45 Dollars an hour, is that too much or too little? In this article, we’ll be breaking down exactly how much 45 dollars is a year and what you can do with this money. As well as this, we’ll also be providing you with some simple calculations that you can use to find out your yearly pay and how much you’re earning an hour. So without any further delay, let’s get started.
How Much Is $45 An Hour As A Yearly Figure?
Before taxes and any other expenditures you have to make, $45 an hour equates to $94,320 after the whole year of work. This is calculated using a standard 40-hour work week. Once this is multiplied by 52, the number of weeks in a year, you reach the number 2,080. This is the number of hours you’ll work every single year. So, to reach our $94,320, we had to multiply our total hours of work for the whole year by our hourly rate, which in this case is $45. This then results in $94,320. This is taking paid and unpaid time off, overtime, and any other payroll deductions into account, so it’s essential to consider this final figure when calculating your yearly income. After considering this, you’d imagine your last number being somewhat different.
The minimum wage in America is currently set at $7.25 and hasn’t been moved since 2009 when it was $5.15. But based on what state you’re in, this can change. For example, Washington D.C has the highest state minimum wage, which is set to $15. So whatever minimum wage is the highest from the state and federal laws is the one that you’ll receive.
But you probably have questions about living on an hourly wage of $45. So let’s break that down next:
What Is $45 An Hour A Week?
Now that we’ve broken down a whole year’s total when working on $30 an hour let’s look at how much that will bring in every week, as that’s much easier to understand with our day-to-day lives. After doing some basic calculations, we can determine that you’d be taking home $1,800 a week if you work a standard 40-hour week. Then, of course, we have to total up taxes, which means you’ll be taking roughly $1300 a week back home after taxes.
What Is $45 An Hour A Month?
For the whole month, we’ll do the same as working out as the week, but times that by 4. Alternatively, we can divide our yearly pay by 12 and leave us with the monthly income. Therefore on $45 an hour every month, you’ll be taking home $7,800 a month, without taxes. With taxes, it’s looking more like $5,925 a month instead.
What Is $30 An Hour After A Day’s Work?
Finally, we’ll determine how much you’ll earn after a full day’s work. For example, if you work 8 hours a day, you’ll make $360 a day without any overtime, which might make you entitled to more pay. After-tax, however, you’ll be making roughly $270 instead.
What About Taxes?
Taxes vary depending on what state you live in and many different factors, but the average amount that will come out of your pay is 18.4%. This is because every citizen of the United States has to pay federal income tax and social security, but state and municipal taxes vary significantly from state to state. For example, in New York, after an hour’s work at $45, you’d receive $32.83, whereas in Texas, the state and municipal taxes are different, so you’d receive $35.37. This is why it’s essential to check how much state and municipal taxes are in your state to estimate your earnings accurately.
There are also a few states that have no state income tax on income; these are:
- New Hampshire
- South Dakota
So your income is always going to be higher in these states.
What About Vacation Days?
Vacation days will always play a large part of your income, so we’ve incorporated these days into your yearly total. But if you’re allotted two weeks of paid vacation, you’re entitled to roughly $2,652 worth of vacation days yearly after taxes. Which is a lot of money, so it’s essential to use those vacation days!
How Many Working Days Are There In 2022?
The year 2022 begins on the 1st of January and ends on the 31st of December. Altogether the year has a total of 365 days, which is 105 weekend days, and 260 weekdays in the year. Because of this, if you worked 8 hours every day and didn’t do any extra overtime on the weekends, you’d have worked 2080 hours overall in 2022. As we did before, we can convert that time into our annual wage of $94,320 before taxes. As well as this, time off will be given for various holidays and events, so you’ll be working less than 2080, but for our example, it’s close enough. It’s just good to keep all of this in mind.
What Rent Can I Afford On $45 Per Hour?
There’s a straightforward calculation that you can do that works for everyone, no matter your income, to work out how much you can pay for rent. Divide your annual before-tax income by 40, and that’s how much you can spend on rent. So for our $45 an hour, let’s work it out.
Before taxes, we have $94,320. This means all we have to do is divide our income by 40. This gives us $. This means we have $2,358 monthly to spend on rent. This isn’t bad and can be alleviated by living in certain states or living with roommates to split the rent.
What Kinds Of Jobs Pay $45 An Hour?
So now that we’ve worked out how much rent can be and all of our incomes, we can look at what sorts of jobs can pay $45 an hour. Of course, this list is incomplete, but it’s a good guide on what sorts of jobs you can expect would be around $30 per hour.
- Software developers
- Physical therapist
- Dental Hygienist
- Graphic designers
To name a few, but generally, you’d find that jobs that require some training and a degree of skill or competence will all be on or higher than $45 per hour. So there are loads of different career paths you can choose from to be on this sort of money.
Is $45 An Hour Considered Good Pay?
If you’re making $45 an hour, you’re well above the national average of $19.33 per hour. So with this money, you can quite comfortably live and have enough money to enjoy yourself and spend it on whatever you like.
$45 an hour is a fantastic salary and one you can depend on so that you’re not living paycheck to paycheck. This all comes down to where you live, as the cost of rent and essential goods such as groceries and toiletries can fluctuate massively throughout the states.
How To Live On $45 An Hour?
Financial freedom is entirely possible on $45 an hour and is quickly done. But you must live within the limits that are set by your salary. No matter what salary you’re on, running out of money generally comes down to not planning effectively enough or spending too extravagantly with your money. So here are some ways that you can help plan out your finances so that you’re never caught running low one month:
It seems obvious, but groceries and essential house goods increase over time. Therefore, you should always look for ways to save money wherever possible; looking for deals and vouchers is never bad.
Have A Financial Plan
You can start monitoring your expenditures by creating a budget to keep track of where you are spending money and where you can save any extra. No matter how much or how little you spend and what sort of budget, it’s always a great idea to keep a financial plan to spend your hard-earned money wisely. It’s so easy to do as well, you can either draw it out in a notepad or whatever you have, or you can even download a budget template online to get started on mapping out your expenditures.
Save Whatever You Can
Whether it’s a few dollars or much more, it’s always a good idea to save money from paycheck to paycheck. It doesn’t matter how much you’re saving, too, as, over time, you’ll see your overall balance increase, and if you keep at it, you’ll be surprised at how much you can save in just a few months. So don’t worry about the numbers; enforce the saving standard, and over time, you can increase the amount of money you deposit every month.
As for our final tip, try to avoid debt at all costs, as even having tiny amounts of money indebted to your name can mean hundreds of dollars worth of interest over the years. So while it’s good practice to purchase goods on your credit card, make sure you pay them off immediately. But, again, you don’t want to be in debt.
What If $45 Isn’t Enough For Me?
With proper planning and carefulness not to spend too extravagantly, $45 an hour is above the national average, and you’ll feel that. But what if you want more? Perhaps you want more revenue or are saving for the future. Here are a few ways that you can boost your income in a relatively short amount of time:
Get A Raise
This won’t be an option that everyone can take, if you could get a raise in the first place, you probably would’ve asked for it already, but it’s never a bad idea to ask an employer if a raise is possible, you could be surprised by the answer, and at the very least they’ll give you some advice on how you can go about getting a raise in the future if you don’t immediately get one.
Look For A Second Job
Part-time work is always needed worldwide, so if you’re looking for extra revenue, it’s not the worst idea to look for some part-time work while free. Just remember not to let your part-time job affect the quality of your performance in your other job.
Final Thoughts On $45 An Hour
Overall, earning $45 an hour is undoubtedly desirable, and if you plan your finances accordingly, you’ll most likely never struggle financially.
Having a family to support can strain your income, but even with less, it’s still possible to support yourself and your family while saving money between each paycheck. So having $360 a day certainly isn’t too stressful, especially if you live independently.
We hope that this article has been helpful for you to understand how a person would live on $45 an hour. While it may seem daunting at first, finances are an easy thing to control once managed correctly, so use some of the methods we used and get saving!