2 answers
Ismael
Student
Parma, Ohio
1
Question
Asked
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What is a good pay per year?
I would love to live care free and do what I want when I want. Like if I wanted to go on vacation I want to be able to go do that.
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2 answers
Vamshee Gunturu
Principal Engineer
187
Answers
Chandler, Arizona
Updated
Vamshee’s Answer
What constitutes an ideal annual salary? This is subjective and varies from individual to individual. The most effective method to determine your ideal annual salary is to calculate your monthly or yearly financial requirements based on your lifestyle and personal desires.
Here's a guide to help you estimate your annual expenses:
1) Essential Monthly Expenses: These are unavoidable costs such as housing, food, transportation, utilities, and insurance.
2) Discretionary Monthly Expenses: These include leisure activities like travel, entertainment, monthly subscriptions, dining out, and so on.
3) Debt Repayment: This includes any outstanding debts such as student loans or other loans that require monthly payments.
4) Savings and Retirement: This is the money you set aside for your future, emergencies, or asset acquisition.
Add up the costs in these four categories to determine the post-tax monthly income you need for the year. For instance, if you require $100,000 after tax, add an extra 20-25% to account for taxes and benefits. This means you would need an annual salary of $120,000 to $125,000. Remember, tax rates vary by state and city.
Additional expenses such as childcare, spousal expenses, or other family-related costs should also be factored into your calculations.
To give you a general idea of average salaries in the US, the median individual income is approximately $60,000 per year. About 30% of US households earn $100,000 or more per year, 10% earn over $200,000 per year, and 4% earn more than $300,000 per year.
People earning less than $50,000 per year are typically classified as low income, those earning between $50,000 and $150,000 are considered middle income, and those earning over $150,000 per year are categorized as upper middle class.
I hope this information is helpful in your financial planning!
Here's a guide to help you estimate your annual expenses:
1) Essential Monthly Expenses: These are unavoidable costs such as housing, food, transportation, utilities, and insurance.
2) Discretionary Monthly Expenses: These include leisure activities like travel, entertainment, monthly subscriptions, dining out, and so on.
3) Debt Repayment: This includes any outstanding debts such as student loans or other loans that require monthly payments.
4) Savings and Retirement: This is the money you set aside for your future, emergencies, or asset acquisition.
Add up the costs in these four categories to determine the post-tax monthly income you need for the year. For instance, if you require $100,000 after tax, add an extra 20-25% to account for taxes and benefits. This means you would need an annual salary of $120,000 to $125,000. Remember, tax rates vary by state and city.
Additional expenses such as childcare, spousal expenses, or other family-related costs should also be factored into your calculations.
To give you a general idea of average salaries in the US, the median individual income is approximately $60,000 per year. About 30% of US households earn $100,000 or more per year, 10% earn over $200,000 per year, and 4% earn more than $300,000 per year.
People earning less than $50,000 per year are typically classified as low income, those earning between $50,000 and $150,000 are considered middle income, and those earning over $150,000 per year are categorized as upper middle class.
I hope this information is helpful in your financial planning!
Douglas Ray, CMR, AMR
Sales, consulting, and marketing
49
Answers
Marietta, Georgia
Updated
Douglas’s Answer
Earning a satisfying salary each year can vary from person to person, but there are some easy initial targets that can evolve as you progress. For instance, a good starting point could be to aim for a salary that's twice your age. So, if you're 20, look for a job that pays around $40,000 a year. Over time, this can be adjusted based on factors like market conditions, your chosen career path, and the rate of inflation. As you gain more experience and become more accomplished in your field, you might even be able to earn three or four times your age each year. Here's to your success!