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$39 an Hour is How Much a Year? Before and After Taxes

Lucy

In an economy with rising inflation, an hourly wage of $39 may be decent for some while barely scraping by for others. This article will break down exactly how much annual income to expect at $39 per hour based on full-time and part-time schedules. We will calculate gross yearly pay along with net salary after taxes. You’ll also learn how unpaid time off can reduce actual annual earnings, and whether $39 per hour provides a livable wage. If you currently earn $39 hourly or hope to someday, read on to see the yearly, monthly, biweekly, and weekly pay that $39 per hour equals before and after taxes. We will examine jobs that typically pay $39 per hour, look at the impact of inflation, give tips to increase your income, and evaluate sample budgets to determine if home or car ownership is feasible. The goal is to provide a complete financial picture of what $39 an hour truly means.

Table of Contents

Convert $39 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.

$39 an Hour is How Much a Year?

If you make $39 an hour, your yearly salary would be $81,120. 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($39) x Weeks worked per year(52) = $81,120

$39 an Hour is How Much a Month?

If you make $39 an hour, your monthly salary would be $6,760. We calculated this number by dividing your annual income by 12 months.

Hours worked per week (40) x Hourly wage($39) x Weeks worked per year(52) / Months per Year(12) = $6,760

$39 an Hour is How Much a Biweekly?

If you make $39 an hour, your biweekly salary would be $3,120.

Hours worked per week (40) x Hourly wage($39) x 2 = $3,120

$39 an Hour is How Much a Week?

If you make $39 an hour, your weekly salary would be $1,560. Calculating based on 5 days per week and 8 hours each day.

Hours worked per week (40) x Hourly wage($39) = $1,560

$39 an Hour is How Much a Day?

If you make $39 an hour, your daily salary would be $312. We calculated your daily income based on 8 hours per day.

Hours worked per day (8) x Hourly wage($39) = $312

$39 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:

$39 per hour x 40 hours per week x 52 weeks per year = $81,120

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 $81,120 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 $81,120 .

Part time $39 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 35 hours per week instead of 40. Here’s how you calculate your new yearly total:

$39 per hour x 35 hours per week x 52 weeks per year = $70,980

By working 5 fewer hours per week (35 instead of 40), your annual earnings at $39 an hour drop from $81,120 to $70,980.

That’s a $10,140 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 $39 an hour:

Hours Per Week

Earnings Per Week

Annual Earnings

40

$1,560

$81,120

35

$1,365

$70,980

30

$1,170

$60,840

25

$975

$50,700

20

$780

$40,560

15

$585

$30,420

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.

$39 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 $39 per hour normally, you would make $58.50 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 $39 per hour = $1,560

5 overtime hours paid at $58.50 per hour = $292.50

Your total one Week earnings =$1,560 + $292.50 = $1,852.50

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

$1,852.50 per week x 52 weeks per year = $96,330

That’s $15,210 more than you’d earn working just 40 hours per week at $39 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 $39 an hour:

Overtime hours per work day

Hours Per Week

Earnings Per Week

Annual Earnings

0

40

$1,560

$81,120

1

45

$1,852.50

$96,330

2

50

$2,145

$111,540

3

55

$2,437.50

$126,750

4

60

$2,730

$141,960

5

65

$3,022.50

$157,170

6

70

$3,315

$172,380

7

75

$3,607.50

$187,590

How Unpaid Time Off Impacts $39/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($39) x Weeks worked per year(50) = $78,000 annual salary

With 2 weeks unpaid time off, your annual earnings at $39/hour would drop by $3,120.

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

$1,560

$81,120

1

51

$1,560

$79,560

2

50

$1,560

$78,000

3

49

$1,560

$76,440

4

48

$1,560

$74,880

5

47

$1,560

$73,320

6

46

$1,560

$71,760

7

45

$1,560

$70,200

Key Takeaways for $39 Hourly Wage

In summary, here are some key points on annual earnings when making $39 per hour:

At 40 hours per week, you’ll earn $81,120 per year.

Part-time of 30 hours/week results in $60,840 annual salary.

Overtime pay can boost yearly earnings, e.g. $15,210 extra at 45 hours/week.

Unpaid time off reduces your total income, around $3,120 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.

$39 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 $39 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 $39 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:

For example, if you are single with $81,120 gross annual pay, your federal tax bracket is 22%.

Your estimated federal tax would be:

$5,147 + ($81,120 – $44,726) x 22% = $13,153.68

So at $39/hour with $81,120 gross pay, you would owe about $13,153.68 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

Alaska

0%

None

Florida

0%

None

Nevada

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:

$81,120 gross pay x 3.07% PA tax rate = $2,490.38 estimated state income tax

So with $81,120 gross annual income, you would owe around in $2,490.38 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:

$81,120 gross pay x 2.5% local tax rate = $2,028 estimated local tax

So with $81,120 in gross earnings, you may owe around $2,028 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:

$81,120 x 6.2% + $81,120 x 1.45% = $6,205.68

So you can expect to pay about $6,205.68 in Social Security and Medicare taxes out of your gross $81,120 in earnings.

Total Estimated Tax Payments

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

Federal tax: $13,153.68

State tax: $2,490.38

Local tax: $2,028

FICA tax: $6,205.68

Total Estimated Tax: $23,877.74

Calculating Your Take Home Pay

To calculate your annual take home pay at $39 /hour:

1. Take your gross pay

2. Subtract your estimated total tax payments

$81,120 gross pay – $23,877.74 Total Estimated Tax = $57,242.26 Your Take Home Pay

n summary, if you make $39 per hour and work full-time, you would take home around $57,242.26 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 $39 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes

If you make $39 an hour and work full-time (40 hours per week), your estimated yearly salary would be $81,120 .

The $81,120 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 $39 An Hour Is How Much A Year After Taxes, we assumed the following conditions:

You are single with $81,120 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 $23,877.74 , Your Take Home Pay is $57,242.26 , Total tax rate is 29.44%.

So next we’ll use 29.44% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.

$39 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

$81,120

29.44%

$23,877.74

$57,242.26

Monthly Salary

$6,760

29.44%

$1,989.81

$4,770.19

BiWeekly Salary

$3,120

29.44%

$918.37

$2,201.63

Weekly Salary

$1,560

29.44%

$459.19

$1,100.81

$39 an hour is how much a year after taxes

Here is the adjusted yearly salary after a 29.44% tax reduction:

Yearly salary before taxes: $81,120

Estimated tax rate: 29.44%

Taxes owed (29.44% * $81,120 )= $23,877.74

Yearly salary after taxes: $57,242.26

Hourly Wage

Hours Worked Per Week

Weeks Worked Per Year

Total Yearly Salary

Estimated Tax Rate

Taxes Owed

After-Tax Yearly Salary

$39

40

52

$81,120

29.44%

$23,877.74

$57,242.26

$39 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 $39 per hour: $81,120

Divided by 12 months per year: $81,120 / 12 = $6,760 per month

The monthly salary based on a 40 hour work week at $39 per hour is $6,760 before taxes.

After applying the estimated 29.44% tax rate, the monthly after-tax salary would be:

Monthly before-tax salary: $6,760

Estimated tax rate: 29.44%

Taxes owed (29.44% * $6,760 )= $1,989.81

Monthly after-tax salary: $4,770.19

Monthly Salary Based on $39 Per Hour

Hourly Wage

Yearly Salary

Months Per Year

Before-Tax Monthly Salary

Estimated Tax Rate

Taxes Owed

After-Tax Monthly Salary

$39

$81,120

12

$6,760

29.44%

$1,989.81

$4,770.19

$39 an hour is how much biweekly after taxes

Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at $39 per hour:

Hourly wage: $39

Hours worked per week: 40

Weeks per biweekly pay period: 2

$39 * 40 hours * 2 weeks = $3,120 biweekly

Applying the 29.44%estimated tax rate:

Biweekly before-tax salary: $3,120

Estimated tax rate: 29.44%

Taxes owed (29.44% * $3,120 )= $918.37

Biweekly after-tax salary: $2,201.63

Biweekly Salary at $39 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

$39

40

2

$3,120

29.44%

$918.37

$2,201.63

$39 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: $39

Hours worked per week: 40

$39 * 40 hours = $1,560 per week

Accounting for the estimated 29.44% tax rate:

Weekly before-tax salary: $1,560

Estimated tax rate: 29.44%

Taxes owed (29.44% * $1,560 )= $459.19

Weekly after-tax salary: $1,100.81

Weekly Salary at $39 Per Hour

Hourly Wage

Hours Worked Per Week

Before-Tax Weekly Salary

Estimated Tax Rate

Taxes Owed

After-Tax Weekly Salary

$39

40

$1,560

29.44%

$459.19

$1,100.81

Key Takeaways

An hourly wage of $39 per hour equals a yearly salary of $81,120 before taxes, assuming a 40 hour work week.

After accounting for an estimated 29.44% tax rate, the yearly after-tax salary is approximately $57,242.26 .

On a monthly basis before taxes, $39 per hour equals $6,760 per month. After estimated taxes, the monthly take-home pay is about $4,770.19 .

The before-tax weekly salary at $39 per hour is $1,560 . After taxes, the weekly take-home pay is approximately $1,100.81 .

For biweekly pay, the pre-tax salary at $39 per hour is $3,120 . After estimated taxes, the biweekly take-home pay is around $2,201.63 .

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 $39 an Hour a Good Salary?

For many Americans, $39 per hour would be considered a decent hourly wage, especially if you reside in a relatively low cost-of-living area. At $39/hour full-time (40 hours/week), your annual salary would be around $81,120 before taxes. That lands you in the upper-middle class, likely within the 60th-70th income percentile range nationally.

However, the local cost of living makes a huge impact on how far $39 an hour stretches. In high costs metros like San Francisco and New York City, that income might mean merely scraping by. While in many rural areas and smaller towns, $39/hour can provide quite a comfortable middle-class lifestyle.

Inflation also erodes the real value of $39/hour over time. As goods, services and housing costs rise, $39 buys less every year. So while $39 per hour affords a decent lifestyle today for some, it may barely cover the basics in future years without pay increases.

Overall, $39 an hour is a well above average U.S. wage. But depending on location, household size and personal lifestyle choices, it may or may not offer a satisfying standard of living.

Jobs that pay $39 an hour

Here are some examples of jobs that typically pay close to $39 per hour:

Licensed practical nurses (LPN) and medical technicians – Experienced LPNs generally earn $24-$28 per hour, putting them in the $39 per hour range with overtime. Many lab techs and medical technicians also earn hourly pay near $39 with experience.

Equipment operators – Skilled operators of heavy construction equipment like bulldozers, cranes, and excavators can earn $30-$40 per hour depending on experience and certifications.

Power plant operators – Workers at power generation facilities tend to earn $35-$45 per hour at middle experience levels.

Paralegals – Experienced paralegals at larger law firms often earn hourly wages in the high $30s to low $40s.

IT support specialists – Well qualified IT support techs and network administrators can earn $38-$42 per hour, depending on skills.

Accountants – Public accountants with several years experience commonly bill around $39 per hour.

Teachers – Public school teachers earn about $39 per hour on average when factoring summers off.

So the most common jobs paying about $39/hour are in healthcare, construction/equipment operation, energy, legal services, IT, accounting, and education. These roles generally require vocational training or college education but not always a full bachelor’s degree.

Can You Live Off $39 An Hour?

Whether or not $39 an hour provides a livable income depends on your individual circumstances:

Singles or childless couples in most rural areas or inexpensive Midwest/Southern cities can live solidly middle-class on $39/hour. Housing costs are relatively affordable, leaving ample income for other necessities, leisure and savings.

However, singles and couples without kids but living in major metros like NYC or LA will find $39 an hour quite tight. Rent for a modest one bedroom apartment starts around $2,000/month in these areas. After taxes, that leaves little for anything beyond basics.

Families with kids also see budgets stretched thin at $39/hour, especially in higher cost regions. Child care, healthcare, education and other child-related expenses take a huge bite. Two kids could mean living paycheck to paycheck.

Homeowners also spend a large percentage of gross income on mortgage payments. With today’s home prices and rates, $39/hour could be insufficient for comfortably covering mortgage, taxes, utilities and maintenance.

In summary, location, household size, and lifestyle make a massive impact on a $39/hour salary’s adequacy. For singles and childless couples in lower cost areas, $39 provides middle-class comfort. But for larger households and those living in expensive cities, expenses easily exceed $39/hour.

The impact of inflation on the value of $39 an hour

It’s crucial to understand that with inflation, $39 today buys much less than in the past. For example:

$39 per hour in 2000 equals nearly $65 today adjusted for inflation – about two-thirds more purchasing power.

Going back to 1990, $39 per hour then equates to around $85 now, more than double today’s $39.

Looking forward, without pay increases $39/hour today will only be worth around $31/hour by 2030 assuming 3% annual inflation.

Inflation severely erodes real wage value over time. $39 an hour might still be reasonably comfortable today for some households, but with living costs rising, it will buy less and less each year. For long-term earning power, you need income growth that outpaces inflation.

5 Ways To Increase Your Hourly Wage

If you currently earn less than $39 per hour, here are some potential strategies to increase your income:

Get more education and training – Earning vocational certifications or college degrees in high-paying fields generally leads to higher earning potential.

Develop specialized skills – Gain expertise in skills that are well compensated like technology, healthcare services, financial analysis, and skilled trades.

Switch companies or careers – Changing employers or roles is one of the fastest ways to boost income. Explore options with higher pay ceilings.

Go freelance or start a business – By working for yourself, you can earn income directly based on your hourly rate rather than being capped by a salary.

Negotiate raises aggressively – Research pay rates and don’t be afraid to negotiate hard for salary increases to reach $39/hour.

Improving your skillset, seeking higher paying roles, and negotiating strongly are key to reaching an income of $39 per hour or more over time. It may take years of diligence and career development, but it is certainly attainable.

Buying a car on $39 an hour

Buying a car on an income of $39 per hour requires careful budgeting to avoid unaffordable payments. Here are some tips:

Aim to spend no more than 10% of your annual net income on a car purchase. With $39/hour full-time, your gross annual income is around $81k. Limit your purchase to around $8,000 or less.

Shop used vehicles to avoid immediate depreciation of new cars. Well-maintained used cars can operate reliably for years while costing much less upfront.

Secure pre-approval for financing based on your income, and shop around for best rates. Good credit will help qualify for lower interest rates.

Prioritize fuel efficiency – With gas prices soaring, compact sedans and other efficient vehicles help limit driving costs. Models like Honda Civic and Toyota Corolla are great choices.

Weigh total ownership costs – Factor in higher insurance, fuel and repair costs for luxury brands or sports cars. Keep total costs low.

Overall, buying smart based on budget and not overextending your income is crucial to avoiding excessive auto loan debt that burdens future finances.

Can You Buy a House on $39 An Hour?

Buying a house on an income of $39 per hour is challenging but possible depending on your location, lifestyle and current real estate prices and mortgage rates when you purchase. Here are some tips:

Lenders traditionally approve borrowers spending up to 28% of gross monthly income on mortgage, taxes and insurance. On $39/hour income, that equates to around $1,730 per month allocated towards housing.

However, limiting housing costs to no more than 25% of gross monthly income is safer. On $39/hour, that means keeping payments under $1,560 per month.

Run online mortgage calculators to see home prices you can realistically afford based on income and current rates. Homes costing $180,000 to $220,000 are likely the upper limit. Focus your search in this range.

Prioritize lower cost-of-living areas to maximize home buying power. Smaller cities and rural locations offer better value than pricey metro areas.

Save up for at least a 10% down payment – 20% is even better to avoid extra PMI fees and get the best rates. Showing skins in the game signals the lender you can handle payments.

Shop multiple lenders for the lowest rates, get pre-approved before making offers, and lock in rates when ready to buy. Having financing lined up makes for a stronger buyer.

Home ownership on $39 an hour takes careful budgeting and realistic expectations, but disciplined buyers can pull it off, especially in affordable real estate markets.

Example Budget For $39 Per Hour

To better evaluate if you can live on $39 an hour, let’s look at a monthly budget example. This assumes full-time hours of 173 per month.

Monthly Gross Income

Hourly wage: $39

Monthly hours worked: 173

Gross monthly income: $6,747

Deductions

Federal tax: $806

Social Security: $418

Medicare: $98

State tax: $149

Health insurance: $250

401k contribution: $250 Total deductions: $1,971

Net Monthly Income = $4,776

Monthly Expenses

Rent: $1,200

Utilities: $150

Used car payment: $180

Car insurance: $100

Gas: $150

Groceries and dining out: $550

Entertainment: $200

Miscellaneous: $250 Total expenses: $2,780

Remaining for additional savings or discretionary spending = $1,996

This illustrates that $39 an hour affords a moderate middle-class lifestyle for a single person without kids, with almost $2,000 left over for additional monthly savings or discretionary spending in a relatively low cost area. Families would need to earn significantly more. Overall, $39 an hour is livable depending on your household size and expenses.

In Summary

An income of $39 an hour represents an above-average U.S. wage that can support a comfortable middle-class lifestyle depending on where you live and your household size. However, inflation continually eats away at $39’s real value over time. And in high-cost metro areas or for larger families, $39 an hour can prove quite challenging. The keys are controlling housing costs, budgeting diligently, and seeking pay increases to maintain standard of living. For some households in lower cost regions, $39 an hour means living comfortably. For others in pricier cities, it demands major compromises on housing, savings and discretionary spending. Evaluate your individual circumstances to determine if you can live the lifestyle you want on $39 an hour.