# \$37 an Hour is How Much a Year? Before and After Taxes

With the rapid pace of inflation, an hourly salary of \$37 may seem high or barely enough depending on your situation. In this article, we will break down the exact numbers to show how much you can expect to earn yearly and monthly at \$37 per hour, before and after taxes. We’ll calculate the annual salary for both full-time and part-time work at this hourly pay rate, factoring in how unpaid time off can reduce actual take-home earnings. Converting an hourly wage to a salaried income can be confusing, but we’ll walk through the math step-by-step. We’ll also evaluate whether \$37 per hour is considered a good salary now and what standard of living it provides. If you’re weighing a job offer at \$37 an hour or want to better understand how an hourly pay translates to annual or monthly income, this article will provide the key numbers and formulas. We’ll look at typical jobs that pay \$37 per hour, whether that allows you to afford a house or car, tips to increase your income, and more. With the cost of living rising so quickly, it’s important to assess hourly wages in terms of real yearly earnings power.

## Convert \$37 Per Hour to Weekly, Monthly, and Yearly Salary

Input your wage and hours per week to see how much you’ll make monthly, yearly and more.

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### \$37 an Hour is How Much a Year?

If you make \$37 an hour, your yearly salary would be \$76,960. We calculate your annual income based on 8 hours per day, 5 days per week and 52 weeks in the year.

Hours worked per week (40) x Hourly wage(\$37) x Weeks worked per year(52) = \$76,960

### \$37 an Hour is How Much a Month?

If you make \$37 an hour, your monthly salary would be \$6,413.33. We calculated this number by dividing your annual income by 12 months.

Hours worked per week (40) x Hourly wage(\$37) x Weeks worked per year(52) / Months per Year(12) = \$6,413.33

### \$37 an Hour is How Much a Biweekly?

If you make \$37 an hour, your biweekly salary would be \$2,960.

Hours worked per week (40) x Hourly wage(\$37) x 2 = \$2,960

### \$37 an Hour is How Much a Week?

If you make \$37 an hour, your weekly salary would be \$1,480. Calculating based on 5 days per week and 8 hours each day.

Hours worked per week (40) x Hourly wage(\$37) = \$1,480

### \$37 an Hour is How Much a Day?

If you make \$37 an hour, your daily salary would be \$296. We calculated your daily income based on 8 hours per day.

Hours worked per day (8) x Hourly wage(\$37) = \$296

## \$37 an Hour is How Much a Year?

The basic formula to calculate your annual salary from an hourly wage is:

Hourly Rate x Hours Worked per Week x Number of Weeks Worked per Year = Annual Salary

So for a \$20 per hour job:

\$37 per hour x 40 hours per week x 52 weeks per year = \$76,960

However, this simple calculation makes some assumptions:

• You will work 40 hours every week of the year
• You will not get any paid time off

Therefore, it represents your earnings if you worked every week of the year, without any vacation, holidays, or sick days.

Accounting for Paid Time Off

The \$76,960 base salary does not yet factor in paid time off (PTO). Let’s assume the job provides:

• 2 weeks (10 days) paid vacation
• 6 paid holidays
• 3 paid sick days

This totals 19 paid days off, or nearly 4 weeks of PTO.

Importantly, this paid time off should not be deducted from the annual salary, since you still get paid for those days.

So with 4 weeks PTO, the annual salary would remain \$76,960 .

## Part time \$37 an hour is How Much a Year?

Your annual income changes significantly if you work part-time and not full-time.

For example, let’s say you work 25 hours per week instead of 40. Here’s how you calculate your new yearly total:

\$37 per hour x 25 hours per week x 52 weeks per year = \$48,100

By working 15 fewer hours per week (25 instead of 40), your annual earnings at \$37 an hour drop from \$76,960 to \$48,100.

That’s a \$28,860 per year difference just by working part-time!

Here’s a table summarizing how your annual earnings change depending on how many hours you work per week at \$37 an hour:

Hours Per Week Earnings Per Week Annual Earnings
40 \$1,480 \$76,960
35 \$1,295 \$67,340
30 \$1,110 \$57,720
25 \$925 \$48,100
20 \$740 \$38,480
15 \$555 \$28,860

The more hours per week, the higher your total yearly earnings. But part-time work allows for more life balance if you don’t need the full salary.

## \$37 an Hour With Overtime is How Much a Year?

Now let’s look at how overtime can increase your annual earnings.

Overtime kicks in once you work more than 40 hours in a week. Typically, you earn 1.5x your regular hourly wage for overtime hours.

So if you make \$37 per hour normally, you would make \$55.50 per hour for any hours over 40 in a week.

Here’s an example:

• You work 45 hours in a Week
• 40 regular hours paid at \$37 per hour = \$1,480
• 5 overtime hours paid at \$55.50 per hour = \$277.50
• Your total one Week earnings =\$1,480 + \$277.50 = \$1,757.50

If you worked 45 hours each week for 52 weeks, here’s how your annual earnings increase thanks to overtime pay:

\$1,757.50 per week x 52 weeks per year = \$91,390

That’s \$14,430 more than you’d earn working just 40 hours per week at \$37 an hour.

Overtime can add up! But also consider taxes and work-life balance when deciding on extra hours.

Here’s a table summarizing how your annual earnings change depending on how many hours you work per week at \$37 an hour:

 Overtime hours per work day Hours Per Week Earnings Per Week Annual Earnings 0 40 \$1,480 \$76,960 1 45 \$1,757.50 \$91,390 2 50 \$2,035 \$105,820 3 55 \$2,312.50 \$120,250 4 60 \$2,590 \$134,680 5 65 \$2,867.50 \$149,110 6 70 \$3,145 \$163,540 7 75 \$3,422.50 \$177,970

## How Unpaid Time Off Impacts \$37/Hour Yearly Earnings

So far we’ve assumed you work 52 paid weeks per year. Any unpaid time off will reduce your total income.

For example, let’s say you take 2 weeks of unpaid leave. That brings your paid weeks down to 50:

Hours worked per week (40) x Hourly wage(\$37) x Weeks worked per year(50) = \$74,000 annual salary

With 2 weeks unpaid time off, your annual earnings at \$37/hour would drop by \$2,960.

The table below summarizes how your annual income changes depending on the number of weeks of unpaid leave.

 Weeks of unpaid leave Paid weeks per year Earnings Per Week Annual Earnings 0 52 \$1,480 \$76,960 1 51 \$1,480 \$75,480 2 50 \$1,480 \$74,000 3 49 \$1,480 \$72,520 4 48 \$1,480 \$71,040 5 47 \$1,480 \$69,560 6 46 \$1,480 \$68,080 7 45 \$1,480 \$66,600

## Key Takeaways for \$37 Hourly Wage

In summary, here are some key points on annual earnings when making \$37 per hour:

• At 40 hours per week, you’ll earn \$76,960 per year.
• Part-time of 30 hours/week results in \$57,720 annual salary.
• Overtime pay can boost yearly earnings, e.g. \$14,430 extra at 45 hours/week.
• Unpaid time off reduces your total income, around \$2,960 less per 2 weeks off.
• Your specific situation and location impacts taxes and PTO.

Knowing your approximate annual salary and factors impacting it makes it easier to budget and plan your finances. The next step is calculating take-home pay after deductions like taxes.

## \$37 An Hour Is How Much A Year After Taxes

Figuring out your actual annual earnings based on an hourly wage can be complicated once taxes are taken into account. In addition to federal, state, and local income taxes, 7.65% of your gross pay also goes to Social Security and Medicare through FICA payroll taxes. So how much does \$37 an hour equal per year after FICA and income taxes are deducted from your gross pay?

Below we’ll walk through the steps to calculate your annual net take home pay if you make \$37 per hour. This will factor in estimated federal, FICA, state, and local taxes so you know exactly what to expect.

### Factoring in Federal Income Tax

Your federal income tax will be a big chunk out of your gross pay. Federal tax rates range from 10% to 37%, depending on your tax bracket.

To estimate your federal income tax rate and liability:

Look up your federal income tax bracket based on your gross pay.

2023 tax brackets: single filers

Tax rate Taxable income bracket Tax owed
10% \$0 to \$11,000. 10% of taxable income.
12% \$11,001 to \$44,725. \$1,100 plus 12% of the amount over \$11,000.
22% \$44,726 to \$95,375. \$5,147 plus 22% of the amount over \$44,725.
24% \$95,376 to \$182,100. \$16,290 plus 24% of the amount over \$95,375.
32% \$182,101 to \$231,250. \$37,104 plus 32% of the amount over \$182,100.
35% \$231,251 to \$578,125. \$52,832 plus 35% of the amount over \$231,250.
37% \$578,126 or more. \$174,238.25 plus 37% of the amount over \$578,125.

For example, if you are single with \$76,960 gross annual pay, your federal tax bracket is 22%.

Your estimated federal tax would be:

\$5,147 + (\$76,960 – \$44,726) x 22% = \$12,238.48

So at \$37/hour with \$76,960 gross pay, you would owe about \$12,238.48 in federal income taxes.

### Considering State Income Tax

In addition to federal tax, most states also charge a state income tax. State income tax rates range from about 1% to 13%, with most falling between 4% and 6%.

Key Takeaways

• California, Hawaii, New York, New Jersey, and Oregon have some of the highest state income tax rates.
• Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming don’t impose an income tax at all.
• Another 10 U.S states have a flat tax rate—everyone pays the same percentage regardless of how much they earn.

A State-by-State Comparison of Income Tax Rates

STATE TAX RATES LOWEST AND HIGHEST INCOME BRACKETS
Florida 0% None
South Dakota 0% None
Tennessee 0% None
Texas 0% None
Washington 0% None
Wyoming 0% None
Colorado 4.55% Flat rate applies to all incomes
Illinois 4.95% Flat rate applies to all incomes
Indiana 3.23% Flat rate applies to all incomes
Kentucky 5% Flat rate applies to all incomes
Massachusetts 5% Flat rate applies to all incomes
New Hampshire 5% Flat rate on interest and dividend income only
North Carolina 4.99% Flat rate applies to all incomes
Pennsylvania 3.07% Flat rate applies to all incomes
Utah 4.95% Flat rate applies to all incomes
Michigan 4.25% Flat rate applies to all incomes
Arizona 2.59% to 4.5% \$27,806 and \$166,843
Arkansas 2% to 5.5% \$4,300 and \$8,501
California 1% to 13.3% \$9,325 and \$1 million
Connecticut 3% to 6.99% \$10,000 and \$500,000
Delaware 0% to 6.6% \$2,000 and \$60,001
Alabama 2% to 5% \$500 and \$3,001
Georgia 1% to 5.75% \$750 and \$7,001
Hawaii 1.4% to 11% \$2,400 and \$200,000
Idaho 1.125% to 6.5% \$1,568 and \$7,939
Iowa 0.33% to 8.53% \$1,743 and \$78,435
Kansas 3.1% to 5.7% \$15,000 and \$30,000
Louisiana 1.85% to 4.25% \$12,500 and \$50,001
Maine 5.8% to 7.15% \$23,000 and \$54,450
Maryland 2% to 5.75%  \$1,000 and \$250,000
Minnesota 5.35% to 9.85% \$28,080 and \$171,221
Mississippi 0% to 5% \$5,000 and \$10,001
Missouri 1.5% to 5.3% \$1,121 and \$8,968
Montana 1% to 6.75% \$2,900and \$17,400
Nebraska 2.46% to 6.84% \$3,340 and \$32,210
New Jersey 1.4% to 10.75% \$20,000 and \$1 million
New Mexico 1.7% to 5.9% \$5,500 and \$210,000
New York 4% to 10.9% \$8,500 and \$25 million
North Dakota 1.1% to 2.9% \$41,775 and \$458,350
Ohio 0% to 3.99% \$25,000 and \$110,650
Oklahoma 0.25% to 4.75% \$1,000 and \$7,200
Oregon 4.75% to 9.9% \$3,750 and \$125,000
Rhode Island 3.75% to 5.99% \$68,200 and \$155,050
South Carolina 0% to 7% \$3,110 and \$15,560
Vermont 3.35% to 8.75% \$42,150 and \$213,150
Virginia 2% to 5.75% \$3,000 and \$17,001
Washington, D.C. 4% to 9.75% \$10,000 and \$1 million
West Virginia 3% to 6.5% \$10,000 and \$60,000
Wisconsin 3.54% to 7.65% \$12,760 and \$280,950

To estimate your state income tax:

Look up your state income tax rate based on your gross pay and filing status.

Multiply your gross annual pay by the state tax rate.

For example, if you live in Pennsylvania which has a flat 3.07% tax rate, your estimated state tax would be:

\$76,960 gross pay x 3.07% PA tax rate = \$2,362.67 estimated state income tax

So with \$76,960 gross annual income, you would owe around in \$2,362.67 Pennsylvania state income tax. Verify your specific state’s income tax rates.

### Factoring in Local Taxes

Some cities and counties levy local income taxes ranging from 1-3% of taxable income.

To estimate potential local taxes you may owe:

• Check if your city or county charges a local income tax.
• If yes, look up the local income tax rate.
• Multiply your gross annual pay by the local tax rate.

For example, say you live in Columbus, OH which has a 2.5% local income tax. Your estimated local tax would be:

\$76,960 gross pay x 2.5% local tax rate = \$1,924 estimated local tax

So with \$76,960 in gross earnings, you may owe around \$1,924 in Columbus local income taxes. Verify rates for your own city/county.

### Accounting for FICA Taxes (Social Security & Medicare)

FICA taxes are a combination of Social Security and Medicare taxes that equal 15.3% of your earnings. You are responsible for half of the total bill (7.65%), which includes a 6.2% Social Security tax and 1.45% Medicare tax on your earnings.

In 2023, only the first \$160,200 of your earnings are subject to the Social Security tax

There is an additional 0.9% surtax on top of the standard 1.45% Medicare tax for those who earn over \$200,000 (single filers) or \$250,000 (joint filers).

To estimate your FICA tax payment:

\$76,960 x 6.2% + \$76,960 x 1.45% = \$5,887.44

So you can expect to pay about \$5,887.44 in Social Security and Medicare taxes out of your gross \$76,960 in earnings.

### Total Estimated Tax Payments

Based on the examples above, your total estimated tax payments would be:

Federal tax: \$12,238.48

State tax: \$2,362.67

Local tax: \$1,924

FICA tax: \$5,887.44

Total Estimated Tax: \$22,412.59

### Calculating Your Take Home Pay

To calculate your annual take home pay at \$37 /hour:

2. Subtract your estimated total tax payments

\$76,960 gross pay – \$22,412.59 Total Estimated Tax = \$54,547.41 Your Take Home Pay

n summary, if you make \$37 per hour and work full-time, you would take home around \$54,547.41 per year after federal, state, local , FICA taxes.

Your actual net income may vary depending on your specific tax situation. But this gives you a general idea of what to expect.

## Convert \$37 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes

If you make \$37 an hour and work full-time (40 hours per week), your estimated yearly salary would be \$76,960 .

The \$76,960 per year salary does not account for taxes. Federal, state, and local taxes will reduce your take-home pay. The amount withheld depends on your location, filing status, dependents, and other factors.

Just now during our calculation of \$37 An Hour Is How Much A Year After Taxes, we assumed the following conditions:

• You are single with \$76,960 gross annual pay, your federal tax bracket is 22 %.
• You live in Pennsylvania which has a flat 3.07% tax rate
• You live in Columbus, OH which has a 2.5% local income tax.

In the end, we calculated your Total Estimated Tax is \$22,412.59 , Your Take Home Pay is \$54,547.41 , Total tax rate is 29.12%.

So next we’ll use 29.12% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.

### \$37 Per Hour to Yearly, Monthly, Biweekly, Weekly,and Week Salary After Taxes Table

 Income before taxes Estimated Tax Rate Income Taxes After Tax Income Yearly Salary \$76,960 29.12% \$22,412.59 \$54,547.41 Monthly Salary \$6,413.33 29.12% \$1,867.72 \$4,545.62 BiWeekly Salary \$2,960 29.12% \$862.02 \$2,097.98 Weekly Salary \$1,480 29.12% \$431.01 \$1,048.99

### \$37  an hour is how much a year after taxes

Here is the adjusted yearly salary after a 29.12% tax reduction:

• Yearly salary before taxes: \$76,960
• Estimated tax rate: 29.12%
• Taxes owed (29.12% * \$76,960 )= \$22,412.59
• Yearly salary after taxes: \$54,547.41
Hourly Wage Hours Worked Per Week Weeks Worked Per Year Total Yearly Salary Estimated Tax Rate Taxes Owed After-Tax Yearly Salary
\$37 40 52 \$76,960 29.12% \$22,412.59 \$54,547.41

### \$37 an hour is how much a month after taxes

To calculate the monthly salary based on an hourly wage, you first need the yearly salary amount. Then divide by 12 months.

• Yearly salary before taxes at \$37 per hour: \$76,960
• Divided by 12 months per year: \$76,960 / 12 = \$6,413.33 per month

The monthly salary based on a 40 hour work week at \$37 per hour is \$6,413.33 before taxes.

After applying the estimated 29.12% tax rate, the monthly after-tax salary would be:

• Monthly before-tax salary: \$6,413.33
• Estimated tax rate: 29.12%
• Taxes owed (29.12% * \$6,413.33 )= \$1,867.72
• Monthly after-tax salary: \$4,545.62

Monthly Salary Based on \$37 Per Hour

Hourly Wage Yearly Salary Months Per Year Before-Tax Monthly Salary Estimated Tax Rate Taxes Owed After-Tax Monthly Salary
\$37 \$76,960 12 \$6,413.33 29.12% \$1,867.72 \$4,545.62

### \$37 an hour is how much biweekly after taxes

Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at \$37 per hour:

• Hourly wage: \$37
• Hours worked per week: 40
• Weeks per biweekly pay period: 2
• \$37 * 40 hours * 2 weeks = \$2,960 biweekly

Applying the 29.12%estimated tax rate:

• Biweekly before-tax salary: \$2,960
• Estimated tax rate: 29.12%
• Taxes owed (29.12% * \$2,960 )= \$862.02
• Biweekly after-tax salary: \$2,097.98

Biweekly Salary at \$37 Per Hour

Hourly Wage Hours Worked Per Week Weeks Per Pay Period Before-Tax Biweekly Salary Estimated Tax Rate Taxes Owed After-Tax Biweekly Salary
\$37 40 2 \$2,960 29.12% \$862.02 \$2,097.98

### \$37 an hour is how much weekly after taxes

To find the weekly salary based on an hourly wage, you need to know the number of hours worked per week. At 40 hours per week, the calculation is:

• Hourly wage: \$37
• Hours worked per week: 40
• \$37 * 40 hours = \$1,480 per week

Accounting for the estimated 29.12% tax rate:

• Weekly before-tax salary: \$1,480
• Estimated tax rate: 29.12%
• Taxes owed (29.12% * \$1,480 )= \$431.01
• Weekly after-tax salary: \$1,048.99

Weekly Salary at \$37 Per Hour

Hourly Wage Hours Worked Per Week Before-Tax Weekly Salary Estimated Tax Rate Taxes Owed After-Tax Weekly Salary
\$37 40 \$1,480 29.12% \$431.01 \$1,048.99

### Key Takeaways

• An hourly wage of \$37 per hour equals a yearly salary of \$76,960 before taxes, assuming a 40 hour work week.
• After accounting for an estimated 29.12% tax rate, the yearly after-tax salary is approximately \$54,547.41 .
• On a monthly basis before taxes, \$37 per hour equals \$6,413.33 per month. After estimated taxes, the monthly take-home pay is about \$4,545.62 .
• The before-tax weekly salary at \$37 per hour is \$1,480 . After taxes, the weekly take-home pay is approximately \$1,048.99 .
• For biweekly pay, the pre-tax salary at \$37 per hour is \$2,960 . After estimated taxes, the biweekly take-home pay is around \$2,097.98 .

Understanding annual, monthly, weekly, and biweekly salary equivalents based on an hourly wage is useful when budgeting and financial planning. Taxes make a significant difference in take-home pay, so be sure to account for them when making income conversions. Use this guide as a reference when making salary calculations.

## What Is the Average Hourly Wage in the US?

Last Updated: Sep 1 2023

US Average Hourly Earnings is at a current level of \$33.82, up from 33.74 last month and up from 32.43 one year ago. This is a change of 0.24% from last month and 4.29% from one year ago.

Average Hourly Earnings is the average dollars that a private employee makes per hour in the US. This metric is a part of one of the most important releases every month which includes unemployment numbers as well. This is normally released on the first Friday of every month. This metric is released by the Bureau of Labor Statistics (BLS).

## What is the average salary in the U.S.?

Last Updated: July 18, 2023

The U.S. Bureau of Labor Statistics uses median salary data rather than averages to avoid skewed numbers from outlying high and low numbers. Median weekly earnings of the nation's 121.5 million full-time wage and salary workers were \$1,100 in the second quarter of 2023, the U.S.

If a person works 52 weeks in the year, then this represents a national annual salary of \$57,200.

## Is \$37 an Hour a Good Salary?

Whether \$37 an hour is a good salary depends largely on where you live. In lower cost-of-living rural areas and small towns, this wage goes a lot further than in expensive coastal cities like New York and San Francisco.

According to the U.S. Bureau of Labor Statistics, the median hourly wage across all occupations in the United States is around \$20 an hour. So at \$37 an hour, you’re making almost twice the national median wage. However, this varies significantly by state.

For example, the median hourly wage in Mississippi is around \$16, while in California it’s around \$23. So Californians making \$37 an hour are doing better compared to their neighbors than someone in Mississippi. But that money doesn’t go nearly as far in California due to higher taxes, home prices, gas, groceries and other expenses.

The Council for Community and Economic Research provides Cost of Living Indexes that compare relative price levels for consumer goods and services in different metro areas. According to their data, \$37 an hour in San Francisco amounts to the equivalent of making around \$20 an hour in many parts of the country when adjusting for differences in cost of living.

So while \$37 an hour sounds high, context is key. You’ll need to factor in expenses for your specific location. This wage is certainly a comfortable salary in many areas, but not so much in major cities and coastal regions with very high costs of living.

## Jobs that pay \$37 an hour

Here are some examples of jobs that typically pay around \$37 an hour on average:

• Registered Nurse – The average hourly wage for registered nurses is around \$37, ranging from \$30-\$50 depending on experience and location. Nursing is projected to add over 350,000 new jobs by 2029.
• Web Developer – The average hourly wage for web developers is approximately \$37. Web developer jobs are expected to grow 13% over the next decade.
• Electrical Engineer – Electrical engineers earn an average of \$37 an hour. Job growth for electrical engineers is projected at 7% from 2019-2029.
• Accountant – Accountants and auditors make an average of \$37 an hour. This occupation is projected to grow at 4% over the next 10 years.
• Construction Manager – The average hourly wage for construction managers is \$37-38. Construction will continue to drive job growth over the next decade.
• Clinical Laboratory Technologist – Techs in this field earn around \$37 an hour on average. Employment is projected to grow 7% through 2029.
• Radiation Therapist – Radiation therapy is vital for cancer treatment. Therapists earn a median of \$37 an hour.

The jobs on this list require at least an associate degree or bachelor’s degree. However, construction managers typically need experience to move into management roles. The higher pay reflects the advanced skills and training required.

If you currently make less than \$37 an hour, pursuing more education and training in these fields may help boost your earning potential.

## Can You Live Off \$37 An Hour?

Whether you can realistically live off \$37 an hour depends largely on the cost of living in your city and your lifestyle. For example, if you’re single or sharing housing costs with a partner or roommates, this income may be comfortable. However, supporting a family on this salary will be more challenging.

Let’s evaluate some typical major expenses to understand the limitations of a \$37 an hour salary:

• Housing – Assuming you follow the 30% rule and spend no more than 30% of your income on housing, you can afford around \$1,150 per month on rent or mortgage at \$37 an hour. This may be realistic in some smaller towns, but likely won’t secure you an apartment in major metropolitan areas where rents often exceed \$2,000/month.
• Transportation – If you drive your own car, you’ll need to budget for car payments, gas, insurance, maintenance and registration. Public transportation like subways may be a cheaper option if available. Transportation costs will vary but likely range from \$200-500 monthly.
• Food – Grocery costs for one person may range from \$300-500 monthly. Eating out adds more expenses. Higher food bills must be allotted for families.
• Utilities – Expect at least \$200-300 per month for utilities like electricity, water, gas, sewer, trash, internet and cell phone.
• Healthcare – Premiums for employer health insurance often cost \$300-500+ monthly for individual coverage, and closer to \$1000+ for families, plus co-pays and deductibles.
• Debt/Loans – Student loans, credit cards and other debt result in monthly payments that reduce disposable income.
• Savings – Experts recommend saving at least 10-20% of your income. At \$37/hour that would be \$600-1200+ per month.

Without roommates splitting costs, it can be very difficult to afford rent, utilities, transportation, food, healthcare and other basic expenses – let alone discretionary spending or savings – for those making \$37 an hour, especially in higher cost-of-living areas.

Careful budgeting and sacrifice will be required to manage all the necessities comfortably and achieve financial goals on this salary.

## The impact of inflation on the value of \$37 an hour

Inflation must also be considered when evaluating earnings. Even at \$37 an hour, inflation eats away at the real value and purchasing power of your money over time.

In 2022, inflation in the U.S. reached its highest levels in 40 years due to factors like supply chain disruptions, the war in Ukraine, and more. The Consumer Price Index showed average prices paid for goods 8% higher in July 2022 compared to a year prior.

If the inflation rate averages 5% annually over the next decade, \$37 an hour will only be worth around \$27 in today’s dollars ten years from now. This means expenses we take for granted like food, gas and medical care will cost significantly more over time, while your wage remains stagnant.

Asking for raises to keep pace with inflation will be crucial. If your hourly earnings stagnate at \$37 over the next 10-15 years of your career, you will likely struggle more over time as your purchasing power slowly declines.

## 5 Ways To Increase Your Hourly Wage

While \$37 an hour may seem high compared to minimum wage, it may still be challenging to build savings and get ahead financially over the long-term after accounting for all regular expenses, especially with inflation.

Here are some tips to increase your earnings:

• Ask for raises – If you’re a top performer, negotiate a higher hourly pay rate or annual salary bump. Research typical pay at your role and experience level so you can make a case during salary reviews.
• Pick up overtime hours – Occasional overtime can help supplement your base pay. Even 5-10 extra hours per week would make a difference.
• Learn new skills to boost your pay ceiling – Take classes and earn certifications relevant to advancement in your career field. Higher skills lead to higher earning potential.
• Switch companies – Job hopping every few years is often required to score significant title and pay bumps versus only modest annual raises.
• Start a side hustle – A second stream of income from freelancing, consulting, or a small business can be invested back into your future.

## Buying a car on \$37 an hour

Is buying a car realistic if you make \$37 an hour? Let’s break down the math:

According to Cox Automotive, the average monthly car payment was \$636 in 2021. With interest rates rising, that number is climbing higher in 2022. Even at a better rate of 3%, a 5-year loan of \$25,000 would equal a \$450 monthly car payment.

At \$37 an hour or \$77,000 per year before tax, a \$450 car payment takes nearly 10% of your monthly pre-tax income. It’s doable, but contributes significantly to your expenses. And that’s before adding on insurance, gas and maintenance costs.

To keep car costs below 20% of your income, conventional wisdom recommends spending no more than \$15,000 on a car purchase when making \$37 an hour.

Of course, buying used instead of new and paying with cash rather than financing will yield the most savings and value. You can easily find quality used cars for under \$10,000 if you’re patient.

While you may need to compromise on luxury, performance or features, buying an affordable used car outright is the best financial move if aiming to save and build wealth on this salary.

## Can You Buy a House on \$37 An Hour?

Like cars, buying property will also prove very difficult or impossible in many markets on this salary alone.

The median home listing price in July 2022 was \$403,550. With a 10% down payment, the mortgage on a median-priced home would be around \$2,300 monthly. This is over 50% of your pre-tax income from a \$37 an hour job! And that’s before property taxes, insurance, utilities and maintenance.

Even opting for a more affordable home under \$250,000 often requires \$1,000+ per month in mortgage and ownership costs, which is still likely unaffordable. Renting may be your only reasonable option until increasing your income substantially.

The Pareto Principal suggests limiting your home price to 2-3 times your annual income. On \$37 an hour or \$77,000 per year, aim for a maximum home price of \$150,000-230,000 to maintain manageable mortgage payments. This may require sacrificing space or moving to a lower cost-of-living area.

For most individuals, buying a home near the median list price will be out of reach without secondary income or migrating to markets with more affordable real estate. While home ownership is possible on this wage, it will require discipline, compromise and creative budgeting.

## Example Budget For \$37 Per Hour

To summarize what a realistic budget might look like, here is an example monthly budget for an individual earning \$37 an hour while trying to save and invest money:

• Gross Monthly Income at \$37/hour (assuming 40 hours/week) – \$6,400
• Taxes and Deductions – \$1,600
• Rent – \$1,200
• Transportation (Car Payment, Insurance, Gas) – \$500
• Utilities – \$250
• Cell Phone – \$100
• Groceries – \$400
• Car Maintenance – \$100
• Dining Out – \$200
• Entertainment/Miscellaneous – \$200
• Total Expenses: \$4,550
• Remainder/Savings: \$1,850

This sample budget shows that while \$37 an hour provides a decent standard of living, typical costs including housing, transportation and utilities quickly add up. There is limited room for significant savings or investments without compromising expenses.

Single individuals with no debt and lower housing costs will have an easier time saving money. But for many, especially those with families and student loans, budgets will be tighter at this wage level.

The key is finding ways to boost income over time while keeping fixed costs low. This provides the best opportunity to build wealth and financial freedom.

## In Summary

Depending on where you live and your household size, \$37 an hour provides a salary that can fund a comfortable lifestyle in many areas. However, this wage makes it very hard to afford major expenses like housing, childcare and transportation in high-cost regions while also saving sufficiently for the future.

Careful budgeting, cost cutting and boosting your earnings over time are necessary to turn \$37 an hour into a liveable wage and achieve financial security. With proper money management and growth in your career, this salary provides potential for a solid middle-class lifestyle.