The rule recommends that you allocate 50% of your budget for essentials (housing, transportation, utilities and groceries), 20% toward financial priorities (retirement contributions, savings, and debt payments), and the remaining 30% for bonus (read: fun) lifestyle expenses.
The Bureau of Labor Statistics (BLS) reported that the average salary in the U.S. is $65,470, as of May 2023. Based on this data point, $70K a year is a good salary for a single person — one that puts you above the national average. But just how far $70,000 can carry you varies from person to person.
The Quick Answer: Present the Budget Range
However, the exact budget range depends on other factors including credit score, financial situation, and the market conditions. Someone with a $70K salary might be able to afford a house with a value between $180K and $350K, depending on these factors.
For a $70000 income, that would be between $70000 and $140000 in total savings over time. In summary, a good starting point is to have at least an emergency fund of $9000 to $18000 and aim for broader savings that could range significantly based on your goals and expenses.
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.
As of Jan 6, 2025, the average annual pay for a 70K A Year in the United States is $44,728 a year. Just in case you need a simple salary calculator, that works out to be approximately $21.50 an hour. This is the equivalent of $860/week or $3,727/month.
If you make $70,000 a year, your hourly salary would be $33.65.
A $70,000 salary's adequacy largely depends on geographic location, household size, lifestyle, and financial obligations. In high-cost areas or for larger families, this salary might not suffice for a comfortable living.
According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment. Homeowners Insurance. Private mortgage insurance.
In 2022, the national middle-income range was about $56,600 to $169,800 annually for a household of three. Lower-income households had incomes less than $56,600, and upper-income households had incomes greater than $169,800.
$70,000 yearly is how much per two weeks? If you make $70,000 per year, your Biweekly salary would be $2,692. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.
An income of $70,000 surpasses both the median incomes for individuals and for households. By that standard, $70,000 is a good salary.
Quick Take: The 75/15/10 Budgeting Rule
The 75/15/10 rule is a simple way to budget and allocate your paycheck. This is when you divert 75% of your income to needs such as everyday expenses, 15% to long-term investing and 10% for short-term savings. It's all about creating a balanced and practical plan for your money.
If you make $70k a year, you can afford to spend about $1,633 on a monthly mortgage payment — as long as you have less than $500 in other monthly debt payments. You may be able to afford a $302,000 home in a low cost of living area. You may be able to afford a $247,000 home in a high cost of living area.
How much is 6 figures? 6 figures is any salary between $100,000 and $999,999, or a dollar amount with 6 digits. Similarly, a 7-figure salary means you make $1 million to $9,999,999, because there are 7 digits in those numbers; $10 million to $99,999,999 is an 8-figure salary.
$35 an hour is how much a year? If you make $35 an hour, your yearly salary would be $72,800.
At an annual income of $70,000, your weekly salary would stand at about $1,346.26 or $2,692.51 bi-weekly. To determine your weekly earnings from your annual income, you simply divide your yearly earnings by the number of weeks in a year.
If your annual income is $500,000, your hourly wage will stand at about $240.40 or $1,923.22 a day. This calculation is based on the assumption that you are working 40 hours per week. There are 52 weeks in a year, so we need to multiply 52 by 40 to get the number of working hours per year, which is 2,080 hours.
The Pew Research Center defines the middle class as households that earn between two-thirds and double the median U.S. household income, which was $80,610 in 2023, according to the U.S. Census Bureau. 22 Using Pew's yardstick, middle income is made up of people who make between $43,350 and $130,000.
The rule recommends that you allocate 50 percent of your budget for essentials (housing, transportation, utilities and groceries), 20 percent toward financial priorities (retirement contributions, savings, and debt payments), and the remaining 30 percent for bonus (read: fun) lifestyle expenses.
Request a Free Loan Consultation
With a $70,000 annual salary and using a 50% DTI, your home buying budget could potentially afford a house priced between $180,000 to $280,000, depending on your financial situation, credit score, and current market conditions.