# \$50,000 a Year is How Much an Hour? Is It A Good Salary

So, you’re out with friends having a nice dinner and catching up.

Out of the blue, one of your friends tells you that she just got a new job and she’s making \$50,000 per year.

She’s super excited, of course because starting a new job is a major life event.

After she fills you in on all the details of her new role, you start wondering, is \$50,000 per year a good salary?

Should she be picking up the check for your dinner out now that she’s making \$50,000 a year?

Is 50,000 dollars per year a livable wage?  What can you really afford if you make 50k per year?

## Let’s break down how much \$50,000 a year really is:

50,000 per year = 24.03 per hour (40 hours per week)

50,000 per year = 192.30 per day (8 hours per day)

50,000 per year = 961.53 per week (52 weeks per year)

50,000 per year = 4,166.00 per month (12 months per year)

Unfortunately, the numbers above aren’t your true take home pay.  We still have to factor in the taxes that will be taken out of each and every paycheck.  Once you take out taxes, what you have left is your true take home or “net” pay.

I estimate that 25% of our gross paycheck goes towards taxes.  This amount is an estimate and the amount you pay for taxes could be higher or lower, but 25% is a good starting point.

So after taking out 25% for taxes, here’s what you’ll clear on \$50,000 per year:

Per Hour:  24.03 x 25% taxes = 6.00 for taxes.  24.03-6.00 = \$18.03 Net Per Hour.

Per Day:  192.30 x 25% taxes = 48.07 for taxes.  192.30-48.07  = \$144.23 Net Per Day.

Per Week:  961.53  x 25% taxes = 240.38 for taxes.  961.53-240.38 = \$721.15 Net Per Week.

Per Year:  4166.00  x 25% taxes = 1041.50 for taxes. 4166.00-1041.50=  \$3124.50 Net Per Month

The bad news is that you’ll always have to pay taxes. The good news is that some states don’t have a tax on wages, so you may avoid paying the state wage tax if you live in one of these states.

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

## Is \$50,000 A Good Salary?

According to the Bureau of Labor Statistics (BLS), the median wage for workers in the United States in the second quarter of 2021 was \$990 per week or \$51,480 per year (assuming 52 weeks of work per year).

Wages were 4.5% higher than a year earlier in 2020.

(Update: In March 2022, the average hourly earnings of all employees in the United States was at 11.03 U.S. dollars)

For your particular situation, it’s hard to say if 50,000 per year is a good salary because it’s all relative.  And it largely depends on what you’re accustomed to earning.  If you’re used to making 35K a year, a salary of 50,000 is probably fantastic for you.

If however, you’re used to making 65,000 per year, getting used to a salary of 50,000 per year will probably take some adjustments.

The good news is that we can show you how to budget to make 50,000 per year work for you and your family.

You’ll notice that the first line of our budget is always savings.

This is because we strongly believe in paying yourself first.  The only way to get ahead financially is to save, save, and save some more!  In fact, we believe in saving at least 15% of your income, and 20% is even better.

This budget shows how to save 15% and still be able to pay for day to day life:

Net Monthly Income:  \$3125

Monthly Budget For A Couple

• Savings:  \$500
• Housing:  \$1000
• Car Payment:  \$350
• Utilities:  \$200
• Insurance:  \$200
• Phone:  \$50
• Food:  \$350
• Personal: \$250
• Entertainment:  \$225

Here is the same \$3125.00, this time budgeted for a family of 4:

• Savings:  \$500
• Housing:  \$900
• Car Payment:  \$300
• Utilities \$250
• Insurance:  \$200
• Phone:  \$50
• Food:  \$450
• Personal:  \$250
• Entertainment:  \$225

So you can see that \$50,000 per year is a livable wage for couples or families but you’ll have to put forth some effort to make it work.  First, you’ll want to set up a budget so you know where your money is going.

Why Should I Have A Budget?

People hate the word budget, but with a budget, you are telling your money what to do; not the other way around.  If you have a monthly budget, you have power over your money.  A simple budget is very easy to create.

A lot of people think creating a budget limits them to what they can do with their money.  In my experience, it’s just the opposite.  A budget is freeing!

What Exactly Is A Budget?

Don’t forget to pay yourself first and list your savings as the first item on your budget. This is your budget. The beauty of a budget is that you’re in control and you can switch up your budget at any time.

For instance, if you had a car loan and just paid it off, guess what?  Now you decide what you want to do with that money that was going towards your car payment.

I’d always suggest putting any money you no longer need for bills straight into savings.   Even if you don’t think it’s much money, believe me, it will add up over time!

Check out our budget templates and budget planners.

What If I Can’t Afford To Save Money?

You can’t afford NOT to save money.

If you don’t save money, you will never have money. Do you really want to live paycheck to paycheck? No way!

You’re too smart for that.  So even if you’ve never been able to save money in the past, starting now, you can train yourself to save money.

Start Small

The first step to saving is to establish an emergency fund.

This is a fund to pay for any emergency so you don’t have to borrow money or use a credit card.  We all know that financial emergencies pop up all the time so you need to be prepared.

Open a separate savings account that is ONLY to be used for emergencies.  Aim to build up the fund so you have at least \$1000.00.

Check out how to save \$1000 fast.

How Do You Increase Savings?

Once you get the hang of sticking to your monthly budget and saving money every month, you’ll probably want to increase your savings rate.

There are lots of different ways you can increase the amount of money you save each month.  You may have to get creative, but it will definitely pay off.

Try a Side Hustle

Right now I’m working a couple of side gigs that to help pay for my trip to Florida this spring.  I decided I didn’t want to use my pay from my full-time job and challenged myself to earn enough money with a side gig to pay for the condo we’ll be staying at for a month this spring.

I’ve been working about 15-20 hours per week at my side gig since mid-September.  I’m well on my way and it hasn’t been that hard! Some of the side gigs I’ve picked up are seasonal and only temporary; others are permanent part time gigs.

Wrap Up

Now that you know how much \$50,000 per year really is, you can make an informed decision as to whether that is a good salary for you and your family.  If you think you need to earn more to have the lifestyle you desire, you can always pick up a side gig.

Another option to consider is moving to a city and state where the cost of living is lower so that the \$50,000 per year will go further for you and your family.

Related: How much is six figures?