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A six-figure salary is often associated with a comfortable lifestyle, and for many workers, reaching that threshold is a dream come true. If you’re a single person earning $100,000 a year, you may find that you have more than enough to cover your basic needs, with money left over for short- and long-term financial goals.

But it’s worth noting that the salary doesn’t go as far as it used to. The rising cost of living, shifting economic conditions, and individual spending habits and financial obligations can all play a role.

Let’s take a closer look.

Is $100K a Good Salary?

Generally speaking, $100,000 is a good six-figure salary for a single person. Before taxes, $100,00 works out to roughly $8,333 per month. Whether that’s enough for you depends largely on where you live. Savings, property ownership, and discretionary funds may be achievable in an area with a low cost of living. But in a more expensive area, that same salary won’t go as far because housing, transportation, and other necessities all cost more.

A money tracker can provide a bird’s-eye view of your spending and saving and help ensure you’re staying on track financially.

Average Median Income in the US by State in 2024

In Q4 of 2023, the average pay in the U.S. was $59,540, according to the U.S. Bureau of Labor (BLS). But wages vary greatly by state, reflecting regional differences in the cost of living and economic equality.

States like California, New York, and Massachusetts, which have robust economies and a high cost of living, generally report higher median salaries, frequently topping $80,000 annually. Average annual income in states like West Virginia, Arkansas, and Mississippi, which have a lower cost of living, is typically closer to $50,000. The presence of certain industries, job opportunities, and state-specific laws are all reasons for the difference in pay.

Here’s a look at the median household income in each state, per U.S. Census Bureau data.

Average Cost of Living in the US by State in 2024

It’s not just you: Goods and services have gotten more expensive, thanks in part to inflation. Depending on where you live, you may be paying more for housing, transportation, food, health care, and other necessities compared to someone in a neighboring town or state.

One way to determine whether $100,000 is enough for you to live on is to look at your cost of living. The cost of basic necessities varies by location, and this is often reflected in salaries. Areas with higher wages tend to have a higher cost of living, while areas with a lower cost of living have lower wages.

With that in mind, here’s a look at what the average resident in each state spends on basic necessities, according to data from the U.S. Bureau of Economic Analysis.

How to Live on a $100K Salary

Even if a $100,000 salary is more than enough to cover your expenses, it’s still a smart move to create a budget. Having a plan for where your money is going can help keep unnecessary spending in check and allow you to make progress toward your financial goals.

The first step is to ensure your budget can cover your necessities, such as housing, utilities, groceries, and transportation. Next, set aside money for short- and long-term savings goals, such as retirement or buying a home, and debt repayment. Finally, carve out funds for discretionary spending to ensure you’re able to enjoy a balanced lifestyle without going over your budget.

How to Budget for a $100K Salary

There’s no one-size-fits-all approach to making a financial plan and no shortage of different budgeting methods to explore.

One popular option is the 50/30/20 approach. Here, you earmark 50% of your budget to needs (think housing, transportation, food); 30% to wants (travel, entertainment); and 20% to savings and debt repayment.

Prefer something more straightforward? Consider a line-item budget. This requires you to list all your expenses, or categories of expenses, over a period of time, such as a month or year, and assign a spending target to each one. Then, every month, you can compare current expenses to past expenses to ensure you’re staying on track.

Of course, life changes, and you’ll want to review and adjust your budget regularly to make sure it’s in line with evolving goals and circumstances. A budget planner app can help you create a new budget, categorize spending, and monitor your credit score.

Maximizing a $100K Salary

There are ways to get more out of a $100,000 salary. Here are a few strategies to try:

•   Prepare for the unexpected. Once you’ve paid for your monthly expenses, dedicate some of the remaining amount to building up an emergency fund. A good rule of thumb is to save enough to cover three to six months’ worth of expenses.

•   Save for retirement. After your emergency fund is established, direct some funds to your retirement savings account. Crunch the numbers and see if you can contribute more, and find out if you qualify for a company match.

•   Improve your credit. Check your credit score, and if the number isn’t where you want it, look for ways to improve it. Steps may include setting up a system to ensure your bills are paid on time, routinely checking your credit report for errors, and keeping your credit utilization low.

Quality of Life with a $100K Salary

Whether it’s an entry-level salary or a pay upgrade earned after several years on the job, $100,000 can offer a good quality of life for many people. This amount typically is enough for the basics with some left over for enjoyment and long-term savings goals, like buying a home, retirement, or continuing education.

That said, the quality of life on a $100,000 salary varies based on living expenses in your area, your financial obligations, whether you support anyone else, and other factors.

Is $100,000 a Year Considered Rich?

There’s no single definition of how much someone must earn to be considered rich. So much comes down to factors like cost of living, geography, and your individual financial situation. Someone who makes $100,000 a year, has a low cost of living, and is investing and saving might feel better off financially compared to those who make the same amount but live in a high-priced location like New York, San Francisco, or Los Angeles.

Bottom line: Even though $100,000 a year might not put you in the highest echelons of wealth, it typically provides a stable, comfortable lifestyle.

Recommended: How to Calculate Your Net Worth

Is $100K a Year Considered Middle Class?

Middle class is defined as income that is two-thirds to double the national median income, or $47,189 and $141,568. By that definition, $100,000 is considered middle class.

Keep in mind that those figures are for the nation. Each state has a different range of numbers to be considered middle class. In Spokane, WA, for instance, a middle-class household needs to earn between $39,338 and $117,428 per year. In Jackson, MS, the range is $27,085 and $81,262.

Example Jobs that Make About $100,000 a Year

Wondering which jobs come with a six-figure salary? Here are some professions that pay around $100,000 per year, according to the BLS — some of which could be a good fit for introverts:

•   Physical Therapist: $100,440

•   Architect: $100,400

•   Math and Computer Professor: $100,060

•   Social Scientist: $99,260

•   Biological Scientist: $99,060

Recommended: 25 Highest Paying Jobs in the U.S.

The Takeaway

In many ways, earning $100,000 can feel like achieving a major professional milestone. And certainly in many places, it can provide a comfortable, middle-class lifestyle with room for savings, investments, and discretionary income. However, in expensive cities, you may find that $100,000 covers the basics but doesn’t leave much left over. Creating a budget you can stick to can go a long way toward helping you maximize your salary.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can I live comfortably making 100K a year?

Yes, you can live comfortably on $100,000 per year, though how comfortable you are will depend on a variety of things, including where you reside, your lifestyle, and your financial commitments.

What can I afford with a 100K salary?

If you make $100,000 a year, you can save money for investments and savings, as well as afford adequate health care, dependable housing, and occasional travel and entertainment.

How much is 100K a year hourly?

Assuming a 40-hour work week and working 50 weeks a year, a $100,000 salary is equivalent to about $48 per hour.

How much is 100K a year monthly?

Before taxes, a $100K wage works out to about $8,333 per month.

How much is 100K a year daily?

A $100K wage, assuming a regular five-day workweek and working 50 weeks a year, is roughly $384 every day.

Photo credit: iStock/Pekic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you’re single and earning $200,000 a year, chances are you’re able to afford a comfortable life. That level of income is more than three times what the average American worker makes each year. Of course, your cost of living, inflation, and financial obligations also factor into how far the money goes.

Let’s dive into a $200,000 salary and see how it compares to incomes across the country.

Is $200K a Good Salary?

By most standards, $200,000 a year is a good salary, especially for a single person with no dependents. However, how well you’re able to live on that income will depend on a number of factors, including your household size, where you live, and your financial habits. You may find it useful to use tools like a money tracker, which can help you monitor your spending and also provide you with valuable insights into your finances.

Average Median Income in the US by State in 2024

Wondering how a $200,000 salary stacks up against a typical salary in the U.S.? There are a few ways to find out. You can look at the average salary in the U.S., which currently stands at $63,795, per the Social Security Administration. Or you can compare it to the national median salary, which as of Q4 2023 was $59,384 per year, according to the U.S. Bureau of Labor Statistics (BLS). In both cases, a salary of $200,000 is significantly higher.

As the chart below shows, that salary is also more than the median household income in each state.

Average Cost of Living in the US by State in 2024

Cost of living varies by region, state, and even city, and this is often reflected in salaries. An area with a high cost of living, for example, tends to pay higher wages — and vice versa.

So when you’re thinking about whether $200K is a good salary, it can help to look at the cost of living where you live and see how it compares to different parts of the country. The chart below, which features data from the U.S. Bureau of Economic Analysis, breaks down this information by state.

How to Live on $200K a Year

In general, when you earn well into the six figures, you have more than enough for your basic needs (think housing, food, transportation, health care) with funds left over for savings, investments, and enjoyment.

But it’s human nature to spend up to your income. Even if you have one of the highest-paying jobs in the state, it won’t do you any good if you spend every bit that you earn. As your income increases, so do your expenses, so it’s important to set up and stick to a budget.

Recommended: What Is a Good Entry-Level Salary?

How to Budget for a $200K Salary

There are many different ways that you can budget on a $200,000 salary. A simple way to start is by writing down your monthly income and expenses and comparing the two. If your expenses are higher than your income, you will need to make a plan to either raise your income or lower your expenses to be able to balance your budget and live within your means.

As you fine-tune your plan for spending and saving, you might find value in a budget planner app.

Maximizing a $200K Salary

You have no shortage of options when it comes to making the most of a $200,000 salary. For some people, maximizing their salary means increasing their standard of living and enjoying the here and now. For others, a high salary might offer more of an opportunity to contribute to retirement accounts and save for the future.

In fact, creating an emergency fund, paying down debt, and contributing to your retirement savings account are just a few ways you get the most from a $200,000 salary. Whatever strategy you choose, be sure it fits with your financial and life goals.

Quality of Life with a $200K Salary

A $200,000 annual salary is significantly higher than the average pay in the United States. This means that financially speaking, you can most likely afford to settle down in a desirable area, cover your living expenses, build up your savings, and still have money left over for enjoyment. However, keep in mind that salary is just one piece of the puzzle; geography, unique personal circumstances, and your financial situation can all impact your quality of life.

Is $200,000 a Year Considered Rich?

There’s no standard definition of “rich,” though most people would certainly consider a single person making $200,000 to be well-off. But again, where you live — and the cost of living there — play a role. Another way to think about what “rich” means is to calculate your net worth. Essentially, it’s the value of your combined assets minus any outstanding debts, or liabilities.

It may also be useful to see how your net worth compares to your peers. Tools like a net worth calculator by age can be a good place to start.

Is $200K a Year Considered Middle Class?

Short answer: No. If you look at the data for the average income by age, you will see that an annual salary of $200,000 is significantly above average for all age cohorts. What’s more, it exceeds what the Pew Research Center defines as middle class, which is income that’s two-thirds to double the national median income, or $47,189 and $141,568.

Example Jobs that Make About $200,000 a Year Salary

Whether you’re considering a new career path or thinking about asking for a raise, it can help to know the types of jobs that pay around $200,000 a year.

Professions that pay around $200,000 a year tend to require advanced degrees or specialized training. Here are a few examples of jobs that pay near that amount, according to data from the BLS:

•   Nurse Anesthetist: $214,200

•   Aircraft Pilots and Flight Engineers: $209,680

•   Pediatrician: $205,860

•   Dentist: $200,870

•   Computer and Information Systems Manager: $180,720

Recommended: 30 Best Jobs for Introverts

The Takeaway

Is a $200,000 salary good for a single person? Yes, it is. In fact, that level of income significantly surpasses what a typical American worker earns in a year. But it’s worth noting that your local cost of living and financial obligations can impact how far the money goes. Spending habits can, too. After all, it’s easy to spend more as your income grows. To help keep yourself on firm financial footing, it’s a good idea to create a budget you can stick to and adjust it as your life and financial needs evolve.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can I live comfortably making $200K a year?

Since an annual salary of $200,000 is well above the national average salary, it’s quite likely that you will be able to live comfortably on that salary.

What can I afford with a $200K salary?

What you can afford with a six-figure salary like $200K will depend on a number of factors, including where you live, the size of your household, and your overall financial situation. However, $200,000 is a very good salary, especially for a single person, so it’s likely that you can afford your basic needs with money left over for savings and enjoyment.

How much is $200K a year hourly?

If you earn $200,000 a year, your hourly rate would be around $96.15.

How much is $200K a year monthly?

A $200,000 annual salary works out to roughly $16,667 per month.

How much is $200K a year daily?

A $200,000 salary is approximately $547.95 per day.

Photo credit: iStock/FG Trade

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you’re single and earning $45,000 a year, this salary could be considered a decent living. But this largely depends upon where you live, your lifestyle habits, the amount of debt you may have, and where you are in your professional journey.

For instance, earning $45,000 a year can be a good starting off point for someone entering the workforce, such as a recent college grad. Living in a small town or city as a single person with a roommate or two, curbing any unnecessary spending, and sticking to a budget can also make subsisting on $45,000 possible. With some budgeting, you may even be able to put some money toward savings.

Read on to take a closer look at whether $45,000 a year is a good salary for a single person in 2024.

Is $45K a Good Salary?

How well you get by on $45,000 a year largely depends on your spending habits, ability to budget, and specific financial obligations. Higher rates of inflation have made living on $45,000 annually more difficult, though a budget planner app can help you monitor spending and saving.

Perhaps the best way to determine whether $45,000 is a good salary is to break it down by hourly, weekly, and monthly amounts. According to ZipRecruiter, the average hourly rate for someone making $45,000 a year in the U.S. is $18.07. When doing the math, the monthly pretax pay comes to $3,750, and the weekly pretax wages are $937.50. To break that down even further, the daily rate is $187.50.

Average Median Income in the US by State in 2024

According to the Social Security Administration, the average salary in the U.S. is $63,795. The median average salary, which represents the midpoint of salaries in the nation, was $59,540 in 2023, the U.S. Bureau of Labor Statistics reports.

Here’s a summary of the median household income in each state, based on the most recent data available from the U.S. Census Bureau.

Average Cost of Living in the US by State in 2024

The term cost of living refers to the amount of money a person needs to cover their basic needs, such as housing, transportation, groceries, and health care. Let’s take a look at how much residents in each state spend on these necessities, according to data from the U.S. Bureau of Economic Analysis.

Recommended: 25 Highest Paying Jobs in the U.S.

How to Live on $45K a Year

Living on $45,000 a year will most likely require you to keep spending and average monthly expenses in check. It’s also a good idea to consider your housing situation, since that’s often the biggest line item in a budget.

Unless you’re living at home with your family — a common scenario for about one-third of Gen Zers — you’re going to need to make sure you can afford monthly rent. On a $45,000 a year salary, this could be a challenge.

According to RentCafe, the average apartment rental in the U.S. is $1,713 per month, or roughly 45% of a typical pre-tax monthly paycheck. (The general rule of thumb is that housing costs comprise around 30% of your gross income.) If you plan on living in a major city, where rents are typically higher, you could very well end up spending even more of your income on rent.

However, if you don’t have to live in one of those cities to be close to work, or you have a remote job, it may be worth looking into one of the many affordable places to live in the U.S., such as Dayton, OH; Knoxville, TN; Erie, PA; and Hickory, NC. Along with more affordable housing, these towns also offer a lower cost of living, which means a $45,000 annual salary can go further.

How to Budget for a $45K Salary

The reality of living on a salary of $45,000 a year could pose some obstacles. However, taking the time to create a budget and using a tool like a money tracker can help you stretch every dollar and keep your financial goals on track.

One popular method is the 50/30/20 budget. This approach breaks down your salary into three buckets: 50% of your earnings cover basic needs, such as housing, utilities, food, and medical costs; 30% is allotted for your wants, such as travel, dining out, entertainment, and hobbies; and 20% is for savings and paying off debts.

There are many different types of budgeting methods, but the 50/30/20 strategy provides a simple, clear-cut picture of how your earnings should be split up.

Maximizing a $45K Salary

The way to maximize any salary is to live within, or even below, your means. This can be easier said than done, but it’s definitely possible.

While it’s tempting to start big, you may find more long-term success by taking small steps: Eat more meals at home. Shop at a less-expensive grocery store or during sales. Watch your utility use, which can help keep bills at a minimum. Carpool or bike to work.

Other ways to make a $45,000 salary work better for you include building an emergency fund to cover at least three to six months’ worth of expenses, and ramping up your contributions to your employer-sponsored 401(k) retirement plan.

Quality of Life with a $45K Salary

Depending on their cost of living and debt, a single person can have a nice quality of life with a $45,000 salary. But you may need to put in some work to find an affordable place to live, choose a car with a reasonable monthly payment, and opt for low-cost entertainment such as meeting a friend for a casual meal, happy hour, or movie.

Keep in mind that staying healthy lends itself to a better overall quality of life. If your job offers you health benefits, take advantage of them by keeping up with covered wellness exams and preventive health screenings. Your health insurance may even offer behavioral health services, such as therapy, at no added cost.

You can eat nutritiously on a budget without too much trouble. Look for deals on fruits and vegetables at small vegetable stands. Buying the store brand instead of a name brand product can also save you money.

Is $45,000 a Year Considered Rich?

Unfortunately, no. While there’s not an official classification as to what it means to be considered rich, it’s often thought to include the top 1% to 5% of earners — which means a half million dollars a year. In order to be considered in the top 20% of earners in the U.S., you’d need to earn a six-figure salary — or more than $100,000 a year.

Recommended: How to Calculate Your Net Worth

Is $45K a Year Considered Middle Class?

No, it is not. According to the Pew Research Center, households with an income between $47,189 and $141,568 are considered middle class. A $45,000 annual salary falls below that definition.

Example Jobs that Make About $45,000 a Year Salary

Whether you’re looking for entry-level work or jobs for introverts, there are plenty of positions that pay $45,000 a year. Here are some examples, per the U.S. Bureau of Labor Statistics:

•   Bookkeeper: $47,440

•   Dental Assistant: $46,540

•   Fitness Trainer or Instructor: $46,480

•   Administrative Assistant and Secretary: $46,010

•   Bill and Account Collector: $44,250

The Takeaway

Making $45,000 a year if you’re single can be tough, especially if you’re living in an expensive area. However, there are several ways to make it easier, including establishing and sticking to a budget, having one or more roommates, and curtailing extraneous spending.

The good news is, depending on where you are in your professional journey, a $45,000 salary can be a good starting point. In time, your salary may very well increase, whether because of a raise, promotion, or moving to a new, higher-paying job.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can I live comfortably making $45K a year?

While it depends on what you consider comfortable, this yearly salary can cover your basic needs without requiring you to sacrifice too much. You may even have some money left over for fun and savings, if you’re able to stay within or below your means.

What can I afford with a $45K salary?

A $45,000 a year salary should be enough to rent an apartment in an area where the cost of living is below average and where your salary is in sync with the median salary of that city or town. And provided you’re not driving a luxury vehicle with all the bells and whistles, you can also swing a car payment.

How much is $45K a year hourly?

The average hourly rate for someone making $45,000 a year in the U.S. is around $18.07. However, hourly wages can be as high as $24.28 and as low as $10.10.

How much is $45K a year monthly?

The monthly take-home pay before taxes comes to $3,750, which translates into a weekly paycheck of $937.50.

How much is $45K a year daily?

When broken down by a day rate, a $45,000 a year salary comes to $187.50 a day. Keep in mind this is before taxes.

Photo credit: iStock/Marco VDM

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL-Q224-1882002-V1

A salary of $160,000 is excellent for a single young professional, considering that it’s well over the national average of $63,795. However, the cost of living varies significantly among states, so where you decide to live will determine your quality of life and how much you can afford in terms of housing and lifestyle.

Here’s a comparison of the cost of living among states and how far a salary of $160,000 might go in meeting housing and daily expenses.

Is $160,000 a Good Salary?

A six-figure salary of $160,000 is certainly impressive for a single person in 2024 or anyone early in their professional career. It is well over double the national average wage of $63,795, reported by the Social Security Administration.

However, the cost of living across the country varies greatly, so a salary of $160,000 will buy you a lot more in Tennessee and Wyoming than it will in, say, Massachusetts or D.C. Regardless of where you decide to live, tools like a money tracker can help you manage your finances and monitor your credit score.

Recommended: What Is a Good Entry-Level Salary?

Average Median Income in the US by State in 2024

Salaries for any occupation vary by state. This is largely a reflection of how expensive it is to live in a certain area. If housing prices or property taxes are high in an area, companies will often pay higher salaries to attract employees in that state.

The table below shows the annual median income by state as of May 2023. Data are from the U.S. Census Bureau. The highest median incomes are found in Maryland, New Jersey, and Massachusetts. The lowest median incomes are found in Mississippi, West Virginia, and Arkansas.

Average Cost of Living in the US by State in 2024

The cost of living in your geographic area has a direct effect on your quality of life. The cost-of-living index is one measure of the cost of basic expenses and everyday necessities, such as food, housing, health care, and education. As a result, the cost of living index can be used as an indicator of how far your salary will go.

According to the most recent Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS), American households’ average monthly expenses total $6,081. Broken down by percentage, approximately 33% of income is spent on housing, 17% on transportation, 8% on health care, and 13% on food and groceries. The remainder is spent on miscellaneous items.

The table below shows how much a typical resident in each state spends on basic necessities. Data are from the U.S. Bureau of Economic Analysis. As you can see, Massachusetts and New Hampshire have the highest cost of living, while Nebraska and Mississippi have the lowest cost of living.

How to Live on $160,000 a Year

As stated before, $160,000 is an excellent salary if you are single, regardless of what your local cost of living is. On the other hand, it might not be so great if you have a family to support and live in, say, New York or California.

Learning how to live on $160,000 a year will require budgeting. Budgeting requires allocating a portion of your income to necessary expenses like housing costs, utilities, transportation, and groceries. After that, can estimate how much discretionary income you have left over for expenses like entertainment.

Once you have a relatively accurate estimate of your expenses, you can plug them into a spreadsheet or a budget planner app and create your budget.

Recommended: Average Income by Age

How to Budget for a $160K Salary

Let’s look at an example budget for a salary of $160,000. Our fictional single professional has no kids and lives in Colorado.

We deducted $958 per paycheck for 401(k) contributions, which is the maximum the IRS allows for 2024 at $23,000 per year. Their take-home pay is $3,352 per paycheck, or $6,704 monthly.

Here is an example of how they might budget their monthly income:

Maximizing a $160K Salary

A budget will help you to determine how far a salary of $160,000 will go, but it will also help you to use your money effectively. You can either save more or spend more on what you want.

Spending more on things like entertainment or food won’t maximize your salary, but investing wisely can. By saving and investing, you can allow what income you have left over after paying necessary expenses to potentially grow.

First, however, pay off your debts and save for an emergency fund. If you have high interest debt, you will be paying more in interest than you can earn in a savings account. A personal loan can help you consolidate credit card debt and lower the interest you pay as you pay down your debt.

An emergency fund is necessary in case you have unexpected expenses. If you have six months of expenses saved, that will spare you from having to take out a loan to pay for them.

Not all debt is bad, so it’s fine to use a credit card as long as you make regular payments and pay off the balance each month. That way, you can build a good credit score so that you will qualify for better loan terms when you need to borrow money in the future.

Quality of Life with a $160,000 Salary

Quality of life is a personal thing. Some people would consider living in a smaller property or apartment in a city within walking distance to eateries and shops a good quality of life. However, another person might consider living in a bigger house in a quiet neighborhood a better quality of life.

Consider what type of lifestyle makes you happy and then plan a budget that can make that a reality. You will likely have to make compromises — for example, living in a smaller house if you want to live in or around a large city or spending more on transportation if you want to live in a larger house farther from the city.

Is $160,000 a Year Considered Middle Class?

Middle class is defined as households with a salary that’s two-thirds to twice the national median income. By that definition, middle class is income that’s between $47,189 and $141,568. So a salary of $160,000 would be considered upper class. That said, it depends on where you live, whether you have dependents, and how much debt you have.

Is $160,000 a Year Considered Rich?

There’s no single definition for what constitutes “rich.” However, you may be considered wealthy if you are in the top 1% of income for your age. For example, a 25-year-old earning $160,000 is in a much better economic position than a 45-year-old.

Some people consider their net worth to be a better indicator of their class than salary. If you’re interested in calculating your net worth, use a net worth calculator.

Example Jobs that Make About $160,000 a Year

While they may not be the highest-paying jobs in your state, the following roles pay around $160,000 per year, according to the BLS:

•   Computer and Information Research Scientist: $157,160

•   Physicist: $158,270

•   Public Relations Manager: $159,420

•   Marketing Manager: $161,040

•   Podiatrist: $162,520

The Takeaway

While $160,000 is well above the national average and may seem like a high salary, it might not seem so generous if you live in a state like Massachusetts, where the cost of living is high. Salaries tend to reflect the cost of living in an area. They tend to be lower in states where the cost of living is lower, like Mississippi and Nebraska.

To accurately assess what quality of life you will have with your salary wherever you live, research the cost of housing, food, and transportation in your area. You can make the most of your salary, whether it be $160,000 or less, by paying down your debt and setting a budget.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can I live comfortably making $160,000 a year?

There is no doubt that if you are single, you can live comfortably on $160,000 a year. How comfortable you will be, however, depends on where you choose to live and how much debt you have. Living in an area with a lower cost of living will mean you have more cash to spend on luxury items. Also, if you live in an area with a low cost of living, you will use less of your income on expenses like housing, utilities, and food, and will have more money to spend on entertainment or investing.

What can I afford with a $160,000 salary?

Hypothetically speaking, with a salary of $160,000, you could purchase a home for around $600,000 if you don’t have too much debt. That would leave you enough money to pay for both necessary and discretionary expenses.

How much is $160,000 a year hourly?

According to Zippia.com, a salary of $160,000 is $80 an hour. This assumes that the person works 2,000 hours in a year for an average of 40 hours per week, with two weeks of vacation.

How much is $160,000 a year monthly?

A salary of $160,000 is $13,333.33 a month. Note that if you are paid biweekly, some months will include two paychecks while other months will include three paychecks, so your total monthly pay will vary throughout the year.

How much is $160,000 a year daily?

A salary of $160,000 works out to $615.38 per day, assuming an eight-hour day.

Photo credit: iStock/Lyndon Stratford

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Rising prices and inflation are driving worries that money doesn’t go as far as it used to. But rest assured that $120,000 is considered a good salary, especially if you’re single and have no dependents. And by developing sound money habits now, you can help make the most of your income, no matter what it is.

Here’s a closer look at an annual salary of $120,000.

Is $120K a Good Salary?

A salary of $120,000 is nearly double the national average salary in the U.S. of $63,795, per the latest data available from the Social Security Administration. But how comfortably you’re able to live on that money depends on a number of factors, including how much debt you have, your family size, and how much your lifestyle costs in the area where you live.

A money tracker can help you with budgeting, monitoring spending, and keeping tabs of your credit score.

Average Median Income in the US by State in 2024

The average pay for a worker in the U.S. varies by state, though no state comes close to $120,000. For reference, here’s a chart of the median household income in each state, according to the U.S. Census Bureau.

Related: Highest Paying Jobs by State

Average Cost of Living in the US by State in 2024

The average cost of living in the U.S. will affect how you feel about your $120,000 salary. And, like salary, it varies by state. Here’s a look at what a typical resident in each state spends on basic necessities, such as housing, food, and transportation.

How to Live on a $120K Salary

Chances are, $120,000 can easily cover an individual’s basic expenses with some money left over for entertainment and saving. But if you live in a pricey area or are trying to pay down debt, you may need to be more mindful about how you’re managing your money. The following tips can help.

Live below your means

You‘ve heard it before, but the most important part of living well at your salary is to make sure your expenses are less than your salary. Try to find housing and transportation that fits within your budget, use a budget to plan for expenses, and manage lifestyle creep as much as you can.

Have a contingency fund

Be sure you’re planning for the unexpected. Building an emergency fund can go a long way toward preserving your finances when tough times come.

Make a plan for your money

Making a budget — yes, even on a $120,000 annual salary — can help you use your money more effectively and make progress toward financial goals.

How to Budget for a $120K Salary

There are a number of budgeting methods you may want to try.

•   50/30/20 method: With a 50/30/20 budget, 50% of your money should go toward needs (housing, transportation, food, etc.); 30% to wants (spending money, self-care, eating out, and vacations); and 20% to savings and debt payments.

•   Zero-based budgeting: In this type of budgeting, you give a job to every dollar you earn so that your income minus your expenses ends at zero.

•   Envelope method: You specify how much money is allotted to a specific category; say, $300 for gas for the month. You can spend the designated funds until they’re gone. If you’re really disciplined, you won’t spend in that category again until the next month, when the money in the envelope is refreshed.

Of course, the best budget is the one you will follow. A budget planner app can help you stay on track and reach your goals.

Maximizing a $120K Salary

Making the most of a $120,000 salary depends on what your financial goals are and your stage of life. Do you want to:

•   Save more money?

•   Grow your net worth?

•   Provide for a family?

•   Enjoy eating out and/or nightlife?

•   Afford a nice car and house?

To maximize a $120,000 salary, invest in the areas of your life that are important to you. Make a plan to spend money according to your values and be more frugal in the areas that are not as important to you.

Quality of Life with a $120K Salary

According to the World Health Organization, quality of life is about a person’s perception of their culture and value systems in relation to their goals, concerns, expectations, or standards. Translation: Your quality of life on a $120,000 salary may depend, in large part, on your perception of how good it is. If you’re able to feel optimistic with the amount of money you have, you’ll likely have a good quality of life.

Is $120,000 a Year Considered Rich?

Yes, $120,000 is a six-figure salary — and a good one for a single person — but is it enough to qualify you as “rich”? The truth is, rich is a relative term. Living well depends on how satisfied you are with your lifestyle and how much you’re able to save for a future self.

Recommended: How to Calculate Your Net Worth and Wealth

Is $120K a Year Considered Middle Class?

Middle class is determined by incomes that range from two-thirds to double the median income. It is also adjusted for family size. In the U.S., the median income is $74,580, which puts the range for the middle class between $49,745 and $149,160.

However, when adjusting for family size, a $120,000 salary for a single person puts you squarely in the upper class in every metro area in the United States.

Example Jobs that Make About $120,000 a Year Salary

According to data from the U.S. Bureau of Labor Statistics (BLS), there are a number of occupations whose salaries sit at or above $120,000 — some which could be a good fit for introverts.

Some examples include:

•   Software Developer: $132,270

•   Physician Assistant: $130,020

•   Nurse Practitioner: $126,260

•   Information Security Analyst: $120,360

•   Actuary: $120,000

Recommended: What Is a Good Entry-Level Salary?

The Takeaway

Is $120,000 a good salary for a single person? Generally speaking, yes. It’s more than what a typical American worker earns and, depending on where you live, can provide you with a comfortable life. But even with a six-figure salary, you may want to consider ways to maximize your money. Sound financial habits like building up an emergency fund, saving for short- and long-term goals, and creating a budget are all good places to start.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can I live comfortably making 120k a year?

Living comfortably on $120K a year depends on various factors, such as where you live, how much debt you have, your family size, and how you live. Many singles will find $120K enough to live on in many areas of the country, but may need to be more mindful about their spending if they live in pricier areas like Los Angeles or New York City.

What can I afford with a $120K salary?

If you’re looking to buy a home with a $120K salary, your best bet is to talk to a lender and run some numbers. In addition to your income, your level of debt, down payment amount, loan type, and interest rate can all impact how much house you can afford. For a rough estimate, a 120K salary would give you $10,000 of gross income each month, which would mean you’re looking at a mortgage payment between $2,500 and $3,600 if you have no other debt. With interest rates at 7.00%, that translates to a mortgage of around $415,000.

How much is $120K a year hourly?

A $120K salary comes out to approximately $57.69 per hour.

How much is 120K a year monthly?

A salary of $120,000 per year works out to roughly $7,706 per month, after federal income taxes are taken out.

How much is $120K a year daily?

If you earn $120,000 per year, you would be paid around $462 per day.

Photo credit: iStock/Delmaine Donson

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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