“Retiring on $2,000 per month is very possible,” said Gary Knode, president at Safe Harbor Financial. “In my practice, I've seen it work. The key is reducing expenses and eliminating any market risk that could impact your savings if there were a major market downturn.
A single person household spends an average of $4,641 on monthly expenses. Married couples without kids spend an average of $7,390 on monthly expenses. A family of four spends an average of $8,450–9,817 on monthly expenses (depending on kids' ages).
Here is a look at five states where single individuals need to earn the most to cover basic expenses: Massachusetts: $58,009. Hawaii: $56,841. California: $56,825.
According to the $1,000 per month rule, retirees can receive $1,000 per month if they withdraw 5% annually for every $240,000 they have set aside. For example, if you aim to take out $2,000 per month, you'll need to set aside $480,000. For $3,000 per month, you would need to save $720,000, and so on.
While it's difficult to pinpoint an average retirement income, the most recent Census Bureau data indicates that people 65 and older have a median annual income of approximately $54,700 or nearly $4,560 per month. A financial advisor can help you create a retirement plan for the future. Speak with an advisor today.
The savings guideline states that for every $1,000 of monthly income you want to generate in your golden years, you'll need to have $240,000 saved in your retirement account.
The Poverty Threshold in 2024
For an individual, the poverty threshold is $14,891. The U.S. Department of Health and Human Services uses the Census Bureau threshold to determine who is eligible for certain government assistance programs, like SNAP (food stamps).
Hourly wage needed for a single adult: $57.10. Annual salary needed for a single adult to live comfortably: $118,768. Combined salaries for two working adults with two children needed: $316,243.
Housing costs shouldn't exceed 30% of your gross monthly income, said Salahi. For example, if you earn $5,000 monthly, your rent should ideally be $1,500 or less. “Remember, this includes rent and utilities. You might need to stretch this to 35% in high-cost areas, but be cautious about going higher,” he warned.
An individual needs $96,500, on average, to live comfortably in a major U.S. city. That figure is even higher for families, who need to earn an average combined income of about $235,000 to support two adults and two children.
The average monthly expenses for one person in 2022 were $3,693, up 8.5% from 2021. That translates into an increase of $287.75 per month.
Bottom Line. Living on $1,000 per month is a challenge. From the high costs of housing, transportation and food, plus trying to keep your bills to a minimum, it would be difficult for anyone living alone to make this work. But with some creativity, roommates and strategy, you might be able to pull it off.
The average monthly expenses for one person can vary, but the average single person spends about $3,405 per month. Housing tends to consume the highest portion of monthly income, with the average annual spending on housing at $1,885 per month per person.
Living on $2,000 per month is doable, but you won't be able to live just anywhere. This is important because at the time of writing the average Social Security benefit paid is $1,701 per month.
For a single individual, $100,000 would actually put you in the upper-income level in most places. For household sizes between two and four, $100,000 a year would put you squarely in the middle class.
The average salary in 2023 for an individual worker was $65,470. Demographics like location, occupation, race, and gender significantly influence average wages.
For people who live alone, there is no financial buffer to protect against rising costs. Many people who live alone are left to deal with all household expenses without the support of a second income. But these helpful tips could see your money go further.
Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
These guidelines are adjusted each year for inflation. In 2023, the federal poverty level definition of low income for a single-person household is $14,580 annually. Each additional person in the household adds $5,140 to the total. For example, the poverty guideline is $30,000 per year for a family of four.
Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.
Outside the most expensive parts of the United States, $5,000 per month is typically enough to cover rent or mortgage payments and other lifestyle expenses if you're mindful of your budget.
You have to file an income tax return if your net earnings from self-employment were $400 or more.
Chunking your goal into actionable steps will help you understand what you need to do to achieve it. With an average of 30 days each month, you'll need to make about $333 per day, every day, to reach your goal. That's a big goal to reach, so now you need to figure out which ways to make extra cash will get you there.