Immigrants
Updated on December 24, 2023
Written by
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank Gogol
At a Glance
- Motivation for moving on H1B: Desire to earn and save more money.
- Monthly family expenses (conservative lifestyle): $2,345.
- Net monthly savings (gross salary $5,000, net salary $3,700): $1,355.
- Important consideration: Taxes and other potential expenses.
Needless to mention, one of the major driving forces behind people moving to the US on H1B visa is to make more money and to save more money.
But, how much is too much? Do the people who actually move to the US able to make the money as per their initial expectations? How lavish the lifestyle in the US is and how much does a typical family saves there?
Let’s discuss this aspect in detail in this article.
Cost of living in the US on H1B/L1 visa
Basic assumptions: you are married and living in the US with your spouse and have rented an apartment.
It is important to mention here that figures used in this article are taken keeping in mind that you are not living an extravagant life with costly cars and luxurious houses, rather you are living a very conservative lifestyle.
Cost of rent/mortgage
Typically, the expenses related to accommodation for a 2BHK house when renting or mortgage on H-1B would vary depending on the location. For bigger cities, this could be between $2,000 and $3,500. However, in smaller cities, you could get a double bedroom apartment for as less as $800.
Thus, it can be concluded that on an average rent would cost you $1,100.
Car EMI
Let’s assume that you have a loan for a simple car, and nothing extra luxurious. For such a car, an average EMI would come out to be $300. However, if you possess a high-end car, this value could go as high as $600.
Car insurance
On an average, car insurance would cost you $80. But, it ultimately depends on the place you live and your driving history.
Car gas
For an average use, $100 should suffice. But, let’s not ignore the fact that if you commute too much via car in big cities, car gas can cost you more than $200.
Phone
An average family plan would cost you $85, but this can vary depending on extra facilities that you might have opted for.
Grocery
A typical household spends $300 on groceries. This figure could go up and down depending on your choice of groceries and how frequently you cook,
Utilities
Essential utilities like water, cooking gas and electricity would cost you $100 but it ultimately depends on the city you live and the climate there.
International calling
All thanks to internet calling, international calling doesn’t dig a hole in your pockets. A fair figure of $20 is more than enough.
Dine out
Assuming that you eat at home most of the time, and dine occasionally, you would have to spend $100 per month.
This is optional – you might have it or not. Further, even if you have it, your health insurance premium on H-1B can vary enormously depending on the plan. So, let’s skip it for now.
Miscellaneous
Miscellaneous expenses include the amount spent on buying new clothes, buying new items and the likes. This depends on your lifestyle to a large extent. For now, we have assumed it to be $150.
Total Expenses
Thus, with the help of simple mathematics, the total expenses incurred by an average household on H1 B visa in the US comes out to be $2,345.
It is important to mention here that this figure is highly indicative. We have not included the cost of kids studying in schools, cost of buying a dining table, sofa set, and the likes.
Saving = Income – Expenditure
Thus, assuming that your gross salary per month is $5,000 and you have a take a home net salary of $3,700, you would be able to save $1,355.
Your Turn
We would again reiterate the fact here that all the figures used here are highly indicative and are good enough just to give you a basic idea. Making your decision solely by looking at a conducive figure of $60,000 per year could be deceptive.
It is essential that tax and other expenses are brought well into consideration. What are your views on this? How much are you able to save in the US while on an H1B visa? Is it worth it?
Do share your experiences with us in the comments.
In This Article
Read More
- 6 Ways to Find an H1B Visa Sponsorship
- How to Change Jobs on an H1B Visa
- The Non-ECR Category: A Guide
- H1B Visa Stamping: H1B Visa Interview Documents and More
- Complete Guide to the H1B to Green Card Process
- What Are My Options for Change of Status Visa Stamping If I Am Already in America?
- Guide to the H2B Visa
- H1B Transfer: How To Change Jobs on an H1B Visa
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See author's posts
It's fantastic to delve into the financial and lifestyle intricacies surrounding immigrants on H1B visas in the United States. Understanding this subject intimately is a blend of experience and analysis, and I'm here to break down each facet of this article.
First, the context revolves around immigrants on H1B visas, aiming for financial stability while leading a conservative lifestyle in the U.S. The article discusses monthly expenses, including rent, car-related costs (EMI, insurance, gas), phone bills, groceries, utilities, dining out, international calling, health insurance, and miscellaneous expenses.
The core expenses for a two-person household on an H1B visa, adhering to a conservative lifestyle, break down as follows:
- Rent: Estimated around $1,100 per month.
- Car expenses: EMI averaging $300, car insurance at $80, and monthly gas costs varying between $100-$200 depending on usage.
- Phone: Around $85 for a family plan.
- Groceries: Estimated at $300 monthly.
- Utilities: Approximately $100 for essential utilities.
- International calling: Budgeted at $20.
- Dining out: Expected to be around $100 per month.
- Health insurance: Excluded due to its variable nature.
- Miscellaneous: Assumed to be $150.
The total estimated monthly expenditure sums up to $2,345, offering a conservative outlook on living expenses for such immigrants. This doesn't cover additional expenses like children's education or larger household purchases.
Regarding income, assuming a gross salary of $5,000 and a net salary of $3,700, the potential savings stand at $1,355 monthly.
However, this financial snapshot emphasizes the need to consider taxes and other unforeseen expenses, which can significantly impact actual savings. The article encourages readers to view these figures as indicative rather than absolute, cautioning against making decisions based solely on a seemingly conducive annual income.
The author prompts readers to share their experiences and insights on saving money while on an H1B visa, highlighting the subjective nature of financial situations.
In essence, the article aims to shed light on the financial dynamics faced by immigrants on H1B visas in the U.S., emphasizing the need for a comprehensive understanding of expenses, taxes, and unforeseen financial commitments to make informed decisions about financial goals and lifestyle choices.
