# \$89 an Hour is How Much a Year? Before and After Taxes

In today’s job market, an hourly wage of \$89 an hour sounds very appealing. But it’s important to understand exactly what that rate equates to over the course of a year. In this article, we’ll break down the before and after tax annual, monthly, biweekly, and weekly salaries for someone earning \$89 per hour.

You’ll learn how to calculate the total yearly earnings for \$89 an hour, factoring in overtime pay. We’ll discuss whether \$89 an hour is considered a good wage in today’s economy and with the current inflation level. You’ll see how unpaid time off can impact your actual annual income when making \$89 per hour. We’ll also overview common jobs that pay \$89 an hour or more. And we’ll look at sample budgets to evaluate if it’s possible to live comfortably and afford major purchases on \$89 an hour. Understanding the true value of \$89 per hour will empower your job negotiations and career planning. Keep reading for a full analysis!

## Convert \$89 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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### \$89 an Hour is How Much a Year?

If you make \$89 an hour, your yearly salary would be \$185,120. 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(\$89) x Weeks worked per year(52) = \$185,120

### \$89 an Hour is How Much a Month?

If you make \$89 an hour, your monthly salary would be \$15,426.67. We calculated this number by dividing your annual income by 12 months.

Hours worked per week (40) x Hourly wage(\$89) x Weeks worked per year(52) / Months per Year(12) = \$15,426.67

### \$89 an Hour is How Much Biweekly?

If you make \$89 an hour, your biweekly salary would be \$7,120.

Hours worked per week (40) x Hourly wage(\$89) x 2 = \$7,120

### \$89 an Hour is How Much a Week?

If you make \$89 an hour, your weekly salary would be \$3,560. Calculating based on 5 days per week and 8 hours each day.

Hours worked per week (40) x Hourly wage(\$89) = \$3,560

### \$89 an Hour is How Much a Day?

If you make \$89 an hour, your daily salary would be \$712. We calculated your daily income based on 8 hours per day.

Hours worked per day (8) x Hourly wage(\$89) = \$712

## \$89 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:

\$89 per hour x 40 hours per week x 52 weeks per year = \$185,120

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 \$185,120 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 \$185,120 .

## Part time \$89 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 30 hours per week instead of 40. Here’s how you calculate your new yearly total:

\$89 per hour x 30 hours per week x 52 weeks per year = \$138,840

By working 10 fewer hours per week (30 instead of 40), your annual earnings at \$89 an hour drop from \$185,120 to \$138,840.

That’s a \$46,280 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 \$89 an hour:

Hours Per Week Earnings Per Week Annual Earnings
40 \$3,560 \$185,120
35 \$3,115 \$161,980
30 \$2,670 \$138,840
25 \$2,225 \$115,700
20 \$1,780 \$92,560
15 \$1,335 \$69,420

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.

## \$89 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 \$89 per hour normally, you would make \$133.50 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 \$89 per hour = \$3,560
• 5 overtime hours paid at \$133.50 per hour = \$667.50
• Your total one Week earnings =\$3,560 + \$667.50 = \$4,227.50

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

\$4,227.50 per week x 52 weeks per year = \$219,830

That’s \$34,710 more than you’d earn working just 40 hours per week at \$89 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 \$89 an hour:

 Overtime hours per work day Hours Per Week Earnings Per Week Annual Earnings 0 40 \$3,560 \$185,120 1 45 \$4,227.50 \$219,830 2 50 \$4,895 \$254,540 3 55 \$5,562.50 \$289,250 4 60 \$6,230 \$323,960 5 65 \$6,897.50 \$358,670 6 70 \$7,565 \$393,380 7 75 \$8,232.50 \$428,090

## How Unpaid Time Off Impacts \$89/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(\$89) x Weeks worked per year(50) = \$178,000 annual salary

With 2 weeks unpaid time off, your annual earnings at \$89/hour would drop by \$7,120.

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 \$3,560 \$185,120 1 51 \$3,560 \$181,560 2 50 \$3,560 \$178,000 3 49 \$3,560 \$174,440 4 48 \$3,560 \$170,880 5 47 \$3,560 \$167,320 6 46 \$3,560 \$163,760 7 45 \$3,560 \$160,200

## Key Takeaways for \$89 Hourly Wage

In summary, here are some key points on annual earnings when making \$89 per hour:

• At 40 hours per week, you’ll earn \$185,120 per year.
• Part-time of 30 hours/week results in \$138,840 annual salary.
• Overtime pay can boost yearly earnings, e.g. \$34,710 extra at 45 hours/week.
• Unpaid time off reduces your total income, around \$7,120 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.

## \$89 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 \$89 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 \$89 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 \$185,120 gross annual pay, your federal tax bracket is 32%.

Your estimated federal tax would be:

\$37,104 + (\$185,120 – \$182,100) x 32% = \$38,070.40

So at \$89/hour with \$185,120 gross pay, you would owe about \$38,070.40 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:

\$185,120 gross pay x 3.07% PA tax rate = \$5,683.18 estimated state income tax

So with \$185,120 gross annual income, you would owe around \$5,683.18 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:

\$185,120 gross pay x 2.5% local tax rate = \$4,628 estimated local tax

So with \$185,120 in gross earnings, you may owe around \$4,628 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% + \$185,120 x 1.45% = \$14,161.68

So you can expect to pay about \$14,161.68 in Social Security and Medicare taxes out of your gross \$185,120 in earnings.

### Total Estimated Tax Payments

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

Federal tax: \$38,070.40

State tax: \$5,683.18

Local tax: \$4,628

FICA tax: \$14,161.68

Total Estimated Tax: \$62,543.26

### Calculating Your Take Home Pay

To calculate your annual take home pay at \$89 /hour:

2. Subtract your estimated total tax payments

\$185,120 gross pay – \$62,543.26 Total Estimated Tax = \$122,576.74 Your Take Home Pay

n summary, if you make \$89 per hour and work full-time, you would take home around \$122,576.74 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 \$89 Per Hour to Yearly, Monthly, Biweekly, and Weekly Salary After Taxes

If you make \$89 an hour and work full-time (40 hours per week), your estimated yearly salary would be \$185,120 .

The \$185,120 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 \$89 An Hour Is How Much A Year After Taxes, we assumed the following conditions:

• You are single with \$185,120 gross annual pay, your federal tax bracket is 32 %.
• 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 \$62,543.26 , Your Take Home Pay is \$122,576.74 , Total tax rate is 33.79%.

So next we’ll use 33.79% as the estimated tax rate to calculate your weekly, biweekly, and monthly after-tax income.

### \$89 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 \$185,120 33.79% \$62,543.26 \$122,576.74 Monthly Salary \$15,426.67 33.79% \$5,211.94 \$10,214.73 BiWeekly Salary \$7,120 33.79% \$2,405.51 \$4,714.49 Weekly Salary \$3,560 33.79% \$1,202.76 \$2,357.24

### \$89  an hour is how much a year after taxes

Here is the adjusted yearly salary after a 33.79% tax reduction:

• Yearly salary before taxes: \$185,120
• Estimated tax rate: 33.79%
• Taxes owed (33.79% * \$185,120 )= \$62,543.26
• Yearly salary after taxes: \$122,576.74
Hourly Wage Hours Worked Per Week Weeks Worked Per Year Total Yearly Salary Estimated Tax Rate Taxes Owed After-Tax Yearly Salary
\$89 40 52 \$185,120 33.79% \$62,543.26 \$122,576.74

### \$89 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 \$89 per hour: \$185,120
• Divided by 12 months per year: \$185,120 / 12 = \$15,426.67 per month

The monthly salary based on a 40 hour work week at \$89 per hour is \$15,426.67 before taxes.

After applying the estimated 33.79% tax rate, the monthly after-tax salary would be:

• Monthly before-tax salary: \$15,426.67
• Estimated tax rate: 33.79%
• Taxes owed (33.79% * \$15,426.67 )= \$5,211.94
• Monthly after-tax salary: \$10,214.73

Monthly Salary Based on \$89 Per Hour

Hourly Wage Yearly Salary Months Per Year Before-Tax Monthly Salary Estimated Tax Rate Taxes Owed After-Tax Monthly Salary
\$89 \$185,120 12 \$15,426.67 33.79% \$5,211.94 \$10,214.73

### \$89 an hour is how much biweekly after taxes

Many people are paid biweekly, meaning every other week. To calculate the biweekly pay at \$89 per hour:

• Hourly wage: \$89
• Hours worked per week: 40
• Weeks per biweekly pay period: 2
• \$89 * 40 hours * 2 weeks = \$7,120 biweekly

Applying the 33.79%estimated tax rate:

• Biweekly before-tax salary: \$7,120
• Estimated tax rate: 33.79%
• Taxes owed (33.79% * \$7,120 )= \$2,405.51
• Biweekly after-tax salary: \$4,714.49

Biweekly Salary at \$89 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
\$89 40 2 \$7,120 33.79% \$2,405.51 \$4,714.49

### \$89 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: \$89
• Hours worked per week: 40
• \$89 * 40 hours = \$3,560 per week

Accounting for the estimated 33.79% tax rate:

• Weekly before-tax salary: \$3,560
• Estimated tax rate: 33.79%
• Taxes owed (33.79% * \$3,560 )= \$1,202.76
• Weekly after-tax salary: \$2,357.24

Weekly Salary at \$89 Per Hour

Hourly Wage Hours Worked Per Week Before-Tax Weekly Salary Estimated Tax Rate Taxes Owed After-Tax Weekly Salary
\$89 40 \$3,560 33.79% \$1,202.76 \$2,357.24

### Key Takeaways

• An hourly wage of \$89 per hour equals a yearly salary of \$185,120 before taxes, assuming a 40 hour work week.
• After accounting for an estimated 33.79% tax rate, the yearly after-tax salary is approximately \$122,576.74 .
• On a monthly basis before taxes, \$89 per hour equals \$15,426.67 per month. After estimated taxes, the monthly take-home pay is about \$10,214.73 .
• The before-tax weekly salary at \$89 per hour is \$3,560 . After taxes, the weekly take-home pay is approximately \$2,357.24 .
• For biweekly pay, the pre-tax salary at \$89 per hour is \$7,120 . After estimated taxes, the biweekly take-home pay is around \$4,714.49 .

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 \$89 an Hour a Good Salary?

For the typical American worker, \$89 per hour would be a fantastic hourly wage. Assuming full-time work at 40 hours per week, this rate translates to about \$185,000 in annual income before taxes. According to Census Bureau data, the median household income in the U.S. is only around \$70,000. Therefore, \$89 an hour is over 2.5 times higher than the median and firmly in the upper-middle class.

However, as with any salary, the cost of living based on your location is key. \$89 per hour goes much further in low-cost Midwest or Southern cities compared to coastal tech hubs like San Francisco or New York City. But in most areas of the country, this wage provides a comfortable lifestyle. Overall, \$89 an hour is a very strong income, though not quite wealthy.

## Jobs that Pay \$89 Per Hour

Only certain occupations pay \$89 per hour or more. According to Bureau of Labor Statistics data, the highest paying jobs at this level include:

• Physicians – \$119.86/hour average
• Dentists – \$114.01/hour
• Chief Executives – \$107.07/hour
• Architectural Managers – \$97.98/hour
• Podiatrists – \$95.70/hour
• Nurse Practitioners – \$96.45/hour
• Software Developers – \$92.38/hour
• Lawyers – \$89.41/hour
• Aerospace Engineers – \$89.11/hour
• Computer Hardware Engineers – \$89/hour

Jobs in healthcare, dentistry, and technology are the most likely to pay \$89 per hour or more. Experienced lawyers and engineers can also reach this wage threshold. But it generally requires professional degrees and years of experience to earn such a high hourly rate.

## Can You Live Off \$89 An Hour?

The main question is whether or not living on \$89 an hour provides a comfortable lifestyle. Let’s analyze some typical costs and budgets at this income level.

At a full-time job paying \$89 per hour, you would make approximately \$185,000 per year before taxes. After federal and state taxes, healthcare premiums, and Social Security/Medicare deductions, your annual take-home pay would be around \$140,000, or \$11,600 per month.

For an individual, this take-home income certainly provides a decent living in most parts of the country. You could afford a nice house or condo in many suburban areas, though housing costs may be tight in high-cost cities. A well-equipped used car or entry-luxury new car is affordable. And day-to-day costs like groceries, utilities, transportation, entertainment, and dining out are quite reasonable at this salary level.

For families with multiple children, \$89 per hour may still require careful budgeting, particularly in expensive areas with high real estate prices and taxes. But this income generally allows for a comfortable middle-class or upper-middle-class lifestyle overall.

## The Impact of Inflation on the Value of \$89 An Hour

While \$89 an hour is an excellent income today, inflation can quickly erode the real value of this wage over time. With inflation over 8% in 2022, the prices of food, housing, vehicles, and other goods and services are rising rapidly.

If inflation averages a more normal 3% annually over the next decade, the real purchasing power of \$89 per hour would decline significantly. In ten years at a 3% inflation rate, \$89 today would only have the same buying power as about \$72 per hour in 2033 dollars.

This demonstrates why cost of living adjustments and performance raises are necessary just to maintain purchasing power over many years. Overall, inflation makes wage growth imperative to avoid losing real income.

## 5 Ways To Increase Your Hourly Wage

For those currently earning less than \$89 per hour, what are some potential ways to increase your earnings? Here are 5 options:

1. Ask for a raise – If you’ve taken on more work and responsibilities, negotiate a higher salary with your manager. Come armed with market wage data to support your request.
2. Find a higher paying job – Explore job postings for roles advertising salaries that equate to \$89+ per hour. Be prepared to gain skills or education.
3. Freelance – Use freelance sites to find side gigs related to your expertise that pay \$80-100+ per hour.
4. Develop new skills – Take courses in high income skills like software development, financial analysis, or project management.
5. Start a business – Launch an online business that can earn passive income while keeping your day job.

Putting in consistent effort using a combination of these strategies makes boosting your earnings significantly possible over time.

## Buying a Car on \$89 An Hour

At an income of \$89 per hour, what price range of vehicle is reasonable? With this salary, you can comfortably afford payments on a well-equipped used car or new car around the average new car transaction price.

According to 2022 data, the average price paid for a new car is around \$48,000. With strong credit, a 48-month loan on a new car at this price equates to a monthly payment of approximately \$1,450. That’s very affordable on a salary of \$185,000 per year.

For a used car priced around \$28,000, monthly payments would be under \$800 over a 4-year loan with good credit. This allows for a lightly-used luxury model or well-optioned mainstream vehicle. And \$89 per hour income makes paying cash for many used cars realistic too. Overall, \$89 an hour provides plenty of budget for a high-quality, reliable vehicle.

## Can You Buy a House on \$89 An Hour?

Is buying a house possible on an \$89 per hour wage? The answer largely depends on where you want to live. Nationally, the current median home sales price is around \$380,000. But in high-cost areas like California or New York, median prices are \$800,000 and above.

With an annual income of \$185,000 and strong credit, lenders would likely approve a mortgage up to \$925,000 with a 20% downpayment. This gives you options to buy a nice home in mid-sized cities or more affordable suburbs. But it may mean compromising on size or location in expensive metro areas.

Renting generally makes more financial sense in high-cost-of-living regions like NYC and San Francisco based on typical incomes. Ideally you want to spend a maximum of 28% of your pre-tax income on housing costs. On your \$185k salary that means keeping costs at or under \$4,300 monthly.

Owning a home while maxing out retirement and college savings is feasible but will require tradeoffs and careful planning in hot real estate markets. Overall home ownership is very realistic on \$89 per hour in most of the country with prudent budgeting.

## Example Budget for \$89 Per Hour

Here is one possible budget for someone earning \$89 per hour while saving for retirement and their children’s college education:

• Gross Monthly Income (40 hours/week): \$15,120
• Retirement Savings (15% of gross income): \$2,268
• College Savings for 2 Kids (5% of gross income): \$756
• Estimated Taxes (25% effective tax rate): \$3,780
• Take Home Pay: \$8,316
• Mortgage / Rent: \$2,200
• Utilities: \$500
• Car Payment: \$700
• Car Insurance: \$120
• Gas: \$250
• Groceries / Household: \$650
• Entertainment: \$300
• Dining Out: \$500
• Miscellaneous: \$600
• Total Expenses: \$5,820
• Remaining Income: \$2,496

This budget allows for retirement and college savings while covering necessities and moderate discretionary spending. The remaining income can be used for additional savings or vacations. Overall, a salary of \$89 hour provides a comfortable lifestyle in most areas of the country.

## In Summary

While not wealthy, an hourly salary of \$89 provides sufficient income for a nice middle-class lifestyle in 2023. Jobs paying \$89 per hour or more are typically limited to medicine, dentistry, law, engineering, technology, and executive-level roles. For those earning less, options like job changes, raises, skills development, and side businesses can boost income over time. Though inflation erodes purchasing power, \$89 per hour furnishes households with solid earnings potential and flexibility. With prudent saving and money management, home ownership, decent cars, and moderate luxuries are obtainable at this generous pay rate.