Into the stimulus plan, President Biden comes up with a request to raise the minimum wage from $7.25 an hour to $15 per hour. But what does this mean for the wallets of people? 15 An Hour is How Much a Year? As you can clearly see that it is more than double the present wages.
15 An Hour is How Much a Year?
We all know very well that there are 52 weeks in a year and if we assume to work 40 hours in a single well then we are nearly working 2080 hours in a year. If a person is earning $15 per hour then he or she will be able to earn $$31,200 per year by just working 40 hours.
Also Read: How Many Working Hours In A Year
15 An Hour is How Much a Year Breakdown:
- $120 per day ($15 x 8-hour workday)
- $600 per week ($15 x 40-hour week)
- $1,200 biweekly (Weekly x 2)
- $2,600 per month (Annual divided by 12 months)
- $31,200 per year ($15 x 2080 hours)
After the taxes, $15 per hour will be reduced to nearly $11.88 to $12.84 which will completely depend upon the state where you are living. It means that your annual salary would be $24,700 – $26,700 per year including taxes. Also, your total take-home salary would be:
- Hourly Pay= $11.88 to $12.84
- Daily Paycheck= $95.04 to $102.72
- Weekly Paycheck= $475.20 to $513.60
- Biweekly Paycheck= $950.40 to $1027.20
- Monthly Paycheck= $2,058 to $2,225
This is a drop of $4,500 to $6,500 between the high to low tax states. In terms of making the most of your salary, you may need to live in a state which doesn’t take the tax from your income.
States That Don’t Take Tax Wages in the USA
We are going to tell you about some of the states which don’t take the taxes on the wages. So, simply check them out.
- South Dakota
- New Hampshire
It is also profitable for people to simply compare the cost of living in the different states. Also, your money can simply go further in some of the cases.
15 Dollars An Hour Jobs
Here, we are going to share some of the jobs which are paying an hourly wage of a minimum sum of $15.
- Target Employees
- Customer Service Representative
- Warehouse Workers
- Recreation Programs Specialist
- Leasing Agent
- Library Specialist
- Under The Table Jobs
Also Read: Jobs That Pay Over 300k A Year
Is $15 An Hour Good?
$15 per hour is really a better option than the current federal minimum wage and it is not a great salary. $7.25 per hour is $15,080 per year and they will increase to $31,200 but you are still required to budget and spend your money properly in order to get by.
My two-person family has successfully done thus living under $2500 per month. This will be nearly $17 per hour including taxes but we still have a wiggle room. As we don’t have the car payment, that budget will drop by over $250 per month.
As per my opinion, $15 an hour is livable only if you are having a small family but it may be hard for those people who are having a big family until they have a different source of earning. Also, it will largely or completely depend upon where you are living and also what is your budget.
How to Live on $15 An Hour
It doesn’t matter how much money you are earning, the major part is to simply live below your means. The main reason behind why people end up in debt and also the rich people is because they are spending more and earning less. If you are willing to live a life of financial freedom then it is not good for you.
The major 4 steps to becoming secure financially along with your income are:
- Create A Budget: You just need to know and learn about how to create a budget.
- Save Money: You need to remember and make the savings your priority before you spend.
- Lower Your Expenses: There are 40 cheap living tips that I live by.
- Pay Off Debt Fast: To pay out the minimum fee results in crazy amounts. You have to fast-track your debt payoff by simply doing some of these things.
For Example – You Can be Able to Save Money On Housing By:
- Renting a room
- Living in a small home
- Living outside of the city
$15 is really a good hourly wage but if you are not able to make this salary work for your lifestyle then you may have to look up a better paying job or you may need to pick up a side hustle.
$15 An Hour Budget Example
If you are not sure about how to budget and live off $15 an hour then it will be helpful for you. This budget breakdown will be completely based upon the lower of the two after-tax monthly salaries: $2,058. The expenditures in your life may be different slightly.
You need to play around with the numbers and be required to find out about what will work for you when allowing you to simply save money and to live a great life.
- Savings of 10% = $205.80
- Rent/Mortgage + Utilities = $679 (⅓ of income)
- Car Payment – $0 (You can buy a cheap honda or toyota for about 2k)
- Car Insurance = $100
- Health Insurance = $100
- Cellphone = $50
- Internet = $50
- Gas = $60
- Groceries = $100
- Personal & Misc = $100
- Entertainment = $50
- Total = $149.80 with $563.20 leftover
It is really not easy for people to budget on this much salary but it is doable. The major thing is to simply prioritize your requirements and not waste money.
We hope that you get your answer about 15 An Hour is How Much a Year. If you find this article helpful then do share this article with other people so that they also get benefited from this article.