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Qatar Airways offers two branded credit cards for U.S. consumers. Launched by the airline in May 2024 in partnership with financial technology company Cardless and issued by First Electronic Bank, the cards offer sign-up bonuses, rewards on purchases and an accelerated path to status in Qatar Airways Privilege Club (the airline’s frequent flyer program) and the Oneworld alliance (of which the airline is a member).
One card is more feature-rich than the other, and the difference is evident in an annual fee that rivals what you’d pay for the best premium travel rewards credit cards. For that price, other cards may have more to offer, especially if you’d prefer more flexibility with your rewards.
Here are five things to know about the Qatar Airways credit cards.
You can choose between the Qatar Airways Privilege Club Visa Signature Credit Card, with a $99 annual fee, and the Qatar Airways Privilege Club Visa Infinite Credit Card, with a $499 annual fee.
Here’s how the cards compare:
Qatar Airways Privilege Club Visa Infinite Credit Card |
Qatar Airways Privilege Club Visa Signature Credit Card |
|
---|---|---|
Annual fee |
||
Sign-up bonus |
Earn up to 50,000 Avios, including 25,000 Avios after the first transaction and 25,000 Avios after spending $5,000 in the first 90 days. |
Earn up to 40,000 Avios, including 20,000 Avios after the first transaction and 20,000 Avios after spending $3,000 in the first 90 days. |
Loyalty program points |
|
Earn 2 Qpoints for every 2,000 Avios earned. |
Earnings rates |
|
|
Other perks |
The cards earn rewards in the form of “Avios,” which you can use to book award travel on Qatar Airways. Avios are also the rewards currency for several other airlines, including British Airways, Iberia, Aer Lingus and Finnair; you can transfer Avios among those airlines’ frequent flyer programs, although the value you get per point will differ.
Because Qatar Airways is part of the Oneworld alliance, you can also redeem Avios toward flights on partner airlines such as American Airlines, Alaska Airlines, Qantas and more.
With the Qatar Airways Privilege Club Visa Signature Credit Card, you automatically get Silver status in Qatar Airways’ Privilege Club for the first year you have the card. This grants you a 25% bonus on rewards earnings for eligible flights; priority standby, check-in and boarding; a 20% discount on the cost of seat selection; an allowance for extra baggage; and lounge access. You’ll also get Ruby status in the Oneworld alliance, which gets you business class priority check-in, preferred seating and priority on waitlists and standby.
The Qatar Airways Privilege Club Visa Infinite Credit Card grants you Privilege Club Gold status for the first year, which comes with a 75% bonus on rewards earnings for eligible flights; priority standby, check-in and boarding; preferred seats; an allowance for even heavier extra baggage; lounge access; credits you can redeem for upgrades; a “meet and assist” service; and a discount on online redemptions. You’ll also get Sapphire status on Oneworld, which provides the benefits of Ruby plus access to business class lounges, priority boarding, a free extra checked bag and priority baggage handling.
Note that the automatic elite status lasts for only the first year. To keep (or increase) your status, you need to earn “Qpoints,” which you can do by flying Qatar Airways or any Oneworld member airline. Using the Qatar Airways credit cards can also earn Qpoints — you get 2 Qpoints for every 1,500 to 2,000 Avios you earn with credit card spending, depending on the card.
The “Infinite” version charges a sky-high $499 annual fee, which is certainly something to take into consideration when considering these two cards. For the extra cost, you get a larger sign-up bonus, higher ongoing rewards rates, a higher rate at which you earn Qpoints, a higher status tier and Visa Infinite benefits.
If you’re considering the more expensive Qatar Airways Privilege Club Visa Infinite Credit Card, note that other premium travel cards allow you to transfer points to airline partners, which includes some of the Avios airlines mentioned above.
With the Chase Sapphire Reserve®, which has a $550 annual fee, you can transfer Chase Ultimate Rewards points to airlines including British Airways, Aer Lingus and Iberia. Plus, you get a $300 annual travel credit, a statement credit toward TSA PreCheck or Global entry, airport lounge access and more.
Full list of Chase transfer partners
Aer Lingus (1:1 ratio).
Air Canada (1:1 ratio).
Air France-KLM (1:1 ratio).
British Airways (1:1 ratio).
Emirates (1:1 ratio).
Iberia (1:1 ratio).
JetBlue (1:1 ratio).
Singapore (1:1 ratio).
Southwest (1:1 ratio).
United (1:1 ratio).
Virgin Atlantic (1:1 ratio).
Hyatt (1:1 ratio).
InterContinental Hotels Group (1:1 ratio).
Marriott (1:1 ratio).
The Capital One Venture X Rewards Credit Card includes both British Airways and Finnair among its transfer partners. The $395 annual fee can be effectively wiped out by the card’s many perks — a $300 annual travel credit for bookings made through Capital One Travel, a statement credit toward TSA PreCheck or Global Entry, airport lounge access and a 10,000-mile anniversary bonus.
Full list of Capital One transfer partners
Aeromexico (1:1 ratio).
Air Canada (1:1 ratio).
Air France-KLM (1:1 ratio).
Avianca (1:1 ratio).
British Airways (1:1 ratio).
Cathay Pacific (1:1 ratio).
Emirates (1:1 ratio).
Etihad (1:1 ratio).
EVA (2:1.5 ratio).
Finnair (1:1 ratio).
Qantas (1:1 ratio).
Singapore Airlines (1:1 ratio).
TAP Air Portugal (1:1 ratio).
Turkish Airlines (1:1 ratio).
Accor (2:1 ratio).
Choice Privileges Hotels (1:1 ratio).
Wyndham Rewards (1:1 ratio).
Source: nerdwallet.com
Qatar Airways offers two branded credit cards for U.S. consumers. Launched by the airline in May 2024 in partnership with financial technology company Cardless and issued by First Electronic Bank, the cards offer sign-up bonuses, rewards on purchases and an accelerated path to status in Qatar Airways Privilege Club (the airline’s frequent flyer program) and the Oneworld alliance (of which the airline is a member).
One card is more feature-rich than the other, and the difference is evident in an annual fee that rivals what you’d pay for the best premium travel rewards credit cards. For that price, other cards may have more to offer, especially if you’d prefer more flexibility with your rewards.
Here are five things to know about the Qatar Airways credit cards.
You can choose between the Qatar Airways Privilege Club Visa Signature Credit Card, with a $99 annual fee, and the Qatar Airways Privilege Club Visa Infinite Credit Card, with a $499 annual fee.
Here’s how the cards compare:
Qatar Airways Privilege Club Visa Infinite Credit Card |
Qatar Airways Privilege Club Visa Signature Credit Card |
|
---|---|---|
Annual fee |
||
Sign-up bonus |
Earn up to 50,000 Avios, including 25,000 Avios after the first transaction and 25,000 Avios after spending $5,000 in the first 90 days. |
Earn up to 40,000 Avios, including 20,000 Avios after the first transaction and 20,000 Avios after spending $3,000 in the first 90 days. |
Loyalty program points |
|
Earn 2 Qpoints for every 2,000 Avios earned. |
Earnings rates |
|
|
Other perks |
The cards earn rewards in the form of “Avios,” which you can use to book award travel on Qatar Airways. Avios are also the rewards currency for several other airlines, including British Airways, Iberia, Aer Lingus and Finnair; you can transfer Avios among those airlines’ frequent flyer programs, although the value you get per point will differ.
Because Qatar Airways is part of the Oneworld alliance, you can also redeem Avios toward flights on partner airlines such as American Airlines, Alaska Airlines, Qantas and more.
With the Qatar Airways Privilege Club Visa Signature Credit Card, you automatically get Silver status in Qatar Airways’ Privilege Club for the first year you have the card. This grants you a 25% bonus on rewards earnings for eligible flights; priority standby, check-in and boarding; a 20% discount on the cost of seat selection; an allowance for extra baggage; and lounge access. You’ll also get Ruby status in the Oneworld alliance, which gets you business class priority check-in, preferred seating and priority on waitlists and standby.
The Qatar Airways Privilege Club Visa Infinite Credit Card grants you Privilege Club Gold status for the first year, which comes with a 75% bonus on rewards earnings for eligible flights; priority standby, check-in and boarding; preferred seats; an allowance for even heavier extra baggage; lounge access; credits you can redeem for upgrades; a “meet and assist” service; and a discount on online redemptions. You’ll also get Sapphire status on Oneworld, which provides the benefits of Ruby plus access to business class lounges, priority boarding, a free extra checked bag and priority baggage handling.
Note that the automatic elite status lasts for only the first year. To keep (or increase) your status, you need to earn “Qpoints,” which you can do by flying Qatar Airways or any Oneworld member airline. Using the Qatar Airways credit cards can also earn Qpoints — you get 2 Qpoints for every 1,500 to 2,000 Avios you earn with credit card spending, depending on the card.
The “Infinite” version charges a sky-high $499 annual fee, which is certainly something to take into consideration when considering these two cards. For the extra cost, you get a larger sign-up bonus, higher ongoing rewards rates, a higher rate at which you earn Qpoints, a higher status tier and Visa Infinite benefits.
If you’re considering the more expensive Qatar Airways Privilege Club Visa Infinite Credit Card, note that other premium travel cards allow you to transfer points to airline partners, which includes some of the Avios airlines mentioned above.
With the Chase Sapphire Reserve®, which has a $550 annual fee, you can transfer Chase Ultimate Rewards points to airlines including British Airways, Aer Lingus and Iberia. Plus, you get a $300 annual travel credit, a statement credit toward TSA PreCheck or Global entry, airport lounge access and more.
Full list of Chase transfer partners
Aer Lingus (1:1 ratio).
Air Canada (1:1 ratio).
Air France-KLM (1:1 ratio).
British Airways (1:1 ratio).
Emirates (1:1 ratio).
Iberia (1:1 ratio).
JetBlue (1:1 ratio).
Singapore (1:1 ratio).
Southwest (1:1 ratio).
United (1:1 ratio).
Virgin Atlantic (1:1 ratio).
Hyatt (1:1 ratio).
InterContinental Hotels Group (1:1 ratio).
Marriott (1:1 ratio).
The Capital One Venture X Rewards Credit Card includes both British Airways and Finnair among its transfer partners. The $395 annual fee can be effectively wiped out by the card’s many perks — a $300 annual travel credit for bookings made through Capital One Travel, a statement credit toward TSA PreCheck or Global Entry, airport lounge access and a 10,000-mile anniversary bonus.
Full list of Capital One transfer partners
Aeromexico (1:1 ratio).
Air Canada (1:1 ratio).
Air France-KLM (1:1 ratio).
Avianca (1:1 ratio).
British Airways (1:1 ratio).
Cathay Pacific (1:1 ratio).
Emirates (1:1 ratio).
Etihad (1:1 ratio).
EVA (2:1.5 ratio).
Finnair (1:1 ratio).
Qantas (1:1 ratio).
Singapore Airlines (1:1 ratio).
TAP Air Portugal (1:1 ratio).
Turkish Airlines (1:1 ratio).
Accor (2:1 ratio).
Choice Privileges Hotels (1:1 ratio).
Wyndham Rewards (1:1 ratio).
Source: nerdwallet.com
Right now, nine states do not charge state income taxes, which means residents in those states don’t need to file a state-level tax return. While an obvious benefit of that is a reduction in their annual tax liability, are there also drawbacks to living in a state without income taxes?
Here, learn the pros and cons of no state income tax. This intel can help you determine if living in a state with no income tax is better for you.
Key Points
• Living in states without income tax can significantly reduce an individual’s overall tax burden, benefiting primarily high-income earners during tax season.
• Higher sales and property taxes often compensate for the lack of income tax, potentially placing a heavier burden on lower-income residents in these states.
• Tax filing becomes simpler for residents in states without income tax, eliminating the need for state tax returns and associated expenses for tax preparation.
• The absence of income tax can lead to reduced funding for essential public services, such as education and infrastructure, impacting the quality of life.
• Although no income tax may attract new residents, the overall cost of living in these states can still be relatively high, complicating financial advantages.
Currently, nine states do not have state income tax on earned income:
• Alaska
• Florida
• Nevada
• New Hampshire*
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming
*New Hampshire currently charges state taxes on interest and dividends but not on income, but it is set to phase this out after 2026, as Tennessee has recently done.
Recommended: Earned vs. Unearned Income on Taxes
At first blush, having no state income tax sounds like a win for Americans — and for many high-earners, it might be. However, there are also downsides to living in a state with no income taxes. Here’s a closer look.
While nearly everyone must file federal taxes, residents in states without income taxes will benefit from a lower overall tax bill each tax season. This can be a boost to one’s financial health.
Just because states don’t charge income taxes doesn’t mean they’re not getting revenue through different types of taxes. States without income taxes sometimes have higher sales and property taxes, for example.
Tennessee, Washington, Nevada, and Texas are all in the top 20 states with the highest combined state and local sales tax. New Hampshire, Texas, and Florida all have property taxes higher than the national average — with the former two in the top 10 states overall.
An added con to this: Unlike income taxes, which get progressively higher based on your income level and resulting tax bracket, sales taxes are the same no matter how much you make. That means lower-income taxpayers shoulder a heavier tax burden in states with no income taxes, according to the Institute on Taxation and Economic Policy.
If you live in a state without income tax, filing can be a breeze. You’ll have one less tax filing deadline to worry about.
Those who reside where state tax is collected, however, may need to invest in professional tax software or an accountant to handle their state taxes. This is of course an added expense — and creates extra steps in the tax filing process.
States use income taxes to fund projects like improving infrastructure and investing in education. Without income taxes, there could be less in the budget for such investments.
For instance, Nevada, Florida, Tennessee, and South Dakota are all among the top 10 states that spend the least amount of money per K-12 student, per a report from the Education Data Initiative. The common thread? These four states don’t have income taxes.
A lack of state income taxes may be a selling point for many people looking to move, whether they are looking for a more affordable lifestyle, a welcoming state to retire in, or to be closer to friends and family.
Why does this matter? An influx of residents to a state can be a boon to the local economy.
Though it’s not the case across all nine states without income taxes, the cost of living could be higher. Four out of the nine states were among the 20 most expensive states to live in last year: Alaska, New Hampshire, Washington, and Florida.
Now, here’s how the pluses and minuses stack up in chart form:
Pros | Cons |
---|---|
Less money spent on income taxes | Potentially higher sales and property taxes |
Easier tax filing | Potentially lower infrastructure and education spending |
Potential state population growth | Potentially higher cost of living |
Some states may choose to enact a no-state-income-tax policy to encourage Americans to move there from other states and thus boost their economy. IRS and Census data backs up this theory.
It may also reflect local political sentiment: Conservative politics tend to favor lowering taxes, while progressive politics often prioritize the social programs that can be achieved through higher taxes.
Recommended: Tips on Saving Money Daily
States with no income taxes save residents money — on their income taxes. However, many states without income taxes can be expensive in other ways. They might have a higher sales tax, higher property taxes, and/or a higher cost of living.
Before deciding on a move to a state without income taxes, it’s a good idea to view the whole picture by researching sales and property tax rates and overall cost of living.
Recommended: Tax-Friendly States that Don’t Tax Pensions and Social Security Income
Some taxpayers may say that living in a state with no income tax is better, but others might not. In general, high-income earners benefit more from a lack of state income taxes, since they may enjoy reduced taxes. Low-income earners, however, may actually shoulder more of the tax burden when states generate revenue from sales tax.
Taxpayers should also consider how much they value lower taxes versus more social programs and investments in things like infrastructure and education. Each individual will have their own opinion.
States without income taxes may save you a lot of money when it’s time to file taxes, but there may be hidden costs of living in such states, like higher sales and property taxes. Before moving, it’s important to consider the full picture to better understand the potential impact on your finances.
Regardless of where you live, it can be a wise money move to take advantage of a high-yield bank account to grow your savings. When you open a SoFi Checking and Savings account, you’ll enjoy a competitive annual percentage yield (APY) on deposit and pay no account fees, both of which can help your cash grow more quickly. Plus, there’s the convenience factor: You’ll spend and save in one place, and qualifying accounts can access their direct deposit paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.
Though it varies, it is common for states without income taxes to make up for that lack of revenue through other forms of taxes, primarily sales and property taxes.
Food costs contribute to a state’s total cost of living. In 2022, four of the 20 most expensive states to live in had no income taxes. While that doesn’t inherently mean food costs are higher in such states, it may validate that a disproportionate number of states with no income tax have higher costs of living.
High-income taxpayers benefit more from living in states with no income taxes. The more money you make, the higher percentage of your income you must pay in taxes, so high-earners will likely save more.
In addition, states with no income tax may see less spending on education, which can affect the quality of learning for students. High-income earners can probably more easily afford private schools for their children; such schools do not rely on taxes to operate. Low-income earners may not be able to afford private schools.
Photo credit: iStock/mihailomilovanovic
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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Source: sofi.com
Rising prices and inflation are driving worries that money doesn’t go as far as it used to. But rest assured that $120,000 is considered a good salary, especially if you’re single and have no dependents. And by developing sound money habits now, you can help make the most of your income, no matter what it is.
Here’s a closer look at an annual salary of $120,000.
A salary of $120,000 is nearly double the national average salary in the U.S. of $63,795, per the latest data available from the Social Security Administration. But how comfortably you’re able to live on that money depends on a number of factors, including how much debt you have, your family size, and how much your lifestyle costs in the area where you live.
A money tracker can help you with budgeting, monitoring spending, and keeping tabs of your credit score.
The average pay for a worker in the U.S. varies by state, though no state comes close to $120,000. For reference, here’s a chart of the median household income in each state, according to the U.S. Census Bureau.
State | Median Household Income |
---|---|
Alabama | $59,609 |
Alaska | $86,370 |
Arizona | $72,581 |
Arkansas | $56,335 |
California | $91,905 |
Colorado | $87,598 |
Connecticut | $90,213 |
Delaware | $79,325 |
Florida | $67,917 |
Georgia | $71,355 |
Hawaii | $94,814 |
Idaho | $70,214 |
Illinois | $78,433 |
Indiana | $67,173 |
Iowa | $70,571 |
Kansas | $69,747 |
Kentucky | $60,183 |
Louisiana | $57,852 |
Maine | $68,251 |
Maryland | $98,461 |
Massachusetts | $96,505 |
Michigan | $68,505 |
Minnesota | $84,313 |
Mississippi | $52,985 |
Missouri | $65,920 |
Montana | $66,341 |
Nebraska | $71,772 |
Nevada | $71,646 |
New Hampshire | $90,845 |
New Jersey | $97,126 |
New Mexico | $58,722 |
New York | $81,386 |
North Carolina | $66,186 |
North Dakota | $73,959 |
Ohio | $66,990 |
Oklahoma | $61,364 |
Oregon | $76,362 |
Pennsylvania | $73,170 |
Rhode Island | $81,370 |
South Carolina | $63,623 |
South Dakota | $69,457 |
Tennessee | $64,035 |
Texas | $73,035 |
Utah | $86,833 |
Vermont | $74,014 |
Virginia | $87,249 |
Washington | $90,325 |
West Virginia | $55,217 |
Wisconsin | $72,458 |
Wyoming | $72,495 |
Related: Highest Paying Jobs by State
The average cost of living in the U.S. will affect how you feel about your $120,000 salary. And, like salary, it varies by state. Here’s a look at what a typical resident in each state spends on basic necessities, such as housing, food, and transportation.
State | Personal Consumption Expenditure |
---|---|
Alabama | $42,391 |
Alaska | $59,179 |
Arizona | $50,123 |
Arkansas | $42,245 |
California | $60,272 |
Colorado | $59,371 |
Connecticut | $60,413 |
Delaware | $54,532 |
Florida | $55,516 |
Georgia | $47,406 |
Hawaii | $54,655 |
Idaho | $43,508 |
Illinois | $54,341 |
Indiana | $46,579 |
Iowa | $45,455 |
Kansas | $46,069 |
Kentucky | $44,193 |
Louisiana | $45,178 |
Maine | $55,789 |
Maryland | $52,651 |
Massachusetts | $64,214 |
Michigan | $49,482 |
Minnesota | $52,849 |
Mississippi | $39,678 |
Missouri | $48,613 |
Montana | $51,913 |
Nebraska | $37,519 |
Nevada | $49,522 |
New Hampshire | $60,828 |
New Jersey | $60,082 |
New Mexico | $43,336 |
New York | $58,571 |
North Carolina | $47,834 |
North Dakota | $52,631 |
Ohio | $47,768 |
Oklahoma | $42,046 |
Oregon | $52,159 |
Pennsylvania | $53,703 |
Rhode Island | $52,820 |
South Carolina | $46,220 |
South Dakota | $48,997 |
Tennessee | $46,280 |
Texas | $49,082 |
Utah | $48,189 |
Vermont | $55,743 |
Virginia | $52,057 |
Washington | $56,567 |
West Virginia | $44,460 |
Wisconsin | $49,284 |
Wyoming | $52,403 |
Source: U.S. Bureau of Economic Analysis
Chances are, $120,000 can easily cover an individual’s basic expenses with some money left over for entertainment and saving. But if you live in a pricey area or are trying to pay down debt, you may need to be more mindful about how you’re managing your money. The following tips can help.
You‘ve heard it before, but the most important part of living well at your salary is to make sure your expenses are less than your salary. Try to find housing and transportation that fits within your budget, use a budget to plan for expenses, and manage lifestyle creep as much as you can.
Be sure you’re planning for the unexpected. Building an emergency fund can go a long way toward preserving your finances when tough times come.
Making a budget — yes, even on a $120,000 annual salary — can help you use your money more effectively and make progress toward financial goals.
There are a number of budgeting methods you may want to try.
• 50/30/20 method: With a 50/30/20 budget, 50% of your money should go toward needs (housing, transportation, food, etc.); 30% to wants (spending money, self-care, eating out, and vacations); and 20% to savings and debt payments.
• Zero-based budgeting: In this type of budgeting, you give a job to every dollar you earn so that your income minus your expenses ends at zero.
• Envelope method: You specify how much money is allotted to a specific category; say, $300 for gas for the month. You can spend the designated funds until they’re gone. If you’re really disciplined, you won’t spend in that category again until the next month, when the money in the envelope is refreshed.
Of course, the best budget is the one you will follow. A budget planner app can help you stay on track and reach your goals.
Making the most of a $120,000 salary depends on what your financial goals are and your stage of life. Do you want to:
• Save more money?
• Grow your net worth?
• Provide for a family?
• Enjoy eating out and/or nightlife?
• Afford a nice car and house?
To maximize a $120,000 salary, invest in the areas of your life that are important to you. Make a plan to spend money according to your values and be more frugal in the areas that are not as important to you.
According to the World Health Organization, quality of life is about a person’s perception of their culture and value systems in relation to their goals, concerns, expectations, or standards. Translation: Your quality of life on a $120,000 salary may depend, in large part, on your perception of how good it is. If you’re able to feel optimistic with the amount of money you have, you’ll likely have a good quality of life.
Yes, $120,000 is a six-figure salary — and a good one for a single person — but is it enough to qualify you as “rich”? The truth is, rich is a relative term. Living well depends on how satisfied you are with your lifestyle and how much you’re able to save for a future self.
Recommended: How to Calculate Your Net Worth and Wealth
Middle class is determined by incomes that range from two-thirds to double the median income. It is also adjusted for family size. In the U.S., the median income is $74,580, which puts the range for the middle class between $49,745 and $149,160.
However, when adjusting for family size, a $120,000 salary for a single person puts you squarely in the upper class in every metro area in the United States.
According to data from the U.S. Bureau of Labor Statistics (BLS), there are a number of occupations whose salaries sit at or above $120,000 — some which could be a good fit for introverts.
Some examples include:
• Software Developer: $132,270
• Physician Assistant: $130,020
• Nurse Practitioner: $126,260
• Information Security Analyst: $120,360
• Actuary: $120,000
Recommended: What Is a Good Entry-Level Salary?
Is $120,000 a good salary for a single person? Generally speaking, yes. It’s more than what a typical American worker earns and, depending on where you live, can provide you with a comfortable life. But even with a six-figure salary, you may want to consider ways to maximize your money. Sound financial habits like building up an emergency fund, saving for short- and long-term goals, and creating a budget are all good places to start.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
Living comfortably on $120K a year depends on various factors, such as where you live, how much debt you have, your family size, and how you live. Many singles will find $120K enough to live on in many areas of the country, but may need to be more mindful about their spending if they live in pricier areas like Los Angeles or New York City.
If you’re looking to buy a home with a $120K salary, your best bet is to talk to a lender and run some numbers. In addition to your income, your level of debt, down payment amount, loan type, and interest rate can all impact how much house you can afford. For a rough estimate, a 120K salary would give you $10,000 of gross income each month, which would mean you’re looking at a mortgage payment between $2,500 and $3,600 if you have no other debt. With interest rates at 7.00%, that translates to a mortgage of around $415,000.
A $120K salary comes out to approximately $57.69 per hour.
A salary of $120,000 per year works out to roughly $7,706 per month, after federal income taxes are taken out.
If you earn $120,000 per year, you would be paid around $462 per day.
Photo credit: iStock/Delmaine Donson
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SORL-Q224-1838737-V1
Source: sofi.com
Cruises have long been a popular and easy vacation option when you want to kick back and relax. And one sailing that’s on many adventurers’ bucket lists is a wild and wonderful Alaska cruise.
Alaska cruises are often quite a bit different than a typical voyage around the Caribbean, and thus requires a very different list of cruise essentials.
Here are the must-have extras to add to your Alaska cruise packing list.
When considering your packing list for an Alaska cruise, remember that even in summer, temperatures can fluctuate wildly off the coast of the northernmost U.S. state. You’ll need more than just a swimsuit and flip flops to stay comfortable.
🤓Nerdy Tip
Most cruise lines will share more specific packing tips based on weather conditions, the season and your itinerary. Check your cruise line’s website for this insight.
One item you’re guaranteed to need is a sturdy waterproof coat like a durable rain jacket (which beats a bulky and heavy parka).
This will allow you to comfortably spend time on deck or at ports of call no matter the weather. Choose one that is easy to pack down and take with you on excursions.
As a bonus, it’ll keep you dry if your cruise plans to hang out near waterfalls where windy days can soak the deck with spray.
During an Alaska cruise, the weather is likely to vary, sometimes dramatically, even if your onshore excursion is just for half a day.
Bring plenty of layers that you can remove or pile on depending on the mercury reading.
Remember that multiple lightweight layers are more versatile than one or two bulky ones as they allow you to better regulate your body temperature in changing conditions. Plus, they offer versatility when it comes to staying warm on chilly days and comfortable on warmer days.
Don’t forget short sleeves, long sleeves, shorts, pants, and warm base layers, like leggings and light sweaters.
If you’ll be participating in high-output activities like hiking, kayaking, exercising onboard or even exploring coastal towns, bring along moisture-wicking synthetic or wool articles of clothing that will help keep you dry during exercise.
Water resistant bottoms and tops are clutch for anyone doing water-based activities.
You may not think swimming is an appropriate activity for an Alaska cruise, but there may be a hot tub or sauna onboard. Plus, who knows, you might feel inspired to do a polar bear plunge.
Pack items like a warm hat, thin and warm waterproof gloves, warm socks and a scarf or neck gaiter, too.
Another indispensable piece of apparel on an Alaska cruise is an insulated jacket. How insulated depends on the season in which you’re cruising and the destinations on the route, but plan to bring at least a lightweight but warm jacket that you can wear on its own or under a rain jacket (and over other layers).
While sandals might be your shoes of choice for a Caribbean cruise (and may still come in handy for strolls around the ship interior or visits to the sauna), waterproof shoes are a must when packing for an Alaska cruise.
They’ll keep your feet dry on deck on wet days and protect your toes from cold and moisture during shore visits or excursions like kayaking or waterfall hikes.
Of course, not all your time will be spent outdoors, so make sure to bring comfy clothes for kicking it in your cabin or the ship restaurant, too. Think soft cotton shirts, your favorite sweater and a relaxed pair of pants or two. But do check to see if there’s a dress code for dinner on your ship.
Some cruises keep it casual while others offer a more upscale experience and ask guests to dress for dinner some nights. Come prepared for whatever is suggested by your cruise line.
Just because it’s chilly doesn’t mean you don’t still need sun protection in Alaska. Depending on the time of year, you may have 16-19 hours of sunlight during the day. Plus, spending time near ice, snow and water can increase your chances of getting sunburned and cause more eye strain.
So pack a hat, sunglasses and plenty of sunscreen to protect your skin.
🤓Nerdy Tip
If you struggle to sleep at night without the room being pitch black, pack an eye mask, too.
Insects can be brutal in Alaska in the summer, so bring bug spray, especially for shore excursions.
Alaska cruises are often known for their wildlife spotting opportunities and epic landscapes, so don’t forget to pack your camera and/or binoculars.
A long zoom lens will help you capture images of animals, and a good pair of binoculars will bring views up close and personal.
Especially if you plan on exploring off the boat, it’s wise to bring along a small backpack, preferably one that’s water resistant.
Likewise, a roll-top dry bag or a small waterproof case for your cell phone are indispensable when kayaking, taking small boat cruises away from the ship or spending time on shore in wet weather.
Of course, just like with any destination, a list of what to pack for an Alaskan cruise should include necessities like personal items and toiletries, personal medications, cables and chargers for your electronic devices, your ID and entertainment options, like a good book.
While many necessities for an Alaskan cruise are similar to any other cruise, keep in mind the fluctuating weather conditions and likelihood of rain, ice or snow. If you’re planning to do many onshore activities, bring layers, shoes and gear befit for the adventure.
Consult this list when you’re ready to start packing and you’re sure to remember everything you need, from sunglasses to waterproof boots.
Source: nerdwallet.com
If you’re contemplating a job change or angling for a salary increase, you may have questions about whether a $95,000 salary will sustain you. Consider that the typical worker in the U.S. earns around $63,795 a year, according to the Social Security Administration. A $95,000 annual paycheck is nearly 49% higher than that.
Let’s see where you’d fall on the earnings spectrum compared to others in the U.S. and also explore ways to budget a $95,000 annual salary.
While not quite a six-figure salary, $95K is generally considered a good income for a single person. But whether that amount works for you depends largely on where you live and your personal standards. For example, you may find that a $95,000 salary goes further in Des Moines than Honolulu, which has a higher cost of living.
No matter where you live, a budget planner app can help you set customized budgets and categorize spending, so you can make the most of your income.
Recommended: Average Salary in the U.S.
As in real estate, location is an important factor when it comes to salaries. Wages for the same job can vary widely from one state to another, driven largely by differing costs of living.
Here’s a look at the median household income in each state, per U.S. Census Bureau data.
State | Median Household Income |
---|---|
Alabama | $59,609 |
Alaska | $86,370 |
Arizona | $72,581 |
Arkansas | $56,335 |
California | $91,905 |
Colorado | $87,598 |
Connecticut | $90,213 |
Delaware | $79,325 |
Florida | $67,917 |
Georgia | $71,355 |
Hawaii | $94,814 |
Idaho | $70,214 |
Illinois | $78,433 |
Indiana | $67,173 |
Iowa | $70,571 |
Kansas | $69,747 |
Kentucky | $60,183 |
Louisiana | $57,852 |
Maine | $68,251 |
Maryland | $98,461 |
Massachusetts | $96,505 |
Michigan | $68,505 |
Minnesota | $84,313 |
Mississippi | $52,985 |
Missouri | $65,920 |
Montana | $66,341 |
Nebraska | $71,772 |
Nevada | $71,646 |
New Hampshire | $90,845 |
New Jersey | $97,126 |
New Mexico | $58,722 |
New York | $81,386 |
North Carolina | $66,186 |
North Dakota | $73,959 |
Ohio | $66,990 |
Oklahoma | $61,364 |
Oregon | $76,362 |
Pennsylvania | $73,170 |
Rhode Island | $81,370 |
South Carolina | $63,623 |
South Dakota | $69,457 |
Tennessee | $64,035 |
Texas | $73,035 |
Utah | $86,833 |
Vermont | $74,014 |
Virginia | $87,249 |
Washington | $90,325 |
West Virginia | $55,217 |
Wisconsin | $72,458 |
Wyoming | $72,495 |
Recommended: Highest Paying Jobs by State
How much you pay for necessities like housing, transportation, health care, and food can impact just how far your $95,000 salary will go. When figuring out whether $95,000 is a good salary for a single person, it can help to look at how much people in different states are spending on housing, food, health care, and other basics. The U.S. Bureau of Economic Analysis’ (BEA) list of personal consumption expenditures, below, compiles this information.
State | Personal Consumption Expenditure |
---|---|
Alabama | $42,391 |
Alaska | $59,179 |
Arizona | $50,123 |
Arkansas | $42,245 |
California | $60,272 |
Colorado | $59,371 |
Connecticut | $60,413 |
Delaware | $54,532 |
Florida | $55,516 |
Georgia | $47,406 |
Hawaii | $54,655 |
Idaho | $43,508 |
Illinois | $54,341 |
Indiana | $46,579 |
Iowa | $45,455 |
Kansas | $46,069 |
Kentucky | $44,193 |
Louisiana | $45,178 |
Maine | $55,789 |
Maryland | $52,651 |
Massachusetts | $64,214 |
Michigan | $49,482 |
Minnesota | $52,849 |
Mississippi | $39,678 |
Missouri | $48,613 |
Montana | $51,913 |
Nebraska | $37,519 |
Nevada | $49,522 |
New Hampshire | $60,828 |
New Jersey | $60,082 |
New Mexico | $43,336 |
New York | $58,571 |
North Carolina | $47,834 |
North Dakota | $52,631 |
Ohio | $47,768 |
Oklahoma | $42,046 |
Oregon | $52,159 |
Pennsylvania | $53,703 |
Rhode Island | $52,820 |
South Carolina | $46,220 |
South Dakota | $48,997 |
Tennessee | $46,280 |
Texas | $49,082 |
Utah | $48,189 |
Vermont | $55,743 |
Virginia | $52,057 |
Washington | $56,567 |
West Virginia | $44,460 |
Wisconsin | $49,284 |
Wyoming | $52,403 |
Recommended: Average Income by Age
No matter how much money you earn each year, it’s a smart idea to create a budget. One of the first steps you’ll want to take is to figure out how much money you have left after withholding for federal income taxes, Social Security taxes, and Medicare. On average, the take-home pay on a $95,000 salary is around $74,991.50, though that doesn’t include state taxes.
Once you’ve determined your after-tax income, consider using the 50/30/20 rule for budgeting. This means 50% of your income goes toward needs, 30% goes toward “wants,” and 20% goes toward savings or debt repayment beyond your minimum amounts.
Let’s say, for example, you live in Massachusetts. Your $95,000 salary would break down to $5,757 per month due to taxes (based on a 27.3% average tax rate and 35% marginal tax rate). Using the 50/30/20 rule, you’d put the following amounts in the corresponding pockets:
• 50% needs: $2,878.50
• 30% wants: $1,727.10
• 20% savings or debt repayment: $1,151.40
After you have your budget in place, a tool like an online money tracker can help you monitor your spending as well as keep tabs on your credit score.
Whether you’re earning $95,000 as an entry-level salary or after several years on the job, there are ways to make the most of your income. Here are some strategies to consider:
• Build an emergency fund. Aim for a cushion of three to six months of living expenses.
• Max out your retirement savings account — and make sure you’re taking advantage of a company match, if one is available.
• Explore investing in securities that charge minimal fees.
• Work on improving your credit score, which can boost your chances of getting competitive interest rates.
While it’s a highly subjective measure, “quality of life” typically refers to a combination of personal preferences, including job satisfaction, family life, health, and safety. How well you can live on your salary often boils down to your expenses and how and where you choose to spend your money.
By and large, many people with $95,000 salaries find they can live quite comfortably. However, if you spend more than you earn or rely on credit to fund your lifestyle, you may find you have trouble making ends meet on your income.
The Charles Schwab Wealth Survey reported that a national sample of Americans between the ages of 21 to 75 believe you need to amass $2.2 million to be considered wealthy. However, according to the same survey, Americans who say they feel wealthy have less than that — around a $560,000 net worth.
Note that it’s possible to accumulate wealth if you’re earning $95,000 a year, though it may take some time. Common strategies include relying on investing and compound interest to increase net worth, saving money, and setting money aside in a company retirement plan.
Recommended: Net Worth Calculator By Age
Middle class is defined as income that is two-thirds to double the national median income. By that definition, a middle-class household makes between $47,189 and $141,568, and $95,000 is in that range.
However, that’s for the nation. When you drill down to the city and state level, you see that the income required to be middle class varies. For instance, to be considered middle class in San Francisco, you’ll need to earn between $91,126 and $151,877. In Washington, D.C., middle class is defined as income that falls between $67,815 and $113,024.
Many career types fall into the $95,000 salary range, including jobs for introverts. Here are some examples of careers you can pursue, which require a range of degree levels from associate to graduate:
• Financial Analyst: $99,890 per year
• Industrial Engineer: $99,380 per year
• Radiation Therapist: $98,300 per year
• Occupational Therapist: $96,370 per year
• Civil Engineer: $95,890 per year
• Architect: $93,310 per year
The Bureau of Labor Statistics offers an occupation finder in its Occupational Outlook Handbook, which you can sort by median pay over $80,000.
Is $95k a good salary for a single person? By and large, yes, but your spending habits, budgeting skills, and local cost of living can all impact how far your money goes. With careful budgeting and saving, you can make the most of your income.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
Generally speaking, many people can live comfortably making $95,000 per year. However, it depends on several factors, including where you live, how much you spend, and where you put your money. Those who live within a budget feel the most comfortable with that salary.
Let’s target one of the most expensive assets most people own: a home. You may wonder how much house you can afford without stretching yourself.
Experts often suggest the 28/36 rule, which means that you should spend no more than 28% of your gross income on housing and no more than 36% on all your debt, which might include housing, student loans, car payment, credit cards, etc.
For example, according to the 28/36 rule on a $95,000 salary, you should spend no more than $2,216 on housing per month.
A $95,000 salary breaks down to $45.67 per hour. This per-hour figure might not help you budget or understand your overall income, but it’s interesting to analyze.
You’ll bring in $7,916.67 per month with a $95,000 per-year salary. It’s important to note that this is the general breakdown for that salary — your state may charge more in taxes and you may actually make less.
You’ll earn $365.38 per day with a $95,000 salary. Similar to your hourly rate, you might find this number difficult to help you budget or for use in a net worth calculator by age, but it’s interesting to know.
Photo credit: iStock/JLco – Julia Amaral
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SORL-Q224-1906905-V1
Source: sofi.com
The average salary across the United States sits at $63,795, per the Social Security Administration. So an income of $300,000 per year — more than four times that figure — is by most standards a great salary for a single person in 2024.
Of course, even a large amount of money can come up short if you don’t have a solid budget in place or if you lead a particularly expensive lifestyle.
Below, we’ll dive into the various considerations.
If you’ve just been offered a job with this figure in its compensation package, you may be wondering, “Is $300,000 a good salary for a single person?”
The thing is, there’s really no one-size-fits-all answer to that question. While $300,000 per year is substantially more than most people — or even most U.S. households — make, whether or not it’s comfortable for you depends on your lifestyle choices and expectations.
You may be wondering how much you make compared to your neighbors. Median yearly household income varies significantly by state, ranging from Mississippi’s $52,985 to Maryland’s $98,461. However, nowhere in America does the median household income come anywhere close to $300,000 per year.
State | Median Household Income |
---|---|
Alabama | $59,609 |
Alaska | $86,370 |
Arizona | $72,581 |
Arkansas | $56,335 |
California | $91,905 |
Colorado | $87,598 |
Connecticut | $90,213 |
Delaware | $79,325 |
Florida | $67,917 |
Georgia | $71,355 |
Hawaii | $94,814 |
Idaho | $70,214 |
Illinois | $78,433 |
Indiana | $67,173 |
Iowa | $70,571 |
Kansas | $69,747 |
Kentucky | $60,183 |
Louisiana | $57,852 |
Maine | $68,251 |
Maryland | $98,461 |
Massachusetts | $96,505 |
Michigan | $68,505 |
Minnesota | $84,313 |
Mississippi | $52,985 |
Missouri | $65,920 |
Montana | $66,341 |
Nebraska | $71,772 |
Nevada | $71,646 |
New Hampshire | $90,845 |
New Jersey | $97,126 |
New Mexico | $58,722 |
New York | $81,386 |
North Carolina | $66,186 |
North Dakota | $73,959 |
Ohio | $66,990 |
Oklahoma | $61,364 |
Oregon | $76,362 |
Pennsylvania | $73,170 |
Rhode Island | $81,370 |
South Carolina | $63,623 |
South Dakota | $69,457 |
Tennessee | $64,035 |
Texas | $73,035 |
Utah | $86,833 |
Vermont | $74,014 |
Virginia | $87,249 |
Washington | $90,325 |
West Virginia | $55,217 |
Wisconsin | $72,458 |
Wyoming | $72,495 |
Source: U.S. Census Bureau
Just as median income varies significantly depending on which state you’re in, so does the state-by-state cost of living. This means that $300,000 can go a lot further in, say, Arkansas than it would in California.
While these figures are just averages — and the state-wide cost of living can vary substantially depending on which city you live in — here’s the average cost of living in each of the 50 states:
State | Average Cost of Living |
---|---|
Alabama | $42,391 |
Alaska | $59,179 |
Arizona | $50,123/td> |
Arkansas | $42,245 |
California | $60,272 |
Colorado | $59,371 |
Connecticut | $60,413 |
Delaware | $54,532 |
Florida | $55,516 |
Georgia | $47,406 |
Hawaii | $54,655 |
Idaho | $43,508 |
Illinois | $54,341 |
Indiana | $46,579 |
Iowa | $45,455 |
Kansas | $46,069 |
Kentucky | $44,193 |
Louisiana | $45,178 |
Maine | $55,789 |
Maryland | $52,651 |
Massachusetts | $64,214 |
Michigan | $49,482 |
Minnesota | $52,849 |
Mississippi | $39,678 |
Missouri | $48,613 |
Montana | $51,913 |
Nebraska | $37,519 |
Nevada | $49,522 |
New Hampshire | $60,828 |
New Jersey | $60,082 |
New Mexico | $43,336 |
New York | $58,571 |
North Carolina | $47,834 |
North Dakota | $52,631 |
Ohio | $47,768 |
Oklahoma | $42,046 |
Oregon | $52,159 |
Pennsylvania | $53,703 |
Rhode Island | $52,820 |
South Carolina | $46,220 |
South Dakota | $48,997 |
Tennessee | $46,280 |
Texas | $49,082 |
Utah | $48,189 |
Vermont | $55,743 |
Virginia | $52,057 |
Washington | $56,567 |
West Virginia | $44,460 |
Wisconsin | $49,284 |
Wyoming | $52,403 |
Source: U.S. Bureau of Economic Analysis
No matter what you earn, figuring out how to spend (and save) your money takes effort and planning. Although it may seem like, with a six-figure salary, you can just buy whatever you want, if you don’t take the time to lay out how much money you’re actually taking home each month — and how much needs to be set aside for regular, necessary expenses like housing, insurance, food, and utility bills — you could quickly find yourself eating into your savings or even spiraling into credit card debt.
A money tracker is a great way to get a bird’s-eye view of where your funds are really going. This can be a first step toward deciding where you want them to go, rather than letting them whisk themselves away.
Whether you’re earning an entry-level salary or sitting in the C-suite, a little bit of budgeting can go a long way. But how?
The first step in budgeting is to determine how much money you make each month, which, in the case of someone earning a $300,000 salary, is about $25,000 before taxes are taken out. Because state taxes can vary significantly, you’ll need to look at your own pay stubs or do the math to determine how much is left afterwards, also known as your “net” income.
Once you know your net income, you can begin to deduct your regular, expected expenses. These include your housing payment (like rent or a mortgage), insurance payments, utility bills, and other recurring regular expenses (like your Netflix subscription). You should also set aside a budget for required monthly expenses that may vary a bit but are still critical, like groceries and fuel, or transportation.
Now, you can subtract your monthly expenses from your monthly earnings to determine how much discretionary income you have to do with what you please, including setting aside at least some of it for savings.
Sounds like too much work to do this all on paper? Fortunately, there are plenty of budget planner apps that can make the process a breeze.
Just because you earn a lot doesn’t mean you have to spend a lot. And if you’re careful with your over-average salary, you can save money for the future and help safeguard your lifestyle for the long run.
For example, if you saved just 10% of your $300,000 per year salary, that would be $30,000 per year into your emergency fund or investment account. Especially if you choose to invest it, that amount can really add up over a relatively short amount of time — increasing your overall net worth and potentially even giving you the opportunity to retire early!
Because a $300,000 per year salary is so much higher than the average cost of living in most states, most people who earn this much will find themselves able to afford a very comfortable, high quality of living anywhere.
Of course, the money can still go further in some places than others. For instance, on $300,000, you might be able to afford a small mansion in Mississippi — or an 800-square-foot apartment in Manhattan.
Given that the average salary in the U.S. is about 21% of $300,000, yes, many would consider someone earning $300,000 per year by themselves to be rich.
However, in most states, you’d need to make substantially more than $300,000 per year to be in the top 1% of earners. The states where you’d come closest are West Virginia and Mississippi, where the top 1% earn at least $367,582 and $381,919 per year, respectively.
The amount of money you’d need to earn to be considered middle class varies depending on where you live. But according to the Pew Research Center, it’s between about $47,189 and $141,568 per year on average. Which is to say, no, $300,000 per year is not considered middle class in the vast majority of cities and scenarios.
Don’t make $300,000 per year (yet), and curious about how to make the dream a reality?
You might consider opening your heart to cardiology, which, according to data compiled by SoFi, offers an average salary of $421,330 per year. Medical positions feature prominently among the top-paying jobs, with surgeons, radiologists, dermatologists, emergency medicine physicians, and anesthesiologists all earning more than $300,000 per year.
A salary of $300,000 is substantially higher than the national average and certainly a “good” salary for a single person in 2024 by most peoples’ reckoning. That said, no matter how much you earn, bad financial habits can bite you in the long run, so don’t forget about your budget.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
While everyone’s standard of comfort is individual, given how much higher $300,000 per year is than the average U.S. salary, yes, most people would be able to live comfortably on $300,000 per year. Even for high earners, however, having a budget is important. Making a plan for your money helps ensure you know exactly where each dollar is going rather than watching them fly away on their own.
With a $300,000 salary, you could afford a lot of things, including, depending on your overall applicant profile, a home priced close to a million dollars. With a high salary and the opportunity to save up money, you could likely afford luxurious vacations or high-end toys and gadgets, too. Again, though, a higher-than-average salary doesn’t preclude you from overspending or going into debt, so be sure to make a budget that accounts for all your necessary and discretionary expenses.
For those who work 40-hour weeks 50 weeks out of the year, a $300,000 salary comes out to an hourly rate of around $150.
A salary of $300,000 per year, divided by 12 months, comes out to roughly $25,000 per month.
A gross annual income of $300,000 per year, divided by 365 days, comes out to about $821.92 per day. Of course, most people don’t work every single day of the year. As an estimate for the normal five-day work week, accounting for weekends and typical American public holidays, an employee might work about 250 days per year, in which case a $300,000 salary comes out to approximately $1,200 per day.
Photo credit: iStock/Dusan Atlagic
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SORL-Q224-1906698-V1
Source: sofi.com
By most definitions, an annual salary of $90,000 is considered good. In fact, it’s quite a bit higher than the average salary nationwide, which is $63,795, according to the Social Security Administration. If you’re a single person and only supporting yourself, that income should allow you to cover the necessities with enough left over for saving and entertainment.
But just how far your money goes depends largely on factors like your spending habits, your financial obligations, and the cost of living in your area. If you earn $90,000 and live in San Francisco or New York, two of the priciest cities in the country, you may find yourself pinching pennies or living paycheck to paycheck. On the other hand, if you settle down in a more affordable location, such as Winston-Salem, NC, you should find you can live a more comfortable life on a $90,000 salary.
While $90,000 a year is generally considered a good salary for a single person, whether that’s the case for you depends on your spending habits and financial situation. For example, if you have a lot of debt or live in a pricey area, you may find it more of a challenge to get by on that salary.
One good way to think about your salary is to look at where your money is currently going. Using a money tracker or other type of tool, make a list of your recurring expenses and see if your income is able to keep up. If it is, then that is a good sign that you are making a satisfactory salary for your situation.
Recommended: U.S. Average Income by Age
There are different ways to think about a $90,000 salary. You can compare it to the average salary in the U.S. which as we mentioned earlier is $63,795. Or see how it stacks up against the median national salary, which was $59,384 in Q4 2023, according to the U.S. Bureau of Labor Statistics (BLS). In both cases, $90,000 far exceeds what a typical American worker earns in a year.
But how does that salary compare to what a typical household earns in a year? The answer varies widely by state, as the U.S. Census Bureau data below shows. For instance, Maryland has the highest median annual salary at $98,461 and Mississippi has the lowest, at $52,985 per year.
State | Median Household Income |
---|---|
Alabama | $59,609 |
Alaska | $86,370 |
Arizona | $72,581 |
Arkansas | $56,335 |
California | $91,905 |
Colorado | $87,598 |
Connecticut | $90,213 |
Delaware | $79,325 |
Florida | $67,917 |
Georgia | $71,355 |
Hawaii | $94,814 |
Idaho | $70,214 |
Illinois | $78,433 |
Indiana | $67,173 |
Iowa | $70,571 |
Kansas | $69,747 |
Kentucky | $60,183 |
Louisiana | $57,852 |
Maine | $68,251 |
Maryland | $98,461 |
Massachusetts | $96,505 |
Michigan | $68,505 |
Minnesota | $84,313 |
Mississippi | $52,985 |
Missouri | $65,920 |
Montana | $66,341 |
Nebraska | $71,772 |
Nevada | $71,646 |
New Hampshire | $90,845 |
New Jersey | $97,126 |
New Mexico | $58,722 |
New York | $81,386 |
North Carolina | $66,186 |
North Dakota | $73,959 |
Ohio | $66,990 |
Oklahoma | $61,364 |
Oregon | $76,362 |
Pennsylvania | $73,170 |
Rhode Island | $81,370 |
South Carolina | $63,623 |
South Dakota | $69,457 |
Tennessee | $64,035 |
Texas | $73,035 |
Utah | $86,833 |
Vermont | $74,014 |
Virginia | $87,249 |
Washington | $90,325 |
West Virginia | $55,217 |
Wisconsin | $72,458 |
Wyoming | $72,495 |
The cost of living in your area can heavily impact how well you’re able to live on your income. While high salaries and high costs of living tend to go together, there is not always a perfect correlation. A cost of living calculator can help you determine the expenses where you’re living now and where you might consider moving in the future.
In addition, the U.S. Bureau of Economic Analysis compiles a list of how much residents in each state spend on necessities like housing, utilities, food, and health care. That information, found in the chart below, can also be useful.
State | Personal Consumption Expenditure |
---|---|
Alabama | $42,391 |
Alaska | $59,179 |
Arizona | $50,123/td> |
Arkansas | $42,245 |
California | $60,272 |
Colorado | $59,371 |
Connecticut | $60,413 |
Delaware | $54,532 |
Florida | $55,516 |
Georgia | $47,406 |
Hawaii | $54,655 |
Idaho | $43,508 |
Illinois | $54,341 |
Indiana | $46,579 |
Iowa | $45,455 |
Kansas | $46,069 |
Kentucky | $44,193 |
Louisiana | $45,178 |
Maine | $55,789 |
Maryland | $52,651 |
Massachusetts | $64,214 |
Michigan | $49,482 |
Minnesota | $52,849 |
Mississippi | $39,678 |
Missouri | $48,613 |
Montana | $51,913 |
Nebraska | $37,519 |
Nevada | $49,522 |
New Hampshire | $60,828 |
New Jersey | $60,082 |
New Mexico | $43,336 |
New York | $58,571 |
North Carolina | $47,834 |
North Dakota | $52,631 |
Ohio | $47,768 |
Oklahoma | $42,046 |
Oregon | $52,159 |
Pennsylvania | $53,703 |
Rhode Island | $52,820 |
South Carolina | $46,220 |
South Dakota | $48,997 |
Tennessee | $46,280 |
Texas | $49,082 |
Utah | $48,189 |
Vermont | $55,743 |
Virginia | $52,057 |
Washington | $56,567 |
West Virginia | $44,460 |
Wisconsin | $49,284 |
Wyoming | $52,403 |
While $90,000 can provide a good life for a single person, it’s still a smart idea to create a budget you’ll be able to follow. After all, no matter how high your income is, you can usually find things to spend it on. And without a budget, it can be easy to spend what you have mindlessly.
There are several ways to approach budgeting. One, the 50/30/20 budgeting method, is straightforward: Simply earmark 50% of your paycheck for necessities (such as housing, transportation, and food); 30% for wants (such as meals out and travel); and 20% for saving and paying down debt.
If you need help getting started, tools like a budget planner app can guide you through creating a budget, tracking spending, and even monitoring your credit.
You may not be pinching pennies if you’re earning $90K a year, but you’re likely interested in getting the most out of your income. Here are some ideas to explore:
• Build up an emergency fund. Your rainy-day fund should have enough to cover three to six months’ worth of expenses.
• Pay down debt. Once your emergency fund is well established, turn your focus to paying off revolving debt.
• Invest in your future. Have a 401(k) retirement plan through your employer? Check your budget and see if you can afford to ramp up your monthly contributions.
Because a $90,000 annual salary is higher than the average salary in the United States — and a generous entry-level salary for most fields — chances are you can have a good quality of life if you make that much money.
However, everyone’s financial situation is unique, and as mentioned above, different areas of the U.S. have higher or lower cost of living. Your quality of life with a $90K salary is likely to be higher in a state with a lower cost of living, like Iowa or Kentucky, than it is in a state with a high cost of living, such as California or Massachusetts.
There are many definitions for what constitutes being “rich.” Depending on yours, a single person who lives in an area with a low cost of living and earns $90,000 a year might be considered well-off. But it’s worth noting that many definitions of rich typically focus on your total assets rather than your annual salary.
In that case, it may make sense to calculate your net worth, which just involves subtracting your outstanding debts or liabilities from the value of your combined assets. If your assets are worth more than your liabilities, your net worth is positive. If your liabilities are greater than your assets, your net worth is negative.
Recommended: Net Worth Calculator by Age
Depending on where you live and your household size, you may be classified as middle class. According to the Pew Research Center, a middle-class household has an income between $47,189 and $141,568. A $90,000 salary is well within that range.
Salaries can vary dramatically depending on the level of experience and the area of the country you live in. With that in mind, here are some jobs that pay around $90,000 per year, according to the BLS:
• Registered nurse: $94,480
• Web developer: $92,750
• Psychologist: $92,740
• Agricultural engineer: $88,750
• Dental hygienist: $87,530
If you’re looking for more inspiration, you can also look at lists of the highest-paying jobs by state.
Recommended: 30 Best Jobs for Introverts
While it’s not quite a six-figure salary, $90,000 for a single person is still higher than the average annual salary in the United States. Because of this, it can generally be considered a good salary for someone who is supporting only themself.
However, your cost of living and your overall financial situation will play a big role in determining your quality of life on a $90K salary. No matter what your salary, a smart first step in establishing a solid financial footing is to create and stick to a budget.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
Whether you can live comfortably making $90K a year will depend on a number of factors, including your local cost of living, financial obligations, and spending habits. That said, a single person with little to no debt who lives in an affordable area can likely be comfortable with such a salary.
While $90K is not quite a six-figure salary, it is close. As such, most single people with a $90K salary should be able to afford all of their necessities, along with some extras including saving for retirement.
A $90,000 annual salary works out to around $43.27 an hour.
If you earn $90K a year, your monthly income is roughly $7,500.
A $90,000 salary breaks down to approximately $375 per working day.
Photo credit: iStock/alvarez
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SORL-Q224-1906652-V1
Source: sofi.com
The homebuying process can seem confusing and overwhelming, especially since there are so many moving parts to consider.
Making a down payment is just one part of the process. While it has long been a notion that you needed to put at least 20% down in order to buy a home, findings from a National Association of Realtors report indicate that the average down payment on a home or condo in 2021 was actually 12% — for homebuyers under the age of 30, the average down payment was just 6%.
It’s important to note that if you make a down payment of less than 20%, you’ll typically be charged Private Mortgage Insurance, or PMI, until you build 20% equity in the home. That said, making a lower down payment can present some advantages. For one, doing so allows you to reserve more of your savings upfront for closing costs, lender fees, renovations that may need to be done in the home and other moving expenses.
CNBC Select rounded up five mortgage lenders that do not require a large down payment, evaluating lenders based on the types of loans offered, customer support and minimum down payment amount, among other factors (see our methodology below.) As always, do your homework ahead of time so you can be sure you’re choosing the lender that best suits your needs, whether you’re a first-time homebuyer or purchasing an investment property.
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Conventional loans, FHA loans, VA loans, DreaMaker℠ loans and Jumbo loans
10 – 30 years
3% if moving forward with a DreaMaker℠ loan
Terms apply.
Who’s this for? Chase Bank offers down payment options as low as 3% if you apply for the DreaMaker home loan — for comparison, an FHA loan requires borrowers to make a 3.5% down payment.
While the DreaMaker loan is designed especially for those who can only afford to make a small down payment, it also comes with stricter income requirements compared to some of the other available loans. According to Chase, the annual income used to qualify customers must not exceed 80% of the Area Median Income, or AMI, for instance.
In addition to the DreaMaker loan, Chase also offers a conventional loan, FHA loan, VA loan and jumbo loan — USDA loans and home equity lines of credit, or HELOCs, are not offered by this lender. The VA loan requires a down payment minimum of 0%, which tends to be the standard rate for these types of loans. Much like other lenders, Chase has a minimum credit score requirement of 620 for its mortgage options.
Chase offers mortgage terms that range from 10 years to 30 years, as well as fixed rate and adjustable-rate mortgages, or ARM. Discounts are also offered for existing customers, although the requirements are rather high: To receive $500 off your mortgage processing fee, you’ll need to have $150,000 to $499,999 between Chase deposit accounts and Chase investment accounts, while having $500,000 or more in these accounts can result in up to $1,150 being taken off the processing fee.
Who’s this for? Navy Federal Credit Union provides the most benefits to current or retired members of the Armed Forces who have signed up for a Navy Federal Credit Union membership (immediate family members are also eligible).
This lender offers VA loans with the option to pay 0% down and contribute up to 4% of the home’s value toward closing costs. Another option, the Military Choice mortgage, has similar guidelines to the VA loan, such as no PMI and a 0% minimum down payment, but allows sellers to contribute up to 6% of the home’s value toward closing costs.
Homebuyers can also use the RealtyPlus program to buy a home and receive up to $9,000 in cash back. Private mortgage insurance, or PMI, is also not a requirement for a low down payment on a mortgage through this particular lender.
While this lender doesn’t disclose its required minimum credit score, it does work with members to analyze their circumstances and find the right mortgage fit for them, making Navy Federal Credit Union a potentially more flexible lender if your credit score is on the lower side.
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Conventional loans, HomeReady loan and Jumbo loans
15 – 30 years
3% if moving forward with a HomeReady loan
Terms apply.
Who’s this for? Ally Bank offers a HomeReady mortgage program that is geared toward low- to mid-income homebuyers regardless of whether it’s their first time or if they’re a repeat buyer, allowing you to put down as little as 3% for a down payment. Applicants must have a debt-to-income ratio of no more than 50%, their income must be equal to or less than 80% of the area’s median income and at least one borrower must take a homeowner education course.
It’s common for lenders to charge several fees during the mortgage application process, including an application fee, an origination fee, a processing fee and an underwriting fee, which can end up costing a significant amount during the homebuying process. While Ally doesn’t charge any of those fees, you may still have to deal with appraisal fees and recording fees, or pay for title searches and insurance.
It’s possible to get pre-approved for a loan in as little as three minutes online and submit your application in just 15 minutes, as long as you have all the necessary documents handy.
While Ally also offers a jumbo loan option, note that FHA loans, VA and USDA loans are not available through this lender. Customers can also choose between fixed rate and adjustable rate mortgages, and 15-year, 20-year and 30-year loan terms.
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, HELOCs, Community Loan and Medical Professional Loan
10 – 30 years
0% if moving forward with a USDA loan
Terms apply.
Who’s this for? USDA loans allow homebuyers to make a 0% down payment to purchase their home. It’s sometimes tough to find lenders that offer these types of loans in addition to other standard mortgage options, but PNC Bank does include USDA loans in its lineup.
To apply for a USDA loan with PNC Bank, you must be purchasing a home in a qualifying rural area. If you’re not interested in a USDA loan, this particular lender also offers conventional loans, FHA loans, VA loans, jumbo loans and a PNC Bank Community Loan, a special program that allows homebuyers to put down as little as 3% (without paying private mortgage insurance) and choose between fixed-rate and adjustable-rate mortgage terms.
This lender also offers a special loan option geared toward medical professionals who are looking to buy a primary residence only. With this loan, medical professionals can apply for as much as $1 million and won’t have to pay private mortgage insurance regardless of their down payment amount. They can also choose between fixed-rate and adjustable-rate terms.
It’s possible to get online pre-approval in as little as 30 minutes as long as you have all the documentation available on hand.
Apply online for personalized rates
Conventional loans, FHA loans, VA loans and Jumbo loans
15 – 30 years
Terms apply.
Who’s this for? Private Mortgage Insurance, or PMI, is typically a required monthly charge if you make a down payment of less than 20% for your home. While it can eventually be waived once you’ve made enough payments to build up 20% equity in your home, PMI can still easily eat into your monthly budget before that point.
Those who apply for a mortgage through Citi’s HomeRun program can make down payments as low as 3% without having to pay monthly PMI. HomeRun mortgages also allow you to lock in a fixed rate on your loan so you won’t have to worry about potentially being charged even more interest down the line. This mortgage option is also ideal for those who need to borrow up to $726,200 — or up to $1,089,300 if you reside in Hawaii or Alaska. If you’re looking for a jumbo loan, here are four mortgage lenders you should consider.
Aside from the HomeRun program, Citi also offers discounts for anyone interested in its other mortgage loans. Citi is currently offering a $500 credit toward your closing costs when you apply for a Citibank Mortgage Account.
Pre-approval is a statement or letter from a lender that details how much money you can borrow to purchase a home and what your interest rate might be. To get pre-approved, you may have to provide bank statements, pay stubs, tax forms and employment verification, among other documents. Once you’re pre-approved, you’ll receive a mortgage pre-approval letter, which you can use to begin viewing homes and making offers. It’s best to get pre-approved at the start of your home-buying journey before you start looking at homes.
A mortgage is a type of loan you can use to purchase a home. It’s also an agreement between you and the lender that essentially says you can purchase a home without paying for it in-full upfront — you’ll just put some of the money as a down payment upfront (usually between 3% and 20% of the home price) and pay smaller, fixed equal monthly payments for a certain number of years plus interest.
For example, you probably don’t want to pay $400,000 for a home upfront, however, maybe you can afford to pay $30,000 upfront. A mortgage would allow you to make that $30,000 payment — a lender would provide you with a loan for the remaining amount of $370,000 and you’d agree to repay it plus interest to the lender over the course of 15 or 30 years.
Keep in mind that if you choose to put down less than 20%, you’ll be subject to private mortgage insurance, or PMI, payments in addition to your monthly mortgage payments. However, you can usually have the PMI waived after you’ve made enough payments to build 20% equity in your home.
Conventional loans are funded by private lenders and sold to government enterprises such as Fannie Mae and Freddie Mac. It’s the most common type of loan and some lenders may require a down payment as low as 3% or 5%.
Federal Housing Administration loans, or FHA loans, typically allow you to purchase a home with looser requirements. For example, this type of loan might let you get approved with a lower credit score and applicants may be able to get away with having a higher debt-to-income ratio. You typically only need to make a 3.5% down payment with an FHA loan.
USDA loans are offered through the United States Department of Agriculture and are aimed at individuals who want to purchase a home in a rural area. A USDA loan requires a minimum down payment of 0% — in other words, you can use it to buy a rural home without making a down payment.
VA mortgage loans are provided through the U.S. Department of Veterans Affairs and are meant for service members, veterans and their spouses. They require a 0% down payment and no additional private mortgage insurance.
Mortgage rates change almost daily and can depend on market forces such as inflation and the overall economy. While the Federal Reserve doesn’t set mortgage rates, they tend to move in reaction to actions taken by the Federal Reserve on its interest rates.
While market forces may influence the general range of mortgage rates, your specific mortgage rate will depend on your location, credit report and credit score. The higher your credit score, the more likely you are to be qualified for a lower mortgage interest rate.
A 15-year mortgage gives homeowners 15 years to pay off their mortgage in fixed, equal amounts plus interest. By contrast, a 30-year mortgage gives homeowners 30 years to pay off their mortgage. With a 30-year mortgage, your monthly payments will be lower since you’ll have a longer period of time to pay off the loan. That said, you’ll wind up paying more in interest over the life of the loan since interest is charged monthly. A 15-year mortgage lets you save on interest but you’ll likely have a higher monthly payment.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage lender review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best small down payment mortgages.
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To determine which mortgage lenders are the best, CNBC Select analyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.
When narrowing down and ranking the best mortgages, we focused on the following features:
After reviewing the above features, we sorted our recommendations by best for overall financing needs, quick closing timeline, lower interest rates and flexible terms.
Note that the rates and fee structures advertised for mortgages are subject to fluctuate in accordance with the Federal Reserve rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Source: cnbc.com
Buying a home in Alaska is increasingly challenging for residents, as home prices are higher than during their 2022 and 2023 peaks and mortgage rates have risen by more than 50 percent in the past six years, according to a new study by the Alaska Housing Finance Corporation (AHFC).
Read more: What Is Mortgage Refinancing? How Does It Work?
Between 2018 and 2024, the average principal and interest payment for homes purchased in Alaska increased by 52 percent, the study released on June 19 found. Newsweek contacted AHFC for comment by phone on Wednesday morning.
Higher mortgage rates are likely to be another factor in making homes unaffordable for many aspiring buyers in the state, on top of relatively high home prices.
According to the latest Redfin data, the median sale price of a home in Alaska was $388,400 in May, up 2.2 percent compared to a year earlier. In May 2022, it was $363,000. Anchorage, the state’s largest city, was the number one metropolitan area in the state with the fastest-growing sale price, up 3.8 percent in May compared to a year earlier.
Read more: How to Calculate How Much House You Can Afford
Prices are still climbing despite inventory growing significantly in the past year, with 2,230 homes for sale in Alaska in May, up 19.8 percent year-over-year. Newly listed homes were up 21.3 percent compared to a year earlier. But the average month of supply is only two months—far from the six months that is considered enough for the market to turn in favor of buyers.
The situation isn’t any easier for people renting in the state. Since 2018, average rents have increased by 24 percent, reaching an average of $1,325 statewide in 2024, up from $1,250 a year earlier.
All seven communities analyzed by the AHFC experts saw rents increases, including the Municipality of Anchorage (+7.84 percent), Fairbanks North Star Borough (+4.17 percent), Juneau (+3.85 percent), Kenai Peninsula Borough (+4.71 percent), Ketchikan Gateway Borough (+8.41 percent), Kodiak (+20.83 percent), and Matanuska Susitna Borough (+6.38 percent).
Daniel Delfino, the director of planning and program development for AHFC, told Alaska News Source that the housing situation in Alaska is complicated, with “a lot of things moving at the same time.”
“We don’t have a ‘it’s this’ or ‘it’s that’ answer anymore to some of the housing challenges that people are facing,” Delfino said. “It’s an expensive place to build, Alaska. Most of our communities are expensive to build, and before the pandemic and the challenges after the pandemic, inflation and interest costs of land made those challenges harder.”
Are you an Alaska resident trying to get a mortgage, or struggling to buy a home? Have you been affected by the recent increases in mortgage rates? Tell us about your experience by contacting [email protected].
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source: newsweek.com