How much is 18 dollars an hour annually? Determine whether you can live on $18 an hour by calculating your annual, monthly, and weekly salaries (before and after taxes).
The United States currently has a minimum wage of $7.25, which isn't enough to cover basic necessities like food and housing for many people. This is called a living wage because you need per year to pay for basic needs such as health care and shelter. So the question is will 18 dollars an hour be enough? and how much will you get paid a year?
Living wages vary by state and county, but they generally fall between $12 and $15 an hour. So it is possible to live on $18 an hour? Well, maybe. But it would take some really hard work and budgeting.
The post will discuss how much money one needs to live in a year and if $18/hour can do it.
If you are reading this blog post, there are chances are that you would like to know if a single adult can live off of $18 per hour. Yes, I am going to tell you how! You will have to invest most of your money and save up for retirement and emergencies; however, there is still plenty left over when living on $18 an hour. How much? Please read my article and find out!
How Much Is 18 Dollars an Hour Annually?
The annual salary for a worker at 18 dollars an hour is $37,440.
Let's break it down!
If you work 40 hours per week for 52 weeks of the year at 18 dollars an hour, that will total 2,080 hours worked. Multiply those two together, and it equals how much money you earned before taxes is: 37,440 dollars!
How Much Is $18 an Hour per Month?
On average, the monthly amount would be around $3,120.
The annual income of 374400 ÷ 12 months = 3120 per month can vary depending on how often you are paid and what days you get paid each month.
How Much Is $18 an Hour per Week?
Working 40 hours per week, making $18 an hour, will give you approximately $720.
How Much Is $18 an Hour per Day?
If you make $18 an hour for 8 hours of work every day, that makes a total daily wage of about $144.
Is $18 an Hour Good Money?
It's challenging to know what is good money because it varies from person to person. For example, in 2019, the median annual income was just under $36,000, according to the US Census Bureau.
If you make at least $37,440 per year (which is $18 an hour on average), you are making more than most people.
On the other hand, $18 an hour is less than the $21.50 needed to get by in America, according to MIT's living wage calculator.
The Living Wage Calculator considers your expenses like rent, food, transportation, and childcare needs. But surprisingly, this number doesn't tell the whole story. For one thing, this calculation does not consider the amount of money you'll make for yourself on the side.
For example, if you're a freelance writer or designer on top of your full-time job at $18 an hour, you're probably closer to making the livable wage.
Another factor that must be considered when deciding if $18 an hour is enough for you is how much health care would cost to you.
There may be many things that affect how much someone should earn, such as taxes or personal expenses, so we recommend researching those topics before coming up with a conclusion.
Also, the cost of living has gone up, so it is not possible to live off with less than $12.50 an hour alone in many areas anymore, according to a recent study by Go BankingRates.
They found that the minimum salary you would need for basic needs varies depending on your location, but it's always above $58k per year. It can go as high as over 100k if your location requires higher pay in New York City, Hawai, or San Francisco Bay area.
What if You Don't Get Paid Time Off?
Every working person deserves time off. It's a way for them to take care of their mental and physical health as well as any family responsibilities they might have.
However, many people don't get paid time off. And those who do often only get two or three weeks off each year.
As a result, people log on to social media and voicing their concerns about how much time off they should be getting and why it is so difficult to find a job that offers this much time off.
As you know, paid time off policies is a benefit provided by employers to compensate employees for personal days, vacation days, federal holidays, sick leave, and maternity/paternity leave.
These are guidelines to get paid time off: Employees must request Unpaid Time Off in writing to their immediate supervisor at least 24 hours before the desired time off.
Supervisors are responsible for obtaining departmental decisions that they will then communicate through a written note to employees.
Comparison Table of $18 an Hour
|$18 An Hour||Total Income|
|Yearly (52 Weeks)||$37,440|
|Yearly ( 50 Weeks)||$36,000|
|Yearly ( 262 Work Days)||$37,728|
|Monthly ( 173 Hours)||$3,120|
|Weekly (40 Hours)||$720|
|Daily ( 8 Hours)||$144|
|Monthly Take Home (175Hrs)||$2,542|
How Many Working Days Are in 2021?
If you live in the United States, there are 11 Federal holidays and 250 working days.
Working Days on the United States in 2021
Two public holidays fall on weekends and are observed on weekdays: Independence Day (July 4) and Christmas Day (December 25).
The following is the list of federal holidays in 2021. These days are typically observed with paid time off for employees and a public holiday for the general population to celebrate or acknowledge their shared history, culture, peace-time service to country, etc:
Holidays in the United States
|New Year' Day||Jan. 01, 2021||Friday||Federal Holiday|
|Martin Luther King Jr. Day||Jan. 18, 2021||Monday||Federal Holiday|
|Washington's Birthday||Feb. 15, 2021||Monday||Federal Holiday|
|Memorial Day||May 31, 2021||Monday||Federal Holiday|
|Independence Day||July 04, 2021||Sunday||Federal Holiday|
|Independence Day Holiday||July 05, 2021||Monday||Observed|
|Labor Day||Sep. 06, 2021||Monday||Federal Holiday|
|Columbus Day||Oct. 11, 2021||Monday||Federal Holiday|
|Veterans Day||Nov. 11, 2021||Thursday||Federal Holiday|
|Thanksgiving Day||Nov. 25, 2021||Thursday||Federal Holiday|
|Christmas Day Holiday||Dec. 24, 2021||Friday||Observed|
|Christmas Day||Dec. 25, 2021||Saturday||Federal Holiday|
Example Budget for $18 an Hour
To prepare a monthly budget for an $18 per hour wage, one would have to take their annual income of 3,150 and subtract taxes. This leaves the estimated take-home pay at 2,542 dollars (varies by state).
Then we can make some basic assumptions about bills that will need to be paid each month:
This results in 200 being designated towards utilities; 100 goes toward transportation costs; 150 is spent on groceries, including food for pets if necessary—this might vary depending on your eating habits or preferences.
The remaining 600 covers all other living expenses such as phone plans/internet service included with rent/mortgage payments but not home insurance charges etc., cable TV services, and so forth.
Monthly Budget if Your Earn $18 an Hour (Sample)
Tips To Live on $18 an Hour
Living on a low wage is complex and can often be unhealthy. The ability to provide for oneself and their family is a top priority in today's world. Not being able to do that can lead to difficulty in various areas such as mental health, physical health, and education.
The following options for living on $18 an hour may be helpful when considering how to provide for oneself on such income.
One option is finding cheaper housing by moving into a smaller one-bedroom apartment or splitting the cost with roommates in bigger apartments.
Another way is reducing costs at home, such as cooking your meals instead of eating out and only buying what's necessary.
Related Articles: 50+Frugal Energy Saving Tips to Lower your Utility Bill and Save Money
Do You Want More Than $18 an Hour?
There are several ways to make extra money that will allow you to earn more than the average American salary of $18 an hour.
You can start your own online business by selling used electronics on popular websites like eBay, Amazon, and Etsy; selling used items is an excellent way for some people to make additional income.
Another source of side hustle opportunities could be working at night or over weekends, giving you more time during regular day hours to perform another job while getting paid twice!
Final Thoughts on $18 an hour
With an hourly wage of $18, you will make around $37,440 a year. This is enough to live on as long as you do not have dependents, and in high-growth industries such as manufacturing or health care, most jobs pay this much.
Michael launched Wealth of Geeks to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.