The United States of America is known for the most attractive destination due to high paying country in the world with better lifestyle for the students, entrepreneur, job workers and immigrants worldwide. But if you are from other country and thinking to move to USA then you must know the things which can help you to save money.
If you are moving to USA for studying, job or business then you must know the approximate cost for living, food, rent, transportation, taxes etc. So that you will come to know that how much expenses will be made for moving to USA. And how much money you have to earn to stay here. Before knowing this, you can be confused or you will be disappointed to take any decision for your life. Because on the one side if USA is paying high salary then on the other side there are many types of expenses which can make you disappointed. But you do not worry. You can manage expenses and can save large income in your bank account. Because education, housing, transportation and taxes will impact your financial planning.
In this blog, you come to know that what types of expenses will be made and how to manage them properly, so that you can live better lifestyle and can make your all dreams come true.
AN overview of average cost of living in USA
|
Expense Category |
Average Monthly Cost (USD) |
|
Rent (1-Bedroom Apartment) |
$1,300 – $2,500 |
|
Utilities (Bills etc) |
$150 – $300 |
|
Internet & Mobile |
$80 – $150 |
|
Food & Groceries |
$350 – $800 |
|
Transportation / Covenience |
$100 – $600 |
|
Health Insurance / Healthcare |
$300 – $800 |
|
Entertainment / FUn |
$100 – $500 |
|
Miscellaneous |
$100 – $300 |
|
Total Monthly Cost |
$2,500 – $5,500 |
Average salary in USA
The average salary in USA based on your profession, experience, location and what skills you need more and in which company you are applying for.
|
Category |
Average Annual Salary |
|
Entry Level Salary |
$40,000 – $55,000 |
|
Mid-Level Professional |
$60,000 – $90,000 |
|
Skilled Worker |
$90,000 – $150,000 |
|
IT Professionals |
$90,000 – $180,000 |
|
Doctors |
$180,000 – $350,000+ |
|
Engineers (All sectors) |
$80,000 – $140,000 |
After taxes what salary you will take
After taxes:
$4,000 – $7,500 per month
According to your job and experience
Housing and rent monthly expenses in USA
In USA, Housing is the biggest expenses for living. It depends on your requirement like 1bhk, 2bhk or any. It also differs city to city. Whatever city you choose, the rent will be vary according to your location. We are showing some idea according to locations.
|
City |
Average Rent (1 Bedroom) |
|
New York |
$3,000 – $5,000 |
|
San Francisco |
$2,800 – $4,500 |
|
Los Angeles |
$2,000 – $3,500 |
|
Chicago |
$1,500 – $2,500 |
|
Dallas |
$1,300 – $2,000 |
|
Houston |
$1,200 – $1,800 |
|
Phoenix |
$1,300 – $2,000 |
Utility cost according to your usage
|
Utility |
Monthly Cost |
|
Electricity bills |
$80 – $180 |
|
Water bills |
$30 – $80 |
|
Gas bill |
$30 – $120 |
|
Trash Collection etc |
$20 – $40 |
|
Internet / OTT |
$50 – $100 |
Your Average Utility Cost will be around $150 – $300 per month
Monthly food and grocery expenses
|
Household Type |
Cost |
|
Single Person / Individual |
$350 – $600 |
|
Couple |
$600 – $1,000 |
|
Family of Four |
$900 – $1,500 |
Restaurant monthly expenses if you go outside and take some fast foods and soft drinks \
|
Item |
Average Price |
|
Fast Food Meal |
$8 – $15 |
|
Casual Restaurant |
$15 – $30 |
|
Fine Dining |
$50 – $150+ |
Transportation & local convenience monthly expenses
|
Expense |
Monthly Cost |
|
Public Transport / Convenience |
$70 – $150 |
|
Fuel |
$120 – $300 |
|
Car Insurance |
$100 – $300 |
|
Vehicle Maintenance |
$50 – $150 |
Average transportation cost will be around $200 – $600 monthly
Healthcare expenses
If you got fever and go for consultation to a doctor then below expenses will be made
|
Healthcare Item |
Monthly Cost |
|
Individual Health Insurance |
$300 – $800 |
|
Family Health Insurance |
$800 – $2,000 |
|
Doctor Visit / Consultancy |
$100 – $300 |
|
Emergency Room Visit |
$1,000+ |
Education expenses
If you are in a school or in a university then below expenses will be made annually.
|
Education Level |
Annual Cost |
|
Community College |
$8,000 – $20,000 |
|
Public University |
$15,000 – $40,000 |
|
Private University |
$30,000 – $80,000+ |
International students living cost
|
Expense |
Annual Cost |
|
Accommodation / Rent |
$10,000 – $20,000 |
|
Food |
$3,000 – $6,000 |
|
Transportation Convenience |
$1,000 – $3,000 |
|
Books & Stationeries |
$500 – $2,000 |
Total annual student budget will be around $20,000 – $60,000+
Tax calculation in USA (Average expenses)
Tax will be levied according to your salary and other income sources
Federal Income Tax
10% to 37%
State Income Tax
0% to 13%
Social Security Tax
6.2%
Medicare Tax
1.45%
Sales Tax
0% to 10%
Total tax burden for many professionals:
20% to 35% of income
Transfer or sending money from USA to other country
If you are living in USA and working there to earn money, then you have to transfer the money to your country for your family for living. The money will be transferred from USA to other country after applying some charges and taxes. Because many of immigrants keep transferring money to their country.
Generally, sending money from your already-taxed income is not taxed again by the U.S. government.
However below charges may be applied:
- Bank transfer fees may apply according to amount or a fixed charges
- Currency conversion charges may apply according to amount or a fixed charges
- Large transfers may require reporting documentation to the bank as per banking rules and regulations
- The receiving country also may have its own tax regulations as per their government policy
If you have any confusion then ask to a consultant for large amount transferring.
Other lifestyle expenses according to your requirements
If you are using any digital services like Netflix or other platforms, Gym, club house or any entertainment services, then you have to make more expenses from your pocket.
|
Activity |
Monthly Cost |
|
Gym Membership |
$20 – $100 |
|
Netflix & Other OTT |
$10 – $50 |
|
Mobile Plan & Others |
$30 – $100 |
|
Entertainment |
$100 – $500 |
Average monthly expenses
Let’s take an example for a working professional
|
Expenses Category |
Monthly Cost |
|
Housing / Rent |
$1,800 |
|
Utilities / bills etc |
$200 |
|
Food / fast food |
$500 |
|
Transportation / Convenience |
$300 |
|
Insurance / Medical |
$500 |
|
Entertainment / OTT |
$200 |
|
Miscellaneous |
$200 |
|
Total |
$3,700 |
Average saving after all expenses
Let’s take an example of $80,000 average salary annually And monthly expenses will be around $5000 x 12 months with taxes Then average saving : $80,000 – $60,000 = $20,000
Annual saving will be around $20,000
Cost of living according to some top countries
|
Country |
Average Monthly Living Cost |
|
United States of America |
$2,500 – $5,500 |
|
Canada |
$2,000 – $4,500 |
|
United Kingdom |
$2,000 – $4,000 |
|
India (Bharat) |
$500 – $1,500 |
We took a short example for your idea.
Tips to curtail living cost in USA
- Choose affordable cities where housing cost is less
- Share accommodation initially to save money
- Use public transportation so that you don’t need to pay high fares
- Cook meals at home, outside meal will be expensive for you
- Compare health insurance plans according to your needs
- Build a monthly budget so that you will be under control
- Avoid unnecessary debt or borrowing money from friend
So your cost of living in USA is totally depending on your requirements, your family size, location, income. If you go for more entertainments then you saving may be less. If you have high income then your saving will be more.
