How much is $60 an hour and how to budget it?
It's no secret that many people are living paycheck to paycheck. In fact, a recent study showed that 78% of Americans are in debt. And one of the biggest expenses we have is our housing costs. So, what does that mean for someone making $60 an hour? Well, let's take a look at how much you can realistically expect to bring home after taxes and other deductions, and then how you can budget that money so you're not living month-to-month especially as cost-of-living expenses rise.
If you're making an hourly wage of $60 an hour and are working a full-time 40-hour workweek, you're earning a yearly salary of $124,800, a monthly salary of $10,400, bi-weekly earnings of $4800, a weekly pay of $2400, and a daily salary of $480. That's a pretty good amount of money, and you should be able to live comfortably. However, it's important to remember that you still need to budget your money wisely.
If you’re making $124,800 a year, here’s how that money can be broken down:
Car Payment: $300/month
As you can see, with an annual salary of $124,800 you’ll have over $7,000 left each month.
But what if you don't get paid time off?
If you don’t get paid time off, your monthly expenses will be a little bit higher. Here’s how that same budget would break down if you didn’t get any paid vacation time:
Car Payment: $300/month
As you can see, without paid vacation time your monthly expenses would jump by $150, but you would still have extra money at the end of the month.
What can you do with that extra money?
1. Invest in yourself
One of the best things you can do with your money is to invest in yourself. Whether you're taking online courses or attending workshops and seminars, learning new things will always pay off in the long run.
There's no better way to see the world than by traveling it yourself. And with 60 bucks an hour, you could easily afford to jet off to some of the most amazing destinations on Earth.
3. Start your own business
If you've always dreamed of ditching your side hustle and starting your own business, now's the time to do it. With 60 bucks an hour, you could easily afford to get your business off the ground and running.
4. Treat yourself to a luxury vacation
If you've been working hard all year, you deserve a little bit of luxury. Why not treat yourself to a fabulous vacation at one of the world's most luxurious resorts?
5. Save for retirement
One of the smartest things you can do is save money for retirement. With 60 bucks an hour, you could easily set aside enough cash to ensure a comfortable retirement without having to rely on just social security income.
6. Give back to the community
One of the best things about having money is being able to give back to the community that helped make you successful. Why not use your hourly wage of 60 bucks an hour to help out a good cause?
7. Invest in real estate
If there's one thing we aspire to, it's buying our own home. You could easily afford to start saving for a new home making an annual salary of $124,800.
8. Emergency Repair Fund
Emergencies happen and recent studies have shown the majority of Americans would have difficulty covering an unexpected expense of $400, so it is important to save for those unforeseen repair costs when your car or a major household appliance breaks down.
9. Fund your kid's college education
If you're lucky enough to have kids, you'll want to start saving for their college education as soon as possible. With an hourly rate of 60 dollars an hour, you could help them pay for school.
10. Reduce Debt
With the monthly income you will be making, you will have a monthly check that will allow you to pay down your debt. Credit card debt should be paid down. This is important for your personal finances and will help you achieve your financial goals by saving on interest charges.
So why is $124,800 a good salary?
· $124,800 a year is the median household income in the United States.
· In some parts of the country, $60 an hour will go a lot further than in other parts of the county. For example, the costs of living in certain parts of New York and Florida are higher than comparable areas of Texas and New Hampshire.
· A $124,800 annual salary usually comes with benefits like paid vacation time, healthcare insurance, and 401k matching. It also means you will be making enough to be able to ditch your side hustle.
· $124,800 annually is enough to live comfortably in most areas of the country.
If you’re making $124,800 annually, you’re in the middle of the pack and are making an average salary when it comes to household incomes in the United States. And while $124,800 may not seem like a lot of money, it can go a long way in certain parts of the country, and most jobs that pay $124,800 come with benefits like paid vacation, health insurance, and 401k matching. Many of these jobs will require an advanced degree, like an associate degree, master’s degree, or bachelor’s degree, and the level of education will vary depending upon the industry sector, but this advanced education will help you get a good salary. You’re also getting some help saving for retirement and not having to rely solely on your social security income.
What will you pay in income taxes?
The income tax rate you pay on your gross income depends on a variety of factors, including your income, the state you live in (some states charge a state income tax), and how you file your income taxes, (single, married, or head of household). You can calculate your anticipated take-home pay by visiting the IRS website at www.irs.gov.
A yearly salary of $124,800 is a far cry from the current hourly minimum wage or average Amazon hourly wage and can go a long way in most areas of the country. It’s enough to cover your basic expenses and save for the future. And with benefits like health insurance and 401k matching, you’re getting a lot of bang for your buck. So, if you’re looking for a new job with a good salary, $124,800 is a great place to start your entry into the middle class.