In this day and age, can two people live on $25,000 a year?
After all, you could quickly and unexpectedly find yourself in this difficult position. One of you could lose your job or you’re just starting your career and working for minimum wage.
The quick answer to this question is yes—two people can live on $25,000 a year. But it would be very difficult if you had a mortgage, auto loan, credit card debt or student debt.
Plus, you would have to live in an area with a low cost of living. For example, you might be able to do this if you live in a rural area in Nebraska or Kansas. However, you would need a lot of luck to get by on $25,000in an expensive city such as Chicago or New York.
How To Live On $25,000 After Taxes
To live on $25,000 a year after taxes, you would have roughly $2,083 a month to pay for everything —food, rent, medical bills, other necessities and leisure activities.
That doesn’t leave a lot of room for error. Something as simple as a car breakdown could tip your budget into the red. Not to mention an unexpected medical expense, which could throw your budget out the window. Catching up might take years on such a limited income.
So, to make this work, you have to develop a budget and stick to it religiously. For example, you might allocate:
- 45% — or $937 a month — for housing (rent or mortgage payment and utilities)
- 15% — or $312 — for transportation
- 25% — or $520 — for living (food, entertainment, clothing, gifts, cellphones, etc.).
You might budget 15% or about $312 for debt repayment. If you don’t have debts, this could go into an emergency savings fund. If something happens, you’ll be prepared to cover the unexpected expense without breaking the bank.
Soaring Inflation – And Where It’s Easier To Live On $25,000
Of course, it was certainly easier to live on $25,000 a couple of years ago than it is today.As you’re probably aware, by simply going to the grocery store and paying more for everything, Inflation has soared to 40-year highs.The bad news, costs are expected to rise in the foreseeable future.
The rising cost of living means you will have to cut back on key expenses even more than in the past. But this is more doable than you probably think.
Can You Stay On A Budget This Strict?
While the two of you could live on $25,000 a year, it would mean staying on that budget with no exceptions if you want to stay out of debt.
So, you might have to sacrifice a lot of weekend getaways or vacations. You would have to be very careful in your gift giving and it would help if you skipped the car and instead relied on public transportation.
In other words, it would be a very no-frills budget.
If none of this sounds like your cup of tea, remember that you don’t have to settle for this lifestyle. There are many things you can do to improve your financial situation.
The best way to improve it is by boosting your income. Perhaps you could take on a part-time job – after all, employers today are desperate to find workers. There should be no shortage of opportunities.
Another option is to find a side hustle, from reselling items on eBay to driving for Uber.
For example, it’s not unheard of for folks to supplement their income to the tune of $1,500 a month or more simply by reselling yard and estate sale items on eBay. Don’t be surprised if you sell something for double or triple the original purchase price. While it takes a good eye and patience to find that hidden treasure, it could pay you back in spades.
Seize opportunities wherever you find them. Bringing in more money helps you enjoy those extras in life, such as a vacation or a weekend getaway.
Could you live on $25,000 a year? Probably, if you absolutely had to. But there is no need to do so when the opportunities to make more money – and to live more comfortably – are all around you. All you need to do is look.
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FAQs
The quick answer to this question is yes—two people can live on $25,000 a year. But it would be very difficult if you had a mortgage, auto loan, credit card debt or student debt. Plus, you would have to live in an area with a low cost of living.
Is $25,000 a year a good salary? ›
In conclusion - is 25k a good salary? Earning a 25k salary in the UK can provide a reasonable income to cover living costs and maintain a comfortable lifestyle in many regions. While it might be more challenging to afford housing in expensive areas, there are still options available in other parts of the country.
Can one person live on $24000 a year? ›
A2A If you own a house and it is paid up, and a person has a budget, you could live on $24,000 a year. Don't live in large cities. Live in a smaller city and do a lot of walking because cars can be expensive. Living in smaller towns in Florida would be possible.
How much is $25,000 a year per hour? ›
Annual / Monthly / Weekly / Hourly Converter
If you make $25,000 per year, your hourly salary would be $12.02.
How much money does the average person need to live comfortably? ›
On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.
Is $25,000 a year poverty? ›
The U.S. Department of Health and Human Services uses the Census Bureau threshold to determine who is eligible for certain government assistance programs, like SNAP (food stamps). Under their guidelines, a family of four is considered impoverished if they earn $30,000 or less per year.
Is $25,000 a year middle class? ›
You also need an annual household salary of at least $50,000 to be considered middle class in 17 other states, including California, New York, Oregon, Washington, Utah and Hawaii. In California, the difference is $122,000, from a salary of $61,028 on the lower end to $183,102 on the upper end.
Can two people survive on one income? ›
I have known a number of dual-income families over the years who desire to become one-income – typically experienced in conjunction with the birth of a child. This post is written with them in mind. My wife and I have lived our entire married lives (13 years) on one modest income. We have proven it is possible.
Can a couple live on $30 000 a year? ›
It's quite possible to live well on $30,000 per year if you're debt-free, but what if you have debt? I would recommend trying to pay it off as quickly as possible with the debt snowball approach. Cut your expenses as much as you can and put the amount you save toward debt each month.
Is 20k a year poverty? ›
Pew Research considers middle class to be $56,000 to $156,000 for families of three. Thus, a family of three on $20,000 is not middle-class; it's actually below the poverty level. While an individual on $20,000 a year is not below the poverty line, they are still not considered middle-class.
Annual / Monthly / Weekly / Hourly Converter
If you make $25,000 per year, your Weekly salary would be $481. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.
What is $100 000 a year hourly? ›
$100,000 a year is how much an hour? If you make $100,000 a year, your hourly salary would be $48.08.
Is $27 an hour a lot of money? ›
A 27 Dollars An Hour in your area makes on average $79,424 per year, or $1 (0.014%) more than the national average annual salary of $77,100. ranks number 1 out of 50 states nationwide for 27 Dollars An Hour salaries.
What is a comfortable salary for a single person? ›
The national median for living comfortably alone is $89,461, which suggests that a 50/30/20 budget might not be practical for most single people. Living alone comes with added costs that can be more than double what you'd spend if you lived with someone else — otherwise known as the “singles tax.”
What is a good salary in 2024? ›
Decent Salary
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $86,000 | $7,166 |
| 75th Percentile | $68,500 | $5,708 |
| Average | $44,910 | $3,742 |
| 25th Percentile | $24,500 | $2,041 |
According to the latest figures by the Bureau of Labor and Statistics, the average salary in USA per month is $5,677 or $68,124 per year. As of 2023, the gross minimum salary in the USA is $32.75 per hour. Salaries range from $32,916 to $112,268 per year and include housing, transport, and other benefits.
Can I live comfortably making 25k a year? ›
To live on $25,000 a year after taxes, you would have roughly $2,083 a month to pay for everything —food, rent, medical bills, other necessities and leisure activities. That doesn't leave a lot of room for error. Something as simple as a car breakdown could tip your budget into the red.
How many Americans make $25,000 a year? ›
Number of households in the United States by household income in 2022 (in millions)
| Household income in U.S. dollars | Number of households in millions |
|---|
| Less than $25,000 | 20.77 |
| $25,000 to $29,999 | 4.51 |
| $30,000 to $34,999 | 4.92 |
| $35,000 to $39,999 | 4.6 |
9 more rowsOct 10, 2023
If you make $25,000 a year living in the region of California, USA, you will be taxed $3,770. That means that your net pay will be $21,230 per year, or $1,769 per month.
Is 30k salary livable? ›
It's quite possible to live well on $30,000 per year if you're debt-free, but what if you have debt? I would recommend trying to pay it off as quickly as possible with the debt snowball approach. Cut your expenses as much as you can and put the amount you save toward debt each month.
