With an hourly rate of $83, it’s natural to wonder what this substantial pay translates to over various time periods. In this article, we’ll break down the gross and net weekly, monthly, and yearly earnings for $83 per hour, looking at both full-time and part-time schedules. We’ll calculate how overtime and unpaid time off can impact annual pay at this rate.
Additionally,we’ll assess if $83/hour is considered a good wage currently by examining factors like inflation, standard of living, and comparable salaries. Relevant topics include: converting the hourly wage into different time frames, estimating annual income for part-time and full-time work, calculating take-home pay after taxes, sample budgets and lifestyle costs, affording major purchases like a house or car, and tips to further increase your pay.
By providing this comprehensive overview, the article illustrates precisely what an hourly rate of $83 equates to in concrete real-world terms.
Table of Contents
Convert $83 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.
$83 an Hour is How Much a Year?
If you make $83 an hour, your yearly salary would be $172,640. 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($83) x Weeks worked per year(52) = $172,640
$83 an Hour is How Much a Month?
If you make $83 an hour, your monthly salary would be $14,386.67. We calculated this number by dividing your annual income by 12 months.
Hours worked per week (40) x Hourly wage($83) x Weeks worked per year(52) / Months per Year(12) = $14,386.67
$83 an Hour is How Much Biweekly?
If you make $83 an hour, your biweekly salary would be $6,640.
Hours worked per week (40) x Hourly wage($83) x 2 = $6,640
$83 an Hour is How Much a Week?
If you make $83 an hour, your weekly salary would be $3,320. Calculating based on 5 days per week and 8 hours each day.
Hours worked per week (40) x Hourly wage($83) = $3,320
$83 an Hour is How Much a Day?
If you make $83 an hour, your daily salary would be $664. We calculated your daily income based on 8 hours per day.
Hours worked per day (8) x Hourly wage($83) = $664
$83 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:
$83 per hour x 40 hours per week x 52 weeks per year = $172,640
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 $172,640 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 $172,640 .
Part time $83 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:
$83 per hour x 25 hours per week x 52 weeks per year = $107,900
By working 15 fewer hours per week (25 instead of 40), your annual earnings at $83 an hour drop from $172,640 to $107,900.
That’s a $64,740 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 $83 an hour:
| Hours Per Week | Earnings Per Week | Annual Earnings |
|---|---|---|
| 40 | $3,320 | $172,640 |
| 35 | $2,905 | $151,060 |
| 30 | $2,490 | $129,480 |
| 25 | $2,075 | $107,900 |
| 20 | $1,660 | $86,320 |
| 15 | $1,245 | $64,740 |
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.
$83 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 $83 per hour normally, you would make $124.50 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 $83 per hour = $3,320
- 5 overtime hours paid at $124.50 per hour = $622.50
- Your total one Week earnings =$3,320 + $622.50 = $3,942.50
If you worked 45 hours each week for 52 weeks, here’s how your annual earnings increase thanks to overtime pay:
$3,942.50 per week x 52 weeks per year = $205,010
That’s $32,370 more than you’d earn working just 40 hours per week at $83 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 $83 an hour:
| Overtime hours per work day | Hours Per Week | Earnings Per Week | Annual Earnings |
| 0 | 40 | $3,320 | $172,640 |
| 1 | 45 | $3,942.50 | $205,010 |
| 2 | 50 | $4,565 | $237,380 |
| 3 | 55 | $5,187.50 | $269,750 |
| 4 | 60 | $5,810 | $302,120 |
| 5 | 65 | $6,432.50 | $334,490 |
| 6 | 70 | $7,055 | $366,860 |
| 7 | 75 | $7,677.50 | $399,230 |
How Unpaid Time Off Impacts $83/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($83) x Weeks worked per year(50) = $166,000 annual salary
With 2 weeks unpaid time off, your annual earnings at $83/hour would drop by $6,640.
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 | $3,320 | $172,640 |
| 1 | 51 | $3,320 | $169,320 |
| 2 | 50 | $3,320 | $166,000 |
| 3 | 49 | $3,320 | $162,680 |
| 4 | 48 | $3,320 | $159,360 |
| 5 | 47 | $3,320 | $156,040 |
| 6 | 46 | $3,320 | $152,720 |
| 7 | 45 | $3,320 | $149,400 |
Key Takeaways for $83 Hourly Wage
In summary, here are some key points on annual earnings when making $83 per hour:
- At 40 hours per week, you’ll earn $172,640 per year.
- Part-time of 30 hours/week results in $129,480 annual salary.
- Overtime pay can boost yearly earnings, e.g. $32,370 extra at 45 hours/week.
- Unpaid time off reduces your total income, around $6,640 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.
$83 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 $83 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 $83 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 $172,640 gross annual pay, your federal tax bracket is 24%.
Your estimated federal tax would be:
$16,290 + ($172,640 – $95,376) x 24% = $34,833.36
So at $83/hour with $172,640 gross pay, you would owe about $34,833.36 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:
$172,640 gross pay x 3.07% PA tax rate = $5,300.05 estimated state income tax
So with $172,640 gross annual income, you would owe around $5,300.05 in Pennsylvania state income tax. Make sure to check your specific state’s 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:
$172,640 gross pay x 2.5% local tax rate = $4,316 estimated local tax
So with $172,640 in gross earnings, you may owe around $4,316 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:
$160,200 x 6.2% + $172,640 x 1.45% = $13,206.96
So you can expect to pay about $13,206.96 in Social Security and Medicare taxes out of your gross $172,640 in earnings.
Total Estimated Tax Payments
Based on the examples above, your total estimated tax payments would be:
Federal tax: $34,833.36
State tax: $5,300.05
Local tax: $4,316
FICA tax: $13,206.96
Total Estimated Tax: $57,656.37
Calculating Your Take Home Pay
To calculate your annual take home pay at $83 /hour:
1. Take your gross pay
2. Subtract your estimated total tax payments
$172,640 gross pay – $57,656.37 Total Estimated Tax = $114,983.63 Your Take Home Pay
n summary, if you make $83 per hour and work full-time, you would take home around $114,983.63 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 $83 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes
If you make $83 an hour and work full-time (40 hours per week), your estimated yearly salary would be $172,640 .
The $172,640 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 $83 An Hour Is How Much A Year After Taxes, we assumed the following conditions:
- You are single with $172,640 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 $57,656.37 , Your Take Home Pay is $114,983.63 , Total tax rate is 33.40%.
So next we’ll use 33.40% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.
$83 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 | $172,640 | 33.40% | $57,656.37 | $114,983.63 |
| Monthly Salary | $14,386.67 | 33.40% | $4,804.70 | $9,581.97 |
| BiWeekly Salary | $6,640 | 33.40% | $2,217.55 | $4,422.45 |
| Weekly Salary | $3,320 | 33.40% | $1,108.78 | $2,211.22 |
$83 an hour is how much a year after taxes
Here is the adjusted yearly salary after a 33.40% tax reduction:
-
- Yearly salary before taxes: $172,640
- Estimated tax rate: 33.40%
- Taxes owed (33.40% * $172,640 )= $57,656.37
- Yearly salary after taxes: $114,983.63
| Hourly Wage | Hours Worked Per Week | Weeks Worked Per Year | Total Yearly Salary | Estimated Tax Rate | Taxes Owed | After-Tax Yearly Salary |
|---|---|---|---|---|---|---|
| $83 | 40 | 52 | $172,640 | 33.40% | $57,656.37 | $114,983.63 |
$83 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 $83 per hour: $172,640
- Divided by 12 months per year: $172,640 / 12 = $14,386.67 per month
-
The monthly salary based on a 40 hour work week at $83 per hour is $14,386.67 before taxes.
After applying the estimated 33.40% tax rate, the monthly after-tax salary would be:
-
- Monthly before-tax salary: $14,386.67
- Estimated tax rate: 33.40%
- Taxes owed (33.40% * $14,386.67 )= $4,804.70
- Monthly after-tax salary: $9,581.97
Monthly Salary Based on $83 Per Hour
| Hourly Wage | Yearly Salary | Months Per Year | Before-Tax Monthly Salary | Estimated Tax Rate | Taxes Owed | After-Tax Monthly Salary |
|---|---|---|---|---|---|---|
| $83 | $172,640 | 12 | $14,386.67 | 33.40% | $4,804.70 | $9,581.97 |
$83 an hour is how much biweekly after taxes
Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at $83 per hour:
- Hourly wage: $83
- Hours worked per week: 40
- Weeks per biweekly pay period: 2
- $83 * 40 hours * 2 weeks = $6,640 biweekly
Applying the 33.40%estimated tax rate:
- Biweekly before-tax salary: $6,640
- Estimated tax rate: 33.40%
- Taxes owed (33.40% * $6,640 )= $2,217.55
- Biweekly after-tax salary: $4,422.45
Biweekly Salary at $83 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 |
|---|---|---|---|---|---|---|
| $83 | 40 | 2 | $6,640 | 33.40% | $2,217.55 | $4,422.45 |
$83 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: $83
- Hours worked per week: 40
- $83 * 40 hours = $3,320 per week
Accounting for the estimated 33.40% tax rate:
- Weekly before-tax salary: $3,320
- Estimated tax rate: 33.40%
- Taxes owed (33.40% * $3,320 )= $1,108.78
- Weekly after-tax salary: $2,211.22
Weekly Salary at $83 Per Hour
| Hourly Wage | Hours Worked Per Week | Before-Tax Weekly Salary | Estimated Tax Rate | Taxes Owed | After-Tax Weekly Salary |
|---|---|---|---|---|---|
| $83 | 40 | $3,320 | 33.40% | $1,108.78 | $2,211.22 |
Key Takeaways
- An hourly wage of $83 per hour equals a yearly salary of $172,640 before taxes, assuming a 40 hour work week.
- After accounting for an estimated 33.40% tax rate, the yearly after-tax salary is approximately $114,983.63 .
- On a monthly basis before taxes, $83 per hour equals $14,386.67 per month. After estimated taxes, the monthly take-home pay is about $9,581.97 .
- The before-tax weekly salary at $83 per hour is $3,320 . After taxes, the weekly take-home pay is approximately $2,211.22 .
- For biweekly pay, the pre-tax salary at $83 per hour is $6,640 . After estimated taxes, the biweekly take-home pay is around $4,422.45 .
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 $83 an Hour a Good Salary?
An income of $83 an hour equates to around $172,640 per year if working full-time (40 hours per week). This salary is over 3 times the median personal income in the United States, which was $56,516 in 2021 according to the U.S. Census Bureau. Therefore, a wage of $83 an hour is considered an excellent salary compared to typical earnings.
Someone making $83 an hour would be in the top 10% of income earners nationwide. This hourly rate places a worker well above the average and suggests they have skills, education, and experience that command higher than normal compensation. Overall, $83 per hour is a fantastic wage that provides a comfortable standard of living in most parts of the country.
Jobs that pay $83 an hour
Certain occupations pay wages equivalent to $83 an hour or more:
- Physicians – Doctors, especially specialists like surgeons, often earn over $80 per hour. The median pay for physicians is around $90 per hour.
- Dentists – Dentistry provides high earning potential, with general dentists typically making $83 per hour or more. Orthodontists and oral surgeons have even higher wages.
- Lawyers – Attorneys with experience at large law firms or as partners can make well over $83 an hour. The median pay for lawyers is around $67 per hour.
- Engineers – Chemical, aerospace, and petroleum engineers are among the highest paid engineering roles, with hourly wages averaging above $80.
- Executives – Top executives at large companies like CEOs and COOs often earn enormous salaries that break down to over $83 per hour.
- Financial managers – Experienced financial managers, accountants, and analysts at major corporations can make over $83 per hour.
- Management consultants – Strategy and operations consultants at top firms like McKinsey, Bain, and BCG are compensated at rates exceeding $150 per hour.
So high-paying professional services, healthcare, engineering, and business management roles offer the best chance to earn over $83 an hour. The tradeoff is these jobs also require extensive education and training.
Can You Live Off $83 An Hour?
Given the high cost of living today, is $83 per hour enough to live comfortably? To determine this, we need to consider the impact of taxes and examine typical monthly budgets and expenses.
Assuming a tax rate of 25%, the take-home pay on $83 an hour would calculate to around $62 per hour, or $124,000 per year. That provides over $10,000 in monthly net income. For reference, below is a sample budget for this take-home income:
- Rent: $2,000
- Utilities: $300
- Car payment: $400
- Car insurance: $100
- Gas: $200
- Groceries: $600
- Dining out: $400
- Entertainment: $250
- Clothes: $150
- Internet and cell phone: $150
- Miscellaneous: $500
Total expenses: $5,050
That leaves $4,950 for savings and investments per month. This budget would allow for a comfortable lifestyle in most of the country without needing to be extremely frugal. While expenses like rent and childcare vary greatly by location, this example illustrates $83 an hour provides disposable income for most households.
However, $83 per hour may not feel like as much in high cost-of-living areas like New York City and the Bay Area. The higher prices for housing, food, and other necessities in major cities can offset the higher nominal wages. But overall, $83 an hour delivers a fantastic salary to live off comfortably in most parts of the United States.
The impact of inflation on the value of $83 an hour
While $83 an hour sounds like a substantial wage, the impact of inflation must be considered. Inflation erodes purchasing power over time, so a salary that seems excellent today may lose value in the future.
For example, since 2000 general inflation in the U.S. has caused the purchasing power of $1 to decline by over 40%. That means $83 today would only buy around $50 worth of goods and services in 2000. Going forward if inflation persisted at 4% per year, the value of $83 per hour would decline by nearly half in 18 years.
This demonstrates how inflation can substantially impact salaries over time. An individual earning $83 an hour today may find their real wage lagging in the future if their pay fails to keep pace with rising prices. Careful financial planning around savings and investments becomes essential to maintain purchasing power.
Overall, $83 an hour is an excellent income today, but inflation can slowly corrode living standards over a career. Monitoring inflation trends and seeking pay increases to offset rising prices is crucial.
5 Ways To Increase Your Hourly Wage
For those earning less than $83 per hour, there are steps that can boost income:
- Get an advanced degree – Education pays. Master’s and professional degrees increase earning potential.
- Pick a high-paying field – Careers like technology, healthcare, and finance generally offer higher compensation.
- Obtain specialized certifications – Certifications signal expertise and skills, leading to higher salaries.
- Work for larger companies – Large firms tend to pay better than small businesses.
- Develop leadership skills – Management and executive positions deliver higher hourly pay.
- Change jobs regularly – Switching companies every few years accelerates income growth.
- Negotiate raises and promotions – Advocate for yourself to earn higher hourly wages over time with one employer.
- Consider side hustles – Passive income streams like investing or part-time work can supplement wages.
Following these tips sustainably over time can help increase earnings toward $83 an hour or more. There are few shortcuts, with perseverance and continually developing new skills being necessary.
Buying a car on $83 an hour
What type of car is affordable if you earn $83 an hour? Assuming the sample monthly budget above with $4,950 in disposable income, you can comfortably afford a vehicle costing around $400 to $700 per month.
Here are some vehicle examples affordable in that monthly price range:
- Toyota Camry – $300 to $450 per month
- Honda Accord – $350 to $550 per month
- Toyota RAV4 – $400 to $650 per month
- Nissan Maxima – $400 to $600 per month
- Ford F-150 – $450 to $700 per month
Of course, buyers could elect to purchase new luxury cars like a BMW, Audi, or Mercedes if they wish to dedicate a higher portion of their budget to a vehicle. But for comparison, mainstream options from Toyota, Honda, Nissan, and Ford are easily affordable on $83 an hour.
The key is to target total monthly vehicle expenses at 10% or less of take-home income. This ensures a car payment doesn’t become burdensome. With budget discipline, earning $83 an hour allows for plenty of great vehicle choices.
Can You Buy a House on $83 An Hour?
Using the monthly budget example above, an income of $83 an hour can support a mortgage for a comfortable home in most housing markets. The key determinants are the down payment amount, interest rates, and local home prices.
As a benchmark, on a 30-year fixed rate mortgage with 5% down, a salary of $83 an hour can afford houses priced around:
- $400,000 with a 5% interest rate
- $500,000 with a 4% interest rate
- $600,000 with a 3% interest rate
Of course, more expensive homes are attainable by increasing the down payment or buying in lower cost areas. The median U.S. home price as of August 2022 is $389,500, so $83 an hour can comfortably afford an average-priced house with prudent financial habits.
Working households bringing in $83 per hour combined have ample income to purchase more expensive houses valued at $750,000+ in many markets. The bottom line is earning this high hourly wage makes home ownership very feasible for individuals and families focused on managing finances wisely.
Example Budget For $83 Per Hour
Below is an example monthly budget for a household with take home income of $10,000 per month, based on $83 an hour full-time:
- Rent: $2,000
- Car payment: $500
- Utilities: $350
- Car insurance: $150
- Cell phones: $200
- Groceries and household items: $700
- Dining and entertainment: $500
- Clothes: $150
- Internet and cable: $150
- Vacation savings: $500
- Retirement savings: $1,500
- Emergency and medical savings: $500
- Other personal care expenses: $250
Total expenses: $7,450
Remaining for additional savings or investments: $2,550
This allows for a $500 per month car payment, $2,000 in retirement contributions, $500 in emergency savings, and $2,550 left for extra investing or paying down debts. Expenses can be adjusted higher or lower based on personal lifestyle and goals. An income of $83 an hour facilitates building long-term wealth and savings.
In Summary
Overall, an hourly income of $83 provides earnings well above average and allows a comfortable lifestyle in most areas. Careers in high-paying fields like healthcare, law, engineering, and business management offer the best opportunities to earn such a high wage. Diligent budgeting around housing, cars, and savings is necessary, but $83 per hour means most budgets can be balanced without substantial hardship given prudent financial habits. Monitoring inflation and continuing to grow skills and income over time remains crucial to maintain purchasing power and wealth. But an hourly salary of $83 supplies earnings that can readily support a great quality of life today.
