Is $50,000 a Lot?
Is $50,000 a lot of money? With proper budget and discipline, a $50,000 salary is excellent. In 2020, median household income in the United States was about $67,000. Your debt load and assets will determine how comfortably you can live on $50k. It could be a down payment for a house, help start a business, pay off debt, and more. $50k is a lot of money and can change your future life. You have options to spend or invest $50k. The decision is up to you.
Investing $50,000
When you set up an emergency fund, it should be separate from any other savings. Then, here are ten ways to invest $50k:
- Invest With a Robo Advisor.
- Individual Stocks.
- Take Advantage of the Stock Market.
- Invest in Mutual Funds or ETFs.
- Invest in Bonds.
- Invest in CDs.
- Fill a Savings Account.
- Try Peer-to-Peer Lending.
- Start Your Own Business.
$50k in Savings
Saving $50k is commendable especially in cities with high living expenses. Saving cash provides a financial cushion and security. According to Inside 1031, most Americans have less than $1,000 in savings. The median bank account balance is $5,300, which makes $50k far more than the average.
Budgeting for a $50k Salary
Many people can manage to live comfortably on $50,000 per year, even with families. It’s about creating a budget. How much house you can afford on a $50K salary varies depending on your credit score, debt-to-income ratio, and down payment size.
Budgeting is a method to track your income and expenses, helping you to ensure your $50k salary covers everything you need.
Geographic Considerations
In some states, you can live comfortably on $50k per year. In 2018, the average American earned an annual income of $46,800. However, a $50,000 salary may not go far in cities like New York, Boston, or San Francisco. In contrast, cities like Kalamazoo, MI and Champaign-Urbana, IL feature a mean annual salary around $50,000 with a lower cost of living.