# Is 150k a Good Salary? What will my Lifestyle be Like?

There’s no denying that earning a six figure income provides financial security and great benefits.

But is 150k a good salary? Do you know exactly how much money you will have to live off each month and what kind of lifestyle you could afford?

Our complete guide breaks down what earning \$150k will give you per month, week, day and hour and help you figure out whether it’s enough to live a life of luxury.

## How much is a \$150,000 salary per month?

Based on 40 hours of work per week with paid vacation time, your monthly wage is approximately \$12,500 before any tax deductions.

## Paying tax on a 150k salary

So now you will want to know the average tax rate that you will be expected to pay on a 150k salary. Let’s break the numbers down.

There are seven federal tax brackets for the tax year 2021/2022. A marginal tax rate is either 10%, 12%, 22%, 24%, 32%, 35% or 37% and will be due to be paid in April 2022 or October 2022 with an extension. A \$150k salary falls within the \$86, 376 to \$164,925 bracket which means you will pay 24% tax. 24% of \$150,000 is \$36,000, which means your net pay will be approximately \$114,000 unless you have any other taxable benefits such as healthcare coming out of your wages.

## How much is a \$150,000 salary per week?

\$114,000 divided by 52 weeks is \$2,192 a week. If you get paid weekly rather than monthly, you will either receive four or five weekly pay checks depending on how many weeks there are in that month.

## How much is \$150,000 per day?

If you work five days a week, divide your annual salary by 52, then divide it by five days per week. If you work fewer days, simply change the calculation to factor in how much you work. For example, your weekly pay based on a \$150,000 salary is \$2,192 post tax. \$2,192 divided by five equals approximately \$438.40 per day.

## How much is \$150,000 per hour?

To work out your hourly earnings simply take your daily rate and divide it by how many hours you work per day. For example, \$438.40 divided by eight gives you an hourly wage of approximately \$54.80.

## Is \$150k a good salary for a single person?

Knowing how much the average American earns can help you figure that whether it’s a good salary for you or not.

The weekly median income for full-time wage or salary workers in the United States in 2021 was \$990. This gives a yearly income of approximately \$51,480.

So yes, if you don’t have any dependents then living off a \$150k salary could give you the luxury lifestyle that you dream of. However, it’s worth noting that in some parts of America earning \$150k is considered middle class and may not be enough to match the cost of living in a particular state. Anesthesiologists are one of the highest-paid workers in the U.S. and make a mean salary of \$267,020 per year.

## Is \$150k a good salary for a family?

If you are a family of five and the sole earner, your earnings will need to cover all of the monthly expenses.

Planning a household budget around total household income is important to your household’s financial well-being. To work out whether your \$150k will allow your family to live a luxury lifestyle, you will need to go through your monthly expenses.

Gather three months’ bank statements and go through them in detail, making a note of essential and non-essential transactions that you make as a family each month.

Examples of essential family spending include:

• Mortgage/rent.
• Utility bills.
• Debt repayments.
• Car repayments, insurance and fuel.
• Food.
• Childcare.

Examples of non-essential family expenditure include:

•             Vacations.

•             Coffee.

•             Clothes.

•             Entertainment.

•             Eating out.

## What does living on a \$150k salary look like?

Let’s take a look at the kind of lifestyle you could live through an example budget.

The 50-20-30 budgeting plan is one of the most popular budgeting techniques that can be applied to any salary. Simply allocate 50% of your monthly income on essentials, 20% to your savings pot and the 30% left can be spent in any way you choose. So, based on this theory you can break down a monthly take-home salary of \$8,768 (based on a four week month) in the following way:

\$4,384 should be allocated to your essential outgoings such as mortgage/rent, utility bills, debt repayments, car repayments, insurance and fuel, food and childcare.

\$1,753 should be put into a savings fund that can be used for things such as paying off debt, emergencies, buying a home, retirement and your children’s future education.

The remaining \$2,631 can be used in any way that you want on non-essential purchases. Non-essential expenditure includes things you want rather than need.

### Live debt-free

If you’re earning \$150,000 a year your first priority should be clearing any outstanding debt from credit cards so you will have more money spare to live a luxurious life. Being debt-free will make it easier for you to save and provide relief from anxiety and money stress and increased financial security.

### Save for a comfortable retirement

Thanks to the wonders of new technologies and medical advances, people are living longer which means that retirement funds need to last longer, especially with the rising costs of living. Adding as much as possible to your retirement pot will take the pressure off saving for your retirement in the future and ensure you have enough money to live a comfortable and even luxurious lifestyle later in life. If during the later years of your life you want to enjoy health club memberships, meals out and a new year every five years, saving spare money from your \$150k salary will help you achieve that desired lifestyle.

Investing spare money from your yearly salary is a good way to improve your quality of living in the medium to long term. Here are a few suitable investment income opportunities to consider.

Stocks: if you want to invest money for the long-term, stocks may be a good option for you. The simplest way to invest in stocks is through an online stockbroker. Once this is set up, start researching companies that you’d be happy to invest in from personal experience as a consumer. Consider starting small and only investing in single shares. You can always add to your portfolio over time.

Real estate: whilst you might not be able to buy an entire property from your spare cash straight away, but you could save it and use it as a down payment for a rental property and take out a mortgage for the rest. As long as the rental income you get from the property pays for your mortgage and any other costs, it’s a good investment to consider. You could also look into investing in real estate through online P2P platforms. Groups of investors put their money together to jointly purchase commercial or residential real estate.

Corporate bonds: if you’re looking for a low-risk investment, company bonds could be the answer. You can select bonds that are only from large, reputable companies or bonds that will mature within the next few years. Although investments are never risk-free, bonds are generally a lower investment risk than stocks.

Fixed annuities: an annuity is a contract that pays a certain amount of income, typically monthly, over a time period in exchange for an upfront payment. The benefits of fixed annuity investments include guaranteed income and the possibility to grow your investment on a tax-deferred basis.

Sure, earning 150k a year may change your way of living compared to an 80k salary, however there are ways that you can enjoy a luxurious lifestyle without spending a fortune. So, what could you do with 30% of your monthly salary to improve the quality of life you lead?

Invest in some high-end pieces – paying more for items such as watches and handbags will last you longer because the quality is much better. Some accessories can even hold or increase their value over time, protecting your initial investment while enjoying the finer things in life.

Create a luxurious home environment – simple touches such as fresh flowers, high quality furniture, soft lighting and tasteful décor can really make your home feel special. Declutter each room to achieve a desired minimalist style that is often replicated in high-end boutique hotels.

Budget your way to the lifestyle you want – creating a goal list can help you budget your money and put any spare cash towards achieving your dreams. Whether it’s a holiday, career break or a new house, writing down and visualising your goals can help you achieve them. Use your monthly budget to determine how long it will take you to tick off the first thing on your list.

A new car – is it time to upgrade your vehicle? Newer cars have improved fuel economy, cheaper or even zero road tax and you could save on MOT and servicing costs. Plus if you’re pumping regular money into maintaining your current car, you could save a proportion of your monthly budget by running a newer car.

Travel – vacations are a common financial goal for many people and help motivate them to save money. Whilst it’s not recommended to blow all your disposable income on a handful of luxury vacations, spending a proportion on travelling can help you take a break from work and spend time with family or friends. After all, money should be used to have fun too.

Try a luxury hobby – if you can afford it, taking up a luxury hobby such as skiing, golfing or cooking classes is one way to indulge in a luxury lifestyle. Simply spending time with friends and family doing something you enjoy is the best way to live a fuller life.

Pamper yourself with luxury skincare products – luxury beauty products don’t have to cost the earth, but they can help you feel good about yourself and feel your best.

Enjoy luxurious experiences – living a luxurious lifestyle isn’t just about buying things. Investing in vacations, concerts and dinners out creates memories that can enrich your life and last much longer than a piece of jewelry.

## Jobs that pay \$150k+ in America

There are a variety of jobs that pay over \$150,000 a year, in varying fields and industries with unique job responsibilities. Here are a few career paths to consider if you want to make big bucks.

Obstetrics and gynaecology physician – average salary \$151,156

An obstetrician or gynaecologist is a doctor who specialises in a woman’s reproductive system, pregnancy and childbirth. To become a specialist in this field, you will need to complete a bachelor’s degree and four years of medical school training first. Obstetricians that earn \$150k+ are trained in major and minor procedures including:

·         Cesarean sections

·         Instrumental deliveries during childbirth

·         Hysterectomies

·         Removing growths such as ovarian cysts and uterine fibroids

·         Surgery to repair pelvic organ injuries

·         Pap smears to test for cervical cancer

·         STI tests

·         Fertility treatments, such as egg retrievals for IVF or egg-freezing

·         Pelvic ultrasounds to check the pelvic organs and monitor pregnancy

·         Infertility treatments and counselling

·         Urinary issues, such as urinary tract infections and urinary incontinence

·         Breast exams and breast health management

Senior counsel – average salary \$160,186

The title of senior counsel is given to senior lawyers. As a senior counsel you will provide legal advice, negotiate business terms on behalf of an employer and represent a company in court. Sound like a good career choice for you? You’ll need to complete a Bachelor of Law or Juris Doctor which is typically a five year course or three year course. You can also complete a postgraduate study in Master of Laws to boost your career progression. You will then need to complete several years of relevant work experience in your state to earn this prestigious title.

Paediatrician – average salary \$181,151

Paediatricians manage medical conditions that affect young people and children. They deal with physical, behavioural and mental issues for anyone under the age of 18. There are a number of specialities that paediatricians can consider, including:

·         Critical care

·         Developmental behavioural paediatricians

·         Child abuse paediatricians

·         Pediatric gastroenterologists

·         Pediatric neurologists

·         Pediatric rheumatologists

·         Pediatric pulmonologists

·         Pediatric cardiologists

Paediatricians perform a wide range of procedures including physical exams, vaccinations, treating injuries, giving health advice and diagnosing and treating medical conditions. Extensive training and qualifications are needed to make it as a paediatrician, including a three year residency program in paediatrics after completing medical school.

Senior mortgage broker – average salary \$195,449

A mortgage broker is a financial advisor that specialises in mortgages and uses their knowledge to find the best lenders and mortgage deals for individuals and couples who are looking to buy a house. To reach the level of a senior mortgage broker you will need to complete many years of experience as a broker first and have an in-depth understanding of the relevant laws and industry best practices.

In America you will need to gain a high school diploma and an advanced degree to become a mortgage broker. There are also additional tests such as the National Mortgage License System that you will need to pass before becoming qualified.

Dentist – average salary \$203,708

The high salary of a dentist demands a challenging career path before you can start earning mega bucks. You’ll need to complete four years at dental school and receive your doctorate in dentistry. To earn your place at dentistry school you will need to stand out in your application as places are limited. There are also written and clinical exams that you will need to pass to qualify.

Typical dentist duties and responsibilities include:

• Educating patients on their oral hygiene and dental care
• Examining patient’s teeth and identifying or diagnosing any potential dental problems
• Performing dental treatments such as fillings and teeth extractions
• Teeth whitening
• Using technical equipment such as X-ray machines to identify potential issues
• Keeping records for each patient
• Referring patients to a dental hygienist or dental therapist
• Working with a practice receptionist and medical nurse
• Overseeing budgets
• Maintaining stocks of equipment

## Are there any downsides to earning a high income?

High earning careers often come with high stress and long hours. Earning lots of money certainly has its benefits, but it’s important to understand the negative effects that it will have on your life too.

The cost of education – the qualifications needed to be a doctor or an engineer come at a price, which leads to high amounts of student debt before you can even start your career. Keep this in mind when deciding on a career path and make sure you’re 100% dedicated and passionate in your chosen field.

Increased working hours – there’s no denying that doctors put the hours in to earn their wages. Some physicians work more than 60 hours a week. The more hours you work, the less time you will have for pleasure.

Higher work pressure – most highly-paid jobs are risk-orientated. For example, paediatricians are often in a position where they are responsible for a child’s life.

Less family time – whilst providing for your family financially is important, you can’t put a price on being there for family occasions and to see your children grow up. Planning ahead and ensuring you end work at a certain time are ways to help you achieve a healthy work life balance.

An impact on health – Stress, tension and sleepless nights that are part of a high-paid, high-pressure job can take a toll on your physical and mental health. High cholesterol, high blood pressure and a weakened immune system are just some of the health issues associated with stress.

### The cost of living

Which state you live in will also have an impact on how far your \$150k will go. The cost of living in the United States varies greatly from state to state. Hawaii is the most expensive state to live in in the US, with the cost of goods costing more than anywhere else in America. Factors that affect the cost of living include:

Food – grocery prices can vary significantly across different states in America. The actual store that you shop in will also affect your total grocery bill. It’s no good being able to afford the house in San Francisco but not be able to eat.

Transport – if you need to commute, don’t forget to factor the cost of transport into your monthly budget. In some states, public transport costs significantly more than others.

Energy – gas and electricity rates will also depend on where you live. The rates you pay in your state will be determined by generation and transmission costs which are set by government regulation and consumption rates.

The size of your house – when you buy a bigger house, not only are you paying a bigger mortgage but you will also pay more taxes, utilities, insurance and general upkeep. Now you’re earning a high salary and you want to know what to do with spare cash from your 150k, creating an emergency fund would be a smart move to help you cover unexpected living costs.

You don’t need to use all of your disposable income for your emergency fund. A sensible amount would be enough to cover three to six months of your living expenses. Look at your budget and total up the expenses that have to be covered every month. Multiply that figure by three or six to come up with how much you should put into your emergency fund.

## So, is \$150k a good salary?

You can definitely enjoy some of the finer things in life on a \$150k salary and achieve financial independence, as long as you budget effectively and live in an area where you can comfortably afford the cost of living. High-paid careers come with a lot of responsibility and stress so try and enjoy your downtime by living the lifestyle that you and your family want to.

Take control of your finances with our helpful guides and the latest personal finance advice on our blog.

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