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A 90k Salary May Only Be As Good as How You Spend It

Ruchi Gupta - Author
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Jul. 20 2022, Published 9:24 a.m. ET

A $90,000 paycheck isn’t something that most Americans see—it's well above the national average for individuals. And whether $90,000 is a good salary depends on who you ask.

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You’d need to consider your family size, where you live, your lifestyle, and other factors. Let's look at what affects your salary power.

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How much does $90,000 per year work out hourly?

You may be asking yourself whether a $90,000 salary is enough because you're considering a job change. That salary works out to $7,500 per month, $1,730 per week, and $43 per hour. The federal minimum hourly wage is $7.25.

Is $90K a good salary for you?

The cost of living in your city may be the biggest determinant of whether a $90,000 paycheck can support you. The cost of groceries and rent can vary greatly by state, city, and neighborhood. If you live in a low-cost city or community, you could afford a comfortable life, but that may not be the case in expensive places such as New York City, Los Angeles, Boston, or Washington, D.C.

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Your family status will also affect how far $90K will go. For a single person living in a low-cost city, the salary would likely be more than enough. However, it may not suffice for a large family in New York City. Lifestyle is another factor. If you want to travel a lot, live in luxury, and drive fast cars, that salary may not cut it.

What can you do with a $90,000 paycheck?

A $90,000 salary is above average and can offer you a good life in most places. You could pay your bills and buy a house and a car. When it comes to house purchases, banks usually let you borrow more than twice your annual salary. Therefore, with a $90,000 salary, you could buy a $180,000–$200,000 property. And if you budget and spend responsibly, that paycheck could even get you out of student loan debt quickly.

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