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Earning a salary of $85,000 can provide a good living for a single person — even one who has dependents. Of course, how far the money can go depends on where you live, your lifestyle, spending habits, and any financial obligations you may have.

Here’s a closer look at where you fall into the big picture if your annual salary is $85,000.

Is $85K a Good Salary?

If you’re making $85,000 a year before taxes, you’re earning nearly $20,000 more than the average annual U.S. salary of $65,470, according to May 2023 figures from the U.S. Bureau of Labor Statistics (BLS).

For new grads, earning $85K annually is a high-paying entry-level salary and a great jumping off point to earning even more in the not-so-distant future, if that’s your goal.

Median Income in the US by State in 2024

The following chart shows the median income per state for a single-person household, according to figures from the U.S. Census Bureau. As you’ll see below, in many states, a salary of $85,000 puts you in a position where you’re earning more than the typical household:

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

Average Cost of Living in the US by State in 2024

Your cost of living refers to the amount of money needed in order to afford the necessities in a specific location, during a certain time period. The expenses factoring into your cost of living include food, housing, utilities, transportation, childcare, and health care.

Here’s a look at the average cost of living in each state, according to data from the U.S. Bureau of Economic Analysis.

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 Live on $85,000 a Year

In order to figure out how to best live on $85,000 a year, it helps to know how this salary breaks down on a monthly and weekly basis.

Based on a 40-hour work week with two weeks of paid vacation a year, an annual income of $85,000 works out to be about $7083.33 a month, $3,269.34 biweekly, and $1,634.62 a week. The hourly rate turns out to be $42.50 per hour.

Keep in mind these figures are your gross income. After taxes, your pay may end up being somewhere between $4,958 to $6,020 a month. You may find this easily takes care of your living expenses, chips away at some debts, and enables you to even sock some money away for the future.

Need help keeping on top of where your money is being spent with every paycheck? Tools like an online money tracker tool can help.

Recommended: How to Calculate Your Net Worth and Wealth: The Ultimate Guide

How to Budget for a $85K Salary

There are many different budgeting methods out there, but a popular one is the 50/30/20 budget. This approach allows you to allocate your money into three categories: your needs, wants, and savings.

Essentially, to follow the “rules” of the 50/30/20 budget, you’ll portion 50% of your salary to necessities (rent/mortgage payments, groceries, transportation, medical insurance), 30% toward your nonessentials or wants (travel, entertainment, leisure, dining out) and the remaining 20% toward debt repayment and savings, including retirement accounts, vacation funds, college tuition, or buying a home.

A budgeting planner app can help you get started.

Maximizing an $85K Salary

There are ways to build upon a $85,000 salary, besides budgeting, saving, and getting rid of debt. Strategies include taking advantage of certain employer offerings, paying bills on time, and exploring different investment opportunities.

Does your company have a 401(k) plan? If so, consider enrolling, and your future self will thank you later. Your employer may even offer matching contributions, often up to a certain percentage.

You can also make sure you avoid any missed payments or late fees by setting up an autopay for recurring bills. And even if $85K can go further where you live, that doesn’t mean you still can’t curb extraneous spending, such as eating home more often than ordering take-out or getting rid of streaming services you never use.

Quality of Life with an $85K Salary

Whether you’re mulling a job offer or considering a career change, you may be wondering, “Is $85K a year a good salary?” In fact, that amount of money can provide a nice quality of life for many people. But it’s worth noting that everyone has their own version of what a nice quality of life means. So the amount one person needs to live comfortably — and where — differs from person to person.

Is $85,000 a Year Considered Rich?

Similar to the question of what constitutes a good quality of life, what someone considers rich depends on their personal definition. To many folks, $85,000 may feel rich, especially if you’ve never earned close to this salary before.

The truth is, there’s no official financial designation of what it means to be rich, but generally, you’ll need to earn at least a six-figure salary to be on the road for qualification. And even when you hit that amount, it’s going to take anywhere from $329,620 to $719,253 to be considered a top earner in the U.S., according to research from GoBankingRates based on numbers from the Census Bureau.

Is $85K a Year Considered Middle Class?

According to the Pew Research Center, 51% of Americans fall into the middle class or middle income category. Middle class households are defined by Pew Research as those with an income that is two-thirds to double that of the U.S. median household income, which as mentioned earlier is $65,470.

Using that definition, SmartAsset conducted a 2024 study to determine the middle-class income limits by state. The findings indicated that on a state level, a household earning between $64,224 and $192,692 in 2024 would be considered middle class.

Example Jobs that Make About $85,000 a Year Salary

Salaries largely depend on the field or industry you work in, what companies are willing to pay, and your particular skill set. Here are some jobs that pay about $85,000 a year, based on information from the BLS:

•   Dental Hygienist: $89,890

•   Chiropractor: $89,760

•   Real Estate Broker: $86,130

•   Writer and Editor: $86,120

•   Urban and Regional Planner: $85,940

•   Insurance Underwriter: $85,610

•   Occupational Health and Safety Specialists: $85,570

Recommended: 25 Highest Paying Jobs in the U.S.

The Takeaway

Is $85K a year a good salary? In 2024, it’s considered middle class and can be a comfortable living for a single person in many states and areas of the country. With that level of pay, someone can afford their basic needs, indulge in some of their wants, and have money left over to pay off debts or set aside savings. Earning $85K can be a great starting salary for a young person or even someone starting over in a new field, with the opportunity to increase earnings in the future.

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 $85K a year?

It depends on where you live, the expenses you currently have, and your spending habits. But in general, as a single person, you should be able to live rather comfortably on $85K a year, meeting your basic needs and have money left over.

What can I afford with an $85K salary?

Making $85,000 a year can typically cover housing, a car payment, utility and food costs, without being stretched too thin. Of course, this all relies on living within your means. For example, the average rent for a one-bedroom apartment in the U.S. is slightly over $1,500 a month, and monthly car payments average from $522 for a used car to $723 for a new car. You may be stretched if you decide to buy a home, since the average mortgage payment on a fixed 30-year mortgage is $2,833.

How much is $85K a year hourly?

The hourly rate for $85,000 a year is around $42.50.

How much is $85K a year monthly?

A salary of $85,000 works out to be about $7083.33 a month before taxes.

How much is $85K a year daily?

If you make $85k, you earn a gross amount of approximately $327 a day.

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Photo credit: iStock/FreshSplash

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*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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Good dental health can be essential to your overall well-being, but the cost of dental work — even after dental insurance — can make it challenging to pay upfront. According to the American Dental Association (ADA), the average cost of a porcelain or ceramic crown is $1,213, while the cost of a root canal can range as high as $1,539 for a single session.

A dental credit card is a white-label version of a credit card intended to be used on dental care expenses. It is one way to cover these costs in smaller, more manageable installment payments. Although a credit card for dental work can serve as a useful financing tool, it’s also important to be mindful of the caveats of using credit for dental care.

What Is a Dental Credit Card?

A dental credit card is a credit card that’s designed specifically to pay for your out-of-pocket dental health care costs. These cards are typically offered in dental offices that accept the particular medical card it advertises as a form of payment.

Like a basic credit card, a dental credit card requires patients to undergo a credit check for qualification. The card’s use is limited to dental offices within the card issuer’s network for the purpose of financing your dental bills.

Dental care credit cards typically have high interest rates, even if they offer a temporary deferred interest period.

Recommended: Tips for Using a Credit Card Responsibly

How Do Dental Credit Cards Work?

Your dental provider’s office might mention a dental credit card as a payment option if you’re unable to cover the expense in one lump sum. Typically, the office facilitates the process of completing your application for credit approval, but it is not financing the cost directly. In other words, your dental office isn’t the lender.

Instead, credit for dental care is provided by a third-party credit card issuer. Similar to how a conventional credit card works, your application is reviewed by the issuer’s underwriting team, and your credit history and score are evaluated.

If you’re approved, the card issuer will send you a physical credit card that you can use for services at an in-network health care office up to your approved credit card limit. Your dental provider is paid in full by the card issuer, and you’ll repay the issuer through monthly payments, plus interest if you carry a balance.

Deferred Interest Periods on Dental Credit Cards

Some credit cards for dental work offer zero interest charges for a limited period, also called deferred interest. This option can be advantageous if you’re confident that you can successfully repay the full balance before the deferment period ends.

However, if there’s a remaining balance after the deferment period ends, interest charges that accrued throughout the deferment period are added to the principal balance that’s due. Additionally, the new higher balance continues to accrue interest charges at the dental credit card’s APR, or annual percentage rate.

Because of this, use medical credit cards for dental work cautiously, as it’s a high-interest financing option that can lead to higher medical debt if you’re unable to repay your dental expenses quickly.

Recommended: What Is a Charge Card

Choosing a Dental Credit Card

When applying for a credit card specifically for dental care expenses, make sure you ask about the card’s features, terms, annual percentage rate (APR), and how it calculates interest during and after any deferment period.

If you’re approved, ensure that your dental office provides you with a copy of your dental credit card’s disclosure agreement. Also pay attention to the agreed-upon amount for any dental services you receive so you can verify that the card was charged for the correct amount.

You’ll want to note the deferment dates for your card, if any, and the interest rate you’re offered. That way, you can make enough monthly payments to repay your balance in full before interest kicks in.

Paying for Dental Care If You Have Bad Credit

Getting approved for a dental care credit card might be challenging if you have bad credit. If you’re in a difficult position and need help paying for expensive dental work now, here are some options to explore:

•   Inquire about a low-fee payment plan. Even if your dental provider doesn’t typically offer payment plans, it’s worth asking. They might accommodate you.

•   Shop around with other dental providers. Prices vary across dental offices, so compare costs across a handful of affordable sources. You might consider a non-profit dental clinic or a dentistry school.

•   Seek help from a family member. Ask a relative if they’re willing to offer a low-interest loan for your dental care.

•   Explore local government programs. Some state and local governments offer low-cost dental care programs to residents.

Alternatives to Dental Credit Cards

If a dental credit card isn’t an option for you, there are a handful of other financing options to cover dental work, such as the cost of a root canal.

Credit Cards With 0% Interest Rates

Other types of credit cards, like a 0% APR card, are a good alternative to dental care credit cards. They offer a promotional period — sometimes from six months to 18 months — during which you don’t incur interest charges.

This kind of card may differ from deferred interest programs. With some promotional APR cards, interest only starts accruing on your outstanding balance after the promotional period ends. Still, the credit card rule applies to try to pay off your balance in full before the promotional period ends to avoid paying interest.

Payment Plans Through Your Provider

Some medical providers offer a payment plan at no additional cost or at a small installment fee. In this situation, you’re arranging low installment payments directly through your dental office until you’ve repaid your balance in full.

Not all dental offices offer this type of payment plan. But if yours does, it can work with you to create a custom monthly payment amount and due date that’s manageable for your finances.

Personal Loans

Compared to a dental credit card, personal loans might offer lower interest rates for qualified borrowers. A low-interest personal loan achieves the same result as a credit card for dental work in that you can chip away at your outstanding balance in small increments, plus interest.

Among the main differences: You’ll receive a lump-sum loan disbursement from your lender that can be used to pay your dental office upfront. Also, you may find that a personal loan has a lower interest rate than what a credit card would charge you.

Recommended: How to Avoid Interest On a Credit Card

Help From Relatives

Seeking financial assistance from a close relative can help you avoid dental care debt. When asking for help, clarify whether any available funds are a gift or need to be repaid.

If it’s the latter, discuss the repayment window and additional interest (if any). Also talk about expectations if you’re suddenly unable to make payments due to, say, an injury or job loss.

The Takeaway

Getting a credit card designed to pay for dental work can be useful if you’re faced with an urgent oral treatment or procedure and need fast financing. However, the high interest rates of credit cards for dental work compared to other financing options can make it a financially risky option.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What credit score do I need to get a dental credit card?

Credit score requirements vary by credit card issuer, but generally, you’ll need at least fair credit. However, a higher score can help you qualify for more competitive interest rates.

Is a dental care credit card hard to get?

Dental care credit cards are commonly offered online or at your provider’s dental office, so applying for a card is typically straightforward. However, being approved for a dental credit card involves many factors, like your credit history, income, debt-to-income ratio, and other factors.

Should I pay for dental care with a credit card?

If you don’t have the cash flow to pay for your dental costs upfront, using a dental credit card helps you cover costs in small, monthly payments. That being said, doing so might cause you to incur high interest charges, so evaluate your financial situation and your options.

Can I get a dental loan with bad credit?

Dental loans for patients with bad credit are available, though they might come with high interest rates, low limits, or other restrictive factors.

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Photo credit: iStock/zadveri

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.

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.

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If you work hard amassing miles and points, it’s worthwhile to know that while some credit card rewards die with you, there are issuers who allow redemptions or transfers after death.

Here’s a closer look at what happens to credit card rewards when you die, as well as what steps you can take to avoid forfeiting your rewards.

What Are Credit Card Rewards?

Credit card rewards are a type of currency that can come in the form of credit card points, miles, or cash back rewards. They’re designed to incentivize cardholders to make eligible purchases on their rewards credit card.

As you make purchases and earn various credit card rewards, you can choose to hold onto the rewards in your account until you have enough to redeem toward a high-value purpose. Each rewards program lets cardholders redeem rewards in different ways, depending on its rules. Common redemption options include statement credits, travel bookings and reservations, special experiences, merchandise, gift cards, and more.

Recommended: Tips for Using a Credit Card Responsibly

What Happens to Your Credit Card Rewards Upon Death?

Having a stockpile of credit card rewards after death might lead to a sticky situation for your surviving family. Akin to your credit card debt after death not passing on to your survivors in some states, some credit card rewards “die with you” and can’t be redeemed or transferred to your family or estate.

Conversely, some credit card issuers, like American Express, offer a limited period during which authorized trustees of your estate can redeem unused rewards. Certain programs that permit reward redemptions or transfers after death might require the outstanding account balance to be paid in full.

In other words, what happens to your credit card rewards after you pass on depends on the terms laid out in your rewards program agreement. Some rewards terms specifically state that rewards aren’t the property of the cardholder and can’t be transferred through inheritance.

Recommended: What Is the Average Credit Card Limit

What To Do With Credit Card Rewards if the Account Holder Dies

If you know that your deceased loved one amassed credit card points, miles, or cash back rewards, there are a few steps you can take to address it:

1.    Check on accounts and rewards balances. If your deceased loved one gave you access to their account before their death, log in to get an overview of their remaining rewards balances across all accounts. If you don’t have access to their accounts, proceed to the next step.

2.    Prepare paperwork. You’ll likely need to provide proof of the primary cardholder’s death, such as a copy of their death certificate. Additionally, you might need to provide the name and contact information of the authorized trustee, letter of testamentary, or other details.

3.    Contact the card issuer. You must inform the card issuer in the event of a primary cardholder’s death. Supply the necessary documentation you’ve gathered, and inquire about your options to redeem the rewards.

Generally, credit card companies offer at least one of a few options, though how a credit card works will vary by issuer. The rewards might be forfeited if they’re non-transferable or expire upon the cardholder’s death. Some credit card terms automatically convert the rewards into a statement credit, while other issuers allow rewards redemption or transfers to another existing, active account.

Ways You Can Avoid Forfeiting Your Credit Card Rewards

You’re ultimately at the mercy of a reward program’s user agreement in terms of what to do with credit card rewards after death. However, planning ahead can help you avoid relinquishing earned rewards.

Not Hoarding Your Points

To avoid facing a scenario in which your credit card rewards die with you, make an effort to redeem credit card points or miles on a rolling basis.

For example, at the end of each year, use credit card rewards to travel for less money or apply them to your account as a statement credit. Keep in mind that different redemption options have varying valuations, so look into which redemption strategy makes sense for your situation.

Choosing Cards With Favorable Death Terms

Although a particular program might offer enticing rewards — such as the chance to enjoy credit card bonuses — it might not be advantageous if the program has strict terms regarding a cardholder’s death.

American Express, for instance, has relatively lenient terms when dealing with the rewards balances of a deceased cardholder.

Recommended: How to Avoid Interest On a Credit Card

Using a Reward-Tracking Tool

If you have multiple rewards credit cards in your rotation, using a reward tracking app can help you and your surviving family organize and track your rewards. Apps like AwardWallet and MaxRewards can let you easily see all of your rewards in one view.

Naming a Beneficiary in Your Will

Although it’s not a foolproof way to avoid forfeiting your credit card rewards, adding a beneficiary to your will is a smart move. This way, if your card issuer allows rewards transfers or redemptions by authorized individuals, your beneficiary is formally named on your estate documents as your desired recipient.

The Takeaway

Since there’s no way to know when an accident or unforeseen health issue will result in your death, it’s best to be prepared. If possible, redeem earned credit card rewards in a timely manner so you can enjoy them in life. Or consider such steps as naming a beneficiary in your will or racking up rewards on a card with lenient transfer policies.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Can I transfer points from the account of a late family member?

Whether you’re allowed to transfer points from your deceased relative’s rewards credit card account depends on the card program’s rules. Some banks allow points transfers, while other programs state that points are non-transferable. Contact the card issuer’s customer support team to learn about its point transfer policy.

Can an authorized user use credit card rewards upon the death of the account owner?

It depends. Not all credit card rewards programs allow authorized users to use a primary cardholder’s earned rewards. Those that do might have restrictions on how and when rewards can be redeemed after a primary user’s death, if at all.

What happens to the miles when someone dies?

Miles earned by a deceased primary credit card rewards cardholder might be forfeited, transferred, or redeemed by the estate or surviving family, depending on the rewards program. Terms vary between card issuers, and even across travel rewards programs, so call the program’s support team to learn about its terms.

Can estates redeem points after death?

Some rewards credit cards allow estates to redeem points after the primary cardholder’s death. American Express, for example, allows estates to request points redemption by submitting a formal written request with documentation.

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Photo credit: iStock/supatom

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.

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.

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Whether you’re interested in switching credit cards because you found one with better rewards or one with no annual fee, it can make sense to do so. Also called a credit card product change, some banks allow you to make a switch without much consequence.

But before doing so, it’s best to understand how changing credit cards works and how to switch credit cards properly.

What Is a Credit Card Product Change?

A credit card product change is where a cardholder switches from one credit card to another credit card offered by the same bank or issuer. Because each credit card offered by an issuer is referred to as a different product, a product change is simply switching credit cards.

In theory, switching credit cards within the same bank won’t affect your credit as you’re not applying for a new credit card. Typically, your credit limit will stay the same for your new card as it was for your previous card.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

How Does a Credit Card Product Change Work?

When you make a product change, you’re not canceling a credit card. Rather, you’re either switching to an equivalent credit card, upgrading to a card with more benefits, or downgrading to a card with fewer benefits. In many cases, your bank may send you targeted offers for different credit cards, and you may be able to switch to one of these credit cards.

Once you switch credit cards, you’ll no longer be able to use the credit card you previously had. You can start using the new credit card instead. Features and benefits will most likely differ, and in some cases, so too may your credit limit.

Recommended: What Is the Average Credit Card Limit

Rules for Credit Card Product Changes

When it comes to following the credit card rules, each credit card issuer will have its own guidelines regarding product changes. For instance, some won’t allow you to change to certain credit cards, while others may allow a product change only if you’re switching to a similar type of card.

In general, though, there are some rules that are usually the same across the board.

•   For one, cardholders can’t switch from a business credit card to a personal one and vice versa, since these are considered different classes of cards and may have different credit limits.

•   Additionally, issuers typically only let you change credit cards as long as they’re within the same family of cards, as this can impact how credit cards work. However, each issuer has a different definition of what that means.

For instance, if you have a travel rewards credit card and the bank offers two other cards that use the same travel portal to redeem points, all of those cards could be considered in the same family. Or, if you have a co-branded card with an airline, other co-branded cards with that airline may also count as within the same family of cards.

Unfortunately, it’s often not easy to find information about whether you can switch your specific credit card to another. Your best bet is to call your credit card issuer and ask them directly.

Recommended: Can You Buy Crypto With a Credit Card

Pros and Cons to Switching Credit Cards

There are certainly upsides to converting credit cards rather than closing out your account and starting over. However, there are downsides to take into account as well.

Pros of Switching Credit Cards	Cons of Switching Credit Cards
Generally won’t affect your credit score if the bank doesn’t conduct a hard credit inquiry	Not easy to find definitive information online about product change rules
Possible to get more benefits with the new card you switch to	May not be able to switch to your preferred card, depending on issuer’s rules
Won’t need to submit a new credit application	May lose existing credit card rewards or points

Guide to Switching Credit Cards

Switching credit cards can be a relative straightforward process, but it does involve contacting your bank or credit card issuer. Here are some best practices to keep in mind before making the switch.

Decide Which Card You Want

You want to make sure your new card will be a good fit for you. Before making moves to change your credit card, check your bank’s website to see what other products are currently on offer. In some cases, you may find that you’ll get upgrade offers in the mail or after logging into your bank account online.

Contact Your Bank or Credit Card Issuer

You’ll also want to contact your bank to ask whether you can switch to the card you’ve decided on. If you can get the credit card you want, ask the bank what else you’ll need to do before you can officially make the switch.

You’ll also want to ask about certain features and benefits you’ll receive if you do decide to change credit cards. Specifically, make sure to ask about the following:

•   Whether your credit limit will remain the same after switching cards

•   If you need to pay off the balance before switching

•   Whether you’ll be subject to a hard credit inquiry

•   Whether you can keep existing rewards you’ve earned with your current credit card

•   What your new APR will be

•   If you’re eligible for credit card bonuses with the new card

Learning these answers will help you to make an informed decision and avoid getting caught off guard after making the switch. You may even be able to negotiate for things like bonuses or perks that you may not have gotten otherwise.

Effects of a Product Change on Your Credit Score

It’s important to determine whether switching credit cards will have an adverse effect on your credit score. When it comes to your credit utilization, as long as you’ll have the same credit limit with your new card, you should be able to maintain it. This is unlike closing a credit card, where you’ll lose that credit limit, which could result in an increased credit utilization ratio and a negative impact to your credit score.

In some cases, your card issuer may require a hard credit pull before allowing you to switch credit cards, which could temporarily ding your credit score. Your issuer may make this request for a variety of reasons, including to ensure your credit profile is still good and to determine whether to continue offering you the same amount of credit (especially if you tend to max out your card). You’ll be asked permission before the hard inquiry is conducted, so you’ll know it’s coming.

Effects of a Product Change on Your Credit Card Rewards

Depending on what card you want to switch to, you may be able to keep your existing credit card rewards. For instance, if you’re switching to a credit card that has the same rewards structure or program, you’ll probably be able to keep the points or miles you’ve earned.

However, if you’re going from a travel rewards card to a cash back program, for instance, your bank may not allow you to keep your existing rewards. That means you’ll have to use up your rewards or forfeit them, though it may still be worth speaking with a customer representative to see what they can do.

If you want to get sign-up bonuses on a credit card that you plan on switching to, check with your bank to see whether you’re eligible. Some cards don’t allow bonuses for existing customers.

The Takeaway

Requesting a credit card product change can be an easy way to switch to a new credit card without going through the full application process. Before you make any moves, however, take the time to confirm whether or not converting credit cards will impact your credit and whether you’ll be able to keep the rewards you previously earned. After all, valuable credit card rewards probably aren’t something you want to lose out on.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Does a product change reduce your credit score?

A credit card product change may affect your credit score if your issuer requires a hard credit inquiry to make the switch. This should only impact your score temporarily though.

How do I request a product change?

To switch credit cards, you’ll need to contact your bank or credit card issuer to determine whether you can switch the card you want. From there, it will inform you of the other steps you need to take.

What are the downsides of a credit card product change?

You may lose the rewards you’ve earned on your current card if you decide to switch credit cards. Your credit score could also be temporarily affected if your issuer conducts a hard credit check when you switch cards.

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Photo credit: iStock/RgStudio

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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Whether you’re mulling a job offer or thinking about a new career, you may be wondering whether $80,000 is a good salary for a single person in 2024. It certainly can be. An $80,000 salary is higher than what the typical American worker makes. According to the Social Security Administration, the average salary nationwide is $63,795.

If you have no dependents, that income is likely enough to cover your basic needs with some discretionary money left over. However, several factors, including where you live and your spending habits, can all impact how far your pay will go.

Is $80K a Good Salary?

While it’s not a six-figure salary, an annual salary of $80,000 is generally considered a respectable wage, especially for a single person. Of course, your local cost of living plays an important role in whether a salary is “good” for you or not. You might feel financially comfortable living in one area — and like you’re just getting by in another.

It can be helpful to take a look at your expenses to understand where your money is going and if your income can keep up. A money tracker provides you with a bird-eye view of your spending so you can see where you might need to make adjustments.

Recommended: U.S. Average Income by Age

Median Income in the US by State in 2024

An annual salary of $80K may be higher than the average salary in the U.S., but how does it stack up next to wages in different states? Here’s a look at what a typical household in each state earns, 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

Average Cost of Living in the US by State in 2024

From grocery store bills to gas prices to mortgage payments, your cost of living is tied, in part, to where you reside. As you think about whether an $80K salary is good, it can be helpful to understand where prices for necessities like housing, food, transportation, and childcare may be higher.

With that in mind, here is the average cost of living in each state, according to U.S. Bureau of Economic Analysis data.

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

How to Live on $80K a Year

Even though $80,000 is a good salary for a single person, it’s still a good idea to create a budget. There are all sorts of budgeting methods out there, and it may take some trial and error before you find the approach that works the best for you. Whatever method you choose, be sure it fits your basic needs and leaves you with some funds left over to pay down debt, save, and enjoy.

How to Budget for an $80K Salary

One popular approach to budgeting calls for organizing expenses into different categories, then designating an amount or percentage you can spend per month in each category.

An example of this is the 50/30/20 budget rule, where you reserve 50% of your salary for “needs,” 30% for “wants,” and 20% for saving.

Another, similar option is the 40-30-20-10 budget. Here, expenses are broken down as follow:

•   Housing, groceries, utilities, gas: 40%

•   Discretionary spending: 30%

•   Savings, retirement, and investments: 20%

•   Additional debt payments or savings goals: 10%

If you need help getting started with your budget, consider enlisting the help of a budget planner app.

Maximizing an $80K Salary

To make the most of your salary, try to strike a balance between working toward short- and long-term financial goals. For instance, if your employer offers a 401(k), consider signing up for it. And check your budget to see if you can contribute the maximum amount each month.

Another way to make the most of your income? Build an emergency fund. A good rule of thumb is to save enough to cover three to six months’ worth of expenses.

Quality of Life with an $80K Salary

The quality of life you can have on an $80K salary can be greatly impacted by where you live. If you’re in an area with a low cost of living, you may be able to afford a comfortable lifestyle with that level of income. But that may not necessarily be the case if you live in a pricey part of the country, such as in a major coastal city.

Is $80,000 a Year Considered Rich?

While there’s no single definition of rich, $80,000 would likely not qualify. On the other hand, it’s significantly more than what the typical U.S. worker makes, and would be a very good entry-level salary for many professionals who are just starting out.

Another way to think about wealth is by looking at net worth. To calculate your net worth, simply subtract your outstanding debts from the value of your combined assets. A positive net worth is one where your assets are worth more than your liabilities. Conversely, a negative net worth is when your liabilities are more than your assets.

Recommended: Net Worth Calculator by Age

Is $80K a Year Considered Middle Class?

Short answer: Yes. Based on guidance from the Pew Research Center, a middle-class household has an income between $47,189 and $141,568. An $80,000 salary is within that range.

Example Jobs that Make About $80,000 a Year

The highest-paying jobs in your state probably pay more than $80,000 a year, but that said, there are plenty of good, stable roles out there where you can command that level of pay. Here are some to consider, based on data from Indeed.com:

•   Real Estate Agent

•   Occupational Therapist

•   Physical Therapist

•   IT Manager

•   Mechanical Engineer

Of course, salary is just one consideration. You’ll also want to find a job that you’re passionate about and that fits your personality. If you’re reserved, for instance, you might think about looking for jobs for introverts.

The Takeaway

An annual salary of $80,000 is considered good for a single person and is higher than the average pay in the United States. But just how far that money will go for you depends on your financial obligations, where you live, and other factors. In some areas, getting by on $80K a year might be tight, while in others, you may have enough breathing room to start working on your savings goals.

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 $80K a year?

You can live comfortably on $80,000 per year, but keep in mind your local cost of living has a big impact on just how far your money will go.

What can I afford with an $80K salary?

With an $80,000 salary, a single person with no dependents or major financial obligations can likely afford the necessities with money left over for entertainment and savings. Ideally, you should spend no more than a third of of your income on housing (usually the biggest line item in a budget). That means if you earn $80,000 a year, you could spend roughly $26,000 per year on housing.

How much is $80K a year hourly?

An annual salary of $80,000 works out to around $43 per hour.

How much is $80K a year monthly?

A worker who earns $80,000 a year can expect to make $7,300 a month before taxes.

How much is $80K a year daily?

An annual salary of $80k equals approximately $340 a day.

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Photo credit: iStock/LumiNola

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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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