According to the US department of labor, In January 2022, the federal minimum went up to 15 dollars per hour. With this new update in mind, many people started asking the question, “How much is $15 an hour, and can someone live off of it?”
So can a person live off of $15 an hour in today’s time? That seems to be a very popular question that many people ask. So let’s break down the math to find out. This post will cover how much $15 an hour is per year and the type of jobs you can get that start at $15 an hour.
15 Dollars An Hour Is How Much A Year?
Since there are 52 weeks in a year and most people work 40 hours per week, the average amount of hours that person would work is 2,080 hours per year.
Here is the breakdown:
- 52(weeks) X 40 (hrs)= 2,080 hrs
- 2080(hrs) X 15(hourly rate)= $31,200
If you work 2,080 hours per year, that will come out to $31,200 per year before taxes earning $15 an hr.
Here is the breakdown for $15 per hour with an annual salary of $31,200 before taxes
- Daily: $120 ($15 X 8hrs)
- Weekly: $600 ($31,200 ÷ 52)
- Biweekly: $1,200 ($31,200 ÷26)
- Monthly: $2,600 ($31,200 ÷12)
How Much Is $15 An Hr After Taxes?
The amount you earn for the year will be reduced depending on the state you live in. Depending on your state your annual could drop between $24,600 to $26,800.
Let’s create an example. Let’s say you live in a state with a tax of 19.24% of your annual income.
If you earn $15 an hour ($31,200 per year) before taxes, you will pay an estimate of 19.24% in taxes which means you would bring home an estimate of $25,197.12 after taxes.
Here is the breakdown:
19.24% of $31,200 = $6,002.88
$31,200 – $6002.88= $25,197.12
So after taxes, you would take home an estimate of $25,197 per year.
Keep in mind the percentage of taxes being taken out of your check will vary depending on the state that you live in.
To check out how much you will pay in taxes in the state that you live in, check out the Smart Asset Paycheck & Taxes Calculator by clicking here.
Additionally, while most states tax your income, some states don’t. Here is the list of states that don’t tax your income.
- South Dakota
- New Hampshire
How Much Is $15 An Hour Per Day?
If you work 5 days of the week with a rate of $15 an hour, you will earn $120 per day before taxes. (Keep in mind the average is the total of working 8-hrs all 5 days)
Here is the breakdown:
- Daily: $120 ($15 X 8hrs)
How Much is $15 An Hour Per Week?
$15 an hour per week equals $600 before taxes. Here is the breakdown:
Divide the annual income of $31,200 by the number of weeks per year. So it would look like this: Weekly: $600 ($31,200 ÷ 52 = 600)
How Much Is $15 An Hour Bi-Weekly?
$15 an hour bi-weekly comes out to be $1,200 before taxes. Here is the breakdown.
Divide the annual salary of $31,200 by the week you would work bi-weekly– which would be 26 weeks).
Biweekly: $1,200 ($31,200 ÷26)
How Much is $15 An Hour Per Month?
A job that pays $15 an hour would equal $2,600 earned each month before taxes. Here is the breakdown:
Divide the annual salary of $31,200 by the 12 months of the year. Monthly: $2,600 ($31,200 ÷12)
Is $15 An Hour Good?
$15 an hour is a pretty good starting place if you don’t have a lot of bills and expenses. So this will vary depending on your financial situation.
Things to consider are the cost of living in your state, the cost of food, your monthly bills, your monthly expenses, if you have any debt, and if you have help with your monthly bills and expenses.
So as a result, this will vary depending on the person and their financial situation and goals. If $15 an hour isn’t enough for your current financial situation, consider picking up a side hustle.
Can You Live Off $15 An Hr?
Depending on your financial situation, this will also vary depending on the person. For example, you can live off of $15 an hour if you set up a monthly budget and your monthly bills and expense don’t exceed your monthly income.
How To Live Off of $15 An Hour
If you are looking to live off of $15 an hour, here are some tips.
1. Create A Budget
Setting up a monthly budget can help set you up for success each month. A budget is a financial plan based on your income and expenses.
2. Pay off Debt
If you have any debt, create a plan of action to pay it off within’ your means.
3. Pick Up a Side Hustle To Make More Money
To help add more money to your pocket, consider picking up a side hustle. Some of the best side hustles to make money are becoming a virtual assistant, participating in focus groups, completing surveys online, and tutoring online.
4. Cut down on expenses
One thing that can help when trying to stay within your budget is to cut down on costs. For example, consider cutting down on monthly subscriptions that you don’t use and fast food.
Jobs That Pay $15 An Hour
If you are looking for jobs that pay $15 an hour, here is a list of 7 jobs that you can look into. Keep in mind the average hourly rate might go up or down throughout the year for these jobs.
1. Medical Transcriber
Job Duties: Medical transcribers convert audio into written documents for medical professionals.
2. Mail Handler
Job Duties: Mail Handlers help manage and handle mail at post offices and help with day-to-day operations.
3. Customer Service Representative
Job Duties: Helps with customer relations by answering phones and helping resolve any problems or concerns that the customers may have via phone or email.
4. Assistant Manager
Job Duties: Perform managerial tasks such as maintaining inventory, helping with scheduling, and evaluating employees’ performances throughout the months.
5. Bank Clerk
Job Duties: Helps with answering customers’ banking questions, handling bank transactions, and helping with processing mortgage and loan applications.
6. Makeup Artist
Job Duties: Helps clients with enhancing their looks through makeup and helps consult clients to create custom make-up looks for photoshoots, film shoots, events, and more.
Job Duties: Answer calls and direct customers in the right direction. They also handle administrative tasks, transfer calls, update records, and provide information to customers.
How To Budget With An $15 Per hour Job
Setting up a budget is one of the best ways to make sure you succeed with your finances with a job that pays 15 dollars an hour.
Here is a sample budget of a person who earns 15 dollars per hour and has no debt. For this example, let’s say after taxes, they take home a total of $2,210 each month.
We will be using the 70/20/10 budget method, which means 70% of your income after taxes will go to necessities + Entertainment, 20% on investment and savings, and 10% for paying off debt or donations.
This budget method helped me pay off over $20,000 of debt.
70/20/10 Budget Monthly Budget Method
Monthly Budget Total: $1992
Side Hustles To Make More Money
Another great way to live off of $15 an hr without going over your budget is by picking up an additional side hustle. Here are 6 legit side hustles you can look into to make extra money.
Complete Surveys Online
Completing surveys online is a great way to make extra money at home or on the go. When you complete surveys online, you give your opinions about different products and services. My favorite websites to complete surveys online are Swagbucks, Inbox Dollars, and Survey Junkie.
- Participate In Focus Group
Participating in focus groups is another great side hustle that I recommend to make extra money. When you participate in a focus group, you give your honest opinions on products to help brands revamp their marketing. Some of my favorite focus group platforms are Respondent.io, FocusGroups.com, and UserInterviews.
Offer Virtual Assistant Services
When you offer virtual assistant services, you help entrepreneurs and companies with administrative tasks such as scheduling, data entry, social media management, etc. Some places online to find virtual assistant jobs are Belay, Upwork, Indeed.com, and FlexJobs.
Offer Proofreading Services
Another great side hustle to check out is proofreading. With proofreading, you help people find grammatical errors in written documents. Places to find proofreading jobs are Proofreading Pal, Upwork, Fiverr, Freelancers, and Flexjobs.
Review Books Online
Deliver Food & Groceries
Final Thoughts on 15 dollars An Hour Per Year:
Can you live off of 15 dollars an hour? The short answer is only if you have additional help or a second job. According to US News, A $15 hourly wage isn’t liveable anywhere in the US. A recent study showed that an hourly wage of 15 dollars an hour wouldn’t fully cover monthly expenses such as rent, food, car insurance, and more.
If you have additional help and your monthly expenses don’t exceed your income, you might be able to live off of 15 dollars an hour. While studies have shown it’s close to impossible, it can be done if you have additional help, such as a roommate.
The key to living off of 15 dollars an hour is to set up a monthly budget to help you live within your means and not overspend. According to an article on CNBC, around 61 % of Americans live paycheck to paycheck, so it’s essential to set up a monthly budget each month.
Additionally, you can look into picking up a side hustle to help you make more money each month if $15 an hour isn’t enough for you. Picking up a side hustle can help you increase your monthly income and help with other financial worries. Do you think you can live off of $15 an hour? If so, let us know your thoughts in the comment section below.