How Much Will Your Salary Buy

How Much Will Your Salary Buy?

What is Net Salary?

Net salary is your take home salary after paying Federal, State and payroll taxes, which include payments to social security and Medicare. You can also factor in your 401K contribution and cost of health insurance. This may help you budget and plan your finances.

Here are three examples showing the monthly net pay after above mentioned deductions at:

One Sample Company

Annual Gross Pay $25,000 $45,000 $65,000
Monthly Net Pay $1,500 $2,500 $3,500

Cost Comparison of Apartment Rentals in 4 locations in the Boston Area

According to BostonForRent, renting a 2 bedroom apartment in selected areas around Boston costs:

Somerville $1200-$2200
Brighton/Allston $1400-$1800
Cambridge $1550-$2550
Kenmore/Fenway $1900-$2200

Planning on Relocating?

Payscale: You can use the Cost of Living Calculator to determine how the cost of living varies among US cities.

Money in Your 20s

MoneyFor 20's: This website has a series of articles on basic financial decisions for new grads. Under “Must Reads,” choose “Beginning Finances,” to read the article, Basic Financial Decisions: Seven Financial Points Every New Grad Should Understand. Topics include:

  1. Budgeting
  2. Finding your First Apartment
  3. Paying Student Loans
  4. Insuring Yourself
  5. Understanding your Benefits as a New Employee
  6. Managing your Accounts
  7. Investing in Your Future