# 70000 A Year Is How Much An Hour – Let Us Find Out

What do you think 70000 a year is how much an hour?

I will tell you shortly and how to calculate any salary?

But keep in mind any salary is good in one place and not the other

What is important, never take a salary and divide it by working hours per year

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You have to consider taxes applied in your state or province on your gross salary

Anyway in this post I will discuss 70,000 a year as a salary and its hourly rate

## How much is 70,000 salary hourly?

We all know there are 52 weeks per year

When you go to work you work 8 hours a day with sometimes half an hour or an hour break

Your total hours are 9 hours per day

Our typical working days per week are 5 days a week with 2 days weekend

So we have 8 hours a day X 5 days = 40 hours per week

And Since we have 52 weeks then it becomes 40 hours X 52 weeks = 2080

Since all companies give 2 weeks vacation so we have 40 hours X 50 weeks = 2000

If you divide \$70,000 by 2000 = \$35 an hour then you won't get accurate rate per hour

Why? actually because we have to deduct taxes from \$70,000 gross salary

For example, in Canada with an average of 19.5% tax rate

I will calculate a cut of \$70,000 X 19.5% = \$13,650

This means you earn net \$70,000 – \$13,650 = \$56,350

Finally, if you ask 70000 a year is how much an hour? it is \$56,350/2000 = \$28.175

## Is 70,000 a good salary?

The answer which you won't like

I would say it depends where you live

\$70,000 in Canada, specifically in the GTA (Great Toronto Area) is good enough to cover your expenditures

But it will be very tight especially if you have a mortgage

Unless you bought your house before the spike that occurred in house market after 2010

Again \$56,350 net per year is around \$2,167 biweekly

As you get paid every 2 weeks and around \$2,167 X 2 = \$4,334 a month

This means you get 26 paychecks per year

And expect to earn 3 paychecks in 2 single months during the year

Since it is hard to find reasonable rent in GTA under \$1,400

So I will assign \$1,700 towards your rent and \$2,200 if you are paying mortgage

For convenience, I will make it \$2,000 for both rent and mortgage

And by deducting car insurance which is around \$250

You will be left with \$4,334 – \$2000 for housing – \$250 car insurance = \$2,084

This means you have \$1,042 left in every paycheck

## How to budget \$70,000 on monthly basis?

Realistically it is hard to make a budget for unknown amount for expenses

Especially if you don't know the location

In this case, I will resume my amounts as if it is reflecting the GTA

Savings of 10% = \$433.4
Rent/ Mortgage= \$2,000 (46% of income)
Utilities= \$280
Car Payment= \$300
Car Insurance= \$50
Health Insurance= \$200
– no health insurance in Canada so this number goes to Car insurance in province like Ontario
Cellphone= \$65
Internet= \$50
Gas= \$200
Groceries= \$450
Personal & Misc= \$50
Entertainment= \$50

Total = \$4,128.4 with \$205.6 left to save in emergency fund or increase your savings

This was easy for me as I didn't have to squeeze the numbers like in my previous post about if 40,000 is a good salary and how to budget \$40,000?

## How to live with \$70,000 a year salary?

It is not about 70000 a year is how much an hour?

We are going to put a plan on how to live with 70,000 a year

As I listed above you won't have enough after paying all of your expenses

That's why you have to do your best to stay out of debt

1. Stick to a budget and take it seriously
2. Keep saving money and invest your savings in retirement plan to get more tax refund