that you simply’re in management and you’ll change up your finances at any time.
As an example, when you had a automobile mortgage and simply paid it off, guess what? Now you resolve what you wish to do with that cash that was going in direction of your automobile cost.
I’d at all times recommend placing any cash you now not want for payments straight into financial savings. Even when you don’t suppose it’s a lot cash, imagine me, it is going to add up over time!
What If I Can’t Afford To Save Cash?
You may’t afford NOT to economize.
If you happen to don’t get monetary savings, you’ll by no means have cash. Do you actually wish to stay paycheck to paycheck? No method!
You’re too good for that. So even when you’ve by no means been ready to economize previously, beginning now, you may practice your self to economize.
Begin Small
Step one to saving is to ascertain an emergency fund.
This can be a fund to pay for any emergency so that you don’t should borrow cash or use a bank card. Everyone knows that monetary troubles pop up on a regular basis so that you must be ready.
Open a separate financial savings account that’s ONLY for use for emergencies. Goal to construct up the fund so you could have a minimum of $1,000.00.
How Do You Enhance Financial savings?
When you get the grasp of sticking to your month-to-month finances and saving cash each month, you’ll most likely wish to improve your financial savings charge.
There are many alternative ways you may improve the sum of money you save every month. You will have to get artistic, or drastically cut your expenses however it is going to positively repay.
Strive a Aspect Hustle
Proper now I’m working a few aspect gigs that to assist pay for my journey to Florida this spring. I made a decision I didn’t wish to use my pay from my full-time job and challenged myself to earn sufficient cash with a aspect gig to pay for the apartment we’ll be staying at for a month this spring.
I’ve been working about 15-20 hours per week at my aspect gig since mid-September. I’m effectively on my method and it hasn’t been that tough! A few of the aspect gigs I’ve picked up are seasonal and solely momentary; others are everlasting part-time gigs.
If you happen to’re undecided what sort of aspect hustle is best for you, use these lists to get the ball rolling:
Wrap Up
Now that you understand how a lot $55,000 per 12 months actually is, you may resolve whether or not that could be a good wage for you and your loved ones. If you happen to suppose that you must earn extra to have the approach to life you want, you may at all times choose up a aspect gig.
Another choice to contemplate is shifting to a metropolis and state the place the price of dwelling is decrease in order that the $55,000 per 12 months will go additional for you and your loved ones
