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If you were a day trader making a $30,000 a year any where before 1989, you would have been living the good life. But as of 2022, the average national salary wage has increased way beyond the 30k.
Thus, making it difficult, it’s not impossible to live off a 30k salary as a day trader.
As mentioned briefly, a 30k salary as a full-time day trader is below the nations average.
The average wage in the United States across the entire country $56,420 in 2022. So if you’re earning $30,000, you’re $26,420 below the average.
Let’s break down a 30k day trader salary so you know your earnings by the day, week, and month.
Please note that this net wage is calculated based on only federal taxes since state taxes differ.
Let’s assume you’re a single filer with no dependents, and will take into consideration only federal tax bracket of 12%.
Gross income of $30k per year equals:
Here’s a breakdown estimated Net Income after federal tax.
The short answer is yes. You can live off 30k as a day trader, but you’ll need to account many variables such as location, monthly expenses, family size. These variables will always be unique to each person; which only you will know if you can live off 30k.
You’ll need to look at your income after tax. With that said you should be able to afford between the range of $529.92-$635.90.
The range above is based on a 25-30% of your monthly take home, after taxes.
At these prices, it will be challenging to find a place to rent but you can certainly manage if you roommates. If you’re single you can even rent a room for that price.
Not only would this keep you living within your means, but also you’re spending accordingly on rent.
As a day trader making 30k salary, you can buy a home but it will require a lot of preparation work before taking that step.
That being said, if you have a big enough deposit of 20% down payment, you could get a house that cost $92,533 – $114,251 with a 30k salary; and that’s using the 25-30% monthly payment rule.
It’s not difficult to find a home between those price, but you’ll have to be open minded about living in a state that has those homes.
With that said, certain states in the United States allow you to find a larger home than you would be able to find in a more expensive state.
The truth of the matter is that a 30k salary as a day trader is not enough income, and you’ll need to find ways to make it work.
Here’s a quick list of tips to help you stretch your day trading income a bit further.
As a day trader making 30k salary, you need to have other forms of income. If you have any other skills, consider monetizing them and providing them as service to help with any of your losses or just to increase your 30k salary to maybe 50k.
Here’s an article that list 10 side job ideas for day traders: 10 Side Jobs Ideas for Day Traders (alfatoro.com)
Although this is a difficult task, as a day trader with a 30k salary, you must manage your spending and live below-your means.
By sticking with a budget, you’ll be able to save up enough to have a deposit for a house.
With a 30k salary as a day trader you’ll need to shop wisely and go to budget friendly stores.
For example if you’re going to buy groceries, consider Aldi or Lidl as they are budget friendly.
Also, cut out monthly entertainment services or bills you do not need. Your pocket will thank you later.
So, is 30k a good salary for a day trader in the United States? It’s not great, but with proper spending and budgeting you can manage to get by.