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)
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
Personal & Misc= $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
- Stick to a budget and take it seriously
- Keep saving money and invest your savings in retirement plan to get more tax refund
- Reduce your expenses and try to lower your bills
- Build your emergency fund
- You should be able to stay on track by following steps 1 to 4, actually I don't think you need the cash envelope method
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.