In an economy grappling with high inflation, an hourly wage of $55 may seem generous or barely adequate depending on your circumstances. This article will break down the key numbers to show exactly how much annual and monthly income you can expect at $55 per hour, before and after taxes. We’ll calculate the yearly salary for full-time and part-time work at this hourly rate, and look at how unpaid time off can reduce actual take-home pay. Converting hourly wages to yearly incomes can be confusing, but we’ll outline the formulas in a straightforward way. We’ll also evaluate if $55 per hour is considered a good salary currently and what standard of living it provides. Whether you’re weighing a job offer at $55 an hour or want to better grasp how an hourly wage translates to annual earnings, this article will provide the crucial numbers and math. We’ll look at typical professions that pay $55 hourly, whether that allows you to afford major purchases like a home or car, tips to potentially increase your earnings, and more. With prices rising at a rapid pace, it’s important to understand hourly income in terms of real annual buying power.
Table of Contents
Convert $55 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.
$55 an Hour is How Much a Year?
If you make $55 an hour, your yearly salary would be $114,400. 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($55) x Weeks worked per year(52) = $114,400
$55 an Hour is How Much a Month?
If you make $55 an hour, your monthly salary would be $9,533.33. We calculated this number by dividing your annual income by 12 months.
Hours worked per week (40) x Hourly wage($55) x Weeks worked per year(52) / Months per Year(12) = $9,533.33
$55 an Hour is How Much a Biweekly?
If you make $55 an hour, your biweekly salary would be $4,400.
Hours worked per week (40) x Hourly wage($55) x 2 = $4,400
$55 an Hour is How Much a Week?
If you make $55 an hour, your weekly salary would be $2,200. Calculating based on 5 days per week and 8 hours each day.
Hours worked per week (40) x Hourly wage($55) = $2,200
$55 an Hour is How Much a Day?
If you make $55 an hour, your daily salary would be $440. We calculated your daily income based on 8 hours per day.
Hours worked per day (8) x Hourly wage($55) = $440
$55 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:
$55 per hour x 40 hours per week x 52 weeks per year = $114,400
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 $114,400 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 $114,400 .
Part time $55 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 20 hours per week instead of 40. Here’s how you calculate your new yearly total:
$55 per hour x 20 hours per week x 52 weeks per year = $57,200
By working 20 fewer hours per week (20 instead of 40), your annual earnings at $55 an hour drop from $114,400 to $57,200.
That’s a $57,200 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 $55 an hour:
| Hours Per Week | Earnings Per Week | Annual Earnings |
|---|---|---|
| 40 | $2,200 | $114,400 |
| 35 | $1,925 | $100,100 |
| 30 | $1,650 | $85,800 |
| 25 | $1,375 | $71,500 |
| 20 | $1,100 | $57,200 |
| 15 | $825 | $42,900 |
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.
$55 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 $55 per hour normally, you would make $82.50 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 $55 per hour = $2,200
- 5 overtime hours paid at $82.50 per hour = $412.50
- Your total one Week earnings =$2,200 + $412.50 = $2,612.50
If you worked 45 hours each week for 52 weeks, here’s how your annual earnings increase thanks to overtime pay:
$2,612.50 per week x 52 weeks per year = $135,850
That’s $21,450 more than you’d earn working just 40 hours per week at $55 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 $55 an hour:
| Overtime hours per work day | Hours Per Week | Earnings Per Week | Annual Earnings |
| 0 | 40 | $2,200 | $114,400 |
| 1 | 45 | $2,612.50 | $135,850 |
| 2 | 50 | $3,025 | $157,300 |
| 3 | 55 | $3,437.50 | $178,750 |
| 4 | 60 | $3,850 | $200,200 |
| 5 | 65 | $4,262.50 | $221,650 |
| 6 | 70 | $4,675 | $243,100 |
| 7 | 75 | $5,087.50 | $264,550 |
How Unpaid Time Off Impacts $55/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($55) x Weeks worked per year(50) = $110,000 annual salary
With 2 weeks unpaid time off, your annual earnings at $55/hour would drop by $4,400.
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 | $2,200 | $114,400 |
| 1 | 51 | $2,200 | $112,200 |
| 2 | 50 | $2,200 | $110,000 |
| 3 | 49 | $2,200 | $107,800 |
| 4 | 48 | $2,200 | $105,600 |
| 5 | 47 | $2,200 | $103,400 |
| 6 | 46 | $2,200 | $101,200 |
| 7 | 45 | $2,200 | $99,000 |
Key Takeaways for $55 Hourly Wage
In summary, here are some key points on annual earnings when making $55 per hour:
- At 40 hours per week, you’ll earn $114,400 per year.
- Part-time of 30 hours/week results in $85,800 annual salary.
- Overtime pay can boost yearly earnings, e.g. $21,450 extra at 45 hours/week.
- Unpaid time off reduces your total income, around $4,400 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.
$55 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 $55 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 $55 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 $114,400 gross annual pay, your federal tax bracket is 24%.
Your estimated federal tax would be:
$16,290 + ($114,400 – $95,376) x 24% = $20,855.76
So at $55/hour with $114,400 gross pay, you would owe about $20,855.76 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:
$114,400 gross pay x 3.07% PA tax rate = $3,512.08 estimated state income tax
So with $114,400 gross annual income, you would owe around in $3,512.08 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:
$114,400 gross pay x 2.5% local tax rate = $2,860 estimated local tax
So with $114,400 in gross earnings, you may owe around $2,860 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:
$114,400 x 6.2% + $114,400 x 1.45% = $8,751.60
So you can expect to pay about $8,751.60 in Social Security and Medicare taxes out of your gross $114,400 in earnings.
Total Estimated Tax Payments
Based on the examples above, your total estimated tax payments would be:
Federal tax: $20,855.76
State tax: $3,512.08
Local tax: $2,860
FICA tax: $8,751.60
Total Estimated Tax: $35,979.44
Calculating Your Take Home Pay
To calculate your annual take home pay at $55 /hour:
1. Take your gross pay
2. Subtract your estimated total tax payments
$114,400 gross pay – $35,979.44 Total Estimated Tax = $78,420.56 Your Take Home Pay
n summary, if you make $55 per hour and work full-time, you would take home around $78,420.56 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 $55 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes
If you make $55 an hour and work full-time (40 hours per week), your estimated yearly salary would be $114,400 .
The $114,400 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 $55 An Hour Is How Much A Year After Taxes, we assumed the following conditions:
- You are single with $114,400 gross annual pay, your federal tax bracket is 24 %.
- 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 $35,979.44 , Your Take Home Pay is $78,420.56 , Total tax rate is 31.45%.
So next we’ll use 31.45% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.
$55 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 | $114,400 | 31.45% | $35,979.44 | $78,420.56 |
| Monthly Salary | $9,533.33 | 31.45% | $2,998.29 | $6,535.05 |
| BiWeekly Salary | $4,400 | 31.45% | $1,383.82 | $3,016.18 |
| Weekly Salary | $2,200 | 31.45% | $691.91 | $1,508.09 |
$55 an hour is how much a year after taxes
Here is the adjusted yearly salary after a 31.45% tax reduction:
-
- Yearly salary before taxes: $114,400
- Estimated tax rate: 31.45%
- Taxes owed (31.45% * $114,400 )= $35,979.44
- Yearly salary after taxes: $78,420.56
| Hourly Wage | Hours Worked Per Week | Weeks Worked Per Year | Total Yearly Salary | Estimated Tax Rate | Taxes Owed | After-Tax Yearly Salary |
|---|---|---|---|---|---|---|
| $55 | 40 | 52 | $114,400 | 31.45% | $35,979.44 | $78,420.56 |
$55 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 $55 per hour: $114,400
- Divided by 12 months per year: $114,400 / 12 = $9,533.33 per month
-
The monthly salary based on a 40 hour work week at $55 per hour is $9,533.33 before taxes.
After applying the estimated 31.45% tax rate, the monthly after-tax salary would be:
-
- Monthly before-tax salary: $9,533.33
- Estimated tax rate: 31.45%
- Taxes owed (31.45% * $9,533.33 )= $2,998.29
- Monthly after-tax salary: $6,535.05
Monthly Salary Based on $55 Per Hour
| Hourly Wage | Yearly Salary | Months Per Year | Before-Tax Monthly Salary | Estimated Tax Rate | Taxes Owed | After-Tax Monthly Salary |
|---|---|---|---|---|---|---|
| $55 | $114,400 | 12 | $9,533.33 | 31.45% | $2,998.29 | $6,535.05 |
$55 an hour is how much biweekly after taxes
Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at $55 per hour:
- Hourly wage: $55
- Hours worked per week: 40
- Weeks per biweekly pay period: 2
- $55 * 40 hours * 2 weeks = $4,400 biweekly
Applying the 31.45%estimated tax rate:
- Biweekly before-tax salary: $4,400
- Estimated tax rate: 31.45%
- Taxes owed (31.45% * $4,400 )= $1,383.82
- Biweekly after-tax salary: $3,016.18
Biweekly Salary at $55 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 |
|---|---|---|---|---|---|---|
| $55 | 40 | 2 | $4,400 | 31.45% | $1,383.82 | $3,016.18 |
$55 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: $55
- Hours worked per week: 40
- $55 * 40 hours = $2,200 per week
Accounting for the estimated 31.45% tax rate:
- Weekly before-tax salary: $2,200
- Estimated tax rate: 31.45%
- Taxes owed (31.45% * $2,200 )= $691.91
- Weekly after-tax salary: $1,508.09
Weekly Salary at $55 Per Hour
| Hourly Wage | Hours Worked Per Week | Before-Tax Weekly Salary | Estimated Tax Rate | Taxes Owed | After-Tax Weekly Salary |
|---|---|---|---|---|---|
| $55 | 40 | $2,200 | 31.45% | $691.91 | $1,508.09 |
Key Takeaways
- An hourly wage of $55 per hour equals a yearly salary of $114,400 before taxes, assuming a 40 hour work week.
- After accounting for an estimated 31.45% tax rate, the yearly after-tax salary is approximately $78,420.56 .
- On a monthly basis before taxes, $55 per hour equals $9,533.33 per month. After estimated taxes, the monthly take-home pay is about $6,535.05 .
- The before-tax weekly salary at $55 per hour is $2,200 . After taxes, the weekly take-home pay is approximately $1,508.09 .
- For biweekly pay, the pre-tax salary at $55 per hour is $4,400 . After estimated taxes, the biweekly take-home pay is around $3,016.18 .
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 $55 an Hour a Good Salary?
Whether $55 an hour is considered a good salary depends heavily on your location, lifestyle, and family size. The national median hourly wage in the United States is around $30, so $55 per hour is nearly double the national average. However, in high cost-of-living areas like New York City or San Francisco, this hourly wage would be considered moderate at best.
As a general rule of thumb, $55 an hour is a strong salary for a single person or dual income couple without children. However, for larger families living in expensive metro areas, it may not provide as much financial breathing room. The true test is examining how far $55 an hour goes in your specific city and for your household.
Jobs that pay $55 an hour
There are a variety of professions that pay approximately $55 per hour on average. Here are some examples of jobs that can yield this hourly rate:
- Registered Nurse
- Web Developer
- Accountant
- Electrician
- Plumber
- HVAC Technician
- Insurance Sales Agent
- Real Estate Agent
- Police Officer
- Firefighter
- Paralegal
- Machinist
- Radiologic Technologist
As you can see, this wage is fairly common among skilled trades, healthcare professionals, tech professionals, and government employees. The jobs that pay $55 an hour generally require some type of certification, license, college degree or apprenticeship.
Can You Live Off $55 An Hour?
Whether or not $55 an hour provides a livable wage depends on your location, debts, dependents and lifestyle expectations.
For a single person with no children who lives in an average cost-of-living city like Nashville or Dallas, $55 an hour should provide a comfortable lifestyle. You would be able to afford rent or a mortgage payment on a modest home or apartment. You could also afford the typical costs of food, transportation, healthcare and entertainment on this salary alone.
However, for a family of four living in a high cost metro area like Los Angeles or New York City, it would be much harder to get by on $55 per hour. The cost of housing, childcare, healthcare and other expenses for a family are dramatically higher, making $55 an hour feel tight.
Overall, $55 an hour provides a solid middle-class lifestyle for individuals and dual-income couples, but those with multiple dependents would likely find it harder to make ends meet. Geographic location also plays a huge role in determining how far this wage can be stretched.
The impact of inflation on the value of $55 an hour
With inflation hitting 40 year highs in 2022, it’s important to note the impact rising prices have on hourly wages like $55. In short, inflation erodes purchasing power over time.
For example, $55 an hour today would only have the buying power of about $47 an hour back in 2012 based on inflation. And with inflation projected to keep rising through 2023, the actual value of $55 an hour will diminish. Everything from rent to groceries to gas will keep getting more expensive, making it harder to maintain a middle class lifestyle on this wage.
As such, it’s important for hourly workers to advocate for cost of living adjustments and raises that keep pace with the actual inflation rate. Earning $55 an hour sounds nice on paper, but inflation drastically eats into that over time.
5 Ways To Increase Your Hourly Wage
If you find that $55 an hour is not cutting it, here are some strategies to increase your earnings:
- Ask for a raise: If you’ve been at a company for awhile and have proven your value, negotiate a higher hourly wage or salary with your manager. Come armed with hard numbers on your contributions.
- Find a higher paying job: Look for open roles that pay above your current hourly rate and have better salary growth opportunities.
- Pick up overtime hours: Taking on extra shifts is an easy way to make more money at your existing job.
- Monetize a side hustle: Start a weekend side gig that allows you to earn extra income outside your full-time job.
- Gain additional certifications: Getting certified in new technical skills and software can help qualify you for better paying roles.
Putting in the effort to increase your earnings will ensure your wages keep pace with the cost of living.
Buying a car on $55 an hour
Is buying a car realistic on an hourly wage of $55? The answer is yes – with the right budgeting and expectations.
When making $55 an hour, experts recommend spending no more than 15% of your annual income on a vehicle purchase. This means sticking to cars that are $17,000 or less to stay affordable.
For example, on $55 an hour you could comfortably afford a used Toyota Camry or Honda Civic in the $15,000 price range. New compact vehicles around $18,000 like a Hyundai Elantra or Kia Forte could also work.
However, luxury vehicles or SUVs over $30,000 would generally not be wise purchases when making $55 per hour. You’ll want to stick to reliable used models or budget-friendly new cars to keep costs reasonable.
The key is weighing the total cost of ownership – not just the car payment, but also insurance, gas and maintenance. With responsible budgeting, buying a car on $55 an hour is certainly achievable.
Can You Buy a House on $55 An Hour?
On an annual salary of $114,000 ($55 an hour), buying a home is possible depending on where you live. The mortgage you can qualify for will depend on factors like:
- Down payment amount
- Monthly debts and obligations
- Credit score and history
- Location/real estate market
With a 20% down payment and solid credit, you could potentially afford a $300,000 home on $55 an hour. This translates to a monthly mortgage payment around $1,350 including taxes and insurance.
While doable, a $300,000 home would likely mean budgeting carefully in other areas. You may need to buy a smaller starter home at first. Living below your means is key.
In more expensive real estate markets like Southern California, the New York Tri-State area, or Seattle, a $300,000 home is tough to find. You’d have to consider condos, townhomes, or fixer-uppers. Renting may be the better option until you can move up the property ladder over time.
The bottom line? Home ownership on $55 an hour is possible but requires careful planning and realistic expectations. Speak to a mortgage professional to assess your options.
Example Budget For $55 Per Hour
Here is one example of how to budget when making $55 per hour:
- Take Home Pay (after taxes): $4,400 per month
- Rent (1 bedroom apartment): $1,500
- Utilities: $150
- Cell Phone: $100
- Internet/Cable: $100
- Car Payment: $300
- Car Insurance: $100
- Gas: $200
- Groceries: $400
- Entertainment/Self-care: $200
- Retirement Savings: $500
- Emergency Fund Savings: $200
- Misc. Expenses: $250
- Total Costs: $4,000
This allows $400 of wiggle room in the budget for unexpected costs and expenses. While not a lavish lifestyle, $55 an hour affords a comfortable, middle-class life with smart budgeting.
In Summary
At $55 dollars an hour, a single earner or dual income couple can realistically achieve financial stability. However, geographic location, inflation, and family size play huge roles in determining actual purchasing power. Workers must also budget wisely, keep housing/car costs reasonable, and limit unnecessary expenses. Overall, $55 an hour provides a solid wage but may not feel as comfortable in high-cost metro areas or for bigger families supporting multiple dependents. Maximizing your earnings via raises, promotions and side hustles helps overcome these hurdles.
