Up to $100k Salary Budgeting

50-30-20 Rule applied to salaries of:

  • $60,000

  • $85,000

  • $100,000+

As of $2020, the average household income in America was $67,521. But that's America as a whole. Certain states have much higher incomes than that.

  • States with the highest Average Household Income

    1. District of Columbia $92,266

    2. Maryland $86,738

    3. Massachusetts $85,843

    4. New Jersey $85,751

    5. Hawaii $83,102

    6. California $80,440

  • States with the lowest Average Household Income

    1. Mississippi $45,081

    2. West Virginia $46,711

    3. Arkansas $47,597

    4. Louisiana $49,469

    5. New Mexico $49,754

    6. Alabama $50,536


Given the median househould income for higher income states, lets look at a budget for a $60,000 annual salary and a $85,000 annual salary. With the $85,000 annual salary, we have to take into consideration the higher cost of living in those states.


$60,000

  • 12% in Federal taxes (2,400)

  • 9% in State Taxes ($1,800)

$20,000 - minus taxes $4,200 = $15,800 annual take home income after taxes


$15,800 / 12 months = $1,316 in monthly income


Needs = 50% of $1,316 = $658

  • Housing

    • Options

      • Is there a friend or family that you can live with for free and help out with utilities?

      • Is there a house where you can rent a room or basement out?

      • Sign up for a Government assistance housing program like the Housing Choice Voucher Program (Section 8).

  • Utilities

  • Health Insurance: Government Assistant Program - Medicaid

  • Transportation

  • Groceries

Savings = 20% of $1,316 = $263

  • Debt repayment

Wants = 30% of $1,316 = $394

  • Wants

  • Dining Out

  • Hobbies

$85,000

  • 12% in Federal taxes (2,400)

  • 9% in State Taxes ($1,800)

$20,000 - minus taxes $4,200 = $15,800 annual take home income after taxes


$15,800 / 12 months = $1,316 in monthly income


Needs = 50% of $1,316 = $658

  • Housing

    • Options

      • Is there a friend or family that you can live with for free and help out with utilities?

      • Is there a house where you can rent a room or basement out?

      • Sign up for a Government assistance housing program like the Housing Choice Voucher Program (Section 8).

  • Utilities

  • Health Insurance: Government Assistant Program - Medicaid

  • Transportation

  • Groceries

Savings = 20% of $1,316 = $263

  • Debt repayment

Wants = 30% of $1,316 = $394

  • Wants

  • Dining Out

  • Hobbies

$100,000+

Bi-weekly Gross: $3800

Bi-Weekly Paycheck Deduction: $1400

  • Taxes $570

  • Fed MED/EE $80

  • State Witholding $250

  • Medical $110

  • Life Insurance (STD, LTC) - $90

  • Retirement $300

Bi-weekly net: $2400

Bi-weekly x 2 = monthly net: $4800 after taxes


Does your Employer pay any of our benefits? health care, dental, vision, life insurance





  • 12% in Federal taxes (2,400)

  • 9% in State Taxes ($1,800)

$20,000 - minus taxes $4,200 = $15,800 annual take home income after taxes


$15,800 / 12 months = $1,316 in monthly income


Needs = 50% of $1,316 = $658

  • Housing

    • Options

      • Is there a friend or family that you can live with for free and help out with utilities?

      • Is there a house where you can rent a room or basement out?

      • Sign up for a Government assistance housing program like the Housing Choice Voucher Program (Section 8).

  • Utilities

  • Health Insurance: Government Assistant Program - Medicaid

  • Transportation

  • Groceries

Savings = 20% of $1,316 = $263

  • Debt repayment

Wants = 30% of $1,316 = $394

  • Wants

  • Dining Out

  • Hobbies