Whether or not $70,000 is considered a good salary depends on a number of factors. These include where you live, your lifestyle, what kind of work you do, your financial goals, and how many people are in your household.
While $70,000 is higher than average U.S. salary, it may be difficult to live well on this salary in certain parts of the country where the cost of living is high or if you’re supporting a family.
Here’s a closer look at whether or not earning $70,000 is a good salary and what factors influence this.
Key Points
• A $70,000 salary’s adequacy largely depends on geographic location, household size, lifestyle, and financial obligations.
• In high-cost areas or for larger families, this salary might not suffice for a comfortable living.
• Nationally, $70,000 is above the average salary, but personal financial goals and living costs are key to determining its sufficiency.
• For single individuals in regions with a lower cost of living, $70,000 can offer a comfortable lifestyle and savings potential.
• Budgeting wisely and managing expenses are essential for making a $70,000 salary work, especially in more expensive urban areas.
Factors to Determine if a $70,000 Salary Is Good
A $70,000 salary can be considered good or not depending on various factors such as where you live, your lifestyle, and your financial obligations. Let’s explore these considerations in more detail.
Where you live: Living expenses vary significantly depending on where you live in the U.S. Your dollars won’t go as far in a metropolitan city as they would in a rural area. It’s a good idea to look into the costs of housing, groceries, transportation, and other necessities in your area and weigh them against your salary to determine if $70k is enough for you to live comfortably.
The size of your household: Whether you live alone or have a family has a major impact on how far your $70,000 salary can go. A single person may be able to live well on this income in many places. But if you’re supporting a spouse and children, it may prove more difficult. If you’re supporting others, consider your family’s monthly expenses to determine if $70,000 is enough to pay for everyone’s needs.
Debt and other obligations: You’ll also want to factor in any debt and other payments you must make each month when determining if your $70k salary is enough. If you have student loans, credit card debt, and/or mortgage payments, that could eat up a significant portion of your monthly take-home salary. Run through your essential monthly expenses and then see how much is left over for discretionary purchases. Paying down debt could help make your $70k go further.
💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.00% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
Where Does a $70,000 Salary Compare to the American Median Income?
According to the Bureau of Labor Statistics’s most recent data (May 2022), the mean, or average, salary nationwide is $61,900.
That means that on a nationwide scale, you’re earning more than most people. However, the cost of living in your area, personal lifestyle choices, and your financial expectations and goals also play a crucial role in determining whether $70k is a good salary for you or not.
What Percentage of Americans Make Over $70,000 Annually?
U.S. Census data reports that in 2022 (the most recent data available), 49.8% of Americans made $75,000 and more, and 16.2% earned between $50,000 and $75,000. Based on these statistics, at least half of Americans make $70,000.
$70,000 Salary Breakdown
Here’s a look at exactly how a $70,000 annual salary breaks down. Keep in mind that these numbers look at gross income, which is what you earn before any taxes and other withholdings (such as health insurance, social security, and retirement contributions) are deducted from your paycheck.
• Monthly income: $5,833.33
• Biweekly income: $2,916.66
• Weekly income: $1,346.15
• Daily income: $191.78
• Hourly income: $7.99
Your actual take-home pay will depend on where you live, your household income, whether you’re a full-time employee or self-employed, and what employee benefits you participate in.
Can You Live Individually on a $70,000 Income?
If you’re single and have a salary of $70k, you are part of above-average earners in the U.S. Depending on where you live, you may be able to live comfortably on a $70,000 salary as a single person. You may even be able to save for goals, like building an emergency fund, contributing to a retirement fund, and saving for a downpayment on a home.
However, in high-cost-of-living areas, this salary might require careful budgeting to maintain a good standard of living. Indeed, economists estimate that someone making $70,000 a year in other parts of the country would need to make $166,000 in New York City to enjoy the same standard of living.
Can You Live as a Family on a $70,000 Income?
Living as a family on $70,000 could be challenging. According to the Economic Policy Institute’s Family Budget Calculator, the monthly household cost for two adults and two children living in Dayton, Ohio, for example, adds up to $7,658, including housing, food, childcare, transportation, healthcare, and taxes.
If your monthly gross income is $5,833.33 (which it would be if you earn 70k a year), that would likely not be enough to support a family in a midsize midwestern city. You might find it easier, however, if you live in a more rural part of the country.
How Much Rent Can You Afford Living on a $70,000 Income?
One popular guideline is to spend no more than 30% of your gross income on rent. So if your monthly gross income is $5,833.33, you would ideally try to spend no more than $1,750 per month on rent.
However, this guideline isn’t realistic for everyone. Sticking to spending 30% on rent may not be feasible in a place like New York City or San Francisco, for example, where median rents for a one-bedroom apartment are over $2,000.
If you need to spend more than 30% of your $70 salary on rent, you may need to watch your spending in other areas, such as clothing, entertainment, and dining out.
Best Places to Live on a $70,000 Salary
The following cities each have a median household income of below $70,000 and a lower-than-average cost of living, making them among the best places to live on a $70,000 salary.
• Decatur/Hartselle, Alabama
• Charleston, West Virginia
• Rockford, Illinois
• Knoxville, Tennessee
• Amarillo, Texas
• Waterloo/Cedar Falls, Iowa
• Oklahoma City, Oklahoma
• Anniston, Alabama
• Winston-Salem, North Carolina
• Great Falls, Montana
• Morristown, Tennessee
• Springfield, Missouri
Worst Places to Live on a $70,000 Salary
Here’s a look at the 12 most expensive places to live in the U.S. — and some of the worst places to live on a $70,000 salary.
• San Diego, California
• Los Angeles, California
• Honolulu, Hawaii
• Miami, Florida
• Santa Barbara, California
• San Francisco, California
• Salinas, California
• Santa Rosa, California
• San Juan, Puerto Rico
• Vallejo, California
• Fairfield, California
• New York City, New York
Recommended: Cost of Living by State
Tips for Living on a $70,000 Budget
Living on a $70,000 budget requires careful planning and smart financial decisions. Whether you’re just starting out or looking to improve your financial situation, these tips can help you make the most of your income.
💡 Quick Tip: Are you paying pointless bank fees? Open a checking account with no account fees and avoid monthly charges (and likely earn a higher rate, too).
Saving Up for Retirement
One of the most important aspects of managing your finances is saving for retirement. Even on a $70,000 budget, it’s crucial to prioritize saving for your golden years. Consider contributing to a 401(k) or IRA, which can provide tax advantages and help your money grow over time. A good rule of thumb is to try to save at least 10% to 15% of your income for retirement, and increase this amount as your income grows
Getting on a Budget
Creating and sticking to a budget is key to living within your means on a $70,000 budget. Start by tracking your income and expenses to get a clear picture of where your money is going. Then, set realistic goals for saving and spending. Consider using budgeting apps or tools to help you stay on track.
Getting Out of Debt
If you have debt, such as credit card balances or student loans, it’s important to prioritize paying it off. You might start by paying off high-interest debt first, as this will save you money in the long run. Consider consolidating your debt or negotiating with creditors to lower your interest rates. Once you’ve paid off your debt, focus on staying debt-free by living within your means.
Saving Your Money
Saving money is a crucial part of living on a $70,000 budget. Look for ways to cut expenses, such as dining out less often or shopping for discounts. Consider setting up automatic transfers to a savings account to make saving easier. Additionally, consider building an emergency fund to cover unexpected expenses, such as car repairs or medical bills. This will help you avoid running up high-interest credit card debt in the event of the unexpected.
Managing Finances With SoFi
Whatever your salary, it’s important to not only live within your means but also to put some money into a high-yield savings account each month. This will give you a cushion for emergencies and help you work towards — and reach — your financial goals.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
What jobs pay over $70,000?
According to the U.S. Bureau of Labor Statistics, occupations that make over $70,000 include jobs in the medical and healthcare field, managers (in a variety of industries), engineers, software developers, financial advisors, jobs in the legal field, commercial pilots, economists, and actors/producers/directors, among many others.
Is making $70,000 a year common?
According to the Bureau of Labor Statistics’s most recent data (May 2022), the average salary nationwide is $61,900, which means that $70,000 is a common salary — but above the national average.
Can I make a living on $70,000?
You may be able to live comfortably off $70,000, depending on where you live and how many people are in your household. If you’re single and live in an area where the cost of living is below average, you can likely live well on $70,000.
Photo credit: iStock/Eleganza
SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
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.
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOBK0124051