Money Tips

Inside: Learn what 45 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.

You’re probably wondering if I made $45 a year, how much do I truly make? What will that add up to over the course of the year when working?

Is my $45 an hour take-home pay compared to others in my industry? Is $45 an hour paycheck a good salary?

First of all, this is a wage you can actually live on and should be able to thrive and reach your financial goals. Annually $45 an hour should help you to breathe easier with your finances. You might wonder how can I start to increase my hourly wage to $50, $55 or $60 per hour?

Most of the hourly jobs that pay over $45 an hour do not require a degree, which is great news! Those paid on a salary basis tend to have a college degree and do not even calculate their hourly wage.

In this post, we’re going to detail exactly what $45 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.

That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.

By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.

The ultimate goal with money success is to be wise with how you spend your money.

If that is something you want too, then keep reading. You are in the right place.

$45 an Hour is How Much a Year?

When we ran all of our numbers to figure out how much is $45 per hour is as an annual salary, we used the average working day of 40 hours a week.

40 hours x 52 weeks x $45 = $93,600

$93,600 is the gross annual salary with a $45 per hour wage.

As of June 2023, the average hourly wage is $33.58 (source).

Let’s break down of 45 Dollars an Hour is How Much a Year=

Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $45 times 2,080 working hours, and the result is $93,600.

That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.

At this salary, you are way above the average $65000 salary threshold and coming closer to a 6 figure salary.

Work Part Time?

But you may think, oh wait, I’m only working part-time. So if you’re working part-time, the assumption is working 20 hours a week at $45 an hour.

Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $45 times 1,040 working hours, and the result is $46,800.

How Much is $45 Per Month?

On average, the monthly amount would average $7,800.

Annual Amount of $93,600 ÷ 12 months = $7,800 per month

Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.

This helps a financially stable person manage their finances without a bunch of stress. And if you are making above the average income worker and still stressing about money, then you need to learn to drastically cut your expenses.

Work Part Time?

Only 20 hours per week. Then, the monthly amount would average $3,900.

How Much is $45 per Hour Per Week

This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?

Once again, the assumption is 40 hours worked.

40 hours x $45 = $1,800 per week.

Work Part Time?

Only 20 hours per week. Then, the weekly amount would be $900.

How Much is $45 per Hour Bi-Weekly

For this calculation, take the average weekly pay of $1,800 and double it.

$1,800 per week x 2 = $3,600

Also, the other way to calculate this is:

40 hours x 2 weeks x $45 an hour = $3,600

If you are paid biweekly, here is a biweekly budget template to help you.

Work Part Time?

Only 20 hours per week. Then, the bi-weekly amount would be $1,800.

How Much is $45 Per Hour Per Day

This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.

8 hours x $45 per hour = $360 per day.

If you work 10 hours a day for four days, then you would make $450 per day. (10 hours x $45 per hour)

Work Part Time?

Only 4 hours per day. Then, the daily amount would be $180.

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$45 Per Hour is…

$45 per Hour – Full Time	Total Income
Yearly Salary (52 weeks)	$93,600
Yearly Wage (50 weeks)	$90,000
Monthly Salary (173 hours)	$7,800
Weekly Wage (40 Hours)	$1,800
Bi-Weekly Wage (80 Hours)	$3,600
Daily Wage (8 Hours)	$360
Net Estimated Monthly Income	$5,955

Paid Time Off Earning 45 Dollars an Hour

Does your employer offer paid time off?

As an hourly employee, you may or may not get paid time off.

So, here are the scenarios for both cases.

For general purposes, we are going to assume you work 40 hours per week over the course of the year.

Case # 1 – With Paid Time Off

Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.

In this case, you would make $93,600 per year.

This is the same as the example above for an annual salary making $45 per hour.

Case #2 – No Paid Time Off

Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.

Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.

So, let’s assume you take 2 weeks off without paid time off.

That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $45 times 2,000 working hours, and the result is $90,000.

40 hours x 50 weeks x $45 = $90,000

You would average $360 per working day and nothing when you don’t work.

$45 an Hour is How Much a year After Taxes

Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.

Also, every single person’s tax situation is different.

On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.

Gross Annual Salary: $93,600

• Federal Taxes of 12%: $11,232
• State Taxes of 4%: $3,744
• Social Security and Medicare of 7.65%: $7,160

$45 an Hour per Year after Taxes: $71,464

This would be your net annual salary after taxes.

To turn that back into an hourly wage, the assumption is working 2,080 hours.

$71,464 ÷ 2,080 hours = $34.36 per hour

After estimated taxes and FICA, you are netting $34.36 an hour. That is $10.64 an hour less than what you thought you were paid.

This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.

Plus budgeting on a just over $34 an hour wage is much different.

$45 an Hour Salary Calculator

Now, you get to figure out how much you make based on your hours worked or if you make a wage between $45.01-45.99.

This is super helpful if you make $45.30, $45.40, or $45.88.

Plus many of the best paying jobs in real estate investment trusts pay in this range.

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$45 an Hour Budget – Example

You are probably wondering can I live on my own making 45 dollars an hour? How much rent or mortgage payment can you afford on 45 an hour?

Using our Cents Plan Formula, this is the best-case scenario on how to budget your $45 per hour paycheck.

When using these percentages, it is best to use net income because taxes must be paid.

In this example, we calculated $45 an hour was $34.36 after taxes. That would average $5,955.30 per month.

According to the Cents Plan Formula, here is the high-level view of a $45 per hour budget:

• Basic Expenses of 50% = $2,977.65
• Save Money of 20% = $1,191.06
• Give Money of 10% = $595.53
• Fun Spending of 20% = $1,191.06
• Debt of 0% = $0

Can you Make This Salary Work?

For someone making over $90K gross annually, this should be completely doable assuming there is no debt involved. The risk most people find themselves in is lifestyle creep and keeping up with the Joneses.

You can be strategic with your saving and investing to quickly become the millionaire next door. Then, that will allow a level of time freedom you have never experienced.

To further break down an example budget of $45 per hour, then using the ideal household percentages is extremely helpful.

recommended budget percentages based on $45 per hour wage:

Category	Ideal Percentages	Sample Monthly Budget
Giving	10%	$780
Savings	15-25%	$1,560
Housing	20-30%	$1,794
Utilities	4-7%	$234
Groceries	5-12%	$519
Clothing	1-4%	$31
Transportation	4-10%	$234
Medical	5-12%	$390
Life Insurance	1%	$23
Education	1-4%	$39
Personal	2-7%	$117
Recreation / Entertainment	3-8%	$234
Debts	0% – Goal	$0
Government Tax (including Income Taxes, Social Security & Medicare)	15-25%	$1,845
Total Gross Income		$7,800

Can I Live off $45 Per Hour?

At this $45 hourly wage, you are making more than $90K per year. Slowly climbing to 6 figures and you should live comfortably on this annual salary.

This is well over the median income of $60000 salary. That means you should be able to increase your savings percentage each year and live better than 80% of the world.

The question is, are you? Or are you straddled in debt? Struggling and living paycheck to paycheck?

Unfortunately, too many people are still struggling even though they are making nearly 4x the minimum wage.

Should living on $90K be doable? Absolutely.

Don’t be caught in a tough situation. You need to live below your means. If not, you are wasting too much of your hard-earned cash.

Can you truly live off $45 an hour annually?

Just like any wage… you must spend less than your income. Plus consistently save.

If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.

You need to do is change your money mindset.

This is what you say to yourself… Okay, I am blessed to make more than the average worker. So, I must live on that paycheck or find ways to start diversifying my income into multiple streams and start investing. Then, I am going to give back to what helped me to get where I am today.

In the next section, we will dig into ways to increase and diversify your income, but for now, is it possible to thrive on $45 an hour?

Yes, you can do it, and as you can see it is possible with the sample budget of $45 per hour.

Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.

Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.

5 Ways to Increase Your Annual Salary

This right here is the most important section of this post.

Even though, you are making good money. You might have reached a maximum ceiling of income in your field. You may need to change companies.

More often than not, you need to find ways to diversify your income. One type of income will get you far in your personal finance journey, but to truly see faster progress you need multiple streams of income.

Finding ways to increase your monthly pay by $500 or $1000 will add up over the year.

At this point, you want to look for at least a $1 increase to $46 an hour, $47 an hour, $48 an hour, $49 an hour, or $50 an hour.

1. Find Alternative Ways to Make Money

In today’s society, you need to find ways to make more money. Period.

There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.

So, you need to find a side hustle – another way to make money.

Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.

Must Read: 20 Genius Ways on How to Make Money Fast

2. Earn Passive Income

This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and becoming financially stable.

By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.

Here is an example:

You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.

One gentleman started with $500 in his trading account and now has well over $36,000 in less than a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.

Related Reading: How Fast Can you Make Money in Stocks? The Real Answer

3. Become a Freelancer

When you make $45 an hour, you are good at your job. You know what you are doing and people are willing to pay you for it.

Pick up side jobs and spend your free time as a freelancer.

This is one of the best ways to make extra money without a lot of upfront effort or costs.

I know plenty of people who make a living as freelance writers.

The options are endless if you are willing to think outside of the box.

4. Ask for a Raise

The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.

If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.

If that does not pan out, then look for a new job. Maybe a completely new industry.

It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $45 an hour isn’t worth it for you if you’re not able to enjoy life; maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.

5. Find a New Career

Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.

For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.

Tips to Live on $45 an Hour

In this last section, grasp these tips on how to live on $45 an hour. On our site, you can find lots of money saving tips to help stretch your income further.

Here are the most important tips to live on $45 an hour. More importantly stretch how much you make, in case you are in the “I don’t want to work anymore” mindset. Highlight these!

1. Spend Less Than You Make

First, you must learn to spend less than you make.

If not, you will be caught in the debt cycle, which is not where you want to be. You will be consistently living paycheck to paycheck.

To break that dreadful cycle, it means your expenses must be less than your income.

And when I say income, it’s not the $45 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $45 an hour minus all the taxes, FICA, Social Security, and Medicare is taken out. That is your net income.

So, your net income has to be less than your gross income. Learn more about gross pay vs net pay.

2. Living Below Your Means

You need to be happy. And living on less can actually make you happier. Studies prove that less is better.

Finding contentment in life is one thing that is a struggle for most.

We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.

Have you ever taken a step back and looked at what you really need?

Once you are able to find contentment with life, then you are going to be set for the long term with your finances.

Here is our story on owning less stuff. We have been happier since.

3. Make More Money

If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.

You need to be an advocate for yourself.

Find ways to make more money.

It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.

Whatever path you take, that’s fine. Just find ways to make more money. Period.

4. Make Saving Money Fun

You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!

Find new ways of saving money and have fun with it.

Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.

Here are plenty of things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.

And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.

5. No State Taxes

Paying taxes is one option to increase what you take home in each paycheck.

These are the states that don’t pay state income taxes on wages:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.

Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.

6. Stick to a Budget

You need to learn how to start a budget. We have tons of budgeting resources for you.

While creating a budget is great, you must learn how to use one.

You do not have to budget down to every last penny.

You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.

Budget Help:

7. Pay Off Debt Quickly

The amount that you pay interest on debt is absolutely absurd.

Unfortunately, that is how many of these companies make their money from the interest you pay on debt.

If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.

Here’s a debt calculator to help you. Figure out your debt-free date.

Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.

It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt-free journey.

Jobs that Pay $45 an Hour

You can find plenty of jobs that pay $45 per hour. Polish up that resume, cover letter, and interview skills.

Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.

First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.

Possible Ideas:

$45 Per Hour Annual Salary

In this post, we detailed 45 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.

How much is 45 dollars an hour annually…

$93,600

That is right between $90000 a year and $100000 a year.

In this post, we highlighted ways to increase your income as well as tips for living off your wage.

Use the sample budget as a starting point with your expenses.

You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!

Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.

Learn exactly how much do I make per year…

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org