Figuratively speaking, you can. $20k per year spending equates to $1667 p/month. You would need housing that costs no more than $700-$800 p/month. Total monthly utilities of $200-$300. Food is where it may get tough as it can vary depending on what you like or need to consume.
Yes, in today's terms. 20k a year is considered poverty, unless you own your own home, your spouse is making 50k a year. And you have invested in 20 years of stocks, bonds etc.
How much is $20,000 a year, hourly? If your annual income is $20,000, your hourly wage will stand at about $9.62 or $76.93 a day. This calculation is based on the assumption that you are working 40 hours per week.
A $60,000 annual salary is equivalent to earning a $28.85 hourly wage, or $230.80 each day. This is based on the employee working for eight hours a day, 52 weeks a year. To calculate your specific per hour rate, divide $60,000 by the number of hours that you work.
So is $20K a year good? While a $20,000 salary averages out to more than the federal minimum wage of $7.25/hour for full-time work, it is likely not an adequate income for anyone living independently and especially those with a family.
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. (Incomes are calculated in 2022 dollars.)
Key Findings. On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.
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.
While no estimate fits every situation, you can use T. Rowe Price's suggested benchmarks to help stay on track. By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
So if you plan on living on a $20,000 budget you should find something in the $550 per month range – tops. This might require some sacrifice. You might need roommates, a smaller place, or both. Or, you could get creative and look into house hacking to earn money where you live.
What is the average salary in U.S.? The first step in determining how much money you need to live comfortably is understanding the average income in the United States. As of 2023, the median household income in the U.S. stood at approximately $68,700 per year.
Calculation details
On a £20,000 salary, your take home pay will be £17,771 after tax and National Insurance. This equates to £1,480.92 per month and £341.75 per week. If you work 5 days per week, this is £68.35 per day, or £8.54 per hour at 40 hours per week.
According to the Census Bureau's Income in the United States: 2022 report, the median household income is $74,580 (a 2.3% decline from 2021), while household income levels for each class level are as follows: Lower class: less than or equal to $30,000. Lower-middle class: $30,001 – $58,020.
$150k a year would afford you a decent LA lifestyle. You should be able to secure comfortable living accommodations and live reasonably well. Buying a house would be your major investment along with a vehicle.
While there's no definitive line, households in the top 20% of earners are generally considered upper class. According to the U.S. Census Bureau, the median household income in 2022 was $74,580. To reach the upper class in 2024, you'd typically need an income exceeding $153,000 – more than double the national median.
If you make $20,000 per year, your hourly salary would be $9.62.
The quick answer to this question is yes—two people can live on $25,000 a year. But it would be very difficult if you had a mortgage, auto loan, credit card debt or student debt. Plus, you would have to live in an area with a low cost of living.
Key takeaways
According to the Federal Reserve, the average 401(k) balance is around $30,000 for those under 35, around $132,000 for those ages 35–44, around $255,000 for those ages 45–54, around $408,000 for those ages 55–64, and around $426,000 for those ages 65–75.