$55,000 a Year is How Much an Hour? Is $55,000 a Good Salary?

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So, you’re out with mates having a pleasant dinner and catching up. 

Out of the blue, considered one of your pals tells you that she simply obtained a brand new job and she or he’s making $55,000 per 12 months. 

She’s tremendous excited, in fact as a result of beginning a brand new job is a serious life occasion. 

After she fills you in on all the main points of her new position, you begin questioning, is $55,000 per 12 months an excellent wage? 

Ought to she be choosing up the examine on your dinner out now that she’s making $55000 a 12 months?  

Is 55,000 {dollars} per 12 months a livable wage?  What can you actually afford if you happen to make 55k per 12 months?

Let’s break down how a lot $55,000 a 12 months actually is: 

55,000 per 12 months = 26.44 per hour (40 hours per week)

55,000 per 12 months = 211.54 per day (8 hours per day)

55,000 per 12 months = 1,057.69 per week (52 weeks per 12 months)

55,000 per 12 months = 4,583.33 per thirty days (12 months per 12 months)

Sadly, the numbers above aren’t your true take dwelling pay.  We nonetheless should issue within the taxes that will likely be taken out of each paycheck.  As soon as you’re taking out taxes, what you’ve left is your true take dwelling or “web” pay. 

I estimate that 25% of our gross paycheck goes in direction of taxes.  This quantity is an estimate and the quantity you pay for taxes may very well be greater or decrease, however 25% is an effective start line. 

So after taking out 25% for taxes, right here’s what you’ll clear on $55,000 per 12 months after taxes:

Per Hour:  26.44 x 25% taxes = 6.61 for taxes.  26.44-6.61 = $19.83 Internet Per Hour after taxes.

Per Day:  211.54 x 25% taxes = 52.89 for taxes.  211.54-52.89  = $158.65 Internet Per Day.

Per Week:  1,057.69  x 25% taxes = 264.42 for taxes.  1,057.69-264.42 = $793.27 Internet Per Week.

Per 12 months:  4,583.33  x 25% taxes = 1,145.83 for taxes. 4,583.33-1,145.83=  $3,437.50 Internet Per Month

The unhealthy information is that you simply’ll all the time should pay taxes. The excellent news is that some states don’t have a tax on wages, so you could keep away from paying the state wage tax if you happen to reside in considered one of these states. 

The states that don’t at the moment tax wages are: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee.

Is 55,000 A Good Wage?

In response to the Bureau of Labor Statistics (BLS), the median wage for employees in the USA within the first quarter of 2020 was $957 per week or $49,764 per 12 months (assuming 52 weeks of labor per 12 months). Wages had been 5.7% greater than a 12 months earlier in 2019.

On your specific scenario, it’s onerous to say if 55,000 per 12 months is an effective wage as a result of it’s all relative.  And it largely depends upon what your accustomed to incomes.  Should you’re used to creating 40K a year, a wage of 55,000 might be incredible for you. 

If nonetheless, you’re used to creating 70,000 per 12 months, getting used to a wage of 55,000 per 12 months will most likely take some changes. 

The excellent news is that we are able to present you how you can finances to make 55,000 per 12 months be just right for you and your loved ones. 

You’ll discover that the primary line of our finances is all the time financial savings.  It is because we strongly consider in paying your self first. 

The one strategy to get forward financially is to save lots of, save, and avoid wasting extra!  Actually, we consider in saving atleast 15% of your earnings, and 20% is even higher.

This finances reveals how you can save 15% and nonetheless be capable of pay for daily life:

Internet Month-to-month Revenue:  $3,437

Month-to-month Price range For A Couple

  • Financial savings:  $800
  • Housing:  $1,000
  • Automobile Pymt:  $350
  • Utilities:  $200
  • Insurance coverage:  $200
  • Telephone:  $50
  • Meals:  $350
  • Private: $250
  • Leisure:  $225

Right here is similar $3,437, this time budgeted for a household of 4:

  • Financial savings:  $562
  • Housing:  $1,000
  • Automobile Pymt:  $300
  • Utilities $250
  • Insurance coverage:  $200
  • Telephone:  $50
  • Meals:  $600
  • Private:  $250
  • Leisure:  $225

So you possibly can see that $55,000 per 12 months is a livable wage for {couples} or households however you’ll should put forth some effort to make it work.  First, you’ll need to arrange a finances so you already know the place your cash goes.

Why Ought to I Have A Price range?

Individuals hate the phrase finances, however with a finances you might be telling your cash what to do; not the opposite manner round.  If in case you have a month-to-month finances, you’ve energy over your cash. 

A easy finances could be very straightforward to create.  Take a look at our simple budget templates.

Lots of people suppose making a finances limits them to what they will do with their cash.  In my expertise, it’s simply the other.  A finances is releasing!

What Precisely Is A Price range?

Merely write down your month-to-month earnings and subtract your month-to-month bills. 

Don’t neglect to pay your self first and listing your financial savings as the primary merchandise in your finances. That is your finances. The great thing about a finances is that you simply’re in management and you’ll swap up your finances at any time. 

As an example, if you happen to had a automotive mortgage and simply paid it off, guess what?  Now you determine what you need to do with that cash that was going in direction of your automotive fee. 

I’d all the time recommend placing any cash you now not want for payments straight into financial savings.   Even if you happen to don’t suppose it’s a lot cash, consider me, it should add up over time!

What If I Can’t Afford To Save Cash? 

You possibly can’t afford NOT to save cash. 

Should you don’t lower your expenses, you’ll by no means have cash. Do you actually need to reside paycheck to paycheck? No manner! 

You’re too sensible for that.  So even if you happen to’ve by no means been ready to save cash previously, beginning now, you possibly can practice your self to save cash. 

Begin Small

Step one to saving is to ascertain an emergency fund. 

It is a fund to pay for any emergency so that you don’t should borrow cash or use a bank card.  Everyone knows that monetary emergencies pop up on a regular basis so you should be ready. 

Open a separate financial savings account that’s ONLY for use for emergencies.  Purpose to construct up the fund so you’ve at the very least $1000.00.

Take a look at how to save $1000 fast.

How Do You Improve Financial savings?

When you get the cling of sticking to your month-to-month finances and saving cash each month, you’ll most likely need to improve your financial savings price. 

There are many other ways you possibly can improve the amount of cash you save every month.  You will have to get inventive, or drastically cut your expenses however it should undoubtedly repay.

Attempt a Facet Hustle. 

Proper now I’m working a few aspect gigs that to assist pay for my journey to Florida this spring.  I made a decision I didn’t need to use my pay from my full-time job and challenged myself to earn sufficient cash with a aspect gig to pay for the apartment we’ll be staying at for a month this spring. 

I’ve been working about 15-20 hours per week at my aspect gig since mid-September.  I’m properly on my manner and it hasn’t been that tough! A number of the aspect gigs I’ve picked up are seasonal and solely momentary; others are everlasting half time gigs. 

Take a look at: Side hustles to make money on the side

Wrap Up

Now that you know the way a lot $55,000 per 12 months actually is, you may make an knowledgeable choice as as to if that may be a good wage for you and your loved ones.  Should you suppose you should earn extra to have the approach to life you want, you possibly can all the time decide up a aspect gig. 

Another choice to think about is shifting to a metropolis and state the place the price of residing is decrease in order that the $55,000 per 12 months will go additional for you and your loved ones



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