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Your checking account is the hub of your financial life, allowing you to safely store your paychecks, withdraw cash, pay bills, use a debit card for purchases, transfers funds, and more. In exchange for this convenience, many checking accounts charge a monthly service or maintenance fee. Though the fees are generally small (running between $5 and $15 a month), they can add up to a significant sum over time.

Fortunately, some banks and credit unions offer free checking accounts. These accounts generally don’t charge any monthly fees. However, that doesn’t mean they are entirely cost-free. Here’s what you need to know about free checking accounts.

What Is a Free Checking Account?

When a checking account is advertised as “free,” it generally means that the account doesn’t charge any recurring fees, such as monthly maintenance or activity fees. This can be a significant benefit, since any money you would have paid in bank fees can instead go towards your financial goals, whether that’s building an emergency fund, paying down debt, or saving for a vacation.

However, free checking accounts aren’t always entirely free. In some cases, you may need to meet certain requirements, such as keeping your balance above a certain threshold or signing up for direct deposit, in order to avoid a monthly fee. Free checking accounts may also charge incidental fees, such out-of-network ATM fees, overdraft fees, foreign transaction fees, and other types of charges or penalties.

According to a 2023 Bankrate study, less than half (45 percent) of checking accounts are truly free, meaning they don’t have a minimum balance requirement or a monthly maintenance fee.

Common Free Checking Account Features

The features and benefits that come with free checking accounts vary by financial institution, but here’s a look at some of the perks you can often find with free checking accounts.

•   No minimum balance requirement: This means you won’t have to worry about keeping a certain amount of money in the account to avoid getting hit with a monthly fee.

•   No monthly fees: With this perk, you won’t have to pay a recurring fee just to keep the account open.

•   Debit card access: Free checking accounts typically come with a debit card, which allows you to make purchases, withdraw cash from ATMs, and perform other transactions.

•   Online and mobile banking: These accounts usually include access to online and mobile banking platforms, enabling you to check your balance, transfer funds, and pay bills 24/7.

•   Insurance: If the account is at an FDIC-insured bank or NCUA-insured credit union, your funds will be insured up to $250,000 should the bank run into financial trouble or go out of business.

•   Fee-free overdraft protection: In some cases, the bank or credit union will cover an overdraft without charging you a fee if you replenish your account within a certain amount of time.

•   Expansive ATM network: A free checking account (even if it’s at an online bank) will typically allow you to get cash, transfer funds, and make deposits at a wide network of fee-free ATMs.

Potential Drawbacks of a Free Checking Account

Free checking accounts also come with some potential downsides. For example, in order to keep the account free, you may have to make certain tradeoffs. Requirements might include:

•   A minimum number of direct deposits per month

•   A minimum direct deposited amount per month

•   Maintaining a certain minimum daily balance

•   Performing a certain number of debit card transactions each month

Even if you find a checking account with no strings attached, you may still get hit with incidental fees, such as:

•   Overdraft or bounced check fees

•   Fees for using an out-of-network ATM

•   Online bill payment fees

•   Stop payment fees

•   Fees for receiving a paper statement in the mail

•   Fees for getting cash back on debit card purchases

•   Debit card replacement fees

How to Find and Open a Free Account

Finding a free checking account that meets your needs and won’t serve up any surprise fees can take a little research. Here are some steps that can help.

Compare Bank and Credit Union Offers

A good first step is to compare the free checking account offerings from various banks and credit unions. Online-only banks, which don’t have to carry the cost of running physical branches, tend to offer low- or no-fee checking accounts. Credit unions often charge no fees or lower fees compared to traditional banks, as they are member-owned and not-for-profit institutions. Look for institutions that have a strong reputation for customer service and offer convenient access to ATMs and branches.

Look for Account Features That Matter

As you research your free checking options, you’ll want to identify the features that are most important to you. If you frequently withdraw cash, you might look for accounts that offer a large network of fee-free ATMs. If online banking is a priority, you’ll want to ensure the bank’s digital platform is user-friendly and robust. Some banks also offer additional perks such as cash back on debit card purchases or higher interest rates on balances, so you may want to consider these benefits when making your decision.

Consider Digital-Only Banks

If you aren’t someone who visits a physical bank often, consider opting for a digital-only financial institution. Also known as online banks, these institutions typically have lower overhead costs and will pass that savings onto customers in the form of no (or low) fees for checking accounts — some even offer competitive interest on checking accounts.

Digital-only banks also tend to provide superior online and mobile banking experiences. This can make them a good choice for tech-savvy types who prefer managing their finances digitally.

Alternatives to a Free Checking Account

While free checking accounts can be a great option for everyday money management, they are not the only choice available. Here are some alternatives to consider.

•   High-yield checking account: These accounts offer higher interest rates on your balance but may require you to meet certain conditions, such as maintaining a minimum balance or setting up direct deposit.

•   Money market account: Money market accounts combine features of checking and savings accounts. They often come with better interest rates than typical checking accounts (and some savings accounts) but may require high opening and ongoing minimum balances to avoid fees.

•   Rewards checking account: These accounts offer rewards, such as cash back on debit card purchases or points that can be redeemed for travel or merchandise. They may require you to meet certain criteria, like making a minimum number of transactions each month.

•   Student checking account: Tailored for students, these accounts often come with perks such as no monthly fees, no minimum balance requirements, and fee waivers for using out-of-network ATMs.

•   Senior checking account: Designed for older adults, senior citizen checking accounts these accounts may offer benefits like free checks, discounts on certain services, and interest on balances without requiring a high minimum balance.

Open a Checking Account With SoFi

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their 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.

FAQ

Are there any hidden fees in “free” checking?

There can be. If a bank or credit union is advertising a “free” checking account, it’s a good idea to read the fine print. The institution may only waive fees if you meet a certain minimum balance requirement, make a certain number of debit card transactions, or sign up for direct deposit. Also keep in mind the free checking accounts may still charge incidental fees, such as out-of-network ATM fees and fees for overdrafts or bounced checks.

What if I can’t find a truly free checking account?

Many “free” checking accounts are only free if you are able to meet certain requirements, such as setting up direct deposit, maintaining a minimum balance, or conducting a certain number of transactions each month. To find a truly free checking account, you’ll want to look for an account that has requirements you can easily meet.

You can also explore digital-only banks or credit unions, which often provide more competitive fee structures compared to traditional banks. Comparing different options and understanding what fees may be involved can help you find the most cost-effective account.

Do I need a minimum balance for free checking?

It depends on the financial institution. Many free checking accounts do not require a minimum balance, meaning you can maintain any amount in your account without incurring fees. However, policies can vary, so you’ll want to verify this with your specific bank or credit union.

Some banks may offer free checking accounts that waive fees as long as you meet other conditions, such as setting up direct deposit or making a minimum number of monthly transactions. You’ll want to check the account terms to make sure you understand all requirements.

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Photo credit: iStock/RgStudio

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.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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Considering a job in the Great Lakes State? A typical worker in Michigan earns around $58,000 a year, according to a 2024 Forbes analysis of data from the Bureau of Labor Statistics (BLS). In comparison, the average annual salary nationwide is slightly higher, at $59,428.

Of course, the amount you bring home will depend on a number of factors, including the type of job you have, where you live, and your age. Let’s take a closer look.

Average Salary in Michigan by Age in 2023

When it comes to earning potential, your age — and by extension, experience level — play a role. As the Census Bureau’s American Community Survey shows, workers aged 45 to 64 have the highest median household income ($82,652), followed by those aged 25 to 44 ($75,984). The median income for those 65 and older is around $51,010. At $40,683, people under the age of 25 have the lowest median household income, which is perhaps indicative of the entry-level salaries this age group often earns.

No matter where you are in your professional journey, it helps to have a firm grasp of your finances. A money tracker can give you insights into your spending habits and help you make progress toward short- and long-term financial goals.

Recommended: U.S. Average Income by Age

Average Salary in Michigan by City in 2023

Where you live can also impact how much you earn. As the chart below shows, workers in some Michigan cities may be making out better than others. In Sterling Heights, for instance, the average wage is 28.0% higher than the state average.

But well-paying jobs can be found in smaller cities, too. Career opportunities are expanding in South Lyon, for example, and with it, wages: The average salary is $65,369 a year. Tools like a budget planner app can help you make the most of whatever your take-home pay is.

City	Average Annual Salary
Sterling Heights	$74,878
Detroit	$71,156
Lansing	$68,755
Flint	$68,679
Holland	$68,668
Livonia	$67,785
Saginaw	$66,875
Warren	$65,729
South Lyon	$65,369
Kalamazoo	$64,846

Source: ZipRecruiter

Median Salary in Michigan by County

Salaries don’t just vary by city. They can also differ from county to county. According to Census Bureau data, median family incomes in Michigan’s southern and southeastern counties — as well as those near large cities like Detroit — tend to be higher than in other parts of the state.

Here’s a look at the median household incomes of the ten most-populous counties in Michigan.

County	Household Median Income
Livingston County	$96,135
Oakland County	$92,620
Washtenaw County	$84,245
Ottawa County	$83,932
Kent County	$76,247
Macomb County	$73,876
Kalamazoo County	$67,905
Ingham County	$62,548
Genesee County	$58,594
Wayne County	$57,223

Source: Census Bureau

Recommended: Average Pay in the United States

Examples of the Highest Paying Jobs in Michigan

Michigan has long burnished its reputation as a center for auto manufacturing, but it’s also cementing its status as a hub for tech and healthcare. Not surprisingly, some of the highest-paying jobs in the state can be found in the engineering, management, technology, and healthcare sectors.

As the list below shows, some of the top-paying positions require specialized training or advanced degrees, while others may be a good job for introverts.

Profession	Annual Mean Wage
Surgeons	$340,670
Psychiatrists	$246,710
Airline Pilots, Copilots, and Flight Engineers	$240,620
Compensation and Benefits Managers	$159,360
Architectural and Engineering Managers	$157,050
Computer and Information Systems Managers	$156,340
Financial Managers	$147,550
Pharmacists	$128,860
Public Relations Managers	$125,320
Industrial Production Managers	$119,610

Source: BLS

The Takeaway

The typical worker in Michigan may not be drawing a six-figure salary, but their take-home pay of $58,000 is near the national average. Plus, the cost of living in the Great Lakes State — think transportation, utilities, groceries, and housing — is lower than the national average. Keep in mind that as with other states, your take-home pay in Michigan will vary depending on a number of factors, including where you live, the type of work you do, and where you are in your career.

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.

FAQ

What is a good average salary in Michigan?

A “good” average salary is one that can cover basic living expenses with enough left over for savings and some fun. For a single adult in Michigan, a salary of more than $54,000 a year may qualify as “good.”

What is the average gross salary in Michigan?

The average salary in Michigan in 2024 is $58,000.

What is the average income per person in Michigan?

The average income per person in MIchigan is $27.88 per hour, or $58,000 per year, according to a 2024 Forbes analysis of data from the Bureau of Labor Statistics (BLS).

What is a livable wage in Michigan?

According to MIT’s Living Wage Calculator, a livable wage for a single adult in Michigan is $42,182. But if you live in a household with multiple people, you’ll likely need more money. For instance, if you and your significant other both work and have two children, you could make ends meet on $53,622 a year.

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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.

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If you’re single and you only have to worry about taking care of yourself financially, you may be able to live pretty comfortably on a salary of $65,000.

According to the Bureau of Labor Statistics (BLS), the median salary nationwide was $59,228 in the first quarter of 2024. This means at $65,000 per year, you’re earning more than the typical worker. But if the cost of living is higher where you live or if you’re carrying a lot of debt, stretching your paycheck from month to month could be a challenge.

Read on to learn how a $65,000 salary stacks up depending on location and other factors.

Is $65K a Good Salary?

If you’re single and child-free, you may be able to get by fairly well on a $65,000 income. But the amount you pay — all on your own — for housing, utility bills, groceries, and other basic costs could be a major factor in how well you’re able to manage. Tools like a money tracker can help you monitor your spending and spot upcoming bills.

Of course, day-to-day expenses can vary widely depending on where you live. To get an idea of where you stand, and if $65,000 a year is a good salary for you, it can help to look at the cost of living and the average salary in the U.S. and the state where you live.

Median Salary by State

A $65,000 annual salary is above average in most of the U.S., but wages differ significantly from state to state. Here’s a summary of the median household income in each state, based on the most recent data available from 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

Recommended: Highest Paying Jobs by State

Average Cost of Living in the US by State

If you live in one of the more expensive states in the U.S., you already know how the high cost of housing, utilities, and other basics can affect your budget. Here’s a breakdown of where each state ranks when it comes to the cost of living, according to 2023 data from the Missouri Economic Research and Information Center (MERIC).

State	Cost of Living Index
Alabama	88.3
Alaska	125.2
Arizona	108.4
Arkansas	89.0
California	138.5
Colorado	105.1
Connecticut	112.8
Delaware	101.1
Florida	100.7
Georgia	90.8
Hawaii	180.3
Idaho	98.6
Illinois	92.1
Indiana	91.0
Iowa	90.3
Kansas	87.1
Kentucky	92.0
Louisiana	91.0
Maine	109.9
Maryland	116.5
Massachusetts	146.5
Michigan	90.6
Minnesota	94.1
Mississippi	86.3
Missouri	88.5
Montana	102.9
Nebraska	90.9
Nevada	101.0
New Hampshire	114.1
New Jersey	113.9
New Mexico	94.0
New York	125.9
North Carolina	95.3
North Dakota	94.6
Ohio	94.7
Oklahoma	86.2
Oregon	114.7
Pennsylvania	95.6
Rhode Island	110.7
South Carolina	95.3
South Dakota	92.4
Tennessee	90.3
Texas	92.7
Utah	103.2
Vermont	115.3
Virginia	101.9
Washington	116.0
West Virginia	87.7
Wisconsin	95.1
Wyoming	92.4

How to Budget for a $65,000 Salary

Even if you’re earning a six-figure salary, creating a realistic budget can help you stay on course when it comes to managing your money.

One popular budgeting method that can give you an idea of how to divide up your wages every month is the 50/30/20 rule, which allocates after-tax income to three basic categories:

•   50% to “needs.” This includes essentials like housing, utilities, food, transportation, insurance payments, and debt payments.

•   30% to “wants,” which encompasses everything from dining out to vacations to shopping.

•   20% to savings for future goals. This category can include things like extra payments to help pay off loans sooner, saving for a down payment on a home, an IRA or other retirement contributions, or an emergency fund.

Using this method, a $65,000 salary, which comes to about $54,800 a year after federal taxes, or $4,567 each month, might look like this:

•   $2,283 each month to needs

•   $1,370 each month to wants

•   $914 each month to savings and/or paying down debt

While this approach leaves room for a little fun, it may not work for everyone. If you find you need to make some adjustments to fit your circumstances, a budget planner app may make it easier to track your spending so you can decide where to cut back.

How to Maximize a $65,000 Salary

Besides thoughtful budgeting, there are several other things you might be able to do to help maximize your $65,000 salary. Here are some strategies to consider:

Make the Most of Employee Perks

Good benefits can sometimes make up for a smaller paycheck or add value to an already solid salary. If your employer’s 401(k) plan offers a matching contribution, it could help you save more for retirement. And if you’re able to work remotely, you might be able to spend less each month on transportation costs or your work wardrobe.

Avoid Account Fees

Small monthly fees can sometimes go unnoticed when you’re worrying about bigger bills, like your rent or car payment. But with a little research and comparison shopping, you may be able to avoid the common bank fees, credit card fees, and investment fees that can slowly eat away at your hard-earned income.

Pay Bills on Time

Besides the penalty fees you might face if you push your bill-paying limits too far, late payments can take a toll on your credit score, which could affect the interest rate you might pay on a loan or credit card.

Build an Emergency Fund

An unexpected expense like a high car repair or a temporary pay cut can quickly blow up a budget. Setting aside money in an emergency fund could help keep you from falling behind on your regular obligations.

What Quality of Life Can You Expect with a $65,000 Salary?

Everyone has a different idea of contentment, and the amount of money you need to feel comfortable may look different than another person’s. When deciding if $65,000 is a good salary for you, some factors to consider might include:

•   Do you want to live in a big city, or is life in the suburbs or a small town more of your thing?

•   How much do you like to go out to eat, attend concerts, and travel? Are you willing to sacrifice other things so you can have these experiences?

•   If you’re new in your career, is $65,000 a good entry-level salary for the type of job you have? Do you expect to make more later?

•   How much are you hoping to save for short- and long-term goals, like a wedding, home, or retirement?

•   Is a 50/30/20 budget doable on your salary?

Is $65,000 a Year Considered Rich?

“Rich” is another subjective term. If your definition of rich is what the top earners in the U.S. make, $65,000 falls short. According to the Economic Policy Institute, the top 10% of earners made, on average, $167,639 in 2021, the most recent year for which data is available. The top 5% earned $335,891. And to make it into the top 1%, you’d have to earn $819,324 or more.

But wealth isn’t necessarily determined only by the number on a paycheck. If you own much more than you owe, you may still have a high net worth. And if you can live comfortably on $65,000, you may feel richer than someone who earns a six-figure salary but can’t manage to make ends meet.

Recommended: Net Worth Calculator By Age

Is $65,000 a Year Considered Middle Class?

Generally speaking, yes. Pew Research defines “middle-income” Americans as those whose annual income is two-thirds to double the median household income, adjusted for household size. Using the BLS’s median income number from the first quarter of 2024, $59,228, that means a single person who earns from $39,485 to $118,456 could be considered middle income.

What Kinds of Jobs Pay a $65,000 Salary?

If you’re looking for work, you’ll likely find there’s a wide range of jobs that offer a $65,000 salary, including entry-level positions for new grads, jobs for introverts, and high-paying vocational jobs that don’t necessarily require a degree. According to the BLS, jobs for health-care workers, software developers, clergy, law clerks, civil and industrial engineering technicians, and many more fall within this pay range, although salaries can vary significantly depending on where you live.

Tips for Living on a $65,000 Salary

Proactive planning can play an important role in living well on a $65,000 salary. Here are a few steps that could help make your money go further month to month and year to year:

Live Within Your Means

Before you make a major purchase, consider crunching the numbers again to make sure the costs will work with your budget.

Pay Down Debt

If you’re carrying a balance on your credit cards and paying anywhere near the average interest rate (currently 27.65%), a big chunk of your paycheck could end up going just toward interest each month. If you’re struggling with high-interest debt, you may want to look into debt consolidation or a repayment plan like the snowball method to help you get back on track.

Save and Invest

Finding a way to save for retirement and other long-term goals can seem like a big ask if you’re struggling to make ends meet. But the sooner you can start stashing away money, the more your savings can start to grow.

Keep an Eye on Costs

Tracking your spending with an app can help you see where your money is going in real time, which could make it easier to stick to your budget. It also can be a good idea to check your online credit card and bank statements weekly or monthly.

The Takeaway

Is $65k a year a good salary? Though it may not qualify as “rich,” in many parts of the country, a $65,000 salary is higher than the average pay in the United States. And it can provide a comfortable lifestyle — especially if you’re single. The idea of living day to day within your means on $65,000 while also working toward your long-term goals may seem challenging. But having the right attitude, discipline, and financial tools can improve your chances of success. Creating a budget that you can stick to can be an important first step.

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.

FAQ

Can I live comfortably making $65,000 a year?

If you’re earning $65,000 a year, you’re making more than the median salary for U.S. workers nationwide. How well you can get by on that pay depends on where you live and how you spend your money.

What can I afford with a $65,000 salary?

If you’re single, you can decide your own spending priorities. The 50/30/20 budget rule — which breaks down your costs and how much you may want to put toward your wants, needs, and savings each month — can be a useful tool for deciding what you can afford on a $65,000 salary.

How much does a $65,000 a year salary come out to hourly?

A $65,000 annual salary comes out to about $31.25 per hour if you’re working a 40-hour work week.

If you make $65,000 a year, how much does that come out to monthly?

If you’re earning $65,000 a year, that comes to about $5,417 per month before taxes.

How much does a $65,000 annual salary come out to per day?

If you’re earning $65,000 a year, that comes to about $1,250 for a 40-hour work week, or $250 for an eight-hour workday.

---

Photo credit: iStock/mixetto

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.

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For some workers, earning a six-figure salary can feel like clearing a major professional — and financial — hurdle. And generally speaking, $125,000 is considered a good income for a single person, especially one with no dependents.

However, your cost of living, existing debt, financial obligations, personal spending habits, and inflation could all impact how far your dollar goes. Here’s a closer look at how a $125K salary measures up.

Is $125K a Good Salary?

One way to determine whether a $125,000 salary is “good” is to compare it to what a typical worker makes. According to the latest data from the Social Security Administration, the average salary in the U.S. is around $63,795. And the national median household income is $74,580, according to the most recent U.S. Census Bureau Current Population Survey data for 2022. By most people’s measure, $125,000 per year would be considered a good salary.

But no matter how much money you bring home, tools like an online money tracker can help you monitor your spending and ensure you’re making progress on financial goals.

Average Median Income in the U.S. by State in 2024

Wages differ by region, often due to varying costs of living per state (more on that in a minute). The chart below shows the median household income in every state, according to the latest data available from 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

Recommended: Highest Paying Jobs by State

Average Cost of Living in the U.S. by State in 2024

Want to see how the cost of living in your state compares to other places in the nation? The U.S. Bureau of Economic Analysis’ (BEA) list of personal consumption expenditures — which looks at how much residents in each state spend on necessities like housing, utilities, food, and health care — can be a helpful place to start. The latest data from BEA is in the chart below.

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

How to Budget for a $125K Salary

Since $125,000 is double or triple the cost of living in most states, you may find that the salary provides more than enough for what you need. Still, it’s a good idea to have a spending plan in place to help with things like starting an emergency fund, paying down debt, or making progress on short- and long-term financial goals.

One approach is the 50/30/20 budget, which suggests using 50% of your earnings to pay for your needs, such as housing, utilities, groceries, and healthcare costs. You would then spend another 30% on discretionary items such as entertainment, hobbies and travel, with the final 20% going toward savings and debt repayment.

Need help tracking your progress? Consider using a budget planner app, which allows you to create a budget, review spending, and monitor your credit score.

Maximizing a $125K Salary

Since someone earning $125,000 per year is receiving double or even triple the average income in most states, it’s quite possible to have a high quality of life at that income level. After all, it’s far more than what’s considered to be a good entry-level salary.

But there are ways for a single person to get even more from a six-figure salary. Here are a few strategies to consider:

•   Build up an emergency fund. Not sure you have enough saved for a rainy day? A general rule of thumb is to have at least three to six months’ worth of basic living expenses socked away in the bank.

•   Pay down your debt. If you’re carrying a lot of credit card debt — and you’ve already built up a comfortable emergency fund — focus on paying off your debt.

•   Step up your retirement savings. If you have a 401(k) retirement plan with your employer, crunch the numbers and see if you can bump up your monthly contributions. You could possibly get an employer match as well, if one is available.

Is $125,000 a Year Considered Rich?

A single person with no dependents who earns $125,000 a year may find that they’re well on their way to affording the life they want. That said, people who live in an area with a high cost of living may find that $125,000 per year doesn’t go as far as they had hoped.

One way to consider if someone is rich is by looking at their net worth. Calculating net worth is fairly straightforward: It’s the value of all your combined assets minus any outstanding debts or liabilities. If your assets are worth more than your liabilities, you have a positive net worth. If your liabilities outweigh your assets, you have a negative net worth.

Recommended: Net Worth Calculator by Age

Is $125K a Year Considered Middle Class?

Middle class is defined as households with a salary that’s two-thirds to double the national median income. That means a middle-class household has an income that falls between $47,189 and $141,568. A $125,000 salary falls squarely in that range.

Example Jobs that Make About $125,000 a Year

There are many jobs that pay about $125,000 per year, including several in information technology (IT) such as senior Java developers, which are computer programmers, as well as data scientists and data architects. Other jobs include pharmacist, optometrists, sales managers, lawyers, and marketing managers. Some of the positions that offer $125,000 per year also would be ideal jobs for introverts.

The Takeaway

Is $125k a good salary? To help you answer that question, it can help to look at the average pay in the United States and in each state. Cost of living, personal spending habits, inflation, and individual debt load are also factors you may want to consider. However, by and large, a single person with no dependents who earns $125K per year should be able to afford the basics with enough left over for enjoyment and saving.

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.

FAQ

Can I live comfortably making $125K a year?

A single person with no dependents should be able to live comfortably on a salary of $125,000 a year. However, just how well they can live on that income depends on a number of factors, including their cost of living and existing debt.

What can I afford with a $125K salary?

A salary of $125,000 should be enough to cover necessities, like housing, transportation, food, and healthcare, with discretionary funds potentially left over.

How much is $125K a year hourly?

If you work 40 hours a week for 50 weeks, and earn $62.50 per hour, then that will add up to $125,000 per year.

How much is $125K a year monthly?

A $125,000 annual salary works out to around $10,417 per month.

How much is $125K a year daily?

Generally speaking, a person who earns $500 per day and works 250 days per year can earn around $125,000 per year.

---

Photo credit: iStock/South_agency

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.

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.

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You just got a new job offer and are wondering if $110,000 is a good salary. The truth is that in many parts of the U.S., it can be, especially for a single person. In most cases, you can probably cover your basic expenses and have some left over for savings.

Of course, there are many factors to consider when thinking about whether $110,000 is a good salary for you. Let’s dive in.

Is $110K a Good Salary?

In most cases, $110,000 is a good six-figure salary for a single person. Even when you factor in the rising costs of housing, food, and transportation, you can still comfortably afford to live in most parts of the country.

However, if you’re in an area where the cost of living is higher, you may find that you can afford the basics but not have much left over for other goals like retirement or travel. That’s why it’s crucial to look at your current spending patterns and the cost of living in your area to discern whether earning $110,000 is enough for your needs. A money tracker can give you a snapshot of your finances and provide insights into your spending and budgeting.

Median Income in the U.S. by State in 2024

According to the latest data available from the U.S. Census Bureau, here is the median household income for all 50 U.S. states:

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: Average Income by Age

Average Cost of Living in the U.S. by State in 2024

As anyone who’s ever received a paycheck knows, your salary and the amount you actually take home after taxes differ. After deducting for federal income taxes, Social Security tax, and Medicare, the average take-home pay on a $110,000 salary is around $85,544 — and that doesn’t include state taxes.

With that in mind, looking at the average cost of living in different states can help you decide whether $110,000 is a good salary. In the chart below, you can see how much a typical resident of each state spends on basics like food, transportation, utilities, and housing.

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

Source: U.S. Bureau of Economic Analysis

How to Live on $110K a Year

You can live relatively well on $110,000 a year as a single person — as long as you manage your expenses carefully. First, consider what your short- and long-term goals are. Do you want to have enough money set aside for a week-long vacation each year? Are you eager to be debt-free within a certain timeframe? Or do you want to max out your contributions to your employer-sponsored 401(k)?

Balancing these goals with your everyday expenses will help ensure you can afford the necessities while taking care of your future self.

How to Budget for a $110K Salary

Budgeting on a $110,000 salary is similar to how you would budget for other income thresholds. Consider the following strategies:

Determine Your Take-Home Pay

Assuming you make $110,000 gross, you’ll need to account for how much you’ll receive after taxes and other deductions are taken into consideration. For example, you may have to pay health insurance premiums (an average of $1,401 a year for an individual plan) or pretax retirement contributions (up to $23,000 per year). Let’s say you pay federal taxes and deductions, contribute the maximum to your 401(k), and pay the average amount for your health care, you’d be left with a take-home pay of around $61,143.

Bottom line: Once you have a clearer picture of what’s coming in, you can then budget appropriately for it. Tools like a budget planner app can help make the job easier.

Set Aside Money for Long-Term Savings

It’s fun to live in the moment, but it’s also important to think about the future. Consider using part of your income to start an emergency fund, and set aside money for larger expenses and goals. You may also want to look into savings vehicles like a high-yield savings account, which typically offers a higher interest rate than a traditional savings account.

Plan to Get Out of Debt

Using part of your salary to tackle your high-interest debt faster can be a good idea to free up funds for other pursuits. You can also consider options like refinancing or debt consolidation loans to help you reduce interest costs.

Maximizing a $110K Salary

Getting smart with your money means knowing how you can maximize the salary you earn. In general, you can aim to do so by spending only what’s necessary, investing so you can have a comfortable retirement, and saving.

You may want to consider moves like:

•   Boosting your credit score to increase your chances of getting competitive interest rates

•   Investing in securities that charge minimal fees

•   Shopping around for loans to find the best rates and terms

•   Finding a home that fits your budget

•   Taking public transit when you can instead of driving a car

Quality of Life with a $110K Salary

You can have a good quality of life on a $110,000 salary depending on how you allocate your money. Even if you live in a higher cost of living area, there are ways to maximize the amount you earn to live well. Take the time to compare larger expenses like housing, insurance, and healthcare costs.

Recommended: Average Pay in the United States

Is $110,000 a Year Considered Rich?

Does earning $110,000 mean you’re considered “rich”? Well, the term is relative. It all depends on where you live and how you spend your money. For example, if you invest a good chunk of your income to help you increase your overall net worth and live in a safe area, some would consider that being rich. However, if you’re the only income earner in your family of six, then $110,000 per year is likely not enough to make you feel wealthy.

Is $110K a Year Considered Middle Class?

According to the Pew Research Center, middle-class workers earn a salary that’s two-thirds to double the national median income. By that definition, a middle-class household makes between $47,189 and $141,568, and $110k falls within that range. However, where you live will also factor into whether you’re considered middle class. That’s because different states have their own median household earnings.

Example Jobs That Make About $110,000 a Year

high-paying jobs that earn a median wage of $110,000 or more:

•   Architectural and engineering managers

•   Financial analysts

•   Software developers

•   Math and science postsecondary teachers

•   Dentists and doctors

•   Nuclear power reactor operators

The Takeaway

Earning $110,000 can mean you have the ability to live a good quality of life. Plus, it’s higher than the average salary in the U.S. That being said, you’ll still want to be mindful about where your money goes so you can achieve your financial goals and more.

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.

SoFi helps you stay on top of your finances.

FAQ

Can I live comfortably making $110k a year?

It is possible to live comfortably making $110,000 per year. However, doing so largely depends on factors like whether you have dependents, where you live, and what types of necessities and luxuries you want.

How much is $110k a year hourly?

Assuming you work 40 hours per week, you’ll earn around $52.88 each hour.

How much is $110k a year monthly?

You will earn about $9,166.66 each month on a $110,000 annual salary.

How much is $110k a year daily?

Assuming you work five days a week, $110,000 per year salary equates to roughly $423.07 per day.

---

Photo credit: iStock/Jacob Wackerhausen

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.

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