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
3. Reduce your expenses and try to lower your bills
4. Build your emergency fund
5. 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