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