Can you Save Money in USA on H1B or L1 Visa ? Cost of Living ?
One of the many drivers for many internationals to work in America on H1B or L1 Visa is the monetary benefits and savings they can make. The big question is how much money can you save in America ? What are the typical expenses ? How much is the cost of living in USA ? Let me shed some light on these and give you some numbers for getting a high level idea.
Cost of Living in USA on H1B or L1 Visa ?
The below expenses are based on a big assumption that “You are married and living with your spouse, renting your own apartment”.
Cost in USD ($)
Additional Notes on expenses
|Rent ( double bed)||
|This can vary a lot by location you live. In bigger cities, this could be double. In smaller cities, this could be like about $800 or less.|
|Typical car down payment, if you buy a decent car on loan.|
|Car insurance varies a lot by driving record and place you live.|
|Average, if you have less commute. It can vary a lot by your travel.|
|If you have family plan with mobile carrier.|
|All the vegetables, snacks, etc. for cooking food.|
|Electricity + Cooking Gas + Water. This varies by region, in cold places, make sure you take where heat is included.|
|Calling home and others in home country|
|This varies by your food habits. Assuming you take a lunch box to office, this is just for eating out in weekends or occasionally|
|Movies, shopping, other misc. expenses||
|This again varies. If you buy lot of clothes and other items, it will be very high.|
You can even save more or spend more based on your lifestyle. I have not included any expenses related to your travel, buying clothes, other home setup things like Sofas, dining tables, chairs, etc. Also, if you have kids, you will encounter some more expenses, which are not included in above.
If you make about $60,000 USD per year in USA, which is $5000 per month (Gross Salary).
For instance, if you live in a state like Wisconsin, your take home Net Salary would be $3,700 per month ( approximate)
Approximate Savings in State like WI
|Gross Salary ( Per month)||$5000|
|Net Salary ( after taxes, per month)||$3,700|
All the above numbers are highly indicative and can vary based on state. Also, the take home or net salary varies by state with state taxes.
It is important that you understand the baseline savings that you can make, when you work on H1B Visa or L1 visa. Just looking at 60,000 USD per year, without considering taxes and your expenses, will give you wrong perceptions about savings and your financial planning.
Did I miss any expenses ? How are your expenses living in US ?
You can also read Cost of living in USA as Student on F1 Visa