Is $67,000 a Year a Good Salary?

Whether an annual salary of $67,000 is substantial depends on individual circumstances and the economic environment. There is no universal benchmark for a “good” income, as its value is shaped by personal financial situations and market conditions. Evaluating this income requires a comprehensive look at factors influencing purchasing power and financial well-being. This exploration provides a framework for understanding how a $67,000 salary translates into comfortable living or financial challenges.

Understanding Your Income’s Value

The worth of a $67,000 annual income is significantly shaped by where one resides. Housing costs, including rent or mortgage payments, represent a major portion of expenses and vary dramatically across the United States. Transportation, food, and utility expenses also contribute to the cost of living, with metropolitan areas generally being more expensive than rural settings. These geographical differences directly impact disposable income after covering necessities.

Household composition dictates the sufficiency of a $67,000 salary. A single individual without dependents experiences their income differently than someone supporting children or other family members. The financial responsibilities of single-income versus dual-income households also influence the perceived adequacy of this salary. Each additional dependent introduces more expenses related to food, healthcare, education, and childcare, stretching the income further.

Existing debt obligations can substantially reduce the effective value of a $67,000 income. Payments for student loans, credit card balances, or vehicle financing consume earnings before allocation to other needs or savings. High interest rates on these debts make it challenging to build financial stability, regardless of gross income. Managing these liabilities requires careful planning to prevent them from overwhelming one’s budget.

Beyond fixed costs and debt, personal lifestyle choices play a significant role in comfort with a $67,000 salary. Discretionary spending on dining out, entertainment, travel, and leisure activities directly impacts financial comfort. While some expenses are unavoidable, personal spending habits determine how much remains for savings and long-term financial goals. Balancing desires with financial realities is a continuous process.

National and Local Income Context

To understand where a $67,000 salary stands, compare it against national income benchmarks. The median annual earnings for full-time, year-round individual workers was around $62,088 in the first quarter of 2025. An individual earning $67,000 annually is above this national median, indicating higher earning capacity than many.

Within the broader income distribution, a $67,000 salary generally places an individual within the middle-income bracket. For a single federal income tax filer, $67,000 would fall into the 22% federal income tax bracket.

Income levels vary considerably across different regions. What is considered an average or substantial income in one state might be insufficient in another with a higher cost of living. States with major metropolitan areas typically have higher median incomes than predominantly rural populations. Individuals can research local income data from sources like the Census Bureau or economic development sites to understand how their $67,000 income compares within their community.

Managing Your Finances on $67k

Effectively managing a $67,000 annual income begins with a clear budget. The 50/30/20 rule suggests allocating 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment. “Needs” encompass essential expenses like housing, utilities, groceries, transportation, insurance premiums, and minimum debt payments. “Wants” include discretionary spending such as dining out, entertainment, and subscriptions, while the “savings and debt repayment” category covers building an emergency fund, contributing to retirement accounts, and making extra debt payments.

Saving consistently is fundamental to financial health. Financial experts recommend maintaining an emergency fund equivalent to three to six months’ worth of essential living expenses. This fund should be held in a highly liquid, interest-bearing account, such as a high-yield savings account, for accessibility during unexpected financial disruptions. Automating contributions directly from each paycheck simplifies building this financial buffer. Beyond emergency savings, contributing to retirement accounts like a 401(k) or Individual Retirement Account (IRA) is important for long-term financial security, potentially leveraging tax advantages.

Addressing existing debt systematically can free up significant income. Two common strategies for debt repayment are the avalanche method and the snowball method. The avalanche method prioritizes paying down debts with the highest interest rates first, saving more money on interest over time. Conversely, the snowball method focuses on paying off the smallest debt balances first, providing psychological motivation through quick wins.

Consolidating multiple debts into a single loan with a lower interest rate can simplify payments and reduce overall interest costs. Making payments above the minimum required amount can accelerate debt elimination and reduce total interest paid.

Setting short-term and long-term financial goals provides direction for managing a $67,000 income. These goals might include saving for a home down payment, funding higher education, or planning a significant purchase. Understanding post-tax income is important for accurate financial planning, as taxes and other deductions reduce gross pay. Leveraging financial planning and disciplined spending ensures a $67,000 salary can effectively achieve these aspirations.