Possibly you’ve simply come throughout a job itemizing or been provided a job that pays $19 an hour, and it’s time to crunch the numbers.
19 {dollars} an hour is how a lot a 12 months? What about per thirty days, week, and day? How a lot may you be left with after taxes? Is $19 an hour totally different in case you’re a freelancer vs. a W-2 worker for a corporation? Let’s dive into these questions and extra details about how properly you is perhaps doing with a $19/hr job.
$19 an hour is how a lot a 12 months
Let’s assume you’re working full-time, that means 8 hours a day, 5 days per week, 52 weeks a 12 months (together with paid trip time). We are able to use some easy multiplication to calculate how $19/hr provides up over every time interval:
- Each day: $19 x 8 hours = $ 152 a day
- Weekly: $152 a day x 5 days = $760 per week
- Month-to-month: $760 per week x 4.33 (the common variety of weeks per thirty days) = $3291 a month
- Yearly: $760 per week x 52 weeks = $39520 a 12 months
These are all of the gross figures, that means they’re what you earn earlier than taxes are taken out. Your particular tax charges will range relying on the place you reside, whether or not you’re submitting collectively or singly, what deductions you qualify for, and so forth.
$19 an hour is how a lot a 12 months after taxes
25% is usually a great ballpark determine to estimate for federal and state taxes.
Utilizing that 25% quantity, we will multiply our earlier figures by the remaining 75% to determine about how a lot take-home pay you possibly can anticipate after taxes whenever you earn $19 an hour:
- Each day: $152 x 75% = $114 take dwelling
- Weekly: $760 x 75% = $570 take dwelling
- Month-to-month: $3291 x 75% = $2468
- Yearly: $39520 x 75% = $29640
You need to use a U.S. tax calculator to extra particularly estimate how a lot to anticipate in taxes. Word that in case you’re incomes $19/hr as a freelancer, you’ll pay much more, because you’re liable for all of your FICA taxes as a substitute of getting these coated by an employer. Personally, I normally put aside extra like 1/3 of my revenue due to this. (Study extra about self-employment taxes from the IRS right here.)
Is $19 an hour Good, an honest, livable wage?
The reply right here is each easy and complex: it relies upon.
The largest issue is solely the place you reside. Should you’re a digital nomad dwelling in Thailand and making $19 US, you possibly can dwell in luxurious in a penthouse residence. Should you dwell within the Midwest US, you possibly can in all probability afford a mortgage on an honest home. However in case you’re in a metropolis like New York or San Francisco, $19 an hour will in all probability get you a closet with six roommates.
Let’s have a look at an instance month-to-month price range for somebody making $19 an hour. Since housing is without doubt one of the largest bills, we’ll begin there, utilizing the rule of thumb that you just shouldn’t spend greater than 30% of your gross month-to-month revenue on housing. We’ll additionally price range in 15% on financial savings—you possibly can all the time save greater than this in case you’re in a position, however consider saving and investing as a precedence, not simply “no matter I’ve left after my spending.” That’s cash you’re paying to your future self to make your life higher!
Internet Month-to-month Revenue: $2468
Relying on the place you reside, this type of price range might sound extraordinarily doable, or it’d really feel like there’s not a lot wiggle room. Affording every part and managing to save lots of might be rather a lot simpler you probably have a dual-income family. Two individuals who every work full-time and earn $19 {dollars} an hour have a internet take-home of $4936, which is a fairly stable quantity for dwelling properly in most locations!
Seeking to stretch that $19 an hour wage so far as you possibly can so you possibly can dwell properly and bump up your financial savings fee? It’s completely attainable in case you’re decided sufficient! Take a look at these 72 ideas to save cash.
Should you can solely strip your price range down up to now and you may’t discover a job paying greater than $19 an hour, contemplate supplementing your work with aspect gigs on nights or weekends. This may be so simple as doing surveys on Swagbucks when you watch TV, or strolling canine by Rover on Saturday mornings, and even beginning your individual enterprise. Take a look at 114 aspect hustle concepts right here!
TL;DR: Should you simply got here for the brief reply to 19 {dollars} an hour is how a lot a 12 months? Reply: $39520 earlier than taxes.
