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Do you want to know $40000 a Year is How Much an Hour?
But this is a direct calculation, there is more to this than meets the eye.
Do you want to know the breakdown of this $40,000 a Year is How Much an Hour? This is how.
Assume you work 40 hours a week.
In a year, there are 52 weeks in a year.
So your total number of hours working in a year are 40*52 = 2080 hours.
Your income/number of hours = $40,000/2080hours = $19.23 per hour.
Now, we did not factor in your vacation time or your leaves in the above calculation.
Number of off weeks (or hours) varies from company to company and typically there are two scenarios.
Company A: Gives you two weeks of paid time off
Company B: Gives you three weeks of paid time off
If you work for Company A, your $40,000 a Year income translates to $20 per hour.
If you work for Company B, your $40,000 a Year income translates to $20.41 per hour
I have worked for over 12 years and in my experience, the per hour value that you associate for your job is never as per what is mentioned on paper.
For example, officially your job might be only working 40 hours a week, but it can go up to 50 hours a week because you needed the extra hours to complete your tasks.
In this case, you earn $15.38 per hour.
Then there are other factors such as commute, your opportunity cost, housing costs etc. that you need to consider before accepting a job which pays you $40,000 a Year.
Since last four months, I have been working for myself and making half the income I was making when I was having a full time job. But, I rather have my time than extra money for the hours.
With time, I can focus on my side projects, work on my health and indulge in my hobbies without having to drive in rush hour traffic, attending mindless meetings and not always being under pressure.
Even if you have a full time job, I urge you to start making some money on side through some form of side hustles.
I have also written a detailed post about Best Entry Level Work from Home Jobs that do not require any special qualification and best early morning jobs that will pay you decent money so you can have free time during the day.
You can read those posts if it interests you.
So now coming back to the original question of $40,000 a Year is How Much An Hour per Packcheck
Generally companies pay their employees either monthly, bi-weekly or in some cases weekly.
$40,000 a Year is How Much An Hour per Monthly Packcheck
$3333.33 before taxes and deductions.
$40,000 a Year is How Much An Hour per BiWeekly Packcheck
$1,538.40 before taxes and deductions.
$40,000 a Year is How Much An Hour per Weekly Packcheck
$769.20 before taxes and deductions.
How Much is a $40,000 Salary?
As per Bureau of Labor, in 2017 this was the income breakdown as per Age in U.S
65+ years of age: $47,008.
55–64 years of age: $50,232.
45–54 years of age: $50,700.
35–44 years of age: $50,752.
25–34 years of age: $40,352.
20–24 years of age: $27,300.
16–19 years of age: $21,944
So as you can see, depending on your age, a $40,000 Salary is as per median income in the United States and if you are married, your household income is slightly above average considering your spouse is also working.
Is $19.23 an hour A Good rate to be working?
Minimum wage in U.S is $7.25 and considering that, you are making almost three times the money. However, if you have student loans, if you have debt, if you have credit card loans, then $19.23 an hour might not be enough.
I always tell people that if you are in debt, you should take whatever job is available and start planning your finances without jumping into a full time business.
If you have a stable job, then you can start a side-hustle and try to make some extra income and may be the side income can actually become a full time income in a few years time.
How to Increase Your Income Beyond $40,000 a Year while Still Keeping Your Day Job
If you are in a job that pays $40,000 a Year and you need more money, here are some ways to increase your income beyond $40,000 a Year.
Online freelance services are the easiest way to make money online. There are plenty of great freelance opportunities such as graphic design, content writing, editing, virtual assistant etc. which pays good money for a few hours of your work.
Some of the best websites to start offering freelance services and make money are
Part Time Gigs
Part time delivery jobs such as online food delivery or driving services such as Uber/Lyft can also help you make some additional income on the side.
The best thing about part time gigs is that you can work whenever you are available and earn decent money to cover your daily expenses.
We have written a detailed comparison review of Postmates vs Doordash about benefits of both platforms, average income, pros and cons–you can read it if it interests you.
Start A Side Hustle
A side-hustle is any activity that can help you make money without you having to work on it full time. A YouTube channel, a blog or even a simple ecommerce website based on Shopify can be considered a side hustle if it is making you money without requiring a full time effort.
I have written detailed posts on how to make money from Facebook, how to make money from YouTube and how to make money through blogging. You can find these posts linked at the bottom.
Make Money Flipping Furniture
Flipping furniture is also a good way to make some extra income in case you want to earn more money than your $40,000 a Year job. You can buy any “in demand” furniture, restore it and sell it online for a profit.
I have also written a detailed post on how to make money by flipping furniture-you can read it.
Online Tutoring Jobs
The ongoing pandemic has made almost all kinds of learning completely online. If you are good at teaching something whether it is a language, coding, cooking or anything else, you can teach other people how to do it and earn some extra money.
You do not have to be an expert to teach people, but if your skills are better than a beginner you can definitively teach others and make money.
Explore these 10 other easy ways to make money online.
Can I Save Money and Invest Making $40,000 a Year?
Of course you can! If fact, you should save some amount of your income regardless of how much you get in hand after your taxes.
When I first started working, I was getting paid very less as a content writer, but I still used to save almost 30% of my income.
Regardless of what is your income, you should always strive to keep some money aside for emergency and miscellaneous expenses that can come up unexpectedly.
It could be a health emergency, your car breaking down, an accident or anything else–it pays to have some sort of financial security blanket to fall back on.
How to Make $40,000 a Year Annually
Like I mentioned before, $40,000 a Year is slightly above what an average American earns and if you are getting a job that pays $40,000 a Year- good for you.
If by any chance your job does not pay you $40,000 a Year, then consider starting an online side business that can earn you some extra income or do any online jobs that can make you income during your free time.
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