Anyone who has been through the job hunting process knows how exciting it is to consider a new job opportunity but one of the biggest questions that pops up is probably is whether it's worth the hassle of moving.
So if you are wondering what life on $24 per hour would be like and whether it's considered a good wage, scroll on for a detailed analysis.
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$24 an hour is how much a year?
If you're wondering how much your hourly rate translates to in a yearly salary, let's crunch the numbers.
- Part-time work. If you're working a part-time job of 20 hours per week with $24 an hour, you would earn $24,960 per year.
- Full-time work. Assuming a full-time job means working 40 hours per week and 52 weeks per year, you would earn $49,920 with $24 an hour before taxes and other deductions.
While these numbers may sound like a lot, remember they are pre-deduction. (We will cover deductions you can use to reduce your tax obligation later in the article.)
Even a small adjustment in the hourly rate makes a substantial difference over the course of a year. Negotiating up from $23 an hour to $24 an hour, or even from $24 to $25 an hour, will make the difference of hundreds of dollars over the course of the year.
How much is $24 an hour per day?
If you're wondering how much you'll take home each day on $24 an hour, it varies depending on whether you're working full-time or part-time.
- Part-time work. If you work 4 hours per day at $24 an hour, your daily earnings would be $96. Similarly, working 6 hours per day would result in a daily income of $144.
- Full-time work. Assuming a full-time job entails an eight-hour workday, your daily earnings before taxes at a rate of $24 an hour would be $192.
How much is $24 an hour per week?
Let's analyze the weekly earnings for both part-time and full-time work schedules more closely.
- Part-time work. If you work approximately 20 hours per week at a rate of $24 an hour, your weekly earnings would amount to $480. Similarly, if you work 30 hours per week at the same hourly rate, your weekly earnings would be $720.
- Full-time work. If you work around 40 hours per week at a rate of $24 an hour, your weekly earnings would total $960.
How much is $24 an hour bi-weekly?
When you are paid on a bi-weekly basis, it means that you'll receive a paycheck every two weeks, and the amount will depend on the duration of the pay period. For the purpose of our analysis, we've calculated take home for two common work schedules: part-time employment with 20 hours per week and full-time employment with 40 hours per week.
- Part-time work. If you work a total of 40 hours in a bi-weekly pay period (20 hours per week) at $24 per hour, your earnings would amount to $960 over the course of two weeks.
- Full-time work. If you work a total of 80 hours in a bi-weekly pay period (40 hours per week) at $24 per hour, your earnings would equal $1,920 bi-weekly.
How much is $24 an hour per month?
If you're wondering how much you'll earn on $24 an hour per month, that's calculated by multiplying your hourly rate by the hours you work per week by four.
- Part-time work. If you work around 80 hours in total during a month at an hourly rate of $24, your monthly income would amount to $1,920.
- Full-time work. Assuming a cumulative total of approximately 160 hours in a month at a rate of $24 per hour, your monthly earnings would sum up to $3,840.
How much is $24 an hour quarterly?
To precisely calculate your earnings on a quarterly basis, it is important to account for the specific number of working days in that particular quarter.
- Part-time work. Assuming you work approximately 240 hours within a quarter at an hourly rate of $24, your total earnings for the quarter would amount to $5,760.
- Full-time work. If you work around 480 hours within a quarter at a rate of $21 per hour, your total earnings for the quarter would sum up to $10,080.
Living on $24 an hour
If you're living on $24 an hour, it's important to understand whether it's enough to cover your expenses and achieve your financial goals. Here are some things to consider:
Is $24 an hour enough to live on?
Evaluating the adequacy of a $24 per hour wage for a livable income involves considering several factors, including location, lifestyle, expenses, and savings goals. Let's explore some scenarios to assess the livability of this hourly rate:
- Young adult living in a rural area. For a single young adult without dependents residing in a rural area with a lower cost of living, earning $24 an hour can potentially provide a livable wage. This income level should generally be sufficient to cover essential living expenses and allow for some discretionary spending.
- Single parent. For a single parent, $24 an hour might be challenging to cover all the costs associated with raising a family. While it may be enough to meet basic living expenses, additional financial responsibilities can pose difficulties in maintaining a comfortable lifestyle and meeting the needs of the family.
It's important to note that these scenarios are general considerations and individual circumstances can vary. Other factors, such as childcare costs, debt obligations, and personal financial goals, also impact the overall livability of a $24 per hour wage.
$24 an hour vs the national average
According to the Bureau of Labor Statistics, the national average hourly wage in the USA is $33. Compared to that, $24 an hour is less than the national average. However, it's worth noting that the national average includes many high-paying jobs. When you compare $24 an hour to jobs in the same category, it's likely to be competitive.
$24 an hour vs the national median
The national median hourly pay in the USA is $22.26, which is lower than $24 an hour. The median is the center value, meaning it represents the point above and below which half of all jobs' pay falls. Since $24 an hour is greater than the national median, it's safe to say that it's comparatively decent pay.
The impact of inflation on the value of $24 an hour
Inflation is like a sneaky thief that slowly decreases the value of your hard-earned money over time. Let's say you currently earn $24 per hour, and with that money, you can buy a certain amount of things.
But as time goes on, the prices of goods and services tend to go up because of inflation. This means that the same $24 per hour you earn today won't be able to buy you the same amount of things in the future.
For example, if the inflation rate is around 2% per year, something that costs $24 today will cost about $24.48 next year. So even though you're still earning $24 per hour, it won't have the same purchasing power in the future as it does now.
To make sure you're prepared for the future, it's important to consider inflation when planning your finances. If your income doesn't keep up with inflation, your money won't go as far. It's a good idea to aim for wage increases over time that at least match the inflation rate. This way, you can maintain your purchasing power and protect the value of your income as time goes on.
Who is $24 an hour a good salary for?
Determining whether $24 an hour is a good salary depends on individual circumstances and financial obligations. Let's explore different scenarios to assess the suitability of a $24 per hour wage.
Good
- A college studentseeking part-time employment to cover school expenses may find $24 an hour to be a favorable salary, considering their lower overall expenses.
- A retiree looking for supplemental income might view $24 an hour as a good salary, as it can provide additional financial stability during retirement.
- Someone residing in a rural area with lower living costs may find $24 an hour to be a sufficient salary, providing them with a comfortable standard of living.
Bad
- Individuals supporting dependents, such as children or elderly relatives, or those with a partner who has limited income, may face difficulties meeting all financial responsibilities on $24 an hour.
- Individuals burdened with high debt payments, such as significant student loans or credit card debt, may find it challenging to manage their obligations effectively on a $24 per hour wage.
- Individuals residing in high-cost cities or expensive areas may struggle to cover their living expenses adequately with a $24 per hour salary due to the higher cost of housing, transportation, and other necessities.
Housing on $24 an hour
Since housing is often the most significant expense, it's crucial to understand how $24 an hour impacts your ability to rent or buy a home.
Is $24 an hour enough to move out?
If you're considering moving out of your parents' home for the first time and earning $24 an hour, it's important to assess whether it's sufficient for your needs. The answer relies on the cost of living in your specific area and how much you're comfortable spending on rent.
To make it work on a $24 per hour income, you'll likely need to find an affordable place to live. This might involve finding a roommate to share expenses or considering a less expensive neighborhood or town.
Additionally, keep in mind that renting comes with additional costs beyond monthly rent. You'll need to budget for a security deposit, utility bills, and expenses related to heating, electricity, and other utilities. These costs can add up and impact your overall budget.
To ensure a smooth transition, carefully consider your expenses, research the rental market in your area, and create a budget that accounts for all the associated costs.
How much should rent cost per month on $24 an hour?
To determine how much rent should cost per month on a $24 per hour wage, a commonly used guideline suggests that it should not exceed 30% of your monthly income.
Assuming a full-time work schedule of 40 hours per week and 4 weeks in a month, the monthly income can be calculated as follows: $24 per hour x 40 hours per week x 4 weeks = $3,840 before taxes.
Using the 30% guideline, we can find the recommended rent amount: 30% of $3,840 is $1,152.
Therefore, as a general guideline, it is advisable to aim for rent that does not exceed $1,152 per month when earning $24 an hour.
Is $24 an hour enough to buy a house?
While $24 an hour may not be enough to buy a house outright, it may be enough to support a mortgage application with the help of a well-planned budget. However, you'll still need to consider the deposit amount, fees, taxes, and other costs associated with purchasing and owning a home.
What's affordable?
Determining house affordability involves considering income, mortgage preferences, and key factual details. Factors like the loan-to-value ratio, income multiples, and debt-to-income ratio play a crucial role.
First, assess your income and set a budget for monthly mortgage payments. Consider what you can comfortably afford without straining your finances.
Next, understand the loan-to-value ratio, which determines the down payment required and influences mortgage terms and rates.
Lastly, evaluate your debt-to-income ratio to ensure your overall debt obligations, including the mortgage payment, align with your income and financial stability.
By considering these factors, you can make an informed decision about house affordability, setting realistic expectations and ensuring financial well-being. Seeking professional guidance can provide further clarity tailored to your specific circumstances.
Where's affordable?
Real estate values vary across the country, with larger cities generally experiencing higher housing prices due to high demand. If you're earning $24 an hour and aiming to buy an affordable home, it's wise to focus your search on neighborhoods or towns with lower costs of living.
In these areas, housing prices are typically more affordable, allowing you to stretch your budget and find a home that aligns with your income. Exploring suburban areas or towns outside of major cities can often provide more affordable options.
Down payment size
When buying a home, it is common to make a down payment of 20% of the property's value. On a $24 per hour wage, accumulating this amount can be challenging, requiring diligent savings over an extended period.
Using the 30% rule, which suggests allocating a portion of your income to housing costs, an annual salary based on a $24 per hour wage would amount to approximately $49,920 before taxes ($24/hour x 40 hours/week x 52 weeks). Following this guideline, an ideal down payment for a house would be at least $9,984 (20% of $49,920).
To achieve your goal of owning a home, it is crucial to start a savings plan early and consistently set aside a portion of your income. By saving diligently, you can work towards accumulating the necessary funds for a down payment. It may take time, but with discipline and careful financial planning, you can move closer to achieving your homeownership dreams.
Fees
When buying a house, it's crucial to take into account the various fees associated with the process. These fees go beyond the actual purchase price of the property and can include expenses for mortgage applications, moving, legal services, and more.
- Application fees. Applying for a mortgage often incurs application fees, which cover the cost of credit checks and processing the loan. These fees can vary depending on the lender and loan program.
- Moving expenses. Moving expenses should also be factored in. Whether you hire professional movers or opt for a DIY approach, there will be costs involved such as packing materials, transportation, and potentially storage fees.
- Legal service fees. Legal services are essential during the home buying process. You may need to engage a real estate attorney to handle the legal aspects, such as reviewing contracts, conducting title searches, and ensuring a smooth closing. These services typically come with associated fees.
- Other fees. Other fees to consider include appraisal fees, inspection fees, and potential homeowner association fees, among others. These costs vary depending on location and specific circumstances.
By accounting for these additional fees, you can better estimate the total expenses involved in purchasing a house. It's important to budget for these costs in addition to the purchase price of the property to ensure a smooth and financially prepared home buying experience.
Buying a car on $24 an hour
Whether you should buy or lease a car on $24 an hour hourly wages depends on factors such as your financial situation and car usage.
Is earning $24 an hour enough to buy a new car?
Determining whether earning $24 an hour is sufficient to purchase a new car involves considering several key factors. Let's explore them in detail:
- Budget. Calculate your monthly income and deduct fixed expenses such as rent, utilities, groceries, and insurance. The remaining amount will help determine the affordability of your potential car payment.
- Car price. New cars vary widely in cost, ranging from around $15,000 to over $30,000. Consider the type and features of the car you desire, as it significantly impacts your financial situation.
- Down payment. Making a higher upfront payment leads to lower monthly installments. Assess your ability to save for a substantial down payment, which can help reduce your overall loan amount and monthly costs.
- Interest rate. Your credit score plays a significant role in determining the interest rate on a car loan. A higher credit score often results in a lower interest rate, leading to lower monthly payments.
- Loan term. The duration of your loan affects both monthly payments and the overall interest paid. Longer loan terms lower monthly payments but may result in paying more interest over time.
- Additional costs. Don't forget to factor in ongoing expenses such as car insurance, maintenance, and fuel costs. These contribute to the overall monthly expenditure associated with owning a car.
By carefully considering these factors and calculating your budget, you can assess whether earning $24 an hour is sufficient to afford a new car. Remember to account for all costs involved to make an informed decision that aligns with your financial goals and stability.
Is it better to lease a car on $24 an hour?
When considering the affordability of a car on a $24 per hour income, leasing may be a favorable option compared to purchasing a vehicle outright. Here's why:
- Lease agreements typically involve lower monthly payments compared to buying a new car with a traditional auto loan. This can make it more financially feasible to drive a newer vehicle while keeping your monthly expenses manageable.
- Leasing offers the advantage of flexibility. It allows you to enjoy the benefits of driving a new car every few years, ensuring access to the latest models and technology without the long-term commitment of ownership.
- For individuals seeking even more short-term flexibility, automobile subscription services provide an alternative. However, it's important to note that these services often come with higher monthly payments compared to longer-term leases. This convenience of short-term vehicle access comes at an increased cost.
By considering leasing options, you can potentially drive a newer car at a more affordable monthly cost. However, it's crucial to thoroughly assess your individual financial situation, lifestyle needs, and long-term goals to make an informed decision that aligns with your budget and priorities.
$24 an hour and money management
On $24 an hour hourly wages, you'll need to manage your money well, save for emergencies, build your credit score, and invest in your future.
Can you do the 50/30/20 budget on $24 an hour?
With a wage of $24 an hour, the 50/30/20 budget rule provides a mathematically factual guideline for managing your finances:
- 50% for essential expenses. Allocate 50% of your monthly income towards essential expenses like rent, groceries, and utilities. With a monthly income of $3,360 ($24/hour x 40 hours/week x 4 weeks), this amounts to approximately $1,680.
- 30% for discretionary spending. Dedicate 30% of your income to discretionary spending on things you enjoy, such as dining out, hobbies, or vacations. In this case, it would be approximately $1,008 per month.
- 20% for savings and debt repayment. Set aside 20% of your income for savings and debt repayment. With $3,360 per month, this would amount to around $672.
Following this breakdown ensures you allocate your income in a balanced way, covering your essential needs, allowing for enjoyable discretionary spending, and prioritizing savings and debt management.
Living within your means and adhering to a budget can help maintain financial stability and avoid unnecessary difficulties. By following the 50/30/20 rule, you establish a solid framework for managing your income and achieving your financial goals.
Is earning $24 an hour enough to get a credit card?
It's worth noting that many credit cards have minimum income requirements that may exceed the equivalent of $24 an hour annually. Don't be surprised if most of the leading rewards credit cards are out of reach because of this.
However, there are credit card options available to you. Credit builder credit cards, "near prime" credit cards, and secured credit cards are more likely to be accessible. These types of cards can help establish or rebuild credit, though they may come with lower initial credit limits.
If you decide to obtain a credit card, it's crucial to handle it responsibly. This involves living within your means, making payments on time, and avoiding the accumulation of high-interest debt. By using your credit card responsibly, you can build a positive credit history and improve your financial prospects over time.
Eligibility for credit cards goes beyond your income alone. Factors such as credit score, credit history, and overall financial stability are also considered in the bank's risk profiling. To improve your chances of approval, assess your financial situation realistically and then choose a card that you can qualify for and aligns with your needs.
Is it possible to invest on $24 an hour?
Investing with an hourly wage of $24 is indeed possible with proper saving and budgeting strategies. By prioritizing savings and reducing unnecessary expenses, even small amounts can be gradually invested over time.
Long-term planning is essential when investing. It involves exploring low-cost investment options and seeking professional guidance or self-education to make informed investment decisions. While the initial investment amount is important, successful investing primarily revolves around consistent savings and adopting a long-term perspective.
Effectively managing your finances allows you to allocate sufficient funds for investment in low-risk options such as mutual funds, ETFs, or index funds. It's crucial to recognize that investing is a long-term commitment, and it takes time for your investments to grow.
Consistency and persistence play a vital role in your investment journey, unless you happen to time the stock market perfectly, which is rare. However, by consistently investing a portion of your income, you can benefit from the power of compounding and witness the growth of your investments over the years.
Improving your credit score on a $24 hourly wage
Building a solid credit score requires a long-term commitment, but the benefits are worth it. A higher credit score leads to advantages such as lower interest rates and improved loan terms, making the effort worthwhile. Here are some key practices to follow:
- Pay your bills on time. Timely bill payments demonstrate your reliability to creditors and positively impact your credit score. Consistent, on-time payments are crucial for maintaining a good credit standing.
- Keep credit utilization low. Aim to utilize less than 30% of your total credit limit. This shows responsible credit management and helps maintain a favorable credit score. Keeping your credit card balances low relative to your available credit limit is beneficial for your creditworthiness.
- Don't close old credit accounts. It may be tempting to close older credit accounts to simplify your finances, but keeping them open (unless they have high fees) contributes to the length of your credit history. A longer credit history can positively impact your credit score.
- Regularly monitor your credit reports. Monitoring your credit reports on a regular basis allows you to promptly identify and address any discrepancies or fraudulent activities. By ensuring the accuracy of your credit information, you can maintain a healthy credit profile.
Building an emergency fund at a $24 hourly wage
Building an emergency fund is crucial to prepare for unexpected financial challenges, especially when earning $24 per hour. Here are effective strategies to develop your emergency fund:
- Start small. Begin by saving a manageable amount from each paycheck. Even setting aside a small portion, such as 10% of your income, can accumulate over time. Focus on developing a consistent saving habit.
- Automate your savings. Make saving easier by setting up automatic transfers from your paycheck to your emergency fund. By doing so, a predetermined portion of your income is directly deposited into your savings, reducing the temptation to spend it elsewhere.
- Save unexpected funds. When unexpected windfalls come your way, like tax refunds, bonuses, or gifts, resist the urge to splurge. Instead, allocate those funds to your emergency fund. This boosts your financial safety net and accelerates its growth.
- Cut back on non-essentials. Identify areas where you can reduce discretionary spending. Make small adjustments, such as eating out less frequently or canceling unnecessary subscriptions. Redirect those savings towards your emergency fund to expedite its growth.
Taxes on $24 an hour
Paying taxes is part of your $24 an hour hourly wages. However, you can reduce your tax liability through various deductions.
Tax deductions
Tax deductions can reduce the amount of income on which you pay taxes and include charitable donations, mortgage interest, and property taxes.
Tax credits
Tax credits lower the amount of tax you owe and can include childcare credits, education credits, and earned income credits.
