The question of which salary is good enough has been around for ages. But there’s a simple rule of thumb you can use to quickly figure out if your salary is competitive: multiply your annual salary by 2, and 3. If the resulting number looks unattainable, your salary is competitive. If it seems reachable, then it isn’t competitive at all.
There are many factors that can affect the amount of money you need to live your best life. Consider how much you spend on food and utilities, what kind of car you drive, how much clothing you buy, and whether or not you have any special hobbies.
If you’re single, the answer will depend on your lifestyle and personal preferences. But if we were to put a number on it, 70000 is a good salary for a single person.
It may seem like a lot of money but when you break down what it means in terms of costs like rent and food then it’s not as much as it seems.
Is 70000 a good salary for a single person
70000 is a good salary for a single person.
You need to understand your expenses
The first step in determining whether you can live comfortably on $70,000 is to understand how much money you’re currently spending. And by “understand”, I mean really understand—not just guess or estimate.
The best way to do this is by making a budget and tracking your expenses for at least three months. You can use free online tools like Mint or YNAB (You Need A Budget) that will help track where all the dollars are going, so there won’t be any surprises when tax time rolls around. But even if you don’t want to go through all that trouble, here are some easy steps:
- Make a list of your monthly bills—utilities, credit card payments and student loans are usually top contenders here; but don’t forget about incidentals like dry cleaning fees or gym memberships! That’ll give us an idea of what we need each month before even thinking about groceries or entertainment costs.. Then add up all those numbers together.. If it’s more than $7000 per month then good job! You’ve got yourself a good salary.. But if it’s less than $6000 per month then maybe consider looking into another career path because this one won’t work out well for either party involved..
How much can you actually save?
If you are saving at least 10 percent of your monthly salary, then congratulations! You’re already on the right track.
But if you want to save more, consider this advice: save as much as possible, as early in life as possible. The earlier you get started saving, the more compound interest will work in your favor down the road. As they say, time is money.
Start by considering a budget and determining how much extra income or “spending money” (that’s really just savings) is realistic for all of your expenses each month—housing costs, food expenses, clothing and transportation costs—and subtract that number from your monthly income after taxes and deductions have been taken out (you can use an online calculator like this one). Then divide that amount in half; this will be how much extra cash flow is available for you to put into savings each month. Finally decide what percentage of that amount should go into short term goals like paying off credit card debt or car loans first before putting additional funds away long term investments such as retirement accounts like 401ks or IRAs so these important debts don’t take over your life later on when they could cost thousands more than necessary with compounded interest rates at play over time
Do you have a retirement plan?
If you’re single and in your 20s, it’s likely that retirement is still a long way off. But as you get older, it’s important to start thinking about how much money you need to save for retirement. You don’t want to retire with nothing—and if you do, then things will be hard. The good news is that there are some simple ways to figure out how much money you’ll need at different stages in your life:
- If all goes according to plan (and who knows when this will happen), by the time I reach age 65 my Social Security payments should be around $1,200 per month (or $14,400 per year). That may sound like a lot of money but remember that at age 65 I’m going to live another 30 years or so—so if I want my monthly Social Security check in 2030-something dollars then today’s dollar needs to have more buying power than current currency does now; which brings us back around again…
Are you able to pay off your debts?
Your debt-to-income ratio is the amount of money you spend each month on bills, divided by your monthly income. For example, if you’re earning $7000 per month and spending $1500 on rent, $400 on car payments, $250 on student loans, and so forth—your overall debt would be:
Debt: (rent + car payments + student loan) = 1500 + 400 + 250 = 2350
Income: 7000 – 2350 = 4200
Your debt-to-income ratio is thus 4200/7000 or 0.61. The higher this number is above 0 (the closer to 1), the more likely it is that your creditors are going to take legal action against you for nonpayment of their debts or services rendered. Generally speaking, anything above 28% could get you into trouble with credit reporting agencies like Equifax and Experian—although these numbers fluctuate based on region and industry.
Can you afford to accomplish both your short and long-term goals?
The first step to answering this question is to make a plan. Sit down and take a look at your short-term goals—that’s the stuff that needs to get done within the next year or two. You might have some big things on your agenda, like starting a business or buying a house, but maybe you’ll also be looking forward to smaller things like going out with friends or getting a new car. If you’re not sure what all is in store for the next few years, ask yourself: What do I hope will happen?
Once you’ve made a list of all these things, prioritize them by how important they are to achieving long-term goals such as retirement or college savings accounts (or whatever else). The higher priority items should be more detailed than lower priority ones—this will help keep them from getting lost in the shuffle as other priorities come up later on. For example, if saving for retirement is one of your main objectives every month (and it should be), put more effort into planning how much money goes into those savings accounts than figuring out how much cash goes toward paying back student loans each month; that second task can wait until after graduation day has passed!
Now go ahead and set aside some money each month specifically for paying off debts that don’t have any tax benefits attached (this includes student loans). Once those debts are paid off completely
Understand what your financial obligations are.
The first step in determining whether or not a particular salary is good is to understand what your financial obligations are.
To do so, you must consider:
- The cost of living in your area (e.g., rent and food costs).
- Your annual expenses (e.g., insurance premiums, vacations, etc.)
- Your annual income (e.g., income from all sources).
Once you know these things, then you can better determine if your salary is sufficient for your needs.
That’s a lot of money! To put it in perspective, only 10 percent of the U.S. population makes more than $90,000 per year. And the average American makes just over half that amount ($49,500). Your take-home pay will be about $42,000 per year after taxes and other deductions. If you live in a major city like New York or San Francisco, this could be enough to make ends meet but not much more. In fact, high cost-of-living areas are often some of the worst places for young people trying to make ends meet because salaries aren’t always adjusted accordingly there’s nothing worse than feeling like your paycheck isn’t going far enough each month. However if you choose a place with lower living expenses, that same salary could go much further – giving you all kinds of new financial freedom!