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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”.
|
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
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{ 10 comments… read them below or add one }
Almost close but travel is a big ticket item especially with families. India (>1000/ticket) and within US atleast $3000 – $5000 a year for a family works atleast 300/month.
Its totally depends how you are living in USA. I have seen some of my friends spending as little as $500 per month and still surviving. they never eat out. They didn’t bought any car and always have some one whom they ask for lift. Sharing two bedroom 1 bath apartment with 5 more guys. I was surprised when they told me the breakdown of money spent every month and how much they saved after just 10 months living in US. I was living at the same place from last 2 year and was not able to save even half the money that they have saved. And this apply to only bachelors as no family can live like that and save money.
As I said its totally depends on you and your aim. Whether you are coming to US just to save money or enjoy the culture and explore new world.
Sir, Can you please share the details of where I can get to know the taxes charged for different locations in USA.
Everything makes sense to me. The big loop hole here is that I don’t know anyone who settles down to a pay as low as 60000$/yr even after getting married and having children. Not even 10-15% fall into this category. They usually make a lot more and many make sure that the other person works too. So now you see a huge difference in savings and that ‘s the reason everyone still wants to be here. Apart from money its about the lifestyle you experience. With a 300 – 500$ car payment you will probably be driving a Merc or BMW if you like but like wise in India even a Sonata is not possible.
Hi,
You should also think of Medical Insurance for spouse and kids (if any).. Certain companies put this burden on the employee and the cost could go as high as $500 for a family with 2 kids.
Calbe(time warner/AT&T) is usually around $50 since you want a high speed connection for streaming Indian/regional channels using yupp tv.
H1B Approved
You had forgot about the trips people make in a year. Atleast 2 trips pre year. So on an average 1000-1500$ per year on trips.
I think Cable and Internet is also a monthly necessity.
Every thing matching my expensis in Atlanta, GA. But you missed health insurance and fedaral/state taxes which is around $250.
i think those are the part of your gross salary so his calculation about 3700 take home is correct and it does consider fedaral/state taxes