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Can you Save Money in USA on H1B or L1 Visa ? Cost of Living ?

Cost of Living in USA on H1B or L1 Visa

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”.

 

Item Description

Cost in USD ($)

 

Additional Notes on expenses

Rent ( double bed)

1100

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.
Car EMI

300

Typical car down payment, if you buy a decent car on loan.
Car Insurance

80

Car insurance varies a lot by driving record and place you live.
Car Gas

100

Average, if you have less commute. It can vary a lot by your travel.
Phone

85

If you have family plan with mobile carrier.
Groceries

300

All the vegetables, snacks, etc. for cooking food.
Utilities

100

Electricity + Cooking Gas + Water. This varies by region, in cold places, make sure you take where heat is included.
International Calling

30

Calling home and others in home country
Eat Out

100

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

150

This again varies. If you buy lot of clothes and other items, it will be very high.
Total Expense

2345

Total

 

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
Monthly Expenses$2345
Net Saving $1355

 

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

 

92 comments… add one

  • Rahul Dec 9, 2014 Reply

    Can anyone , Pls tell me the cost living in DETROIT MI .
    My employer is offering 56K PA.
    I plan to go with my wife and 3yr old son
    1. What will be the tax , how much we can get take home salary.
    2. How much we can save ?

    Please revert asap….

  • dixi Dec 5, 2014 Reply

    Which staffing consultancy ?

  • Hi Freinds,

    I offered with H1B Sponsorship by some Staffing Consultancy company at 85K $/year without bonus and health insurance but they are paying Employer taxes(I don’t know what this means though). I am single.

    My query is does this 85K $ should remain enough after 2015 October based on annual inflation index in US.
    I don’t know the State as of now as it will depend upon the project at that point of time, So don’t know the applicable state tax.
    Putting in simple words what would be the average take home salary monthly and what could be possible savings.
    Note: they are charging 1.8 INR Lakh as sponsorship fee where they claim 1.2 INR Lakh is refundable in event of non selection in Lottery.

    Hoping to hear from you experienced people as my decision to accept there H1B sponsorship is based on this.

    Regards
    Vishu

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