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The annual percentage rate (APR) of your credit card has a big impact on how much it costs you to carry a credit card balance. In some cases — if you have a variable interest rate or are late making payments, for example — your APR can change, causing your credit card interest rate to increase or decrease.

Understanding when and how these changes might occur can help you choose the right credit card and control how much you spend on interest. Here’s a look at what can impact your credit card’s APR.

What Is Credit Card APR?

A credit card’s APR, or annual percentage rate, is the interest rate you’ll pay on the money you borrow, stated as an annual rate. Your credit card APR will tell you how much a credit card costs you in terms of interest on the balance you carry. However, it won’t tell you anything about other fees and other credit card charges you may incur.

Credit cards will typically have a separate APR for credit card purchase interest charges, balance transfers, and cash advances. The APR you receive when you open a credit card will depend on a benchmark interest rate as well as factors like your creditworthiness, as determined by your credit score.

However, the definition of APR will vary depending on what type of loan product you’re talking about. In contrast to credit cards, the APR on other types of loans is determined by interest rates, the length of the loan, and lender fees.

Recommended: What Is a Charge Card

What Can Cause Your Credit Card’s APR to Increase?

There are a number of reasons that credit card APR can increase. Your credit card company can increase your APR on new transactions as long as they give you 45 days’ notice. The company is not allowed to increase your APR during the first year after your account is opened.

Further, there are only certain cases in which your card company can raise rate on existing balances, including when:

•   An introductory rate expires

•   You have a variable rate card (most credit cards have a variable rate) and the benchmark interest rate rises

•   You’re 60 days late making your minimum payment

•   You have completed or don’t comply with the terms of a workout agreement, which has renegotiated the terms of your agreement for a period of time

No matter how the increase occurs, it’s important to realize that your credit card payments increase when your interest rate increases.

Prime Rate Rises

Your credit card will have either a fixed or variable credit card interest rate. If you have a credit card with a variable rate, that rate is largely based on a benchmark interest rate. The benchmark that many credit card companies use is what’s known as the prime rate. And when the prime rate rises, your APR will rise, too.

The prime rate could rise due to a change in the federal funds rate, which is the Federal Reserve’s recommendation for what banks should be charging when they make overnight loans to help each other meet federal reserve requirements.

One rule of thumb states that the prime rate is equal to the federal funds rate plus three.

Late Payments

Your credit card interest rate may also increase if you’re 60 or more days behind on paying your credit card minimum. This is what’s known as a penalty APR. Not only may this rate apply to your overdue balance, it may also raise interest payments on future purchases.

End of Introductory APR Offer

Some cards offer 0% APR on purchases or balance transfers for an introductory period. During that time, you won’t pay any interest on balances that you carry from month to month. However, once the introductory period is over, your APR will jump to the regular purchase interest rate, which will apply to any remaining balance on your account.

High Credit Card Balance

If you carry a growing credit card balance from month to month, or you’ve hit your credit limit and are unable to make payments, your card company may decide to raise your APR on new transactions.

Failure to Meet the Terms of a Workout Agreement

If you had trouble paying off your credit card debt in the past, you may have renegotiated the terms of your agreement, which is known as a workout agreement. When you successfully complete it, your card company may return your APR to what it was prior to the arrangement, which may have temporarily reduced your interest rate. On the other hand, if you fail to comply with the agreement, your card company may also decide to raise rates.

Recent Cash Advance

As mentioned above, credit card companies often typically set different APRs for purchases, balance transfers, and cash advances. If you’ve recently taken out a cash advance, you may have triggered the cash advance APR. This APR might be higher than the APR offered to you for regular credit card charges.

Recommended: What Is the Average Credit Card Limit?

What Can Cause Your APR to Decrease?

There aren’t as many triggers that will send your credit card APR lower, but here’s a couple to be aware of.

Prime Rate Falls

Once again, changes in the prime rate have a big impact on your APR. If the prime rate falls, your rate may also go down if you have a variable rate (as most credit cards do).

Negotiating for a Lower Rate

If you’d rather not sit around waiting for the prime rate to go down (or if it’s on an upward trajectory), one of the best ways to lower your credit card APR is by simply asking. Negotiating for lower rates and fees is one of the important credit card rules to know. (You can also negotiate on other things, such as credit card spending limits.)

You can improve your odds in this negotiation by arming yourself with some key information. First, get familiar with your credit score and make sure that it’s as high as possible. You may build your score by paying down debts and making sure to correct any errors on your credit report.

Also make sure to highlight your history with the company. Credit cards want to hold on to long-standing customers with a good history of paying their bills on time.

If your credit card company rejects your first attempt at negotiation, don’t be afraid to ask again or to speak to a manager who may have more power to make decisions about your account.

The Takeaway

Your APR can have a huge impact on how much it will cost you to carry credit card debt. As you choose a credit card, it’s important to shop around for the card that offers as low as possible an interest rate.

Still, your APR may rise at some point — especially if the prime rate increases or a low introductory offer expires. However, that doesn’t mean you’re stuck with the new rate. You can always try to negotiate with your card company to see if they can lower your rate.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How can I lower my APR on my credit card?

You can try to lower the APR on your credit card by negotiating with your lender. Increase your odds of success by ensuring you have a history of paying your bills on time and a strong credit score.

How does the prime rate affect my credit card APR?

If you have a variable APR, when the prime rate rises, so too will your APR. When the prime rate falls, your APR falls as well.

Can the APR on a credit card change?

Yes, the APR on a credit card can change for a variety of reasons. This can include a shift in the prime rate, the expiration of a low introductory offer, or being 60 days late on paying your credit card minimum.

Photo credit: iStock/tolgart

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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If you’re single and making $50,000 a year, you likely have enough to live on comfortably in just about any state in the U.S. This is particularly true in suburbs and smaller cities, like Jacksonville, FL, Birmingham, AL, and Toledo, OH, where the cost of living is lower than the national average. However, if you’re planning to live in a major metropolis like San Francisco, New York, or Boston, making ends meet on a $50,000 salary could be more of a challenge.

Is $50K a Good Salary?

While $50,000 a year isn’t a six-figure salary, it’s often enough for a single person to be able to afford the basics — think housing, utilities, food, and insurance — and still have cash left over for fun and savings.

If you’re just entering the job market after graduating college, $50,000 can be a good entry-level salary, especially if you decided to live at home for a while. Doing so can help you build up your bank account, so when it comes time to find a place to live, you’ll have a financial cushion to show potential landlords.

And remember, whether you’re earning $50K a year at your first job or less, your income will likely increase with time and experience. As your earning potential grows, a money tracker can help you keep an eye on where your paycheck is going.

Average Median Income in the US by State in 2024

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

The chart below shows the list of the average median income in each U.S. state according to USA Today and Blueprint, based on BLS data:

Average Cost of Living in the US by State in 2024

The term cost of living refers to the amount of money someone needs to cover basic necessities. Based on data from Forbes Advisor, here’s the average cost of living per state in 2024:

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

How to Live on a $50K Salary

To make sure you can live on a $50,000 salary without being stretched too thin, you’ll want to review your overall spending and create a budget. Online tools like a budget planner app can help with that.

When it comes to defining “living comfortably,” your salary would ideally be able to fit the guidelines of a 50/30/20 budget. This method suggests that 50% of your earnings covers your needs, such as housing, utilities, groceries and healthcare costs, 30% goes toward your wants, such as entertainment, hobbies and travel, and 20% goes toward savings and paying off debt.

How to Budget for a $50K Salary

Before you can create a budget, it helps to estimate how much you bring home. Here’s a breakdown of a $50,000 annual salary (40-hour work week, 52 weeks a year):

•   Monthly income: $4,166.93

•   Biweekly paycheck: $2,083.46

•   Weekly income: $961.60

•   Daily pay: $192.32

The figures above do not factor in taxes, so someone with an annual salary of $50,000 may actually end up taking home closer to $41,860.

Once you crunch the numbers and figure out how much you’ll need for your basic needs, you can see how much money you’ll have for the other 50% to cover your wants and savings.

Maximizing a $50K Salary

A person with a $50,000 salary can afford to spend about $1,250 a month on rent, which can be tough if you want to live alone. The average monthly rent in the U.S. is about $1,515, according to Apartments.com. Sharing an apartment or renting a house with another person can save you money on housing, allowing you more room to put your money toward other necessities.

Other ways to maximize making $50,000 a year include limiting dining out, shopping smartly when it comes to buying groceries, being mindful of utility usage, and riding your bike, walking, or taking public transportation to save on fuel costs.

Recommended: How to Calculate Your Net Worth

Is $50,000 a Year Considered Middle Class?

Yes. According to the Pew Research Center, people who have annual incomes between $39,693 and $119,080 in 2023 are considered middle-income or middle class.

While $50,000 a year may not be considered rich, you’re certainly living well above the poverty line, which for a single person household is between $12,880 and $16,090, depending on the state.

Examples of Jobs that Make About $50,000 a Year

Per the BLS, here are some of the occupations where you can earn $50,000 a year, some of which would be good jobs for introverts:

•   Automotive service technician and mechanic

•   Bookkeeping, accounting, and auditing clerk

•   Construction laborer

•   Correctional officer

•   Dental assistant or laboratory technician

•   Event planner

•   Firefighter

•   Makeup artist

•   Massage therapist

•   Mortician

•   Paramedic

•   Postal service mail carrier

•   Real estate sales agent

•   Secretary and administrative assistant

•   School bus driver

•   Social worker

•   Travel agent

•   Veterinary technician

•   Welder

The Takeaway

Is $50k a good salary for a single person? Generally speaking, yes. An annual salary of $50,000 is considered a middle-class income, and can be a comfortable wage for a recent graduate or a person starting a new career. A single person may not be able to live large in some areas of the country, but that doesn’t mean they can’t live comfortably elsewhere.

Depending on the cost of living in your area, making ends meet on $50,000 a year might require sharing a living space, keeping close tabs on your spending, and forgoing some luxuries. However, you should still have enough to take care of your basic needs with some left over to put toward your 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 $50K a year?

It depends on where you live. People making $50,000 a year can find a place to live easily in every state in the U.S., though it will be challenging if you decide to live in one of America’s largest cities. Still, a $50,000 annual salary is above the median cost of living in most states, so it’s possible to enjoy a comfortable lifestyle within your means.

What can I afford with a $50K salary?

With a $50,000 a year salary, you’d need between $20,000 and $35,000 for basic needs, including housing, groceries, healthcare, transportation, and other fixed expenses. That means you may have less than $15,000 for everything else. What you can afford will depend heavily on your geographical location and other factors, such as having a car payment and student loans.

How much is 50K a year weekly, hourly and daily?

Based on a 40-hour work week, the average weekly pay for someone who makes $50,000 a year (before taxes) is $961.60. Someone making $50,000 earns $24 an hour and approximately $192 a 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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There’s a lot to like about living in Utah: five beautiful national parks, a thriving economy, and according to the U.S. Census, a median household income of $95,800. By comparison, the median annual income in the U.S. is $75,580.

Here’s a look at how salaries in the state differ by age, city, and county.

What Is the Average Salary in Utah by Age in 2023?

According to the Social Security Administration, the average salary in the U.S. is $63,795. But salaries can fluctuate greatly when you factor in age. Here’s how median household incomes in Utah break down by age, as the Census data below shows:

•   Under 25 years: $54,506

•   25 to 44 years: $95,206

•   45 to 64 years: $111,825

•   65 years and over: $63,225

Not surprisingly, workers who are between the ages of 25 and 64, and in the prime years of their earning capacity, have the highest income, while those who are younger and just starting out professionally earn less. A budget planner app can help you make your money go further, regardless of your income.

Recommended: US Average Income By Age

What Is the Average Salary in Utah by City in 2023?

The following list gives the average salaries for 10 of the highest-paying cities in Utah, according to ZipRecruiter. While none offer a six-figure salary, all of the cities have an average pay that’s higher than the state’s average salary of $48,753.

Cities tend to have a higher cost of living than rural or semi-urban areas. When considering how much you’ll need to earn to cover basic expenses in an area, you’ll want to look at the cost of housing, transportation, food, and property taxes. A money tracker can help you monitor your current spending, so you can compare the two.

Two cities in Utah with the highest average salaries are Cottonwood Heights and White Mesa, with average salaries of $80,422 and $74,392, respectively.

Recommended: How to Calculate Your Net Worth

What Is the Average Salary in Utah by County in 2023?

Because cities tend to have a higher cost of living than rural areas, looking at average salaries by county might give you a better idea of your earning power in the different areas of Utah. You can also compare the figures to the average pay in the United States to see how it stacks up against other job markets.

Below are data from the Census Bureau showing per capita income by county in Utah, according to Utah.gov. We selected 10 counties in different regions of the state to give a broad perspective. Summit County has the highest per capita income by far at $156,537. San Juan County has the lowest per capita income at $30,198

Examples of the Highest-Paying Jobs in Utah

Below are 10 examples of the highest-paying jobs in Utah.

Source: ZipRecruiter.com

The Takeaway

The state of Utah offers diverse employment opportunities, including plenty of jobs for introverts. Utah’s median household income of $95,800 is higher than the median household income for the United States, which is $75,580, as reported by the Census Bureau.

While younger workers in Utah can expect to make entry-level salaries, experienced employees typically command more. As in other states, median household incomes in Utah are highest for those in their prime earning years, aged between 25 and 64. In this age group, median incomes range from $95,000 to $111,000. High-earning jobs in Utah include pick-up truck owners and operators, pharmacists, mechanical engineers, and public health workers.

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

What is a good average salary in Utah?

The median household income in Utah is $95,800, so a salary or income that equals or exceeds that would be considered good income.

What is the average gross salary in Utah?

According to ZipRecruiter, the average gross salary in Utah is $48,753.

What age group earns the most in Utah?

Median household incomes are highest for those in their prime earning years, aged between 25 and 64. In this age group, median incomes range from $95,000 to $111,000. High-earning jobs in Utah include pick-up truck owner-operators, pharmacists, mechanical engineers, and public health workers.

What is a livable wage in Utah?

According to MIT’s Liveable Wage Calculator, one adult with no children would need to make more than $22 an hour to afford typical expenses. For one adult and one child, the living wage jumps to $37.62. For two adults, both working, with one child, the living wage is $36.79.

Photo credit: iStock/PeopleImages

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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Households in the Lone Star State earn an income that’s just below the U.S. median. The U.S. Census Bureau reports that the median household income in Texas is $73,035. In comparison, the median annual income in the U.S. is $75,149.

Diving deeper into Texas’ income data can offer more clarity about how your income compares to peers in your city and county. We’ve gathered data from the Census Bureau’s American Community Survey, Bureau of Labor Statistics (BLS), Massachusetts Institute of Technology (MIT), and others to help uncover the average salary in Texas across these categories so you know where your income stands.

Here’s a closer look into what the average salary in Texas is.

Average Salary in Texas by Age in 2023

Generally, your income grows as you gain experience and seniority in the job market. Your peak income years are between ages 35 and 54, according to the BLS. The average salary in Texas typically decreases as workers transition into retirement, around the age of 65.

Below is the average income by age, according to a Scholaroo analysis of publicly gathered data.

Whether you have a good salary for your age as a Texas resident depends on your assets versus financial obligations. You can use a net worth calculator by age to determine where your finances are today so you can make moves to reach your financial goals.

Then, with this information in mind, consider using a budget planner app to set budgeting and savings goals.

Median Salary in Texas by City in 2023

While the average salary in the U.S. is higher than a typical Texan’s annual income, salary data varies greatly based on the city where you live. Below is a list of the most-populated cities in the state and the median salary of their residents.

Median Salary in Texas by County in 2022

The Census Bureau offers the median household income across various Texas counties. Below are the median salaries, in order of lowest to highest.

Depending on which Texas county you live in, median salaries vary widely. Although some of the more popular counties can offer higher incomes, if they also come with a higher cost of living, you may find it harder to maximize your income. Add other financial obligations, like loan and credit card debt, and saving toward your future goals, and your income might start looking lean.

Using a money tracker tool can help you stay on top of your necessary and discretionary spending. You can create specific budgets so you can track your progress toward a number of goals.

Recommended: What Is a Six-Figure Salary?

Examples of the Highest-Paying Jobs in Texas

Finding a well-paying job in Texas can help you achieve a more comfortable lifestyle. Fortunately, Texas is home to lucrative business sectors that offer a good entry-level salary, from aerospace and defense to energy production, thanks to the state’s abundant natural resources.

Here are just a few of the highest-paying jobs and their average salary in Texas, according to BLS data:

•   Radiologists: $327,850. These medical professionals use imaging tools, like x-rays, magnetic resonance imaging, ultrasound, and other techniques to view patients’ internal anatomy and provide diagnostic images.

•   Petroleum engineers: $155,290. As a petroleum engineer, you’re responsible for developing a plan to extract natural resources, like oil and gas, from the earth in a safe and efficient way.

•   Aerospace engineers: $132,800. In this profession, you’ll design and develop aircrafts, shuttles, satellites, and defense-use missiles and rockets. You’re also responsible for inspecting designs and testing their functionality according to project goals.

•   Industrial production managers: $130,850. In the manufacturing industry, industrial production managers are responsible for ensuring smooth operations when it comes to meeting production goals, managing staff, communicating with customers and suppliers, and more.

•   Information security analysts: $119,480. These individuals design, implement, and monitor computer networks and systems, like firewalls, intranet, and more for an organization or company. They also test for vulnerabilities, make enhancements, and stay ahead of any new technologies that impact security within an organization.

There are many career opportunities to explore, whether you enjoy engaging with teammates and clients or are interested in jobs for introverts that don’t require a lot of person-to-person interaction.

Recommended: 25 Highest Paying Jobs in the US

The Takeaway

The average salary in Texas by age ranges from $38,563 to $52,331, which falls short of the average pay in the United States. Incomes greatly depend on where you are in your career — whether you’re just starting out, in your peak-earning years, or preparing for retirement.

How far your salary goes is also dependent on your existing assets, debt, and where you live. Learning how to calculate your net worth can help you determine where you are financially.

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

What is a good average salary in Texas?

The median household income in Texas is $73,035, according to the Census Bureau. Depending on where you live, your expenses, how many people are in your household, and other factors, that salary could provide you with enough money for a comfortable lifestyle.

What is the average gross salary in Texas?

According to BLS data, the average salary in Texas, across all occupations and industries, is $61,240. The average hourly wage in the state is $29.44. This is as of May 2023, the most current data available from the BLS.

What is the average income per person in Texas?

In 2023, the average salary in Texas is $65,422 per capita, meaning per person, according to the Federal Reserve Bank of St. Louis.

What is a livable wage in Texas?

In terms of a living wage, a good average monthly salary in Texas is $3,626 for an adult with no children., For a family of four with two working adults, a living wage is about $4,195 per earner, assuming both adults earn the same income.

Photo credit: iStock/Moon Safari

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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When it comes to defining a “good” salary, there’s no one magic number. The Bureau of Labor Statistics (BLS) reported that the average salary in the U.S. is $65,470, as of May 2023. Based on this data point, $70K a year is a good salary for a single person — one that puts you above the national average.

But just how far $70,000 can carry you varies from person to person. Existing debt and financial obligations, spending habits, and where you live can all significantly impact how comfortable you’ll be on that salary.

Let’s take a closer look.

Median Income in the US by State in 2024

When you examine income through the lens of the average pay in the U.S., you could be misled by certain outliers, like a group of people with an unusually high income. Another way to consider pay is by looking at median income. The median income in the United States in 2022 was $74,580, according to the latest data available from the U.S. Census Bureau. Below is the median annual household income of every state.

Recommended: The Average Income by Age in the U.S.

Average Cost of Living in the U.S. by State in 2024

The Missouri Economic Research and Information Center aggregated and averaged cost-of-living (COL) indices from various metropolitan areas and cities throughout the U.S. It then determined the cost of living index by state.

As the chart below shows, Hawaii, Massachusetts, and California had the three highest costs of living on the index.

Recommended: Average U.S. Salary by State

How to Budget for a $70K Salary

Having established guard rails within your budget can help you live within your means. A popular strategy is the 50/30/20 plan, based on your after-tax income. Here’s how it works:

•   50% is for necessities. Necessities include your housing costs, utilities, car payments, groceries, transportation, health care, and other monthly debt obligations.

•   30% is for wants. This bucket includes non-essentials, like dining out, vacations, streaming subscriptions, shopping, etc.

•   20% is for savings. This category lets you set money aside toward an emergency fund, home down payment, retirement, or other long-term investment for yourself.

Maximizing a $70K Salary

$70K can be a good salary for a single person, depending on your circumstances. But if you’d like to stretch your income as much as possible, here are a few ideas:

•   Determine your monthly budget. A budgeting and spending plan that works for your lifestyle and long-term goals is essential. A budget planner app lets you set custom budgets and categorize your spending so you can see where your money goes.

•   Track your overall finances. Using a money tracker tool can help you monitor your everyday money habits, sometimes including your credit score. You can review useful visuals about your financial data, learn insights, and track how well you’re sticking to your plan.

•   Consider getting a roommate. Housing costs (i.e. rent/mortgage, utilities, internet, furnishings, etc.) make up a substantial part of your budget. Although getting a roommate isn’t the best fit for everyone, it lets you share the financial load so you can maximize your $70K salary.

•   Move to a cheaper area. If you live in a costly neighborhood, explore the possibility of relocating to another part of town that has a lower cost of living.

•   Invest in yourself. Don’t let your disposable income languish in a low- or no-interest checking account. Instead, consider depositing extra cash in a high-yield savings account or retirement account.

Is $70,000 a Year Considered Rich?

Only you can determine whether $70,000 per year is rich by your preferred quality of life. One way to approach this question is by learning how to calculate your net worth. For some workers, age factors into the decision of whether a certain salary is adequate.

To dig deeper into your net worth, use a net worth calculator by age.

Is $70K a Year Considered Middle Class?

According to the Pew Research Center, approximately half of U.S. adults are considered middle- class. Determining your income class as a single person earning $70,000 is a moving target depending on where you live.

Pew’s income calculator lets you quickly uncover your income tier, based on your state, metropolitan area, net income, and household size — in your case, one. For instance, $70K a year is a good salary in an upper-income tier, as a single-person household in the Gadsden area of Alabama. By comparison, in Texas’s San Antonio-New Braunfels area, earning $70K annually puts you in the middle-income class.

Example Jobs that Make About a $70,000 Salary

If you’d like to earn about $70,000 per year, here are a few jobs for introverts and extroverts alike and their median salary:

•   Loan officers: $69,990

•   Insurance underwriters: $77,860

•   Railroad worker: $73,580

•   Police officer and detective: $74,910

•   Zoologist and wildlife biologist: $70,600

For more inspiration, here’s a list of the highest-paying jobs by state.

The Takeaway

Whether $70K is a good salary for a single person is dependent on the context of your situation. A combination of factors, like your existing finances, your area’s affordability, and how lean or lavish your lifestyle is can sway the pendulum one way or the other.

As a single person, earning $70,000 annually might be completely comfortable if you live a modest-to-spendy lifestyle in a city with a low cost of living. Living in a high cost-of-living city, like Los Angeles or New York, might also be possible when you split housing costs with a roommate or relative. Assess your current bills, debts, and spending to see where you can make adjustments toward a lifestyle you enjoy.

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 $70,000 a year?

It’s possible. Depending on where you live and the area’s cost of living, a $70,000 annual salary might offer a comfortable lifestyle. Your current outstanding monthly debt, family size, and financial goals can also impact whether $70,000 is enough to live comfortably.

What can I afford with a $70,000 salary?

Housing is generally the most costly monthly expense you’ll need to budget for. If you earn $70,000 and are purchasing a home, you can afford a house up to $229,813. Assuming your monthly debt is $250, your mortgage rate is 7% fixed, and you got a 30-year term with $20,000 down, your monthly payment would be $1,837.

How much is $70,000 a year hourly?

A $70,000 salary equates to an hourly salary of $33.65. This assumes that you’re working a full-time schedule of 40 hours per week.

How much is $70,000 a year monthly?

If breaking down $70,000 in annual base wages by month, you’d earn $5,833.33 per month. Keep in mind that this figure doesn’t account for taxes and deductions that are applied to your paycheck during payroll.

How much is $70,000 a year daily?

A $70,000 base salary comes out to $269.23 per day. This amount was calculated under the assumption that you get paid to work eight-hour work days for over 260 weekdays throughout a year.

Photo credit: iStock/PeopleImages

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