Is 75k a Good Salary? Will I be Able to Have a Good Lifestyle?

Is 75k a Good Salary

Whether you’ve been offered a job paying 75,000 a year, or you’re trying to budget effectively on your $75k annual salary, there are many factors to consider.

In short, an income level of $75k is well above the national average salary of $53,490 in the USA. However, to determine if this salary is enough money to suit your lifestyle and individual needs, you will have to assess factors such as living expenses, health insurance, student loan debt, state income taxes, health care costs, housing expenses, social security, transportation costs, credit card debt, the cost of living in your area, particularly if you are living in one of the most expensive cities in the US.

The type of lifestyle you will be able to afford will also vary based on your annual household income if you are part of a multi-income household.

Discuss Your Employment Contract with Your Employer

Before accepting a job offer, it is important to establish what is included in your employment package. For example, some employers might offer 2 weeks paid vacation leave, while others may not. This will have an impact on your weekly take home pay and your hourly wage.

Whether you are paid monthly, weekly, or every two weeks will have an impact on how you are able to budget.

If your company pays for your health insurance, you will of course save money in the long run as you won’t have to deduct this from your monthly salary.

Location

75,000 a year might be a great salary in some locations, but barely a comfortable salary in others. Living expenses, as well as housing costs, vary greatly from city to city, so you will have much more money left over at the end of the month to put into savings if you live in a cheaper state such as Mississippi, as opposed to somewhere more expensive such as San Francisco.

You should also consider whether the location is convenient for you to travel to and from work. It may be that you are wasting a large chunk of your monthly budget on traveling and transportation costs and placing unnecessary strain on your bank account by commuting to work each day. Consider moving closer to your place of work if this is an option for you.

Remote work is becoming increasingly common and would save you money on traveling costs if you are in a profession such as a freelance writer where you can comfortably work from home.

Keep in mind that on average you’ll be spending more on household bills than if you worked in an office as you would have to spend some of your 75,000 a year salary on heating and electric during your working day.

Family Size

Deciding whether or not you are making a good income depends largely on how many people you need to support with it. A single person may be able to live more comfortably off of a 75,000 a year salary whereas the same salary would not stretch as far when being used to support a family.

Your household earnings may also be considerably higher if you live with a partner whose take-home pay is also contributing to your monthly budget.

If you have children to support, you will have to consider child care costs and possible education costs in order to give them a good education.

Making the Most Out of Your 75,000 a Year Salary

Whatever your income level, your monthly pay won’t stretch very far if you are wasting money unnecessarily each month, and you will find yourself living paycheck to paycheck, even if you are on a good salary.

On a salary of 75,000 a year, you should be able to put aside a significant amount of your salary into savings each month.

Work Out Your Budget

In order to calculate how much disposable income you have, you should calculate your living expenses. Add up your basic necessities such as bills, insurance, and car payments, childcare costs, rent or mortgage payments, and any outstanding loan costs.

The amount of leftover money will show you how much you are to place into savings for the future, use towards investments, and spend on occasional treats such as traveling abroad and meals out.

Make Your Money Work for You

Investing your money wisely will increase your net worth and boost your annual salary in the long run. If you’re making a good salary, even a single person with one source of income could potentially retire early

It’s never too early to start thinking about retirement and investing in your future. For more information on making safe investments, click here.

Cut Back on Your Spending

To make your annual salary stretch further, there are many ways you can reduce your spending.

Read this article for tips on living frugally.

Buy Second Hand

The average American will find that they can save a significant amount of money buying second hand clothes, furniture, books and children’s toys when compared to buying new.

If you’re making a good salary, you may think this option isn’t for you, however, thrift stores and second hand shopping is increasing in popularity even for those earning above the national average salary.

Thrift shopping is a fantastic way to find unique items to give your home and wardrobe an individual style.

Cancel Your Gym Membership

If you’re an avid gym goer, don’t worry, you don’t need to cancel your gym membership if you’re making good use of it.

However, if you’re paying for a high cost membership, there may be cheaper options available to you and you might benefit financially from switching gyms. Even if you’re earning a good salary, it could be detrimental to your income to be spending a large chunk of your salary each month on an expensive gym membership.

If you find that you pay for a gym membership each month but never actually make it to the gym, this may be an area you could cut down your spending. The average person admits to paying for a gym membership despite not making it to the gym each month.

There are many fitness apps and workout videos available free of charge so you can exercise from the comfort of your own home without spending any money.

Your savings will quickly accumulate if you add this money to your saving account instead.

You can even choose to get in touch with nature and work out outside instead. Whether you live in Mississippi or San Francisco, discover the natural walking and cycling trails your area has to offer and boost your endorphins.

Stop Wasting Money on Food

If you’re finding that your grocery bills are too high cost, it may be that you are shopping in the wrong stores.

You can save money by shopping in less expensive grocery stores, and you may also be surprised to find that the quality of the produce is just as good as the more expensive food you were buying previously.

The average American finds they are throwing away food items each week. If you find you are throwing away a lot of food each week, you may need to plan your meals more efficiently so you waste less.

You’ll find you have more cash left at the end of the month if you stop wasting money on food. After all, every dollar adds up.

Learn to Cook

If you are someone who enjoys eating in restaurants weekly, save money by cooking and eating at home instead.

If you don’t currently cook at home much, this is a great opportunity for you to learn a new skill. There are many free recipes and tutorials online if you don’t know where to start.

Alternatively, if you know a friend or family member who is a good cook, ask them to teach you and spend unforgettable quality time together in the kitchen.

If you’re worried about having to sacrifice your social life, don’t worry. You can invite friends and family over for a home cooked meal and enjoy the social aspect you are craving.

You can even enjoy a game or movie night with friends if you don’t feel like cooking but still want to make unforgettable memories.

Buy in Bulk

Wherever possible, buy items that you use a lot of in bulk.

Items such as dried pasta, rice, cleaning products and paper towels are fantastic options for bulk buying as they will not perish.

You may be surprised to see how much money you can save by buying in bulk compared with buying the same items repeatedly.

Think About Housing: Buying vs Renting

The cost of accommodation will take up a huge chunk of your 75,000 salary.

Of course, location will play a huge role in how much you are paying for your rent or mortgage payments each month.

If you are fortunate enough to have the money already put aside for a down payment, you will be able to apply for a mortgage and purchase a home.

Buying a home may be more expensive in the short term, but ultimately you will be saving money in the long run and will eventually own your home outright when you have paid off your mortgage in full.

If you don’t have the money saved to buy a house immediately, with a salary of 75,000 a year you will be able to save for a deposit within a few years.

If you are renting a property, try to ensure you are not paying too much in rent payments each month.

If you can, try to split the cost of rent by staying with roommates until you have saved the money to purchase your own home.

Let’s Talk About Cars

You may be wondering how much of your 75,000 a year salary you should be spending on your car.

While cars are not generally a wise investment due to how quickly they depreciate, you may actually be wasting more money by driving an older model.

Older cars can cost more in insurance, fuel and maintenance than newer vehicles, so you may actually save money in the long run by investing in a newer, more reliable vehicle.

Think About Credit Cards

Wherever possible, refrain from using your credit card.

It may be tempting to make an impulse purchase and pay using a credit card. However, you should refrain from using your credit card where possible.

When using a credit card, you will have to pay off not only the amount of your purchase, but also the interest associated with your credit card.

It may also be a good idea to switch to a lower interest rate credit card if you are able to do so.

Cut Down on Bills

While bills such as gas, electricity, and home and car insurance are basic necessities that you will always have to pay, it may still be that you are paying too much for these.

Shop around with different energy supplier and insurance firms and request a quote based on your current usage. It may be significantly cheaper than what you are already paying. This is an easy way to save money without have to make any big lifestyle changes.

Remember to Enjoy Life

It may be easy to become fixated in making your salary and paycheck stretch as far as possible, or building your saving account up until it reaches that magic number, but it is important to remember that there is more to life than increasing your net worth.

You shouldn’t feel guilty about spending some of your income on treats from time to time. Whether it’s meals out, trips to the movies, expensive beauty products or treatments, clothing, or trips overseas, make sure you are not depriving yourself of occasional luxuries that will bring you joy.

So, is 75k a good salary?

There is no denying that a 75,000 salary is well above that of the average person in the US.

However, there are easy lifestyle changes you can implement to make your already good salary stretch even further.

You will be able to live comfortably off of a salary of 75,000 a year, even in areas with a high cost of living.

In areas such as San Francisco with a very high cost of living, your money will not stretch as far as it would if you lived in a more inexpensive state such as Mississippi.

Even better, if you are in an industry where remote work is possible, you can save a lot of money per year on traveling and commuting costs.

Whether you are a single person or a person with a family or children to support on your 75,000 a year salary will have a huge impact on how far your salary is able to stretch.

You can easily cut back on your spending by making changes such as cooking at home, buying second-hand, and working out at home instead of wasting money on an expensive gym membership.

You may even be able to save money in the long run by investing in a new car with lower insurance fuel and maintenance costs.

There are many ways you can make your 75k salary work for you, but it’s important not to become too fixated on this and to allow yourself occasional treats and luxuries so you can enjoy and live life to the fullest.

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