If you’re contemplating a job change or angling for a salary increase, you may have questions about whether a $95,000 salary will sustain you. Consider that the typical worker in the U.S. earns around $63,795 a year, according to the Social Security Administration. A $95,000 annual paycheck is nearly 49% higher than that.
Let’s see where you’d fall on the earnings spectrum compared to others in the U.S. and also explore ways to budget a $95,000 annual salary.
Is $95K a Good Salary?
While not quite a six-figure salary, $95K is generally considered a good income for a single person. But whether that amount works for you depends largely on where you live and your personal standards. For example, you may find that a $95,000 salary goes further in Des Moines than Honolulu, which has a higher cost of living.
No matter where you live, a budget planner app can help you set customized budgets and categorize spending, so you can make the most of your income.
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Recommended: Average Salary in the U.S.
Average Median Income in the US by State in 2024
As in real estate, location is an important factor when it comes to salaries. Wages for the same job can vary widely from one state to another, driven largely by differing costs of living.
Here’s a look at the median household income in each state, per U.S. Census Bureau data.
State
Median Household Income
Alabama
$59,609
Alaska
$86,370
Arizona
$72,581
Arkansas
$56,335
California
$91,905
Colorado
$87,598
Connecticut
$90,213
Delaware
$79,325
Florida
$67,917
Georgia
$71,355
Hawaii
$94,814
Idaho
$70,214
Illinois
$78,433
Indiana
$67,173
Iowa
$70,571
Kansas
$69,747
Kentucky
$60,183
Louisiana
$57,852
Maine
$68,251
Maryland
$98,461
Massachusetts
$96,505
Michigan
$68,505
Minnesota
$84,313
Mississippi
$52,985
Missouri
$65,920
Montana
$66,341
Nebraska
$71,772
Nevada
$71,646
New Hampshire
$90,845
New Jersey
$97,126
New Mexico
$58,722
New York
$81,386
North Carolina
$66,186
North Dakota
$73,959
Ohio
$66,990
Oklahoma
$61,364
Oregon
$76,362
Pennsylvania
$73,170
Rhode Island
$81,370
South Carolina
$63,623
South Dakota
$69,457
Tennessee
$64,035
Texas
$73,035
Utah
$86,833
Vermont
$74,014
Virginia
$87,249
Washington
$90,325
West Virginia
$55,217
Wisconsin
$72,458
Wyoming
$72,495
Recommended: Highest Paying Jobs by State
Average Cost of Living in the US by State in 2024
How much you pay for necessities like housing, transportation, health care, and food can impact just how far your $95,000 salary will go. When figuring out whether $95,000 is a good salary for a single person, it can help to look at how much people in different states are spending on housing, food, health care, and other basics. The U.S. Bureau of Economic Analysis’ (BEA) list of personal consumption expenditures, below, compiles this information.
State
Personal Consumption Expenditure
Alabama
$42,391
Alaska
$59,179
Arizona
$50,123
Arkansas
$42,245
California
$60,272
Colorado
$59,371
Connecticut
$60,413
Delaware
$54,532
Florida
$55,516
Georgia
$47,406
Hawaii
$54,655
Idaho
$43,508
Illinois
$54,341
Indiana
$46,579
Iowa
$45,455
Kansas
$46,069
Kentucky
$44,193
Louisiana
$45,178
Maine
$55,789
Maryland
$52,651
Massachusetts
$64,214
Michigan
$49,482
Minnesota
$52,849
Mississippi
$39,678
Missouri
$48,613
Montana
$51,913
Nebraska
$37,519
Nevada
$49,522
New Hampshire
$60,828
New Jersey
$60,082
New Mexico
$43,336
New York
$58,571
North Carolina
$47,834
North Dakota
$52,631
Ohio
$47,768
Oklahoma
$42,046
Oregon
$52,159
Pennsylvania
$53,703
Rhode Island
$52,820
South Carolina
$46,220
South Dakota
$48,997
Tennessee
$46,280
Texas
$49,082
Utah
$48,189
Vermont
$55,743
Virginia
$52,057
Washington
$56,567
West Virginia
$44,460
Wisconsin
$49,284
Wyoming
$52,403
Recommended: Average Income by Age
How to Budget for a $95K Salary
No matter how much money you earn each year, it’s a smart idea to create a budget. One of the first steps you’ll want to take is to figure out how much money you have left after withholding for federal income taxes, Social Security taxes, and Medicare. On average, the take-home pay on a $95,000 salary is around $74,991.50, though that doesn’t include state taxes.
Once you’ve determined your after-tax income, consider using the 50/30/20 rule for budgeting. This means 50% of your income goes toward needs, 30% goes toward “wants,” and 20% goes toward savings or debt repayment beyond your minimum amounts.
Let’s say, for example, you live in Massachusetts. Your $95,000 salary would break down to $5,757 per month due to taxes (based on a 27.3% average tax rate and 35% marginal tax rate). Using the 50/30/20 rule, you’d put the following amounts in the corresponding pockets:
• 50% needs: $2,878.50
• 30% wants: $1,727.10
• 20% savings or debt repayment: $1,151.40
After you have your budget in place, a tool like an online money tracker can help you monitor your spending as well as keep tabs on your credit score.
Maximizing a $95K Salary
Whether you’re earning $95,000 as an entry-level salary or after several years on the job, there are ways to make the most of your income. Here are some strategies to consider:
• Build an emergency fund. Aim for a cushion of three to six months of living expenses.
• Max out your retirement savings account — and make sure you’re taking advantage of a company match, if one is available.
• Explore investing in securities that charge minimal fees.
• Work on improving your credit score, which can boost your chances of getting competitive interest rates.
Quality of Life with a $95K Salary
While it’s a highly subjective measure, “quality of life” typically refers to a combination of personal preferences, including job satisfaction, family life, health, and safety. How well you can live on your salary often boils down to your expenses and how and where you choose to spend your money.
By and large, many people with $95,000 salaries find they can live quite comfortably. However, if you spend more than you earn or rely on credit to fund your lifestyle, you may find you have trouble making ends meet on your income.
Is $95,000 a Year Considered Rich?
The Charles Schwab Wealth Survey reported that a national sample of Americans between the ages of 21 to 75 believe you need to amass $2.2 million to be considered wealthy. However, according to the same survey, Americans who say they feel wealthy have less than that — around a $560,000 net worth.
Note that it’s possible to accumulate wealth if you’re earning $95,000 a year, though it may take some time. Common strategies include relying on investing and compound interest to increase net worth, saving money, and setting money aside in a company retirement plan.
Recommended: Net Worth Calculator By Age
Is $95K a Year Considered Middle Class?
Middle class is defined as income that is two-thirds to double the national median income. By that definition, a middle-class household makes between $47,189 and $141,568, and $95,000 is in that range.
However, that’s for the nation. When you drill down to the city and state level, you see that the income required to be middle class varies. For instance, to be considered middle class in San Francisco, you’ll need to earn between $91,126 and $151,877. In Washington, D.C., middle class is defined as income that falls between $67,815 and $113,024.
Example Jobs that Make About $95,000 a Year
Many career types fall into the $95,000 salary range, including jobs for introverts. Here are some examples of careers you can pursue, which require a range of degree levels from associate to graduate:
• Financial Analyst: $99,890 per year
• Industrial Engineer: $99,380 per year
• Radiation Therapist: $98,300 per year
• Occupational Therapist: $96,370 per year
• Civil Engineer: $95,890 per year
• Architect: $93,310 per year
The Bureau of Labor Statistics offers an occupation finder in its Occupational Outlook Handbook, which you can sort by median pay over $80,000.
The Takeaway
Is $95k a good salary for a single person? By and large, yes, but your spending habits, budgeting skills, and local cost of living can all impact how far your money goes. With careful budgeting and saving, you can make the most of your income.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
Can I live comfortably making $95K a year?
Generally speaking, many people can live comfortably making $95,000 per year. However, it depends on several factors, including where you live, how much you spend, and where you put your money. Those who live within a budget feel the most comfortable with that salary.
What can I afford with a $95K salary?
Let’s target one of the most expensive assets most people own: a home. You may wonder how much house you can afford without stretching yourself.
Experts often suggest the 28/36 rule, which means that you should spend no more than 28% of your gross income on housing and no more than 36% on all your debt, which might include housing, student loans, car payment, credit cards, etc.
For example, according to the 28/36 rule on a $95,000 salary, you should spend no more than $2,216 on housing per month.
How much is $95K a year hourly?
A $95,000 salary breaks down to $45.67 per hour. This per-hour figure might not help you budget or understand your overall income, but it’s interesting to analyze.
How much is $95K a year monthly?
You’ll bring in $7,916.67 per month with a $95,000 per-year salary. It’s important to note that this is the general breakdown for that salary — your state may charge more in taxes and you may actually make less.
How much is $95K a year daily?
You’ll earn $365.38 per day with a $95,000 salary. Similar to your hourly rate, you might find this number difficult to help you budget or for use in a net worth calculator by age, but it’s interesting to know.
Photo credit: iStock/JLco – Julia Amaral
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Thinking of making the Lone Star State your new home? Texas offers residents diverse natural landscapes, lively urban centers, and a booming tech industry, making it a top destination for newcomers. Whether you’re browsing homes for sale in Austin, considering renting in Dallas, or exploring houses for rent in Houston, here’s what you need to know before moving to Texas.
Texas at a glance
Texas offers a blend of natural splendor and urban vitality. From the rugged beauty of Big Bend National Park to the pristine beaches of South Padre Island, the state caters to outdoor enthusiasts and city dwellers alike. The largest cities in Texas, Houston, Dallas, and Austin, are vibrant hubs of cultural activities and economic opportunities. Texas’s economy thrives on sectors such as energy, technology, aerospace, and healthcare, with major companies like ExxonMobil, Dell, and Texas Instruments headquartered here.
The state’s cultural scene is rich, featuring world-class museums, renowned music festivals like Austin City Limits, and a diverse culinary heritage with Tex-Mex and barbecue cuisine. Educational excellence is anchored by institutions like the University of Texas at Austin and Rice University, complemented by a robust job market. Affordable living options can be found in cities such as Amarillo and Lubbock, making Texas an enticing choice for those seeking quality of life and economic opportunity. Whether exploring the Texas Hill Country, hiking in Palo Duro Canyon, or experiencing the local culture, Texas offers a dynamic and rewarding lifestyle.
1. Texas is full of southern hospitality
In Texas, you’ll be greeted with genuine hospitality and friendliness. The phrase “Southern hospitality” rings true here, where it’s common for neighbors to welcome newcomers with homemade treats and invitations to local events. In small towns like Fredericksburg and Tuscola, and big cities like Houston and Dallas, people often greet each other with a warm “howdy” or “y’all.” This sense of community is especially evident during events like neighborhood BBQs and community fairs, such as Houston’s annual BBQ Festival and Dallas’s State Fair of Texas.
2. The Texan sports culture is thriving
Texas is a sports lover’s paradise, with a deep-rooted passion for football, both at the high school and college levels. High school football games draw massive crowds, with towns shutting down on Friday nights to support their local teams. College football is equally fervent, with teams like the Texas Longhorns and Texas A&M Aggies boasting dedicated followings. In addition to football, Texas is home to professional sports teams such as the Dallas Cowboys (NFL), Houston Rockets (NBA), and Texas Rangers (MLB), providing year-round excitement for sports fans.
3. Texas is known for its Tex-Mex and BBQ
Texas cuisine is a delightful blend of flavors, with Tex-Mex and BBQ being standout favorites. Tex-Mex dishes like enchiladas, fajitas, and tacos are staples, with places like Matt’s El Rancho in Austin offering iconic plates. Texas BBQ is renowned for its smoky, slow-cooked meats, particularly brisket. Renowned BBQ joints such as Franklin Barbecue in Austin and Snow’s BBQ in Lexington attract long lines of eager diners. The state’s diverse culinary scene also includes influences from German, Czech, and Vietnamese immigrants, adding to the rich food culture.
Insider scoop: When dining at Matt’s El Rancho in Austin, be sure to indulge in their legendary Bob Armstrong dip—you’ll be glad you did.
4. Texas is prone to weather extremes
Texas is prone to a variety of natural disasters, including hurricanes, tornadoes, and severe flooding. The Gulf Coast, particularly cities like Houston and Galveston, frequently faces the brunt of hurricanes, such as Hurricane Harvey in 2017, which caused catastrophic flooding and extensive damage. Tornadoes are common in North Texas, with the Dallas-Fort Worth area experiencing significant tornado activity, while central Texas often deals with flash floods, as seen in the devastating floods of the Blanco River in 2015.
It’s important to weigh the pros and cons of living in Texas to fully understand the potential downsides of residing in the state.
5. The cost of living is generally lower than other states
The cost of living in Texas is generally lower compared to many other states, making it an attractive option for those seeking affordability. For instance, the median home prices in cities like San Antonio, El Paso, and Fort Worth are significantly lower than in major cities like New York or San Francisco. Specifically, the median sale prices for homes are $269,900 in San Antonio, $256,000 in El Paso, and $339,945 in Fort Worth. Additionally, while property taxes can be higher in Texas due to the absence of a state income tax, overall expenses such as groceries, transportation, and utilities tend to be more budget-friendly.
The average rent prices also reflect this affordability, with rents averaging around $1,080 per month for a one-bedroom apartment in these cities. The state’s diverse economy and job market further contribute to a favorable balance between income and living expenses, allowing residents to enjoy a comfortable lifestyle without the financial strain seen in other high-cost areas.
For those looking for the best places to live in Texas, you’ll want to consider factors such as affordability, amenities, and lifestyle.
6. Traffic in larger cities can be daunting
Traffic congestion is a notable issue in Texas’s larger cities, with Houston, Dallas-Fort Worth, and Austin being particularly notorious. Austin’s I-35 and Houston’s I-610 are well-known bottlenecks, where traffic jams are common. Despite ongoing efforts to improve infrastructure and expand public transit, driving remains the primary mode of transportation, and patience is essential for daily commuters.
Travel tip: In Dallas, take advantage of the DART (Dallas Area Rapid Transit) system, which covers a wide area and provides a reliable alternative to driving.
7. You’ll experience urban sprawl
Urban sprawl is a defining characteristic of many Texan metropolitan areas, where cities expand into surrounding suburbs and rural land. The Dallas-Fort Worth Metroplex, for example, covers a vast area with numerous suburbs, resulting in long commutes and a reliance on cars. Houston’s growth extends outward with sprawling suburbs like Sugar Land and The Woodlands. While this expansion offers affordable housing options and larger properties, it also means that amenities and workplaces can be spread out, requiring significant travel.
8. There is no state income tax
One of the financial pros of living in Texas is the absence of a state income tax, allowing residents to keep more of their earnings. This can be particularly beneficial for high-income earners and those moving from states with high income taxes. However, Texas offsets this advantage with higher property taxes and sales taxes. In fact, many Texas cities rank among the top 50 most expensive places for property taxes nationwide.
9. Texan summers are generally hot across the state
Summers in Texas are characterized by intense heat, with temperatures often exceeding 100°F across much of the state. Cities like San Antonio and Dallas regularly experience scorching temperatures from June to September. The heat can be particularly challenging in areas with high humidity, such as Houston, where the heat index makes it feel even hotter. Many residents adapt by enjoying water-based activities like swimming at places such as Barton Springs Pool in Austin or Galveston Island beaches. They also frequent local rivers like the Guadalupe River for tubing and water recreation, or spend time at indoor, air-conditioned venues to escape the heat.
To combat the heat, here are ways to beat the heat in your apartment.
10. The economy in Texas is thriving
Texas has a diverse and robust economy, with significant contributions from industries such as oil and gas, technology, healthcare, and agriculture. Cities like Houston are global leaders in energy, while Austin has earned the nickname “Silicon Hills” due to its booming tech industry. Major companies, including ExxonMobil, Dell Technologies, and AT&T, have headquarters or significant operations in Texas. The state’s favorable business climate, with no corporate income tax and a skilled workforce, attracts companies and entrepreneurs from around the world.
11. There are plenty of rodeos to explore
Rodeos are an integral part of Texan culture, celebrating the state’s rich ranching and cowboy heritage. The Houston Livestock Show and Rodeo, one of the largest in the world, attracts millions of visitors annually with its thrilling rodeo competitions, livestock exhibits, and concerts. Smaller towns also host their own rodeos, such as the Fort Worth Stock Show and Rodeo, offering a glimpse into traditional Texan life. These events feature bull riding, barrel racing, and roping, providing entertainment and a connection to Texas’s past.
Insider scoop: For a unique twist, check out the San Antonio Stock Show & Rodeo, which combines rodeo events with a Texas-size fair, featuring a wide array of food vendors, shopping, and live music.
12. Cowboy culture is iconic here
Cowboy culture is synonymous with Texas, where the image of the rugged, independent cowboy is deeply ingrained in the state’s identity. Visitors can experience this culture firsthand by attending rodeos, visiting working ranches, or exploring Western-themed museums like the National Cowgirl Museum and Hall of Fame in Fort Worth. The annual Fort Worth Stockyards’ cattle drive is a living testament to the state’s cowboy traditions, attracting tourists and locals.
Methodology
Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.
Thinking of making the Beaver State your new home? Oregon offers residents breathtaking natural scenery, vibrant urban centers, and a flourishing tech industry, making it a top destination for movers. Whether you’re looking at homes for sale in Portland, considering renting a home in Bend, or touring apartments for rent in Eugene, here’s what you need to know before moving to Oregon.
Oregon at a glance
Oregon provides a mix of natural beauty and urban life. From the stunning Crater Lake to the lush forests of the Willamette Valley, the state is perfect for both outdoor enthusiasts and city lovers. The largest cities in Oregon, Portland, Eugene, and Salem, are bustling hubs of activity. Oregon’s economy is driven by technology, agriculture, and manufacturing, with companies like Nike, and Columbia Sportswear headquartered here.
The state’s cultural scene includes vibrant music, arts, and culinary delights, while its strong educational institutions and job market make it an attractive place to live. For those seeking affordability, cities like Gresham, Springfield, and Salem offer more budget-friendly living options. Whether exploring the Oregon Coast, hiking around Mount Hood, or visiting the Portland Saturday Market, moving to Oregon is a great consideration.
1. The national parks in Oregon are stunning
Oregon’s national parks are stunning natural treasures, offering diverse landscapes and unparalleled beauty. Crater Lake National Park showcases the deepest lake in the U.S., known for its vivid blue waters and surrounding volcanic peaks. Further north, the lush forests and cascading waterfalls of Mount Hood National Forest attract hikers and outdoor enthusiasts seeking adventure in a picturesque setting. Additionally, the rugged coastline and sea stacks of Oregon’s coastal parks, like Cape Perpetua Scenic Area, provide dramatic vistas and opportunities for coastal exploration and wildlife viewing.
Travel tip: To make the most of your visit to Crater Lake, aim to arrive before 9 am or after 4 pm to avoid waiting in long lines at the entrance stations. For further details about this stunning National Park, visit the National Park Service page.
2. Oregon has diverse climates throughout the state
Oregon’s diverse climates range from the lush, temperate rainforests of the western coast, where cities like Astoria receive over 70 inches of rain annually, to the arid high desert regions of the eastern part of the state, such as Bend, which gets less than 12 inches of rain per year. Additionally, Salem and Portland are among the rainiest cities in the U.S., contributing to the state’s reputation for varied and sometimes wet weather patterns.
The Willamette Valley, including cities like Eugene and Salem, experiences a mild, Mediterranean climate with warm, dry summers and cool, wet winters, ideal for growing wine grapes and other agriculture. In contrast, the southern part of the state, around Medford, enjoys a more temperate climate with hot, dry summers and mild, wet winters, supporting a variety of fruit orchards and vineyards.
3. There’s no sales tax in the state
Oregon is one of the few states in the U.S. that does not impose a sales tax, which can be beneficial for residents as it reduces the overall cost of goods and services. This tax policy can attract people looking to save money on everyday purchases, making it an appealing destination for those considering relocation. Additionally, the absence of sales tax can simplify financial planning and budgeting for households.
4. Oregon has amazing vineyards
Oregon’s Willamette Valley stands out globally for its stunning vineyards and production of world-class Pinot Noir wines. This is exemplified by acclaimed wineries like Domaine Serene and Archery Summit. The region’s diverse climate and fertile soil create optimal conditions for cultivating exceptional grape varietals, making it a mecca for wine enthusiasts. Additionally, the Columbia Gorge area complements this reputation with its own distinct vineyards, such as Maryhill Winery, contributing to Oregon’s acclaimed wine industry.
Travel tip: The sprawling vineyards make walking impractical, so planning your transportation ahead of time is essential when visiting the Willamette Valley for wine tasting. Uber and Lyft availability in the region can be inconsistent, so arranging a designated driver or booking a wine tour service in advance is advisable.
5. There’s people to help pump your gas
In Oregon, it’s common to find attendants at gas stations who pump your gas for you, making it a convenient service for drivers. This practice eliminates the need to leave your car, especially in bad weather or if you’re in a hurry. Additionally, the service provides an added level of safety and convenience, particularly for those who may have difficulty with self-service pumps.
6. There are plenty of unique festivals and cultural events
Oregon hosts a wide array of unique festivals and cultural events, offering something for everyone to enjoy. The renowned Oregon Shakespeare Festival in Ashland draws theater enthusiasts from around the world, featuring an extensive lineup of classic and contemporary plays performed in multiple theaters. Meanwhile, Portland’s annual Rose Festival pays homage to the city’s heritage with vibrant parades, exhilarating dragon boat races, and breathtaking floral exhibitions.
Travel tip: For budget-conscious visitors with flexible schedules, consider purchasing discounted day-of tickets for performances at the Oregon Shakespeare Festival.
7. Oregon is very environmentally-friendly
Oregon is renowned for its strong commitment to environmental sustainability, with cities like Portland and Eugene leading the way in green initiatives. Portland, for example, has implemented extensive public transportation options such as the MAX light rail and streetcars, significantly reducing carbon emissions. Meanwhile, Eugene is recognized for its widespread use of renewable energy sources like hydroelectric power and geothermal heating, alongside innovative community recycling programs aimed at minimizing waste and promoting recycling efforts.
Discover the pros and cons of living in Oregon to gain insight into the state’s unique lifestyle.
8. Biking is a popular mode of transportation
Biking is a popular mode of transportation for residents in Oregon, especially in cities like Portland, known for its extensive network of over 400 miles of bike lanes and trails. The state’s commitment to promoting cycling is evident through its bike-friendly policies and infrastructure. This makes Portland one of the most bikeable cities in the nation. Additionally, events like Portland’s annual Pedalpalooza festival celebrate the vibrant cycling community and advocate for safer streets for all riders, further enhancing the city’s reputation as a cyclist-friendly destination.
9. Although there’s no sales tax, the income taxes are high
Oregon has one of the highest state income tax rates in the country ranging from 4.75%-9.9%, which can significantly impact residents’ take-home pay. The state’s progressive tax system means higher earners face steep rates, making it essential for potential movers to consider this in their financial planning. Despite the absence of sales tax, the high income tax rate can be a notable factor in the overall cost of living in Oregon.
10. The cost of living can be high in popular metros
The cost of living in Oregon varies widely across the state, with significant differences in housing prices. For example, in Portland, the median home sale price is around $539,500, while average rental prices hover around $1,812 per month for a two-bedroom apartment. In contrast, cities like Medford offer relatively lower housing costs, with median home prices averaging around $400,000 and rental prices averaging approximately $1,520 per month. These variations reflect regional differences in demand, amenities, and overall economic factors impacting housing markets across Oregon.
When choosing the best place to live in Oregon, it’s important to factor in considerations like affordability, amenities, and lifestyle preferences.
11. You’ll find a variety of different food throughout the state
Oregon offers a vibrant culinary scene celebrated for its diverse and farm-fresh food offerings. Cities like Portland are renowned for their bustling food cart pods, where locals and visitors can savor a variety of international cuisines. From Korean BBQ tacos to gourmet grilled cheese sandwiches, there’s plenty to try. Additionally, the state’s abundant farmlands contribute to a thriving farm-to-table movement, with restaurants across Oregon showcasing seasonal ingredients like Oregon hazelnuts, Willamette Valley wines, and fresh Pacific Northwest seafood.
Insider scoop: If you’re in Portland, be sure to visit the Barley Pod, where you’ll discover ample seating, charming string lights, and a central brewery hub.
12. The summers are hot and smoky
Summers in Oregon can be characterized by hot temperatures and occasional wildfire smoke, particularly in regions like the Willamette Valley and Central Oregon. High temperatures often reach into the 80s and 90s Fahrenheit, making it essential for residents and visitors to stay hydrated and seek shade during peak heat hours. Additionally, wildfire season, typically from late summer through early fall, can occasionally lead to reduced air quality due to smoke drifting from nearby forest fires, prompting advisories and precautions from local authorities.
13. Oregon has a beautiful coast
Oregon is renowned for its stunning coastline, which spans over 360 miles along the Pacific Ocean. The state’s rugged shoreline is dotted with picturesque sea stacks, sandy beaches, and dramatic cliffs, offering breathtaking vistas and opportunities for outdoor recreation such as hiking, whale watching, and beachcombing. Popular coastal destinations like Cannon Beach with its iconic Haystack Rock and the quaint town of Newport with its historic bayfront further highlight Oregon’s natural coastal beauty.
Fun fact: Cannon Beach is home to a surprisingly large population of bunnies. If you choose to camp at one of the nearby campgrounds, you can expect to encounter these adorable furry residents.
14. Mount Hood is an hour away from Portland
Oregon is home to majestic Mount Hood, a prominent landmark and popular outdoor destination for residents and visitors alike. Standing at over 11,200 feet, Mount Hood offers year-round recreational opportunities such as skiing, snowboarding, hiking, and camping. Its proximity to Portland, just about 60 miles away, makes it a convenient escape into nature, showcasing Oregon’s diverse landscapes and outdoor lifestyle that attracts outdoor enthusiasts and adventurers.
Methodology
Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.
You just got a new job offer and are wondering if $110,000 is a good salary. The truth is that in many parts of the U.S., it can be, especially for a single person. In most cases, you can probably cover your basic expenses and have some left over for savings.
Of course, there are many factors to consider when thinking about whether $110,000 is a good salary for you. Let’s dive in.
Is $110K a Good Salary?
In most cases, $110,000 is a good six-figure salary for a single person. Even when you factor in the rising costs of housing, food, and transportation, you can still comfortably afford to live in most parts of the country.
However, if you’re in an area where the cost of living is higher, you may find that you can afford the basics but not have much left over for other goals like retirement or travel. That’s why it’s crucial to look at your current spending patterns and the cost of living in your area to discern whether earning $110,000 is enough for your needs. A money tracker can give you a snapshot of your finances and provide insights into your spending and budgeting.
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Median Income in the U.S. by State in 2024
According to the latest data available from the U.S. Census Bureau, here is the median household income for all 50 U.S. states:
State
Median Household Income
Alabama
$59,609
Alaska
$86,370
Arizona
$72,581
Arkansas
$56,335
California
$91,905
Colorado
$87,598
Connecticut
$90,213
Delaware
$79,325
Florida
$67,917
Georgia
$71,355
Hawaii
$94,814
Idaho
$70,214
Illinois
$78,433
Indiana
$67,173
Iowa
$70,571
Kansas
$69,747
Kentucky
$60,183
Louisiana
$57,852
Maine
$68,251
Maryland
$98,461
Massachusetts
$96,505
Michigan
$68,505
Minnesota
$84,313
Mississippi
$52,985
Missouri
$65,920
Montana
$66,341
Nebraska
$71,772
Nevada
$71,646
New Hampshire
$90,845
New Jersey
$97,126
New Mexico
$58,722
New York
$81,386
North Carolina
$66,186
North Dakota
$73,959
Ohio
$66,990
Oklahoma
$61,364
Oregon
$76,362
Pennsylvania
$73,170
Rhode Island
$81,370
South Carolina
$63,623
South Dakota
$69,457
Tennessee
$64,035
Texas
$73,035
Utah
$86,833
Vermont
$74,014
Virginia
$87,249
Washington
$90,325
West Virginia
$55,217
Wisconsin
$72,458
Wyoming
$72,495
Recommended: Average Income by Age
Average Cost of Living in the U.S. by State in 2024
As anyone who’s ever received a paycheck knows, your salary and the amount you actually take home after taxes differ. After deducting for federal income taxes, Social Security tax, and Medicare, the average take-home pay on a $110,000 salary is around $85,544 — and that doesn’t include state taxes.
With that in mind, looking at the average cost of living in different states can help you decide whether $110,000 is a good salary. In the chart below, you can see how much a typical resident of each state spends on basics like food, transportation, utilities, and housing.
State
Personal Consumption Expenditure
Alabama
$42,391
Alaska
$59,179
Arizona
$50,123/td>
Arkansas
$42,245
California
$60,272
Colorado
$59,371
Connecticut
$60,413
Delaware
$54,532
Florida
$55,516
Georgia
$47,406
Hawaii
$54,655
Idaho
$43,508
Illinois
$54,341
Indiana
$46,579
Iowa
$45,455
Kansas
$46,069
Kentucky
$44,193
Louisiana
$45,178
Maine
$55,789
Maryland
$52,651
Massachusetts
$64,214
Michigan
$49,482
Minnesota
$52,849
Mississippi
$39,678
Missouri
$48,613
Montana
$51,913
Nebraska
$37,519
Nevada
$49,522
New Hampshire
$60,828
New Jersey
$60,082
New Mexico
$43,336
New York
$58,571
North Carolina
$47,834
North Dakota
$52,631
Ohio
$47,768
Oklahoma
$42,046
Oregon
$52,159
Pennsylvania
$53,703
Rhode Island
$52,820
South Carolina
$46,220
South Dakota
$48,997
Tennessee
$46,280
Texas
$49,082
Utah
$48,189
Vermont
$55,743
Virginia
$52,057
Washington
$56,567
West Virginia
$44,460
Wisconsin
$49,284
Wyoming
$52,403
Source: U.S. Bureau of Economic Analysis
How to Live on $110K a Year
You can live relatively well on $110,000 a year as a single person — as long as you manage your expenses carefully. First, consider what your short- and long-term goals are. Do you want to have enough money set aside for a week-long vacation each year? Are you eager to be debt-free within a certain timeframe? Or do you want to max out your contributions to your employer-sponsored 401(k)?
Balancing these goals with your everyday expenses will help ensure you can afford the necessities while taking care of your future self.
How to Budget for a $110K Salary
Budgeting on a $110,000 salary is similar to how you would budget for other income thresholds. Consider the following strategies:
Determine Your Take-Home Pay
Assuming you make $110,000 gross, you’ll need to account for how much you’ll receive after taxes and other deductions are taken into consideration. For example, you may have to pay health insurance premiums (an average of $1,401 a year for an individual plan) or pretax retirement contributions (up to $23,000 per year). Let’s say you pay federal taxes and deductions, contribute the maximum to your 401(k), and pay the average amount for your health care, you’d be left with a take-home pay of around $61,143.
Bottom line: Once you have a clearer picture of what’s coming in, you can then budget appropriately for it. Tools like a budget planner app can help make the job easier.
Set Aside Money for Long-Term Savings
It’s fun to live in the moment, but it’s also important to think about the future. Consider using part of your income to start an emergency fund, and set aside money for larger expenses and goals. You may also want to look into savings vehicles like a high-yield savings account, which typically offers a higher interest rate than a traditional savings account.
Plan to Get Out of Debt
Using part of your salary to tackle your high-interest debt faster can be a good idea to free up funds for other pursuits. You can also consider options like refinancing or debt consolidation loans to help you reduce interest costs.
Maximizing a $110K Salary
Getting smart with your money means knowing how you can maximize the salary you earn. In general, you can aim to do so by spending only what’s necessary, investing so you can have a comfortable retirement, and saving.
You may want to consider moves like:
• Boosting your credit score to increase your chances of getting competitive interest rates
• Investing in securities that charge minimal fees
• Shopping around for loans to find the best rates and terms
• Finding a home that fits your budget
• Taking public transit when you can instead of driving a car
Quality of Life with a $110K Salary
You can have a good quality of life on a $110,000 salary depending on how you allocate your money. Even if you live in a higher cost of living area, there are ways to maximize the amount you earn to live well. Take the time to compare larger expenses like housing, insurance, and healthcare costs.
Recommended: Average Pay in the United States
Is $110,000 a Year Considered Rich?
Does earning $110,000 mean you’re considered “rich”? Well, the term is relative. It all depends on where you live and how you spend your money. For example, if you invest a good chunk of your income to help you increase your overall net worth and live in a safe area, some would consider that being rich. However, if you’re the only income earner in your family of six, then $110,000 per year is likely not enough to make you feel wealthy.
Is $110K a Year Considered Middle Class?
According to the Pew Research Center, middle-class workers earn a salary that’s two-thirds to double the national median income. By that definition, a middle-class household makes between $47,189 and $141,568, and $110k falls within that range. However, where you live will also factor into whether you’re considered middle class. That’s because different states have their own median household earnings.
Example Jobs That Make About $110,000 a Year
high-paying jobs that earn a median wage of $110,000 or more:
• Architectural and engineering managers
• Financial analysts
• Software developers
• Math and science postsecondary teachers
• Dentists and doctors
• Nuclear power reactor operators
The Takeaway
Earning $110,000 can mean you have the ability to live a good quality of life. Plus, it’s higher than the average salary in the U.S. That being said, you’ll still want to be mindful about where your money goes so you can achieve your financial goals and more.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
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FAQ
Can I live comfortably making $110k a year?
It is possible to live comfortably making $110,000 per year. However, doing so largely depends on factors like whether you have dependents, where you live, and what types of necessities and luxuries you want.
How much is $110k a year hourly?
Assuming you work 40 hours per week, you’ll earn around $52.88 each hour.
How much is $110k a year monthly?
You will earn about $9,166.66 each month on a $110,000 annual salary.
How much is $110k a year daily?
Assuming you work five days a week, $110,000 per year salary equates to roughly $423.07 per day.
Photo credit: iStock/Jacob Wackerhausen
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Inside: Learn how much your 60k salary is hourly. Plus find tips to make more money and live the lifestyle you want.
You want to know to look into this… 60k salary is a good hourly wage when you think about it.
When you get your first job and you are making just above minimum wage like $15 an hour, making over $60,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income was $70,084 in 2021 not much different from the previous year (source). Think of it as a bell curve with $70 at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $55,350 for a 40-hour workweek; that is an increase of 1.1% from the previous year (source). That means if you take everyone’s income and divide the money out evenly between all of the people.
But, the question remains… Can you truly live off 60,000 per year in today’s society? The question you want to ask all of your friends is $60000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $60000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $60k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$60000 a year is How Much an Hour?
When jumping from an hourly job to a salary for this first time, it is helpful to know how much is 60k a year hourly. That way you can decide whether or not the job is worthwhile for you.
For our calculations to figure out how much is 60K salary hourly, we used the average five working days of 40 hours a week.
60000 salary / 2080 hours = $28.85 per hour
$60000 a year is $28.85 per hour
Let’s breakdown how that 60000 salary to hourly number is calculated
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $60000 by 2,080 working hours and the result is $28.85 per hour.
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $3K to 63000 a year, it would increase your hourly wage by $1.44 per hour.
To break it down – 63k a year is how much an hour = $30.29
That isn’t a huge amount of money, but every dollar adds up to $30 an hour.
How Much is $60K salary Per Month?
On average, the monthly amount would be $5,000.
Annual Salary of $60,000 ÷ 12 months = $5,000 per month
This is how much you make a month if you get paid 60000 a year is 5000 a month.
$60k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $60k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$60000/52 weeks = $1,154 per week.
$60000 a year is how much biweekly?
For this calculation, take the average weekly pay of $1,154 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x 52 weeks = 260 working days
Annual Salary of$60000 / 260 working days = $231 per day
If you work a 10 hour day on 208 days throughout the year, you make $288 per day.
$60000 Salary is…
$60000 – Full Time
Total Income
Yearly Salary (52 weeks)
$60,000
Monthly Salary
$5,000
Weekly Wage(40 Hours)
$1,154
Bi-Weekly Wage (80 Hours)
$2,308
Daily Wage (8 Hours)
$231
Daily Wage (10 Hours)
$288
Hourly Wage
$28.85
Net Estimated Monthly Income
$3,817.50
Net Estimated Hourly Income
$22.02
**These are assumptions based on simple scenarios.
60k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with a salary range of up to $160,200.
When you start getting into a higher salary range, the more you make, the more money that you have to pay in taxes.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 60000 a year after taxes?
Gross Annual Salary: $60,000
Federal Taxes of 12%: $7,200
State Taxes of 4%: $2,400
Social Security and Medicare of 7.65%: $4,590
$60k Per Year After Taxes is $45,810.
This would be your net annual salary after taxes.
Hourly Wage after Taxes
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$45,810 ÷ 2,080 hours = $22.02 per hour
After estimated taxes and FICA, you are netting $45,810 per year, which is $14,190 per year less than what you expect.
Plus budgeting on $22 an hour is much different!
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, use a tax calculator to help you figure out how much your net paycheck would be.***
Taxes Based On Your State
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody who lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $60000 income can range from $41,010 to $48,210 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously, you need to pay taxes.
But, it can also put a huge dent in your ability to live the lifestyle you want on a $60,000 income.
My 60000 Salary to Hourly
More than likely, your salary is not a flat 60k, here is a tool to convert your salary to hourly calculator.
Many teachers are hovering in this range, which may make you wonder do teachers get paid in the summer.
If you are looking to change industries, you need to check out the freight broker salary.
60k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person?
And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $60,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $60,000 a year is just below the median income that you would find in the United States. Thus, you can live a modest lifestyle here in America.
What a $60,000 lifestyle will buy you:
If you are debt-free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
When A $60,000 Salary Will Hold You Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 60k a year is going to be pretty darn difficult.
Two factors will keep holding you back:
You must pay off debt and cut all fun spending until that happens.
Break the paycheck-to-paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$60K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money is left for fun spending.
If you want to know how to manage 60k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $60000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$250
Savings
15-25%
$1000
Housing
20-30%
$1200
Utilities
4-7%
$200
Groceries
5-12%
$350
Clothing
1-4%
$50
Transportation
4-10%
$200
Medical
5-12%
$250
Life Insurance
1%
$25
Education
1-4%
$50
Personal
2-7%
$93
Recreation / Entertainment
3-8%
$150
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1183
Total Gross Income
$5,000
**In this budget, prioritization was given to basic expenses and no debt.
Is $60000 a year a Good Salary?
The short answer is “yes.” However, there are several factors that go into determining the appropriate salary for you and your field.
As we stated earlier if you are able to make $60,000 a year, that is a good salary. You are making more money than the average American and slightly less on the bell curve on the median income.
You shouldn’t be questioning yourself if is 60000 a good salary.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $60k salary would be considered a middle class salary. This salary is something that you can live on very comfortably.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 91 percentile globally for per person income (source).
The question you need to ask yourself with your 60k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in some expensive cities, 60,000 a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 60,000 per year.
If you are looking for a career change, you want to find jobs paying at least a $70000 salary.
Is 60k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $60000 per year.
And… most of us probably regret how much money was wasted when we were single. Oh well, lesson learned.
Deep Dive: What Is A Good Salary For A Single Person in Today’s Society?
Is 60k a good salary for a family?
Many of the same principles apply above on whether $60000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child. Plus this does not include college.
That means that amount of money is coming out of the income that you earned.
So, the question really remains… Can you provide a good life for your family making $60,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything you want.
Many times when raising a family, it is helpful to have a dual-income household. That way you can provide the necessary expenses if both parties were making 60,000 per year, then the combined income for the household would be $120,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $60000 Per Year?
As we outlined earlier in the post, $60,000 a year:
$28.85 Per Hour
$231-288 Per Day (depending on length of day worked)
$1154 Per Week
$2308 Per Biweekly
$5000 Per Month
Next up is making $65,000 a year.
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 39,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and making $60K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn what 15 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $15 a year, how much do I truly make? What will that add up to over the course of the year? Is $15 a living wage?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage?
In this post, we’re going to detail exactly what $15 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want to do, then keep reading. You are in the right place.
$15 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $15 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $15 = $31,200
$31,200 is the gross annual salary with a $15 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s breakdown how that number is calculated.
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $15 times 2,080 working hours and the result is $31,200.
That number is the gross income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.
That is just above the $30000 salary, which is a lower starter salary, but well below where you want to start about a $35000 salary.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $15 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $15 times 1,040 working hours and the result is $15,600.
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How Much is $15 Per Month?
On average, the monthly amount would average $2,600.
Annual Amount of $31,200 ÷ 12 months = $2,600 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid on and on which days you get paid.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1,300.
How Much is $15 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $15 = $600 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $300.
How Much is $15 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $600 and double it.
$600 per week x 2 = $1,200
Also, the other way to calculate this is:
40 hours x 2 weeks x $15 an hour = $1,200.
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $600.
How Much is $15 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x $15 per hour = $120 per day.
If you work 10 hours a day for four days, then you would make $150 per day. (10 hours x $15 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $60.
$15 Per Hour is…
$15 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$31,200
Yearly Salary (50 weeks)
$30,000
Monthly Wage (173 hours)
$2,600
Weekly Wage (40 Hours)
$600
Bi-Weekly Wage (80 Hours)
$1,200
Daily Wage (8 Hours)
$120
Net Estimated Monthly Income
$1,985
**These are assumptions based off simple scenarios.
Paid Time Off Earning 15 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $31,200 per year.
This is the same as the example above for an annual salary making $15 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous of reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $15 times 2,000 working hours and the result is $30,000.
40 hours x 50 weeks x $15 = $30,000
You would average $120 per working day and nothing when you don’t work.
$15 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $31,200
Federal Taxes of 12%: $3,744
State Taxes of 4%: $1,248
Social Security and Medicare of 7.65%: $2,387
$15 an Hour per Year after Taxes: $23,821
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$23,821 ÷ 2,080 hours = $11.45 per hour
After estimated taxes and FICA, you are netting $11.45 an hour. That is $3.55 an hour less than what you planned.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on a just over $11 an hour wage is much different.
$15 an hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $15.01-15.99.
This is super helpful if you make $15.25 or $15.35.
You are probably wondering can I live on my own making 15 dollars an hour? How much rent can you afford on 15 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $15 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated $15 an hour was $11.45 after taxes. That would average $1,985 per month.
According to the Cents Plan Formula, here is the high level view of a $15 per hour budget:
Basic Expenses of 50% = $992.55
Save Money of 20% = $397.02
Give Money of 10% = $198.51
Fun Spending of 20% = $397.02
Debt of 0% = $0
Obviously, that is not doable for everyone when living so close to minimum wage. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun money.
To further break down an example budget of $15 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $15 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$130
Savings
15-25%
$312
Housing
20-30%
$780
Utilities
4-7%
$130
Groceries
5-12%
$208
Clothing
1-4%
$26
Transportation
4-10%
$104
Medical
5-12%
$130
Life Insurance
1%
$13
Education
1-4%
$26
Personal
2-7%
$48
Recreation / Entertainment
3-8%
$78
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$615
Total Gross Income
$2,600
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
A great way to lower your transportation costs is to buy a beater car.
Can I Live off $15 Per Hour?
Living off close to minimum wage can be a very difficult situation.
Is it doable? Absolutely.
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
A lot of times when people are making under near the minimum wage mark or slightly above, they feel like they are in this constant cycle that they can never keep up. They are not good enough to make more money. Feeling like they are constantly struggling to keep up with bills and expenses. And things just keep adding on top.
You need to do is change your money mindset.
This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 15 dollar per hour. No going into to debt for me.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $15 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $15 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $15.50 will add up over the year. Even better $16 an hour! The goal is $20 an hour or more!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $15 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
There are so many legit ways to make 300 dollars fast today!
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and being financially sound happens.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $15 an Hour
In this last section, grasp these tips on how to live on $15 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $15 an hour. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $15 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $15 an hour minus all the taxes, FICA, Social Security, and Medicare are taken out. That is your net income.
So, your net income has to be less than your gross income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun.
Save money with the popular 100 envelope challenge.
It could be participating in a no spend challenge for the month.
Start a billionaire morning routine to build a wealth mindset.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Jobs that Pay $15 an Hour
You can find jobs that pay $15 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Customer service representatives
Paraeducators at schools
Warehouse workers
Retail workers
Cashiers
Housekeeper
Delivery Drivers
Overnight Stockers
Companies that pay more than $15 per hour:
L.L. Bean
Chick-Fil-A
Panera Bread
Torchy Tacos
McDonald’s
Five Guys
Costco
Wayfair
Amazon
Many grocery stores
Best Buy
Target
Wells Fargo
Disney World
Disney Land
Bank of America
JP Morgan
Cigna
Aetna
Maybe working as a virtual assistant with no experience is right for you??
$15 Per Hour Annual Salary
In this post, we detailed 15 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 15 dollars an hour annually…
$31,200
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Now, find low stress jobs that don’t need a degree and pay well!
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: The decision on where you live is a big life choice. Learn how an HCOL vs LCOL area will impact you financially. Plus find the cost of living city that fits for you.
HCOL. LOCL. MCOL. What do these acronyms mean and why should I care?
Back when I was trying to decide where to live, there wasn’t a big discussion about the high cost of living or low cost of living areas.
You just picked a city close to family or branched out to a new area. Were you drawn to the big city or not? Plain and simple.
Today, there are many tools at our disposal to try and figure out what is the best city to live in based on income, expenses, and the lifestyle that you desire.
In this post, you will see how to analyze what type of city you want to live in and see if it makes financial sense for you.
Why such the price difference between HCOL and LCOL?
In a low cost of living city, you can buy a house for $50,000. In contrast, a median home price in a high cost of living city can cost $1.5 million. This is a correlation between supply and demand in the market.
The more people who want to live in a certain area that has less available space will naturally drive up prices. Whereas most low cost of living areas, the supply is abundant since there is plenty of space to spread out and find your own neck of the woods for much less.
Here’s a quick comparison of HCOL vs LCOL vs MCOL.
New York City has the highest cost of living at 100, followed by Los Angeles and San Francisco. This graph highlights the difference in cost of living in these example cities.
HCOL Seattle, WA
MCOL Las Vegas, NV
LCOL Knoxville, TN
Cost of Living Index
85.57
69.33
63.26
2 Bed Apartment Rent
$2,724
$1,176
$788
Median Home Price
$826,200
$441,771
$256,188
Median Income
$92,263
$56,354
$33,229
Data from Nerdwallet, Census.Gov, and Numbeo
What is HCOL area Mean?
Simply put, HCOL means a high cost of living.
This type of acronym is to describe certain areas or cities where expenses that impact your budget the most, such as housing, food, and transportation, are more expensive than other areas.
When defining an HCOL area, it is a comparison of the cost of living based on other areas around other cities, states, and countries.
There is no hard line to define high cost of living since it is compared to the other cities.
Is it possible to live in a high cost of living area? Absolutely, it all depends on how you choose to live, the income you make, your lifestyle choices, and your savings percentage.
VHCOL are VERY high cost of living areas, such as Manhattan, Honolulu, San Francisco, Singapore, or Hong Kong.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Pros and Cons of HCOL
Just because an area is labeled HCOL does not mean that you shouldn’t call the city home and stay away from these areas.
There are plenty of advantages and disadvantages of living in a high cost city.
There are always drawbacks to living in a high cost of living area and you have to decide whether or not what works for you.
In order to make a solid decision on where the best place is for you to live, you need to know this information.
Advantages of HCOL City
Job Market is Solid
First of all, in HCOL cities, the job market is stronger, there are more jobs available, and typically those jobs have a higher paying threshold than other areas.
That is why many companies are attracted to these areas because they know the talent pool of potential employees is much stronger in high cost of living area versus other areas where there are not as many skilled workers.
Income is Higher
Since companies know they must pay their employees a fair wage living in a high cost of living area, incomes are higher to support the increased expenses.
This helps those municipalities collect more taxes, which feed back into the system to provide more for their residents.
More Opportunities
More opportunities abound in a high cost of living cities.
Not only in the job market but there is access to public amenities and conveniences. Some examples include museums, sporting events, transit, best medical services, endless entertainment options, quality restaurants, high-end shopping, and quick access to international airports.
Even better, you can find free entertainment each and every day that does not cost a penny. Here is a list of 101 things to do with no money.
There are many benefits of living in a high cost of living area just because their opportunities are endless. You will always find something to do and there is always stuff going on.
Better Schools
Typically, in your high cost of living cities, that is where you will find the better schools. This is in direct correlation to the job market and skilled workers.
These skilled workers tend to have a higher instance of college graduates and they tend to want the best for their children. As a result, the schools tend to be much better than you would find in other areas.
Higher Chance of Home Equity
Another advantage of big cities is the variety of neighborhoods you can find in a bigger city. You can find the type of house you want to live in and the diversity you crave.
While home costs are much higher, there is also a greater chance of income increasing your home equity much faster than other areas.
For example, in Michigan, you could pay $100,000 for the exact same house in 5-10 years since appreciation will not happen at the same rate as other cities. Whereas, if you look at some of the hot markets, like Denver, Phoenix, or Austin, the home prices have been skyrocketing.
Thus, if you live in those quickly appreciating housing areas, there is a higher chance to increase the value of your house.
Disadvantages Of HCOL Cities
Higher Basic Cost of Living – Specifically Housing
First, housing costs can break the bank. It is the biggest expense for any household.
If you were unable to secure a salary to justify the housing cost, it makes it nearly impossible to be able to afford to live in a high cost of living area.
This is where you would have to get creative and look for housing subsidies or other means to stretch your housing budget.
Harder to Find Houses
Another con of a high cost of living areas is it is much harder to find housing! House and rent prices are higher, jobs are tougher to find where there’s opportunities abound, and you may feel like you are searching for a needle in a haystack.
You need to have the right opportunity to find the proper house for you. If you are looking at buying, you need things to line up properly and in your favor.
Stretch Yourself Too Far Financially
Since incomes tend to be much higher, many people find the urge to spend more discretionary income.
In many cases, this means that the average household may stretch themselves a little bit further by keeping up with the Joneses. They tend to spend more frivolously and not live as frugal.
This is a trap to be aware of if you are in a high cost of living area. You can be savvy with your money and save, but you have to be cognizant of how you spend your hard-earned salary.
HCOL Cities…
These are the HCOL areas. Do you need to avoid them? No, but going into those areas, you must realize the cost of living will be higher.
Here’s a list of all of the cities that are the top 20 cities that are high cost of living areas according to Kiplinger:
1.
Manhattan, New York
(145.7% above U.S. average)
2.
San Francisco, California
(94.7% above U.S. average)
3.
Honolulu, Hawaii
(97.6% above U.S. average)
4.
Brooklyn, New York
(80.5% above U.S. average)
5.
Washington, D.C.
(60.7% above U.S. average)
6.
Seattle, Washington
(56.7% above U.S. average)
7.
Oakland, California
(53.9% above U.S. average)
8.
Arlington, Virginia
(50.5% above U.S. average)
9.
Orange County, California
(50.2% above U.S. average)
10.
Boston, Massachusetts
(48.8% above U.S. average)
11.
Queens, New York
(47.8% above U.S. average)
12.
Los Angeles, California
(46.6% above U.S. average)
13.
Bethesda, Maryland
(45.5% above U.S. average)
14.
San Diego, California
(41.4% above U.S. average)
15.
Alexandria, Virginia
(40.0% above U.S. average)
16.
Stamford, Connecticut
(36.4% above U.S. average)
17.
Portland, Oregon
(34.3% above U.S. average)
18.
Fairbanks, Alaska
(27.9% above U.S. average)
19.
Bergen County & Passaic County, NJ
(26.6% above U.S. average)
20.
Anchorage, Alaska
(24.4% above U.S. average)
Source: Kiplinger
What Is LCOL Area Mean?
LCOL stands for lower cost of living.
These cities have a lower average cost of living versus the average.
Simply put…your ability to stretch your income goes much further in a low cost area compared to a high cost of living area. This is where you can get a bigger bang for your buck.
Pros and Cons of LCOL
The differences in the area where you can live can be vastly different. Thus, providing benefits or drawbacks of choosing to live there.
The cons are typically the reasons that most people want to stay away from these cities.
This is where personal preference tends to play the biggest reason for choosing one location over another.
Just like with a high cost of living area, you need to weigh the pros and cons of living somewhere where expenses are not quite as high.
Advantages of LCOL –
Slower Pace of Life
One of the biggest benefits is a slower pace of living in low cost of living area.
Life doesn’t move as fast.
There is more time to breathe, there is more time to step back and take a bigger picture. It is not go, go, go, go 24/7. Time to enjoy the fresh air and slower pace.
Cheaper Housing
This is why people choose to live in a low cost of living area. Period.
You are able to afford much more house for much less.
That right there, over the long term can make or break somebody financially.
Lower Taxes
Many of the lower cost of living cities also benefit from lower taxes as well. They have lower income taxes, and even possibly, lower property taxes. So, this is something to take into consideration when looking at a low cost of living area.
Check what the difference would be from where you’re currently at to where you are considering moving.
Remote Work
This is the bread and butter spot! When you can take in a higher pay and still live in a LCOL city.
After 2020, remote work is becoming more and more popular. In addition, it is an added benefit companies are including to attract skilled employees.
This is one scenario where you can get the best of both worlds.
Disadvantages Of LCOL Cities
Less Opportunities
First of all, there are fewer opportunities. There are fewer things to do, there are less things going on. The airport is a further drive away.
In a big city, you can always find events happening. It may not be the same in other cities. However, some cities have created programs to draw in residents with the big city feel like Bellefontaine, Ohio.
Income Potential is Lower
The job market doesn’t have the high-paying jobs that you would find in the bigger cities. The income potential in one of these cities does not compare.
Let’s face it… a good majority of your working years are about built around making an income. With a lower cost of living city, the income limitations can be cumbersome and it takes longer to be able to reach your financial goals.
LCOL States and Countries with LCOL
Geographic arbitrage can give you great value for your money.
Arbitrage is the spread of differing prices for the same thing like rent, food, or transportation.
This means you can save more money by living in LCOL state or spend less of your nest egg by living in a LCOL countries.
These are the areas you can find the lower cost of living. There are many LCOL cities to be found as well.
LCOL States:
1.
Mississippi
(84.10% of U.S. average)
2.
Kansas
(86.67% of U.S. average)
3.
Oklahoma
(88.09% of U.S. average)
4.
Alabama
(88.80% of U.S. average)
5.
Arkansas
(89.16% of U.S.average)
6.
Georgia
(89.30% of U.S. average)
7.
Tennessee
(89.49% of U.S. average)
8.
Missouri
(89.75% of U.S. average)
9.
Michigan
(90.54% of U.S. average)
10.
Indiana
(90.57% of U.S. average)
Source: US News
LCOL Countries:
Listed in alphabetical order because there are many to chose from based on your personal preferences.
The definition of MCOL is any area that just has an medium cost of living.
There is not one extreme or another. These cities are just plain average. Maybe slightly above or below the median cost of living.
This can be a sweet spot of reaching your financial goals while enjoying a higher quality of life.
Benefits of MCOL Area
As you can read on Reddit personal finance threads, there are plenty of reasons to live in an MCOL area.
Mostly because these types of cities you can get the best bang for your buck, and still have the pros of living in a high cost of living area, as well as the pros of living in a low cost of living area.
This is where the job market may be very stable with good wages but the cost of living is not going to cost you a fortune.
Also, you can find tons of cities that meet the criteria of a MCOL city.
Cost of Living Varies within Cities
Regardless of whether you choose, HCOL, LCOL, or MCOL areas, the cost of living will be dramatically different between these cities.
Whether you are looking at the downtown area, the outlying suburbs, or maybe even the cities that have popped up around near the main city.
Just because the city is HCOL or LCOL, there will be neighborhoods that will be the outliers to the main part of the city.
So, when you are looking at cost of living, you must know the things that are most important to you and what type of neighborhood that you would want to live in because they can be found.
That is what I call hidden gems.
It is possible to find a cheaper house in a low cost of living or high cost of living area, you just have to do your homework and know what you’re looking for.
Vice versa, it is very possible to find a neighborhood in a low cost of living area that is much higher than the surrounding areas.
How can I buy a house in a high cost of living?
It is possible to be a homeowner in a in a high cost of living area. You just have to be able to afford the down payment on the house to make being a homeowner justifiable, if possible.
Before you decide to buy a house, here are some factors you need to take into consideration..
1. Does it make sense?
First, you have to make sure that it makes logical sense to buy a house. Especially in a high cost of living area because the house prices may not match up to what the income that you are bringing in.
Will you still be able to reach your money goals by purchasing a house? Or will you be house poor?
2. Compare rent to potential mortgage
Will it be cheaper to rent? Or cheaper to have a mortgage?
To figure this out, take what the average rent is in your neighborhood. Then, use a mortgage calculator to figure out the maximum amount you can afford.
Since those calculators will leave you house poor. Decide what you are able to justify in spending on a mortgage and figure out what the mortgage payment is.
Is the mortgage payment less than average rent in the area?
For example, it may cost in a high cost of living area, like San Diego, it may cost $3,000 a month to rent a house. Whereas you might be able to buy a similar home in the same neighborhood and have your mortgage payment of $2,259.
Thus, making buying makes more financial sense than continuing to rent.
3. Expand your horizons
Another tip to afford your dream house – do not be set on that one specific neighborhood in a high cost of living area.
Many times you can find an up-and-coming neighborhood that is much less than the trendier and hip current neighborhoods that you want to live in.
Thus, you can typically save a good chunk of money. Plus in the long run, you greatly increase the potential for home equity.
4. New Homebuyer Programs
If this is the first time you are buying a house, then look into first-time homebuyer programs and grants. (Hint… this is like free money!)
There are many out there because cities want their residents to buy in their neighborhood and their cities because that means they are going to be there for a longer-term.
Also, there are programs for the military, teachers, nurses, single moms, minorities, graduate students. You just have to look.
5. Save for Down Payment
When you are looking at buying a house, this is the time to become serious about saving for a down payment.
You may have to find ways to save more money each month.
This could include things like downsizing your lifestyle to make it possible. Living with friends or family while you save up more money. Or just spending less for a certain period of time until you reach your downpayment goal.
6. House Hacking
The last step is one of the best ways to reach financial independence in a high cost of living city. Plus the concept works well in any city… house hack.
Find a multi-family housing property that you were able to buy. For example, plan to live on one side of the duplex and rent out the other. This will help you pay for your mortgage, by using the rent collected from your renters.
Thus, lowing your overall housing cost, which is your biggest expense.
Where Does Your Income Go the Furthest?
This is a comparison that you may be surprised by the outcome. Thus, proving why you need to do cost comparisons to see what financially makes the most sense when deciding to move from one to the other area.
comparison of income, expenses, taxes, and potential savings!!!!!!!!!!!
Once again, this is personal to your situation. So, take a moment and use the cost of living calculator yourself.
Paying taxes is one option to increase what you take home in each paycheck.
No Income States
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
For most people, that is an instant decrease in overall taxes!
Higher Taxed States
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area.
The higher taxes income tax states include:
California
Hawaii
New Jersey
Oregon
Minnesota
The District of Columbia
New York
Vermont
Iowa
Wisconsin
These states tax income somewhere between 7.65% – 13.3%.
Property Taxes
Property taxes vary from state to state.
In some states with large property taxes, it may even out with no income taxes. While other states, like Illinois, where property taxes are high and income taxes are above the national average as well.
Moving From HCOL to LCOL
The reason that most people move from HCOL to LCOL area is to save money. They want to decrease their expenses – that is the primary driver. Other times, it may be that they’re looking for a different type of lifestyle.
But as you can read on Reddit, everybody has a different personal experience.
It may have been beneficial and may have been bad timing. It may have been the best choice. It may have been the worst decision.
Make sure to factor in the costs associated with the move. Also, any ongoing expenses like travel if you are moving away from family.
How to Choose HCOL or LCOL?
Deciding where you live is one of the most personal decisions that you can make. Nobody can make it for you. You know what you want in life, how you want to live, and where you would feel more comfortable.
So, let’s look primarily at the financial side of making this decision of what is best.
1. Lifestyle You Desire
There are massive differences between HCOL and LCOL cities!! In big cities, life moves at a faster pace. While most cheaper cities areas move at a slower pace, so you have to make the decision of what type of lifestyle.
Do you want you want the big city? Do you want suburbia? Or do you prefer more of a country lifestyle?
When looking at this first factor, your answer should not include money. This is where your heart is. This is where your home. This is the life that you plan on living. This doesn’t include the financial sense.
This includes what makes your heart happy.
2. Your Money Goals
One of the things that discussed the most on this site is the 10 Money Bliss Steps to Financial Freedom. That is where most of our readers find their current money goal. And for good reason, you must build a strong foundation with money one step at a time.
In order to achieve long term financial success, the decision on housing is critical as it is the biggest expense in any budget. And that is can have the greatest impact on your budget!
On the flip side, the amount of income you are capable of making can also make the biggest impact on what you can afford to spend.
You must decide on your current money goal as well as the longer term money vision. Maybe you are looking at wanting to retire early? Love to live a slower life in the future?
It is possible to live in HCOL area where you are able to live extremely frugally and save more money. This is what my friend did over at Tuppennys FIREplace. For them, it was a smarter decision. On the flip side, maybe you are happier living a slower pace of life. Income is not the primary driver and you just want to enjoy life more.
At the end of the day, you must prioritize what you want, how your budget and your expenses correlate, and how your saving rate is impacted in various cities.
3. Season of Life
For those in their younger years may not understand this as much, but as you go through seasons of life, you will realize that you have different goals, objectives, and desires along the way.
When deciding where to live, your current season of life will probably have a very high impact on what you are looking for.
If you have young kids, you probably want to find a neighborhood where you have other families nearby that your kids can interact with.
If you are close to retirement, you may look decide to move out of the good school district because you do not need to pay the premium of living here. You may choose to move to a lower cost of living area, so you have the freedom to travel and help my kids and grandkids.
4. Potential Income & Career Opportunities
The greatest benefit of a high cost of living area is the income potential and the career opportunities. Both are much greater in the bigger cities than you would find in the smaller cities.
If your primary goal is increasing your income and advancing your career, then looking at high cost of living areas an absolute must. Plus you might be able to find something on the outskirts of expensive neighborhoods, that would make the most financial sense.
Then, living in HCOL is justified and necessary and the income can justify the higher costs associated.
On the flip side, there is plenty of income potential as a small business owner in a low cost of living area. You just have to know the market, what your skills are in, and what the needs are in your area.
4. Fixed Expenses
Fixed expenses can be dramatically different in each area.
Write out a list of your top fixed expenses and make sure to compare those as well.
For example, child care costs and tuition are going to be much more expensive in a big city than in the suburbs. Maybe in certain neighborhoods, a car would not be needed; thus, eliminating another big cost and associated maintenance.
While some fixed expenses seem meniscal, over time, they can add up significantly. Thus, helping or hurting your financial picture.
Unspoken Price Tag to Live Somewhere
As we covered in this post, there is a lot to consider when deciding between HCOL, LCOL, or MCOL areas.
It is a highly personal decision that you must take the time to make the best decision for you!
Not someone else, but for you.
One thing to watch out for when looking at where to live is what I call the “price tag” of a beautiful city.
Many times, employers know that the city that people want to live in their city for whatever reason. Thus, you will experience what I like to call the “income hit” to living there.
For example, Fort Collins, Boulder, and Austin are highly desirable areas for postgraduates to live in because they fall in love with the town and they want to stay here for the long term. Thus, employers know that this!
As a result, income for jobs maybe 10 to 15% less than they could make in any other type of market or city. So, that is something just to be aware of when wanting to stay in the city that they have grown to love.
In conclusion, when you’re looking at a high cost of living area versus a low cost of living area, there are two sides to the coin.
One – what makes financial sense. Two – your home is where your heart is.
Consequently, you have to make the decision on what makes sense for you.
While it makes financial sense to move to a lower cost city, at the same time, it may move you away from your family and your support system, and everything that you enjoy, and you may not be as happy in the long run.
Enjoy weighing the alternatives between all of the options available.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn what 26 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $26 a year, how much do I truly make? What will that add up to over the course of the year when working?
Is $26 an hour good?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage? How much more is $26.50 an hour annually?
When you finally start earning $26 an hour, you are happy with your progress as an hourly employee. Typically, this is when many hourly employees start to become salaried workers.
In this post, we’re going to detail exactly what $26 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want too, then keep reading. You are in the right place.
$26 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $26 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $26 = $54,080
$54,080 is the gross annual salary with a $26 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s break down how that number is calculated.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $26 times 2,080 working hours, and the result is $54,080.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
That is super close to the $55000 salary threshold, which is just below the median salary for a middle-income worker.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $26 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $26 times 1,040 working hours and the result is $27,040.
How Much is $26 Per Month?
On average, the monthly amount would average $4,507.
Annual Amount of $54,080 ÷ 12 months = $4,507 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
Plus by increasing your wage from $21 an hour, you average an extra $867 per month. So, yes a few more dollars an hour add up!
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $2,253.
How Much is $26 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $26 = $1,040 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $520.
Here are jobs that pay weekly.
How Much is $26 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $1,040 and double it.
$1,040 per week x 2 = $2,080
Also, the other way to calculate this is:
40 hours x 2 weeks x $26 an hour = $2,080
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $1,040.
How Much is $26 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $26 per hour = $208 per day.
If you work 10 hours a day for four days, then you would make $260 per day. (10 hours x $26 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $104.
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$26 Per Hour is…
$26 per Hour – Full Time
Total Income
Yearly Salary(52 weeks)
$54,080
Yearly Wage (50 weeks)
$52,000
Monthly Salary (173 hours)
$4,507
Weekly Wage (40 Hours)
$1,040
Bi-Weekly Wage (80 Hours)
$2,080
Daily Wage (8 Hours)
$208
Net Estimated Monthly Income
$3,441
**These are assumptions based on simple scenarios.
Paid Time Off Earning 26 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $54,080 per year.
This is the same as the example above for an annual salary making $26 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $26 times 2,000 working hours, and the result is $52000 per year.
40 hours x 50 weeks x $26 = $52,000
You would average $208 per working day and nothing when you don’t work.
$26 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $54,080
Federal Taxes of 12%: $6,490
State Taxes of 4%: $2,163
Social Security and Medicare of 7.65%: $4,137
$26 an Hour per Year after Taxes: $41,290
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$41,290 ÷ 2,080 hours = $19.85 per hour
After estimated taxes and FICA, you are netting $19.85 an hour. That is $6.15 an hour less than what you thought you were paid.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on over $19 an hour wage is much different.
$26 an Hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $26.01-26.99.
This is super helpful if you make $26.40 or $26.44.
You are probably wondering can I live on my own making 26 dollars an hour? How much rent or mortgage payment can you afford on 26 an hour?
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $26 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated $26 an hour was $19.85 after taxes. That would average $3,440 per month.
According to the Cents Plan Formula, here is the high-level view of a $26 per hour budget:
Basic Expenses of 50% = $1720.42
Save Money of 20% = $688.17
Give Money of 10% = $344.08
Fun Spending of 20% = $688.17
Debt of 0% = $0
Obviously, that is not doable for everyone. Even though you would expect your money to go further when you are making double the minimum wage. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun money.
To further break down an example budget of $26 per hour, then using the zero based budget template is extremely helpful.
recommended budget percentages based on $26 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$315
Savings
15-25%
$766
Housing
20-30%
$1,082
Utilities
4-7%
$225
Groceries
5-12%
$315
Clothing
1-4%
$45
Transportation
4-10%
$180
Medical
5-12%
$225
Life Insurance
1%
$23
Education
1-4%
$45
Personal
2-7%
$83
Recreation / Entertainment
3-8%
$135
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1,066
Total Gross Income
$4,507
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
Can I Live off $26 Per Hour?
At this $26 hourly wage, you are more than likely double the minimum wage. Things should be easy to live off this $26 hourly salary.
However, it is still slightly below the median income of over $60,000 salary. That means it can still be a tough situation.
Is it doable? Absolutely.
In fact, $26 an hour is higher than the median hourly wage of $19.33 (source). That seems backward, but typically salaried workers earn more per hour than hourly workers.
Can you truly live off $26 an hour annually?
You just have to have the desire to spend less than your income. Plus consistently save.
If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I have aspirations and goals to increase how much I make. This is the time to start diversifying my income into multiple streams and start investing. I am going to stretch my 26 dollars per hour.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $26 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $26 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $26.50 will add up over the year. An increase to $27 an hour is even better!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work.
Making $26 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I need in my life to do what I want when I need to do it. Plus I am able to enjoy my entrepreneurial spirit.
This is a great way to find success and deny all of the naysayers.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
Must Read: 20 Genius Ways on How to Make Money Fast
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially to becoming financially sound.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $26 an Hour
In this last section, grasp these tips on how to live on $26 an hour or just above a $50k yearly salary. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $26 an hour. More importantly stretch how much you make, in case you are in the “I don’t want to work anymore” mindset. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $26 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $26 an hour minus all the taxes, FICA, social security, and Medicare are taken out. That is your net income.
So, your net income has to be less than your net income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt-free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt-free journey.
Jobs that Pay $26 an Hour
You can find jobs that pay $26 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Virtual Assistant
Freelance writer
CDL Truck Driver
Managers
Entry Level Marketing Jobs
Data Entry Clerks
Customer service managers
Bank tellers
Maintenance workers
Freight broker – Learn how easy it is to start!
Administrative assistants
Athletic Trainers
Event Planners
Security guard
Movers
Warehouse workers
Certified Nursing Assistant
Companies that pay more than $26 per hour:
Costco
Wayfair
Amazon
Best Buy
Target
Wells Fargo
Disney World
Disney Land
Bank of America
JP Morgan
Cigna
Aetna
$26 Per Hour Annual Salary
In this post, we detailed 26 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 26 dollars an hour annually…
$54,080
This is right between $50,000 per year and $56k a year. In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn what 18 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $18 a year, how much do I truly make? What will that add up to over the course of the year? Is $18 a living wage?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage?
In this post, we’re going to detail exactly what $18 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want too, then keep reading. You are in the right place.
$18 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $18 per hour is as annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $18 = $37,440
$37,440 is the gross annual salary with a $18 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s breakdown how that number is calculated
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $18 times 2,080 working hours and the result is $37,440.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
So, $18 an hour is just above $35000 a year and just shy of $38000 a year.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $18 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $18 times 1,040 working hours, and the result is $18,720.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
How Much is $18 Per Month?
On average, the monthly amount would average $3,120.
Annual Amount of $37,440 ÷ 12 months = $3,120 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid on and on which days you get paid.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1,560.
How Much is $18 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $18 = $720 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $360.
Here are jobs that pay weekly.
How Much is $18 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $720 and double it.
$720 per week x 2 = $1,440
Also, the other way to calculate this is:
40 hours x 2 weeks x $18 an hour = $1,440.
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $720.
How Much is $18 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $18 per hour = $144 per day.
If you work 10 hours a day for four days, then you would make $180 per day. (10 hours x $18 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $72.
$18 Per Hour is…
$18 per Hour – Full Time
Total Income
Yearly Salary(52 weeks)
$37,440
Yearly Salary (50 weeks)
$36,000
Monthly Salary (173 hours)
$3,120
Weekly Wage (40 Hours)
$720
Bi-Weekly Wage (80 Hours)
$1,440
Daily Wage (8 Hours)
$144
Net Estimated Monthly Income
$2,382
**These are assumptions based on simple scenarios.
Paid Time Off Earning 18 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $37,440 per year.
This is the same as the example above for an annual salary making $18 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $18 times 2,000 working hours, and the result is $36000 per year.
40 hours x 50 weeks x $18 = $36000
You would average $144 per working day and nothing when you don’t work.
$18 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $37,440
Federal Taxes of 12%: $4,493
State Taxes of 4%: $1,498
Social Security and Medicare of 7.65%: $2,864
$18 an Hour per Year after Taxes: $28,585
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$28,585 ÷ 2,080 hours = $13.74 per hour
After estimated taxes and FICA, you are netting $13.74 an hour. That is $4.26 an hour less than what you planned.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on a $13 an hour wage is much different.
$18 an Hour Salary
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $18.01-18.99.
This is super helpful if you make $18.15, $18.20, or $18.68.
You are probably wondering can I live on my own making 18 dollars an hour? How much rent can you afford on 18 an hour?
We have figured out how much is $18 an hour annually is $37,440.
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $18 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, above we calculated $18 an hour was $13.74 after taxes. That would average $2,382 per month.
According to the Cents Plan Formula, here is the high-level view of an $18 per hour budget:
Basic Expenses of 50% = $1,191
Save Money of 20% = $476
Give Money of 10% = $238
Fun Spending of 20% = $476
Debt of 0% = $0
Obviously, that is not doable for everyone when living above the poverty line. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $18 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $18 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$156
Savings
15-25%
$468
Housing
20-30%
$842
Utilities
4-7%
$146
Groceries
5-12%
$250
Clothing
1-4%
$31
Transportation
4-10%
$125
Medical
5-12%
$156
Life Insurance
1%
$16
Education
1-4%
$31
Personal
2-7%
$58
Recreation / Entertainment
3-8%
$94
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$738
Total Gross Income
$3,120
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
Can I Live off $18 Per Hour?
Even living above the minimum wage by $5-6 can be a very difficult situation.
Is it doable? Absolutely.
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
A lot of times when people are making under near the minimum wage mark or slightly above, they feel like they are in this constant cycle that they can never keep up. They are not good enough to make more money. You feel like they are constantly struggling to keep up with bills and expenses. And things just keep adding on top.
You need to do is change your money mindset.
This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 18 dollars per hour. No going into debt for me.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $18 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $18 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $18.50 will add up over the year. Even better $19 an hour!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $18 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
These are the best ways to make money online for beginners!
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and being financially sound.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $18 an Hour
In this last section, grasp these tips on how to live on $18 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $18 an hour. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $18 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $18 an hour minus all the taxes, FICA, Social Security, and Medicare are taken out. That is your net income.
So, your net income has to be less than your gross income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
Learn how to live below your means.
3. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
Start saving money with the 200 envelope challenge.
It could be participating in a no spend challenge for the month and not go to Target.
Start saving money to upgrade from your beater car.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Jobs that Pay $18 an Hour
You can find jobs that pay $18 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Administrative assistant
Customer service representatives
Cashiers
Retail jobs
Stockers
Housecleaning specialist
Delivery drivers
Warehouse workers
Companies that pay more than $18 per hour:
Target
In-N-Out Burger
Whole Foods
McDonald’s
Macy’s
Advance Auto Parts
Whataburger
Most local grocery chains
Many hotels
Charter Communications
Wells Fargo
Bank of America
JP Morgan
Plus there are more companies in HCOL areas only.
Here are great ideas on how to make 500 dollars fast.
$18 Per Hour Annual Salary
In this post, we detailed 18 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 18 dollars an hour annually…
$37,440
This is above $37000 per year. In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn what 21 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $21 a year, how much do I truly make? What will that add up to over the course of the year when working? Is $21 an hour good?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage? How much more is $21.50 an hour annually?
In this post, we’re going to detail exactly what $21 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want too, then keep reading. You are in the right place.
$21 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $21 per hour is as annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $21 = $43,680
$43,680 is the gross annual salary with a $21 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s breakdown how that number is calculated.
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $21 times 2,080 working hours and the result is $43,680.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
Just above $43000 a year.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $21 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $21 times 1,040 working hours, and the result is $21,840.
How Much is $21 Per Month?
On average, the monthly amount would average $3,640.
Annual Amount of $43,680 ÷ 12 months = $3,650 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
Plus by increasing your wage from $15 an hour, you average an extra $1000 per year. So, yes a few more dollars an hour add up!
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1,840.
How Much is $21 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $21 = $840 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $420.
How Much is $21 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $840 and double it.
$840 per week x 2 = $1,680
Also, the other way to calculate this is:
40 hours x 2 weeks x $21 an hour = $1,680
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $840.
How Much is $21 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x $21 per hour = $168 per day.
If you work 10 hours a day for four days, then you would make $210 per day. (10 hours x $21 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $84.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
$21 Per Hour is…
$21 per Hour – Full Time
Total Income
Yearly (52 weeks)
$43,680
Yearly (50 weeks)
$42,000
Monthly (173 hours)
$3,640
Weekly (40 Hours)
$840
Bi-Weekly (80 Hours)
$1,690
Daily Wage (8 Hours)
$168
Net Estimated Monthly Income
$2,779
**These are assumptions based off simple scenarios.
Paid Time Off Earning 21 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $43,680 per year.
This is the same as the example above for an annual salary making $21 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $21 times 2,000 working hours, and the result is $42,000.
40 hours x 50 weeks x $21 = $42,000
You would average $168 per working day and nothing when you don’t work.
$21 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $43,680
Federal Taxes of 12%: $5,242
State Taxes of 4%: $1,747
Social Security and Medicare of 7.65%: $3,342
$21 an Hour per Year after Taxes: $33,350
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$33,350 ÷ 2,080 hours = $16.03 per hour
After estimated taxes and FICA, you are netting $16.03 an hour. That is $4.97 an hour less than what you thought you were paid.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on a just over $16 an hour wage is much different.
$21 an Hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $21.01-21.99.
This is super helpful if you make $21.30 or $21.63, or $21.88.
You are probably wondering can I live on my own making 21 dollars an hour? How much rent can you afford at 21 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $21 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, above we calculated that $21 an hour was $16.03 after taxes. That would average $2,779 per month.
According to the Cents Plan Formula, here is the high level view of a $21 per hour budget:
Basic Expenses of 50% = $1389.50
Save Money of 20% = $555.80
Give Money of 10% = $277.91
Fun Spending of 20% = $555.83
Debt of 0% = $0
Obviously, that is not doable for everyone. Even though you would expect your money to go further when you are making double the minimum wage.
Learn how to budget on a low income.
So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun money.
To further break down an example budget of $21 per hour, then using the biweekly budget template is extremely helpful.
recommended budget percentages based on $21 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$218
Savings
15-25%
$510
Housing
20-30%
$983
Utilities
4-7%
$182
Groceries
5-12%
$291
Clothing
1-4%
$36
Transportation
4-10%
$146
Medical
5-12%
$182
Life Insurance
1%
$18
Education
1-4%
$36
Personal
2-7%
$67
Recreation / Entertainment
3-8%
$109
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$861
Total Gross Income
$3,640
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
Can I Live off $21 Per Hour?
At this $21 hourly wage, you are close to double the minimum wage. Things should be easy to live off this $21 hourly salary.
However, it is still below the median income of over $60,000 salary. That means it can still be a tough situation.
Is it doable? Absolutely.
In fact, $21 an hour is higher than the median hourly wage of $19.33 (source). That seems backward, but typically salaried workers earn more per hour than hourly workers.
Can you truly live off $21 an hour annually?
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.
You need to do is change your money mindset.
This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 21 dollars per hour. No going into debt for me. I will start saving money.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $21 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $21 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $21.50 will add up over the year. Even better $24 an hour!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $21 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
It is important to uncover what should I do for a living.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation of struggling financially and becoming financially sound happens.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Related Question: How Fast Can you Make Money in Stocks? The Real Answer
Tips to Live on $21 an Hour
In this last section, grasp these tips on how to live on $21 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $21 an hour. An increase to $22 an hour is even better!
Highlight these!
1. Spend Less Than you Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $21 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $21 an hour minus all the taxes, FICA, social security, and Medicare is taken out. That is your net income.
So, your net income has to be less than your gross income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
Save $5k in cash with the trending 200 envelope challenge.
Use one of the popular saving money charts to help you!
It could be participating in a no spend challenge for the month.
It could be challenging friends not to go to Target for a week.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours. There are so many legit ways how to make 300 dollars fast today!
Whatever path you take, that’s fine. Just find ways to make more money. Period.
Can you imagine life earning a $100k salary?
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until week paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Here are resources now for you to pay off your debt:
Jobs that Pay $21 an Hour
You can find jobs that pay $21 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Virtual Assistant – Get free training NOW!
Customer service representatives
Bank tellers
Freelance writers
Restaurant Kitchen staff
Truck driver
Uber /Lyft driver
Security guard
Movers
Warehouse workers
Pharmacy Tech
Welder
Forklift operator
Merchandiser
Call center agent
Nursing Assistant
Companies that pay more than $21 per hour:
Bank of America
USAA
Nationwide
Costco
Wayfair
Amazon
Best Buy
Target
Wells Fargo
Disney World
Disney Land
JP Morgan
Cigna
Aetna
$21 Per Hour Annual Salary
In this post, we detailed 21 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 21 dollars an hour annually…
$43,680
This is right between $43000 per year and $44k a year. In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.