$15 Per Hour Is How Much In A Year?
The current pandemic situation is not going to end soon. So many of us lost our jobs or closed down our businesses because of it. But a lot of jobs have been made available and only pays $15/hr. You might wonder if this is enough to live decently. We’ll discuss how much is $15/hr in a year, tips on how you can survive with that pay, and an example of a budget and jobs that pay with that wage.
We already know that a year has 52 weeks. If you work 40 hours each week, you will have worked 2080 hours per year. A person earning $15 per hour would earn around $31,200 per year. The following is a breakdown of $15 per hour:
- $120 per day ($15 multiplied by an 8-hour workday)
- $600 per week ($15 multiplied by 40 hours)
- biweekly $1,200 (Weekly x 2)
- $2,600 a month (over the course of a year)
- ($15 x 2080 hours) = $31,200 per year
They all reflect an hourly wage of about $15 before taxes. Payroll deductions for things like retirement savings, health insurance, and job-related expenditures, as well as paid and unpaid vacation time, taxes, and payroll deductions for things like retirement savings, health insurance, and job-related expenses, all affect your real take-home pay.
After taxes, though, $15 per hour would be roughly $11.88 to $12.84. (depending on the state you live in). That means your annual compensation would be between $24,700 and $26,700 after taxes. Your entire take-home pay might be as follows:
- Hourly compensation ranges from $11.88 to $12.84.
- Paychecks range from $95.04 to $102.72 every day.
- Weekly wage ranges from $475.20 to $513.60.
- Paychecks are paid biweekly and range from $950.40 to $1027.20.
- Paychecks range from $2,058 to $2,225 per month.
The difference between the highest and lowest taxed states is $4,500 to $6,500. You might wish to reside in a state that does not tax your income if you want to get the most out of your wage. Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee are among the states that do not tax wages. However, comparing the cost of living in other states is also beneficial. In some cases, your money will go further.
Comparison of a $15/Hr
The answer is...yes, you can live on $15 per hour... so long as you live in a city with a low cost of living index and have no dependents.
However, depending on how frugal you are, you will most likely not have much money left over at the end of the month for many 'extras.' Although $15 an hour is not considered good pay, it is more than double the federal minimum wage of $7.25. For 40 hours at $15 an hour, that's $600 a week, significantly less than the $989 median weekly wages of full-time workers in the United States. Depending on your needs and financial position, $15 per hour may be a livable salary.
If you’re single, that can be enough for you. A family of two may live well on $2500 each month. After taxes, that works out to around $17 an hour, but there's still a lot of room for negotiation. That budget would drop by a bit more than $250 per month if they didn't have a car payment.
I believe that $15 an hour is a reasonable wage for a small family, but larger families may find it difficult to make ends meet unless they have another source of income. It will also be influenced by where you reside and how you manage your finances.
Financial freedom is unlikely until you live within your means, whether you make $15 an hour or $150 an hour. A lack of funds isn't always the issue. Money issues are caused by a lack of planning and spending money foolishly.
Here are some pointers to help you make ends meet on $15 an hour:
- Make a spending plan. Start tracking your costs, choosing a budget strategy, and creating your first budget if you haven't already. Regardless of your annual pay, creating and keeping to a budget is one of the most effective strategies to improve your financial status.
- Save as much as you can. Saving money is crucial, and even on a low income, you can save money if you make it a priority. Don't get caught up on the dollar number. Saving something is preferable to saving nothing. Create a practice of saving, then increase your savings when you have the opportunity.
- Do not take on any additional debt. Paying only the minimum payment on credit card debt might result in thousands of dollars in interest. Keep your credit card balances low and avoid taking out any new loans.
- Cut back on spending. It's likely that a large portion of your income is spent on housing and food. Find ways to save money on accommodation if you can, and make a food budget you can keep to if you can.
If you’re making $15 an hour, you might have trouble making ends meet. You might also start to suffer from frugal fatigue, which could kick in after you’ve been living on a tight budget for a long time. You could just get sick of not having any fun money or disposable income available.
Those are clear indicators that you should think about ways to boost your annual revenue. The quickest approach to boost your income is to get a raise, however, this may not be attainable. You could also look for a second job to supplement your income. Consider a low-cost side hustle or gig economy job, such as driving for DoorDash, selling on Poshmark, reading books for money, or freelancing in your spare time with your existing abilities. There are freelance jobs for beginners available if you've never worked on your own before.
Having established your annual, monthly, and weekly incomes let's look at what a typical budget would look like for someone earning $15 per hour.
In order to create a budget, you'll need to figure out how much money you'll be bringing home. Taxes are deducted from the monthly income of $2,625, resulting in a take-home pay estimate of $2,135. (varies by state and paycheck deductions)
Sample Monthly Budget For $15 An Hour:
The majority of $15-an-hour jobs do not require prior experience, according to the US Bureau of Labor Statistics, but you will need a high school diploma to be considered for employment at most companies. The average hourly wage for Mcdonald’s Cashier jobs in the United States is $16.27 per hour as of September 2, 2021.