Depending on the amount of debt a family has or its savings goals, this budget could still work with more than $1000 per month allocated toward savings and debt. This could mean that a family would have less to use toward savings or paying off debt. Rebalancing the 50/30/20 rule slightly will allow this budget to work for a family of four. If these expenses are a family’s only necessary expense, the difference is only about $100. Sample Budget for a Family with 100k Income Based on the average cost of groceries, utilities, used car payments, and car insurance exceed $2970 which would be 50% of the take home pay from a $100k salary. Housing Costs for a Family of 4 Making 100k per yearĪccording to CBS News the average rent in the United States is $1405. Using the 50/30/20 budget rule, the family would have $1188 to spend on expenses in the “savings/debt” category.The Savings/Debt can be used for a number of things including: Using the 50/30/20 budget rule, the family would have $1782 to spend on expenses in the “wants” category. The following items are considered needs: Using the 50/30/20 budget rule, the family would have $2,970 to spend on expenses in the “need” category. The Table below shows how much they would allocate toward wants, needs, and savings/debt payments using the 50/30/20 budget rule.ĥ0/30/20 Rule Monthly Family Budget Example According to the take home pay calculator someone earning a 100k per year slary would take home $5940 per month.įamily of 4 Making 100k 50/30/20 budget ruleĪ family of 4 making 100k per year would bring home about $5940 per month. It did not take in to account other deductions some employees have such as 401k contributions, Health Insurance, Union Dues, or Pension Payments. The calculator only included Federal and State Income Taxes. I used a take home pay calculator to determine how much someone making 100k per year takes home. ![]() I listened to the audiobook on audible, if you haven’t used audible yet you can get this book for free with an Audible Trial by visiting here. To learn more about creating a budget for a 100k salary visit this article on our site Creating a Budget for 100k Income.Īnother great book about budgeting is the book I will teach you to be rich by Ramit Sethi. $2,997 a month for wants, $1,798 a month for needs and $1,188 for savings and paying off debt. The 50/30/20 rule recommends spending 50% of your salary on Needs, 30% on Wants, and 20% of your income to paying off debt. One modern budgeting concept is the 50/30/20 rule. Keep reading to see how the average costs of living in the United States match up to a 100k per year income for a family of four.Ī budget is simply a plan for how to spend your income. However, I was shocked to see how that budget translated in moderate cost of living areas. I knew the 50/30/20 budget rule would be difficult to stick to on a 100k income in high cost of living areas such as Manhattan. The 50/30/20 budget rule recommends using 50% of your take home income for wants, 30% of your take home income for wants and 20% of your take home income for savings and paying off debt. I tested the 50/30/20 budget rule to determine if a family of 4 could live comfortably on 100k in the United States. At this income level you would have to commute rather than live in the most expensive cities such as Boston, San Francisco, and Manhattan. The average household income in the United States is approximately 73k according to the US Census Bureau. Yes, a family of 4 can live on 100k per year. After doing some research, I have discovered the budget is a little tighter than expected when supporting a family of four. I thought for sure a family could survive on 100k. Due to the high cost of daycare in my area, our disposable income is somewhat limited, but we don’t have a hard time making ends meet. My family of three is currently living comfortably on a six-figure household income. So 100k, in fact, is a good salary for a single person, but how does that measure up for a family of four? While the average single male household makes $55,190. In fact, The average single female household makes $40,233. ![]() Only 13% of single female households and 20% of single Male households bring in more than $100k. It meant a comfortable lifestyle, vacations, extracurriculars, and periodically updating my wardrobe would be no big deal.Ī $100k salary is a good salary for an individual. To me, it represented a dollar amount that could easily sustain a family of four. You should consult with an attorney or other professional to determine what may be best for your individual needs.Įarning a six-figure salary was something that I aspired to when I began working. It should not be considered legal or financial advice. The Truth about Living on 100k per Year as a Family of Fourĭisclaimer: This article is for informational purposes only.
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