I was reading and article on MSNBC today talking about the fact that $50,000 is the median income in the US.
It got me thinking about whether $50K a year is sufficient income to life comfortably. I actually went back and checked my expenses this past year so see where I landed.
I also did a quick check using the tax calculator on TaxTips.ca to see what the take home income would be with a gross income of $50K. Here is what I found.
- With a single earner, 4 member family (couple + 2 kids), a $50K income would translate to a net, after-tax income of just over $40K.
- $40K net income translates to about $3300 per month.
- This should allow the family to lead a comfortable middle class lifestyle without giving considerations for RRSP, RESP, TFSA etc. Depending on the family's priorities, they may actually be able to invest in the plans to some extent.
So in my opinion $50K should be sufficient for a family.
And in case you are wondering, I did come in under the $40K threshold as well - not counting the RRSP, RESP, TFSA etc. But if $40K was all I had to work with, I am sure that I would have managed my expenses better (maybe there would not have been the 2 vacations or the 2 cars etc)
What about you? Is a $50K income sufficient for you?