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.
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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.
| State | Median Household Income |
|---|---|
| Alabama | $59,609 |
| Alaska | $86,370 |
| Arizona | $72,581 |
| Arkansas | $56,335 |
| California | $91,905 |
| Colorado | $87,598 |
| Connecticut | $90,213 |
| Delaware | $79,325 |
| Florida | $67,917 |
| Georgia | $71,355 |
| Hawaii | $94,814 |
| Idaho | $70,214 |
| Illinois | $78,433 |
| Indiana | $67,173 |
| Iowa | $70,571 |
| Kansas | $69,747 |
| Kentucky | $60,183 |
| Louisiana | $57,852 |
| Maine | $68,251 |
| Maryland | $98,461 |
| Massachusetts | $96,505 |
| Michigan | $68,505 |
| Minnesota | $84,313 |
| Mississippi | $52,985 |
| Missouri | $65,920 |
| Montana | $66,341 |
| Nebraska | $71,772 |
| Nevada | $71,646 |
| New Hampshire | $90,845 |
| New Jersey | $97,126 |
| New Mexico | $58,722 |
| New York | $81,386 |
| North Carolina | $66,186 |
| North Dakota | $73,959 |
| Ohio | $66,990 |
| Oklahoma | $61,364 |
| Oregon | $76,362 |
| Pennsylvania | $73,170 |
| Rhode Island | $81,370 |
| South Carolina | $63,623 |
| South Dakota | $69,457 |
| Tennessee | $64,035 |
| Texas | $73,035 |
| Utah | $86,833 |
| Vermont | $74,014 |
| Virginia | $87,249 |
| Washington | $90,325 |
| West Virginia | $55,217 |
| Wisconsin | $72,458 |
| Wyoming | $72,495 |
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.
| State | Personal Consumption Expenditure |
|---|---|
| Alabama | $42,391 |
| Alaska | $59,179 |
| Arizona | $50,123 |
| Arkansas | $42,245 |
| California | $60,272 |
| Colorado | $59,371 |
| Connecticut | $60,413 |
| Delaware | $54,532 |
| Florida | $55,516 |
| Georgia | $47,406 |
| Hawaii | $54,655 |
| Idaho | $43,508 |
| Illinois | $54,341 |
| Indiana | $46,579 |
| Iowa | $45,455 |
| Kansas | $46,069 |
| Kentucky | $44,193 |
| Louisiana | $45,178 |
| Maine | $55,789 |
| Maryland | $52,651 |
| Massachusetts | $64,214 |
| Michigan | $49,482 |
| Minnesota | $52,849 |
| Mississippi | $39,678 |
| Missouri | $48,613 |
| Montana | $51,913 |
| Nebraska | $37,519 |
| Nevada | $49,522 |
| New Hampshire | $60,828 |
| New Jersey | $60,082 |
| New Mexico | $43,336 |
| New York | $58,571 |
| North Carolina | $47,834 |
| North Dakota | $52,631 |
| Ohio | $47,768 |
| Oklahoma | $42,046 |
| Oregon | $52,159 |
| Pennsylvania | $53,703 |
| Rhode Island | $52,820 |
| South Carolina | $46,220 |
| South Dakota | $48,997 |
| Tennessee | $46,280 |
| Texas | $49,082 |
| Utah | $48,189 |
| Vermont | $55,743 |
| Virginia | $52,057 |
| Washington | $56,567 |
| West Virginia | $44,460 |
| Wisconsin | $49,284 |
| Wyoming | $52,403 |
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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.
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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
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