With topics like inflation and rising costs making headlines these days, I have had a lot of people asking if their salary is enough to live off of. Rising interest rates have had an impact on our housing costs, and don’t get people started on the cost of eggs! Everyone has a different definition of how much salary is enough for them to cover their costs and live a happy life. In this article, I will answer the question: is 75k a good salary?
In 2023, the US Bureau of Labour Statistics shows that the average salary for a full-time job is around $53,400.00. If you make $75,000 you are definitely above average in the United States. Take note that this might not be true depending on which state you live in. Certain states, like New York, have a much higher cost of living. You might find that $75k just does not get you very far in certain cities.
There is no doubt that a salary of $75k will get you into the middle class of America. There are also other factors that should be taken into account. Do you have a family or are you planning to start one? What kind of debt do you carry? Let’s look deeper into what can determine if 75k is a good salary or not!
Is 75K a Good Salary?
When you compare it to what a majority of Americans are making, then yes, 75K is a good salary in 2023. Of course, depending on their situation, this answer will be different. While this might be enough to cover your costs, someone else might find it impossible to live off of a $75,000 salary.
For most people, I’m going to go out on a limb and say that $75k should be adequate enough to live off of. I never like to assume this, but it should be more than enough unless you have some extraordinary costs in your life. Especially considering that you are making $20,000 more than the average salary in the US.
Is $75,000 a Good Salary for a Single Person?
The fact is single people have far fewer costs than those with families. It is simple math given how many more mouths there are to feed when you have children. For a single person in the United States, a salary of 75K is higher than average in most states. I did a little research and took a look at the average and median salary data from 2022.
If you are a single person that made $75,000 in 2022, you made more than average in every state in the country except for Washington DC. If we look at the median salary per state, you still did pretty well. A salary of 75k means you earned more than the median salary in all but four states: Nevada, Maryland, New Hampshire, and Maine.
So in 2022, unless you lived in one of those five states, you did pretty well for yourself compared to other Americans. But let’s put things into perspective: the median salary in Nevada was $75,432, in Maine, it was $75,214, in New Hampshire, it was $75,321 and in Maryland, it was $75,077. You were right at the median mark if you made $75,000 in any of these states.
Related Financial Geek Article: Is $100,000 a Good Salary in America in 2023?
Is $75K a Good Salary for a Family of 4?
When we start adding in family members, this is when a salary of 75k can be spread a little thing. Assuming this is a family of two parents and two children, 75k is likely not going to get you far. Of course, this still depends on where you live and what your costs are. A family of 4 in Mississippi, which had the lowest cost of living in the US in 2022, can probably get by on 75k. But if that same family lived in Hawaii or California, things might be a little different.
Now, this is still assuming a single salary of 75K. I understand that in many families, both parents will be working. According to the US Bureau of Labor Statistics, the average American family will spend just over $5,100 per month on household expenses. This data is slightly dated as the Bureau updates certain stats every couple of years. We know that since 2020, things have gone up in price, to say the least.
This means that using the figures from 2020, an average household spends about $61,000 per year on just household expenses. What about saving for a house? Or if you need to buy a bigger car? Or even a nice family vacation? With a salary of just 75K, some of these things might not be realistic for most families.
$75,000 is How Much an Hour?
Let’s break it down even more. If we think about an annual salary, sometimes it can be difficult to grasp how much you are earning. When we break down a 75k annual salary into an hourly rate, things become a little more clear. If we just do some simple calculations, we begin to see exactly how much 75k really is.
Assuming you work a 40-hour work week, over 52 weeks you will work about 2,080 hours. Of course, this is not including things like overtime or bonuses. This means that a salary of 75k will pay you about $36.00 an hour, before taxes. This equates to $288.00 per day, again, before taxes. I could go on but I think you are getting the picture. With all of this information, do you think 75k is a good salary?
Salaries in a Different Context: Converting $30.00 an Hour into an Annual Salary
The Bottom Line: is 75K a Good Salary?
In the United States, 75k is considered a higher-than-average salary for a single person. When you add in a family, things certainly get a bit tighter. If you are still wondering, “Is 75k a good salary?”, you can rest assured that you are still earning more than most Americans do. My answer is yes, 75K is a good salary, and for most people, it is certainly enough.
Thanks for giving this a read today!