“How much is $15/hr really?” is the question posed by a recent (Finance) article on eurobanktech. The author estimates that if a worker gets paid $15/hr, they will make around $33,000 a year, before taxes. However, in New York, where the minimum wage was recently raised to $15 an hour, a worker making $15 an hour will make close to $29,000. Why? The reason is due to the fact that New York state also has one of the highest costs of living in the nation. It costs much more to live in New York than it does in most other parts of the United States.
My first job was at a McDonald’s where I made $4.25 an hour, and while that may have seemed like a lot to a 15-year-old in the early ’90s, it’s worth less than $9 an hour today. Yet, while the purchasing power of the federal minimum wage has decreased by a third since its peak in the ’70s, it’s still the lowest it’s ever been adjusted since the minimum wage was established, and it has lost more than 10% in value since President Obama took office. There have been several attempts to give low-wage workers a raise, with President Obama supporting a bill that would raise the minimum wage to $10.10 an hour, and several cities having already mandated
The subject of minimum wage is usually brought up when the economy is doing well, the latest example being the minimum wage increases passed by state legislatures around the country in 2018. The latest state to raise its minimum wage is New York, where it will rise to $15 an hour on December 31, 2018, making New York the first state to have a $15 minimum wage. While the federal minimum wage is currently $7.25 an hour, it has not been raised since 2009.. Read more about $20 an hour is how much a year and let us know what you think.In his economic stimulus package, President Biden proposed raising the federal minimum wage from $7.25 an hour to $15 an hour. But what does this mean for our wallets? Fifteen dollars an hour is how much a year? As you can already see, this is more than double the current salary!
$15 per hour is how much per year?
We already know that there are 52 weeks in a year. Assuming you work 40 hours per week, you will work 2080 hours per year. Someone who earns $15 an hour earns about $31,200 a year. $15 an hour
- 120 per day ($15 x 8 hours of work per day)
- 600 per week ($15 x 40 hours per week)
- 1,200 every second week (Weekly x 2)
- 2,600 per month (yearly ÷ 12 months)
- 31,200 per year ($15 x 2080 hours)
After taxes, however, the $15 per hour drops to about $11.88 – $12.84 (depending on the state you live in). That means your annual salary after tax would be $24,700 to $26,700 per year. Your total salary could be :
- Hourly wage = $11.88 – $12.84
- Daily wage= $95.04 – $102.72.
- Weekly salary= $475.20 – $513.60.
- Bi-weekly salary = $950.40 – $1027.20.
- Monthly salary= $2,058 – $2,225.
Ouch! That’s a drop of $4,500 to $6,500 between the state with the highest and lowest tax level. To make the most of your salary, you can choose to live in a state that does not tax your income. States not applying any payroll tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire and Tennessee. However, it is also useful to compare the cost of living in different states. In some cases, your money can go further.
Working for $15 an hour
These are jobs that pay at least $15 an hour.
- Targeted employees (you set a goal for the end of 2020).
- Account Manager
- Warehouse manager
- Specialist in leisure programmes
- Library System Specialist
(I found these jobs by searching on job boards in my area).
Is $15 an hour a good thing?
15 an hour is certainly a lot better than the current federal minimum wage, but it’s still not a great wage. 7.25 an hour is $15,080 a year, so $31,200 isn’t a bad pay raise, but you still have to budget wisely and spend money to make ends meet. My family of two is doing well, I live on $2500 a month. That would be about $17 an hour after taxes, but we certainly have a lot of wiggle room. If you don’t pay for a car, this budget is reduced by $250 per month. I think $15 an hour is an acceptable wage for a small family, but for larger families it can be difficult if there is no other source of income. It also very much depends on where you live and your budget.
How to live on $15 an hour
It doesn’t matter how much money you make, the important thing is that you live above your means. The main reason people end up in debt, even the rich, is because they spend more than they earn. If you want to live in financial freedom, this is not a good thing. 4 basic steps to financial security with your income :
- Preparation of the budget: Learn how to create a simple budget here.
- Saving money: Remember that saving takes precedence over spending.
- Reduce your costs: Here are 40 tips I use in my life.
- Paying off debts quickly: Paying the minimum fee leads to insane interest rates. Speed up the debt repayment process by following these steps.
For more tips, check out my guide: How to live within your means. For example, you can save money on housing if:
- Room rental
- Living in a smaller house
- Living outside the city (cheaper houses, but longer commute).
I also have a post about my monthly grocery list that I only spend $200 on (including meal plans)! 15 is a good hourly wage, but if you can’t fit that into your lifestyle, you’re better off looking for a better paying job or taking a side job.
$15 per hour Sample budget
Don’t know how to budget and live on $15 an hour? Maybe this will help you. This budget breakdown is based on the lesser of two monthly salaries after tax: $2,058. Of course, the costs in your life can be totally different. Play around with the numbers and find what works for you while saving money and living a good life.
- 10% savings = $205.80.
- Rent/mortgage + utilities = $679 (⅓ of income).
- Car payment = $0 (you can buy a cheap Honda or Toyota for around $2,000).
- Car insurance = 100
- Health insurance = 100
- Mobile phone = 50
- Internet = 50
- Petrol = 60
- Food = 100
- Personal and incidental expenses = $100
- Entertainment = 50
- Total = $1494.80 with a balance of $563.20
It may not be easy to budget for this salary, but it is possible. It’s all about setting the right priorities and not wasting money.
Skyrocketing rents and the rising cost of living have made it harder than ever to get by in this country, but at least you can breathe easy knowing that your paycheck is covering your needs, at least for now. But how much does your annual income cover? How much would you have to earn to pay for your rent, groceries, health care, and everything else? For the sake of this calculation, we’re going to assume that you earn a little over $15 an hour, or $31,200 a year. Read more about $17 an hour is how much a year and let us know what you think.
Frequently Asked Questions
Can you live off $15 an hour?
For most people, $15 an hour is a good living wage. But how much can you actually live off of that amount of money in the current cost of living economic environment. That is the question we will explore in this blog post. According to the federal government poverty guidelines, a single person who works full time must make below $15,080 a year or less to be considered in poverty. (The government guidelines, however, are not based on what an average person needs to live on in order to afford rent, food, and other living expenses.) While many people believe that living on a minimal wage is near impossible, the people who are living off $15 an hour show that it is possible. $15 an hour is how much a year? The amount can be seen as minimal, but it is not impossible to live off that amount.
Is getting paid 15 an hour good?
According to the Bureau of Labor Statistics, in 2014, the average American worker earned $24.53 per hour. Assuming this person worked 2,080 hours in a year, this averages out to $47,956.60 each year. This is the average, however, and many people earn much more or less than this amount. For example, a software developer in Silicon Valley might earn $100,000 a year while a waiter in Los Angeles might earn $20,000 a year. A minimum wage job in 2014 paid $7.25 an hour, at 40 hours a week, 52 weeks a year, this would be a total salary of $15,080. Raising the minimum wage beyond the poverty line has been on the agenda of many politicians in the U.S. for some time. Some people feel it’s too low, while others feel it’s a distraction from the real problems of the economy. What do you think? A recent study by the Massachusetts Institute of Technology has concluded that raising the minimum wage to $15 per hour would raise the pay for some 28 million workers across the country. This sounds like a good thing, but it also sounds like it could be bad for the economy.
How much is $15 an hour annually after taxes?
How much is $15 an hour annually after taxes? This is a question asked by many people. Here is the answer. 15 dollars an hour is a popular number these days. The Fight for $15 movement is currently active in all 50 states and in Puerto Rico, with campaigns in the UK and other countries. And Democratic presidential candidates are all vying to be the $15 minimum wage candidate on a national scale.
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