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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.

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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.

SORL-Q224-1838737-V1

Earning a salary of $85,000 can provide a good living for a single person — even one who has dependents. Of course, how far the money can go depends on where you live, your lifestyle, spending habits, and any financial obligations you may have.

Here’s a closer look at where you fall into the big picture if your annual salary is $85,000.

Is $85K a Good Salary?

If you’re making $85,000 a year before taxes, you’re earning nearly $20,000 more than the average annual U.S. salary of $65,470, according to May 2023 figures from the U.S. Bureau of Labor Statistics (BLS).

For new grads, earning $85K annually is a high-paying entry-level salary and a great jumping off point to earning even more in the not-so-distant future, if that’s your goal.

Median Income in the US by State in 2024

The following chart shows the median income per state for a single-person household, according to figures from the U.S. Census Bureau. As you’ll see below, in many states, a salary of $85,000 puts you in a position where you’re earning more than the typical household:

Average Cost of Living in the US by State in 2024

Your cost of living refers to the amount of money needed in order to afford the necessities in a specific location, during a certain time period. The expenses factoring into your cost of living include food, housing, utilities, transportation, childcare, and health care.

Here’s a look at the average cost of living in each state, according to data from the U.S. Bureau of Economic Analysis.

How to Live on $85,000 a Year

In order to figure out how to best live on $85,000 a year, it helps to know how this salary breaks down on a monthly and weekly basis.

Based on a 40-hour work week with two weeks of paid vacation a year, an annual income of $85,000 works out to be about $7083.33 a month, $3,269.34 biweekly, and $1,634.62 a week. The hourly rate turns out to be $42.50 per hour.

Keep in mind these figures are your gross income. After taxes, your pay may end up being somewhere between $4,958 to $6,020 a month. You may find this easily takes care of your living expenses, chips away at some debts, and enables you to even sock some money away for the future.

Need help keeping on top of where your money is being spent with every paycheck? Tools like an online money tracker tool can help.

Recommended: How to Calculate Your Net Worth and Wealth: The Ultimate Guide

How to Budget for a $85K Salary

There are many different budgeting methods out there, but a popular one is the 50/30/20 budget. This approach allows you to allocate your money into three categories: your needs, wants, and savings.

Essentially, to follow the “rules” of the 50/30/20 budget, you’ll portion 50% of your salary to necessities (rent/mortgage payments, groceries, transportation, medical insurance), 30% toward your nonessentials or wants (travel, entertainment, leisure, dining out) and the remaining 20% toward debt repayment and savings, including retirement accounts, vacation funds, college tuition, or buying a home.

A budgeting planner app can help you get started.

Maximizing an $85K Salary

There are ways to build upon a $85,000 salary, besides budgeting, saving, and getting rid of debt. Strategies include taking advantage of certain employer offerings, paying bills on time, and exploring different investment opportunities.

Does your company have a 401(k) plan? If so, consider enrolling, and your future self will thank you later. Your employer may even offer matching contributions, often up to a certain percentage.

You can also make sure you avoid any missed payments or late fees by setting up an autopay for recurring bills. And even if $85K can go further where you live, that doesn’t mean you still can’t curb extraneous spending, such as eating home more often than ordering take-out or getting rid of streaming services you never use.

Quality of Life with an $85K Salary

Whether you’re mulling a job offer or considering a career change, you may be wondering, “Is $85K a year a good salary?” In fact, that amount of money can provide a nice quality of life for many people. But it’s worth noting that everyone has their own version of what a nice quality of life means. So the amount one person needs to live comfortably — and where — differs from person to person.

Is $85,000 a Year Considered Rich?

Similar to the question of what constitutes a good quality of life, what someone considers rich depends on their personal definition. To many folks, $85,000 may feel rich, especially if you’ve never earned close to this salary before.

The truth is, there’s no official financial designation of what it means to be rich, but generally, you’ll need to earn at least a six-figure salary to be on the road for qualification. And even when you hit that amount, it’s going to take anywhere from $329,620 to $719,253 to be considered a top earner in the U.S., according to research from GoBankingRates based on numbers from the Census Bureau.

Is $85K a Year Considered Middle Class?

According to the Pew Research Center, 51% of Americans fall into the middle class or middle income category. Middle class households are defined by Pew Research as those with an income that is two-thirds to double that of the U.S. median household income, which as mentioned earlier is $65,470.

Using that definition, SmartAsset conducted a 2024 study to determine the middle-class income limits by state. The findings indicated that on a state level, a household earning between $64,224 and $192,692 in 2024 would be considered middle class.

Example Jobs that Make About $85,000 a Year Salary

Salaries largely depend on the field or industry you work in, what companies are willing to pay, and your particular skill set. Here are some jobs that pay about $85,000 a year, based on information from the BLS:

•   Dental Hygienist: $89,890

•   Chiropractor: $89,760

•   Real Estate Broker: $86,130

•   Writer and Editor: $86,120

•   Urban and Regional Planner: $85,940

•   Insurance Underwriter: $85,610

•   Occupational Health and Safety Specialists: $85,570

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

The Takeaway

Is $85K a year a good salary? In 2024, it’s considered middle class and can be a comfortable living for a single person in many states and areas of the country. With that level of pay, someone can afford their basic needs, indulge in some of their wants, and have money left over to pay off debts or set aside savings. Earning $85K can be a great starting salary for a young person or even someone starting over in a new field, with the opportunity to increase earnings in the future.

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 $85K a year?

It depends on where you live, the expenses you currently have, and your spending habits. But in general, as a single person, you should be able to live rather comfortably on $85K a year, meeting your basic needs and have money left over.

What can I afford with an $85K salary?

Making $85,000 a year can typically cover housing, a car payment, utility and food costs, without being stretched too thin. Of course, this all relies on living within your means. For example, the average rent for a one-bedroom apartment in the U.S. is slightly over $1,500 a month, and monthly car payments average from $522 for a used car to $723 for a new car. You may be stretched if you decide to buy a home, since the average mortgage payment on a fixed 30-year mortgage is $2,833.

How much is $85K a year hourly?

The hourly rate for $85,000 a year is around $42.50.

How much is $85K a year monthly?

A salary of $85,000 works out to be about $7083.33 a month before taxes.

How much is $85K a year daily?

If you make $85k, you earn a gross amount of approximately $327 a day.

Photo credit: iStock/FreshSplash

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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Whether you’re mulling a job offer or thinking about a new career, you may be wondering whether $80,000 is a good salary for a single person in 2024. It certainly can be. An $80,000 salary is higher than what the typical American worker makes. According to the Social Security Administration, the average salary nationwide is $63,795.

If you have no dependents, that income is likely enough to cover your basic needs with some discretionary money left over. However, several factors, including where you live and your spending habits, can all impact how far your pay will go.

Is $80K a Good Salary?

While it’s not a six-figure salary, an annual salary of $80,000 is generally considered a respectable wage, especially for a single person. Of course, your local cost of living plays an important role in whether a salary is “good” for you or not. You might feel financially comfortable living in one area — and like you’re just getting by in another.

It can be helpful to take a look at your expenses to understand where your money is going and if your income can keep up. A money tracker provides you with a bird-eye view of your spending so you can see where you might need to make adjustments.

Recommended: U.S. Average Income by Age

Median Income in the US by State in 2024

An annual salary of $80K may be higher than the average salary in the U.S., but how does it stack up next to wages in different states? Here’s a look at what a typical household in each state earns, per U.S. Census Bureau data.

Average Cost of Living in the US by State in 2024

From grocery store bills to gas prices to mortgage payments, your cost of living is tied, in part, to where you reside. As you think about whether an $80K salary is good, it can be helpful to understand where prices for necessities like housing, food, transportation, and childcare may be higher.

With that in mind, here is the average cost of living in each state, according to U.S. Bureau of Economic Analysis data.

How to Live on $80K a Year

Even though $80,000 is a good salary for a single person, it’s still a good idea to create a budget. There are all sorts of budgeting methods out there, and it may take some trial and error before you find the approach that works the best for you. Whatever method you choose, be sure it fits your basic needs and leaves you with some funds left over to pay down debt, save, and enjoy.

How to Budget for an $80K Salary

One popular approach to budgeting calls for organizing expenses into different categories, then designating an amount or percentage you can spend per month in each category.

An example of this is the 50/30/20 budget rule, where you reserve 50% of your salary for “needs,” 30% for “wants,” and 20% for saving.

Another, similar option is the 40-30-20-10 budget. Here, expenses are broken down as follow:

•   Housing, groceries, utilities, gas: 40%

•   Discretionary spending: 30%

•   Savings, retirement, and investments: 20%

•   Additional debt payments or savings goals: 10%

If you need help getting started with your budget, consider enlisting the help of a budget planner app.

Maximizing an $80K Salary

To make the most of your salary, try to strike a balance between working toward short- and long-term financial goals. For instance, if your employer offers a 401(k), consider signing up for it. And check your budget to see if you can contribute the maximum amount each month.

Another way to make the most of your income? Build an emergency fund. A good rule of thumb is to save enough to cover three to six months’ worth of expenses.

Quality of Life with an $80K Salary

The quality of life you can have on an $80K salary can be greatly impacted by where you live. If you’re in an area with a low cost of living, you may be able to afford a comfortable lifestyle with that level of income. But that may not necessarily be the case if you live in a pricey part of the country, such as in a major coastal city.

Is $80,000 a Year Considered Rich?

While there’s no single definition of rich, $80,000 would likely not qualify. On the other hand, it’s significantly more than what the typical U.S. worker makes, and would be a very good entry-level salary for many professionals who are just starting out.

Another way to think about wealth is by looking at net worth. To calculate your net worth, simply subtract your outstanding debts from the value of your combined assets. A positive net worth is one where your assets are worth more than your liabilities. Conversely, a negative net worth is when your liabilities are more than your assets.

Recommended: Net Worth Calculator by Age

Is $80K a Year Considered Middle Class?

Short answer: Yes. Based on guidance from the Pew Research Center, a middle-class household has an income between $47,189 and $141,568. An $80,000 salary is within that range.

Example Jobs that Make About $80,000 a Year

The highest-paying jobs in your state probably pay more than $80,000 a year, but that said, there are plenty of good, stable roles out there where you can command that level of pay. Here are some to consider, based on data from Indeed.com:

•   Real Estate Agent

•   Occupational Therapist

•   Physical Therapist

•   IT Manager

•   Mechanical Engineer

Of course, salary is just one consideration. You’ll also want to find a job that you’re passionate about and that fits your personality. If you’re reserved, for instance, you might think about looking for jobs for introverts.

The Takeaway

An annual salary of $80,000 is considered good for a single person and is higher than the average pay in the United States. But just how far that money will go for you depends on your financial obligations, where you live, and other factors. In some areas, getting by on $80K a year might be tight, while in others, you may have enough breathing room to start working on your savings goals.

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 $80K a year?

You can live comfortably on $80,000 per year, but keep in mind your local cost of living has a big impact on just how far your money will go.

What can I afford with an $80K salary?

With an $80,000 salary, a single person with no dependents or major financial obligations can likely afford the necessities with money left over for entertainment and savings. Ideally, you should spend no more than a third of of your income on housing (usually the biggest line item in a budget). That means if you earn $80,000 a year, you could spend roughly $26,000 per year on housing.

How much is $80K a year hourly?

An annual salary of $80,000 works out to around $43 per hour.

How much is $80K a year monthly?

A worker who earns $80,000 a year can expect to make $7,300 a month before taxes.

How much is $80K a year daily?

An annual salary of $80k equals approximately $340 a day.

Photo credit: iStock/LumiNola

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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