Do you want to find jobs with pensions? Pensions might seem old-fashioned and while they’re not as common as before, some careers still offer this kind of retirement plan. Pension plans can be found in both government and certain private sector jobs too. For example, teachers, police officers, and firefighters typically have pensions waiting for…
Do you want to find jobs with pensions?
Pensions might seem old-fashioned and while they’re not as common as before, some careers still offer this kind of retirement plan.
Pension plans can be found in both government and certain private sector jobs too. For example, teachers, police officers, and firefighters typically have pensions waiting for them after many years of work. Nurses, government employees, and military members also sometimes have this benefit, which helps them to retire without worrying as much about money.
Even though retirement benefits are changing, with more companies offering plans like a 401(k) where employees contribute, pensions are still very important for many workers thinking about how to save for retirement.
What Is a Pension?
Pensions, also called defined benefit plans, aren’t like regular savings accounts. Instead, your job sets up an amount of money you’ll receive each month after you retire. This is kind of like getting a monthly paycheck that continues even after you stop working.
You might come across terms like 401(k) or IRA (Individual Retirement Accounts). These are known as defined contribution plans because you or your employer add money to them. When you retire, you’ll get whatever amount you’ve saved up in these accounts.
In a traditional pension plan, your employer assures you, “Don’t worry, we’ve already calculated how much you’ll receive later.” This amount is typically based on your years of service and your salary. The amount varies from job to job and state to state. For some, it may be enough to retire on, for others, it may not.
Also, there’s something called vesting. That’s when you’ve worked for a certain period to qualify for the full pension promised to you.
Most Popular Jobs With Pensions
Below are the best jobs with pensions.
1. Public school teacher
Public school teaching is one of the best jobs that can pay you a pension after many years of service.
On average, a teacher in the U.S. can earn around $30,000 a year to start.
Pensions for teachers vary from place to place. But typically, after you teach for a certain number of years, you can get a pension that pays you money regularly when you retire.
Recommended reading: 33 Best Summer Jobs for Teachers To Make Extra Money
2. USPS worker
The United States Postal Service (USPS) has jobs with pensions.
Pension Plans:
Civil Service Retirement System (CSRS) – If you got hired before 1984, you are probably part of CSRS. This plan gives you a stable pension based on your years of service and salary.
Federal Employee Retirement System (FERS) – Hired after 1984? Then you’re likely in FERS. It pays a smaller monthly pension, but you also get Social Security and a savings plan that can match your contribution.
Just to give you an idea, under CSRS, if someone with about a $60,000 average salary retires after 20 years, they might see around $1,824 monthly. That’s before any deductions for health insurance or survivor benefits.
3. Police officer (and detective)
Becoming a police officer can be a great job for someone who wants to help their community. Not only do you get the chance to keep your neighborhood safe but you also get some great benefits, like a pension.
Your pay as a police officer can depend on where you live and work.
4. Firefighter
Firefighters often have pensions because their work is tough and risky. With a pension, you know you’ll have money coming in when you retire, based on how long you’ve worked and your salary.
5. Construction worker
If you’re thinking about jobs that have a stable future and a pension, don’t overlook construction work. There are many large construction companies that still have pension plans, although this is becoming less common.
6. Registered nurse
As a registered nurse, you have some options for pensions. If you work as a nurse for the government, like in a public hospital or as a school nurse, you may be able to get a pension.
Some private hospitals and clinics might give pensions too, but it’s not as common.
Recommended reading: 27 Best Side Hustles For Nurses To Make Extra Money
7. Bus driver
Public bus driver positions sometimes come with a pension, such as if you drive for public transportation (the city bus, for example) or for the school system.
8. Government jobs
There are many government jobs with pensions.
You can start looking for government jobs with pensions by researching different levels of government jobs, including federal, state, and local positions.
Federal jobs with agencies like the FBI, IRS, or Department of Education often include pensions. State jobs can be found in departments like transportation, health, or education. Local opportunities might be in city or county offices, police departments, and public schools.
To find jobs, you can also check government job websites. For example, for federal jobs, you can visit USAJobs.gov. Each state has its own job portal, which you can find by searching for your state’s official website. Local government job listings are usually on city or county websites. When looking at job listings, search for keywords like “pension,” “retirement plan,” “benefits,” or “retirement system” to find jobs that have these benefits.
9. Military careers
The U.S. military consists of several branches: Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force. Each branch provides different career options, so you’ll want to research them to find the one that matches your skills and interests the most.
To be eligible for a military pension, you usually need to serve at least 20 years.
This rule applies to both enlisted personnel and officers. If you serve less than 20 years, you typically won’t get a pension, but you might qualify for other benefits like contributions to the Thrift Savings Plan (TSP) under the Blended Retirement System (BRS).
10. Private sector careers with pensions
Though they’re not as common as before, some companies provide pensions to their employees as well.
According to the Bureau of Labor Statistics, 15% of private industry workers had access to a defined benefit plan (a pension).
Here are some examples:
Manufacturing jobs – Companies in this field have long been strong providers of pension plans. Jobs ranging from assembly line workers to managers might include these benefits, often because labor unions help keep pensions available.
Utility companies – When working in electricity, water, or natural gas, you could get great retirement benefits. Jobs in the utilities sector often have pensions because they want to keep employees long-term for steady service. Some job examples of utility workers may include electricians, meter readers, line repairers, and power line installers.
Transportation – This includes careers with airlines, railroads, and shipping companies. Some of the largest transportation firms provide pension plans because they value your lengthy service and want to keep job satisfaction high.
Large corporations – There are big names out there that still have a pension. Look for companies with a longstanding history and financial stability, as they are more likely to have kept their pension commitments intact. Some examples of large companies that have pension plans include Ford, General Motors, and IBM. Some insurance companies also have pension plans for certain career paths.
As you can see, there are several private-sector employers that pay a pension as well. So, if you are looking to retire with a pension, then you do not only have to stick with federal, state, or local government jobs.
Frequently Asked Questions
Below are answers to common questions about jobs with pensions.
Is a pension better than a 401k?
A pension provides guaranteed income in retirement based on salary and years of service. A 401(k) is a savings plan where you contribute a portion of your paycheck. Pension plans are less common but have defined benefits, while a 401(k) puts the investment decisions and risks on you. I don’t think either is necessarily better than another; they are just different.
Do any companies still give pensions?
Yes, some companies in sectors like government, education, and certain corporations still have pension plans for their employees. According to the Bureau of Labor Statistics, 15% of private industry workers have access to a defined benefit plan (a pension).
Why did jobs stop offering pensions?
Many companies shifted from pensions to 401(k) plans to reduce long-term financial commitments and shift retirement savings responsibility onto employees. It’s often due to the cost and risk associated with funding traditional pension plans. Pensions are quite expensive for a company to maintain and have.
What are good entry-level jobs with pensions?
Entry-level jobs in the public sector, such as administrative roles in government agencies, tend to come with pensions. Industries like utilities, transportation, and some unionized fields also sometimes have pension benefits at the entry level.
Are there part-time jobs with pensions?
It’s less common, but some part-time jobs with government or union affiliations may have prorated pension benefits. This often requires meeting certain requirements such as length of service and hours worked.
Are jobs with pensions worth it?
Jobs with pensions can be very beneficial as they provide steady income later in life. However, you should also think about the job’s salary, growth opportunities, and if it suits your career goals when deciding if it’s worth it for you.
Plus, a lot of jobs with defined-benefit pensions also have many other things that they offer to their workers, such as better healthcare benefits.
Best Jobs With Pensions – Summary
I hope you enjoyed this article about how to find jobs with pensions.
Some of the best jobs with pensions include public school teachers, USPS, police officers, and firefighters, as well as other local and federal government jobs. There are also, of course, military pensions.
Companies also sometimes have defined-benefit pension plans to bring more financial security to their employees by helping them earn a monthly income after they retire.
As you can see, there is quite a range of jobs that still have pensions today.
There are occupations in both the public and private sector. Some may require trade school or a college degree, and some you can get started as a beginner. As you can see, there are many ways for someone to get a pension these days; it isn’t as rare as you might think.
Pensions can be a great way for retirees to have enough money in their retirement account, although, pensions are usually not enough to live on alone. Some jobs do give generous payments from their pension plan, so it is possible for some retirees to be able to live off of their pension retirement payments alone.
Are you interested in finding a job with a pension? Why or why not?
jhorrocks/ Getty Images; Illustration by Austin Courregé/Bankrate
Key takeaways
Home equity is the difference between your home’s value and the amount you still owe on your mortgage. It represents the paid-off portion of your home.
You’ll start off with a certain level of equity when you make your down payment. Your home equity can increase through making mortgage payments and home improvements. You’ll also build equity over time as your home’s value increases.
You can tap your equity and use it for various expenses, primarily via home equity loans and home equity lines of credit (HELOCs).
It’s important to use your home equity in ways that will strengthen your financial profile.
What is home equity and how does it work?
Home equity is the difference between the current value of your home and the outstanding balance of your mortgage — in other words, the portion of your home’s value you own outright.
When you purchase a home, your stake equals your down payment or however much money you’re contributing out-of-pocket (as opposed to financing with the mortgage). So, if you put 20 percent down on a $400,000 home, you start with $80,000 worth of equity. But if you pay all cash for the home, you have $400,000 or 100 percent equity.
“As you pay down your mortgage and your home’s value hopefully increases, your equity also grows, contributing to your overall net worth,” says Linda Bell, senior writer on Bankrate’s Home Lending team. “The best part is that your equity isn’t just there collecting dust. When used the right way and for the right reasons, your home’s equity can provide you with financial flexibility and liquidity when you need it the most.”
How to use your home equity
Here are some of the most common reasons homeowners leverage their equity — that is, borrow against it:
Finance home improvements: You can use your equity to reinvest in your home by using the cash for a renovation. If the money goes towards upgrading the home and you itemize deductions, you could deduct the interest, as well.
Settle outstanding balances: You can use a home equity loan or line of credit to consolidate debt, especially credit card balances charging double-digit interest rates, or medical expenses uncovered by health insurance.
Get a business going: If you’re starting up a side hustle, home equity loans might offer better terms than small business loans, and be easier to qualify for.
Build an emergency fund: A HELOC or HELoan can be a relatively quick, cost-effective way to cover sudden or unexpected expenses.
How to use your home equity to eliminate PMI
If you made a less-than-standard down payment when you bought your home, there’s a special reason to keep an eye on your equity stake. It’s key to helping you get rid of private mortgage insurance (PMI) premiums.
On most conventional loans, lenders usually charge PMI if you put less than 20 percent down on the home, financing more than 80 percent. Your initial equity stake equals the amount of your down payment. However, as you make your mortgage payments, your equity stake rises. When it reaches the 20 percent level, you can request that your lender remove the PMI from your payments — saving you some money. And when your loan-to-value ratio (LTV) is at 78 percent (meaning your HE stake is 22 percent), the lender must remove it by law.
46%
Percent of U.S. mortgaged homes that are “equity-rich” (meaning their outstanding loan balances total no more than half their estimated market values).
Source:
ATTOM “Q4 2023 U.S. Home Equity & Underwater Report”
How to calculate home equity
To calculate the equity in your home, follow these steps:
Find your home’s estimated current market value. What you paid for your home a few years ago or even last year might not be its value today. If you’re just exploring home equity options, you can use an online home price estimator to get an idea of its worth. The most accurate assessment would be from a licensed appraiser.
Subtract your mortgage balance. Once you know the value of your home, check your latest mortgage statement. Subtract the amount you still owe on your mortgage and any other debts secured by your home. The result is your home equity.
Home Equity
Example of home equity
Say you bought a home for $390,000, putting 3 percent down with a 30-year fixed rate mortgage at 7.83 percent. From the outset, you’d have $11,700 in equity (3% of $390,000).
Five years later, your home’s value has appreciated to about $440,000, and you still owe roughly $359,000 on your loan. At this point, you’d have $81,000 in equity ($440,000 – 359,000).
How to increase the equity in your home
Your home equity can increase in a few different ways:
As you make mortgage payments: Every month when you make your regular mortgage payment, you’re paying down your mortgage balance and increasing your home equity. You can also make additional mortgage principal payments to build your equity even faster.
When you improve your home: Increasing the value of your home also increases your home equity. (Keep in mind that some home renovations add more value than others.)
As you ride the appreciation wave: Often (but not always), property values rise over time. This appreciation can be another way for you to build equity. Because your property increasing in value depends on several factors, such as its location and the economy, there’s no way to tell how long you’ll have to stay in your home to see a significant rise in value. The historical price data of homes in your area might give you some insight as to whether values have been trending upward or downward.
How to tap your home equity
$16 trillion
The amount of home equity collectively held by U.S. borrowers as of December 2023. $10.3T of that is considered “tappable,” meaning it can be withdrawn while maintaining an 80% combined loan-to-value ratio.
Source:
ICE Mortgage Monitor Report February 2024
Home equity loans: A home equity loan is a second mortgage for a fixed amount at a fixed interest rate. The amount you can borrow is based on the equity in your home, and you can use the funds for any purpose. This option can be ideal if you have a specific large expense or debt to pay off. It also comes with the stability of predictable monthly payments. If you use the funds to remodel your home, the interest might be tax-deductible.
Home equity lines of credit (HELOCs): A home equity line of credit, or HELOC, is also secured by your property and works like a credit card, charging interest at a variable rate. You can withdraw as much as you want up to the credit limit during an initial draw period, usually up to 10 years; after that, withdrawals cease and you have to pay back the principal. During the draw period, you can make repayments too, so that the credit line goes back up and you can withdraw again. This gives you flexibility to get money as you need it.
Cash-out refinancing: A cash-out refinance replaces your current mortgage with another, bigger loan. This loan includes the balance you owe on the existing mortgage and a portion of your home’s equity, withdrawn as cash. You can use these funds for any purpose. Unlike a HELOC or home equity loan, a cash-out refi might allow you to get a lower rate on your main mortgage, depending on market conditions, and shorten the term so you can repay it sooner.
Reverse mortgage: For those who are 62 and older (or 55 and older with some products), a reverse mortgage offers another way to tap home equity. Unlike a HELOC or a home equity loan, the money withdrawn using a reverse mortgage doesn’t have to be repaid in monthly installments. Instead, the lender pays you each month while you continue to live in the home. The loan, plus interest, must be repaid when the borrower dies, permanently vacates or sells the home.
Shared equity agreement: A shared equity agreement is a formal arrangement between a professional investor (or investment company) and a homeowner. You can receive a lump sum of cash in exchange for a percentage of ownership in your home and/or a portion of its future appreciation; the investor receives compensation when the agreement ends on a designated date, or when you sell the home. You make no monthly payments in the meantime. These agreements cater to credit-challenged borrowers or those experiencing financial obstacles that prevent them from securing a traditional loan.
Home Equity
Why home equity loans are popular now
Why are people cashing in their home equity? Largely because they can. The rapid rise in property values of the last few years has sent ownership stakes soaring. According to Corelogic’s Homeowner Equity Insights, in the fourth quarter of 2023, U.S. mortgage-holding homeowners saw their equity increase $1.3 trillion in value compared to the same time the previous year. For the average borrower, that’s a gain of $24,000 in their ownership stake. Also, mortgage rates have risen significantly since the pandemic years, which has impacted the cost of cash-out refinancing (previously, the most common way to tap home equity). Admittedly, HELOC and home equity loan rates have increased, as well; hovering around 9 percent currently, they aren’t the bargain they once were. Still, they are more affordable than other forms of financing, such as credit cards and personal loans, and can be a little easier and quicker to obtain than a refi. Plus, you won’t need to give up your low mortgage rate, if you have one.
Should you borrow against home equity?
Pros of using home equity
Lower interest rates: Since your home is the collateral for a home equity loan or line of credit, they are considered less risky for the lender. These products also tend to offer better rates than unsecured credit cards or personal loans.
Flexible use: You can use the funds however you see fit.
Tax benefits: If you itemize deductions on your tax returns, you might be able to deduct the interest on home equity loans or lines of credit, provided the money is used to “buy, build or substantially improve” the home.
Cons of using home equity
Risk of losing your home: Home equity debt is secured by your home, so if you fail to make payments, your lender can foreclose. If home values drop, you could also wind up owing more on your home than it’s worth. That can make it more difficult to sell your home if you need to.
Some variable-rate products: Most HELOCs have a variable rate, which means you could be paying more in interest over time.
Borrowing costs: Some lenders charge additional fees for home equity loans or HELOCs; you often have to pay closing costs as you would on a mortgage.
Misusing the money: It’s best to use home equity to finance expenses that’ll serve as investments, like renovating a home to increase its value, starting a business or eliminating debt. Stick to needs versus wants; otherwise, you could be perpetuating a cycle of living beyond your means.
Your home’s equity can provide you with financial flexibility and liquidity when you need it the most.
— Linda Bell, Senior Writer, Bankrate
What not to do with home equity
Your home is an asset. So if you’re going to tap its value, you should make the money work for you in some way. You may want to rethink using your home equity if it won’t improve your financial position in the long run.
This means avoiding spending the funds you pull from your home on luxury purchases/big-ticket items (especially things that depreciate, like cars), holiday shopping, vacations or other short-term or discretionary expenses. Nor is it a good idea to use equity to meet everyday expenses if your income is falling short. Covering an emergency or unexpected cost is ok, but not repeatedly or for a long time.
What about educational expenses? It’s not the worst idea in the world, but investigate other financing first: The interest rate on a federal student loan is likely less than the rate on a home equity loan nowadays. Buying other property might be feasible, but again, check out mortgage rates on second homes before using an HELoan or HELOC.
“While you may be tempted to use your home equity to invest in the stock market or to buy an investment property, proceed with extreme caution,” says Bell. “While stocks and real estate are ways you can build wealth, with any investment, there are risks. If the investment fails, there’s a possibility of losing your home. Before tapping into your home’s equity, make sure you can comfortably afford the monthly payments and have a solid plan for repayment.”
FAQ about home equity
How fast your home builds equity depends on a number of factors. The easiest and most consistent way to build equity is by making your regular monthly mortgage payments. Each payment will build hundreds of dollars in equity. You can also build home equity if your home appreciates, but a rise in real estate property values is beyond an individual’s control.
Most lenders allow you to borrow only a percentage of your home’s equity for a home equity loan or HELOC. The exact terms and percentage rates vary by lender, but it’s common for the maximum loan-to-value (LTV) ratio to be 80 percent or 85 percent of your home’s appraised value.
Yes, you can use the proceeds of a home equity loan or HELOC for anything you want. Whether you should is another matter. In general, tapping home equity is better for major home renovations or other goals that will further your financial life, such as paying off debt.
Assuming you have enough equity and your credit and finances are in order, you can get a home equity loan or HELOC by applying with a lender. Many banks provide home equity loans, and increasing numbers of online lenders do, too. To help narrow down your options, review home equity lender reviews and testimonials. Once you find the lender that meets your needs and offers the best rates, check its eligibility requirements to make sure you qualify.
Inside: Learn how to save $5000 in 6 months by following these easy, useful tips. Get a head start on saving for your money goals and save more.
It is no secret that saving money for the future has never been more important.
The Recession of 2008-2009 and the upheaval in 2020 brought a significant increase in how we think about long-term investing, retirement readiness, and the importance of saving for emergencies.
Savings is not easy, and it takes time to save up for your dream future. Saving can seem frustrating at times with all the forms of fees and interest rates.
But saving even a little bit each month will go a long way so don’t give up!
While these are often looked at as individual or personal concerns, they can easily be translated into family finances with some simple changes to your spending habits.
Save $5,000 in six months requires a little bit of discipline, some careful planning, and actual execution.
While it is possible to save money without any difficulty, some additional effort can help make this goal much more attainable.
If you are looking for ways to save money, this post has quick tips that should help you cut down on spending while still getting your needs met.
We will give you seven simple steps that anyone can follow in order to start saving more money today so they have enough saved for their desires.
How to save $5,000 in 6 months
If you are looking to save $5,000 in 6 months, it is important to set a specific goal for yourself.
For example, if you want to save $1,000 per month, write down that goal in your calendar or on paper. Another option is to save more upfront and less throughout or vice versa.
To save $5,000 in a year, there are only 7 easy steps to follow.
You just have to commit to the money saving plan.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
1. Why Save $5,000?
Saving money is a lot easier than you think.
I’ve seen it happen time and time again: people make the mistake of thinking that saving money will be difficult or take too long, but they often realize how wrong they were once they start making progress.
To keep your motivation moving forward, you need to decide why are you starting to save money. What are the exact reasons for saving 5000 in 6 months?
Action Step: Write down your reason for saving $5k in 6 months.
2. Designate a Separate Bank Account
Next, you have a plan of where you want the money to go. You cannot just assume you will leave it alone in your checking account or won’t touch the case..
Put all your extra income in a separate bank account. If you have extra money at the end of the month, roll it over and put it in savings.
Action Step: Open a separate bank account.
3. Review Your Budget
Next, you need to review your budget for the last month. Take note of the expenses that are missing from this month’s plan.
You must be spending less than you make.
Since you are adding a saving goal of 5000, you must spend less than your current expenses plus your monthly saving goal.
Look for expenses to cut; if needed, you can drastically cut expenses.
Now, make your new budget based on this month’s income, saving goal, and expenses. You can use this budget to calculate your monthly spending plan for the next month!
Action Step: Create a new zero based budget based on this month’s income and expenses with a priority to your saving goals.
4. Set Goals
You need to set goals on how fast you are going to save money. You need set time deadlines and protect that money for this saving challenge.
Other goals you need to set include:
How to reduce expenses
How to increase income
You can make progress much faster by kicking off your saving period with a no spend month.
Action Step: Create your money goals to make saving 5000 in 6 months actually happen.
5. Create Your Action Plan
You need to find ways to save at least $500 per month. That happens one of two ways – either reduce spending or increase income.
Now, you must decide are you going to save money when you get paid or whatever is left at the end of the month.
Regardless of what you choose, you must stick to your action plan. Period.
The recommendation is to save a determined dollar amount each time you are paid. At the end of the month, if you have money left over, then you can save the extra amount.
Below we will list specific tips and examples of ways to save more money.
Action Step: Write out how you plan to save money. Don’t just keep the plan in your head. Actually, write it and post it somewhere you see it often.
Many people prefer one of these challenges to save $5k:
6. Make Periodic Transfers to Savings Account
In order to be successful, you must actually move the money to another account.
On payday or a certain day of the month, you need to deposit money into your designated $5k bank account to complete this challenge.
This is something you need to set up in advance!
Action Step: Make it a habit to make transfers to that saving account. That is how you consistently save money and not spend it. Build good habits.
7. Reward Success
Keep yourself motivated with a celebration.
It’s a “treat” that should not cost a lot of money.
Reward success for creating the proper money habits just like rewarding your kids for doing well at school. It’s important to make sure that you are rewarding the right things, and not just because it feels good.
You can earn a reward for every month that you stay on track to save $5,000 in a year.
You will be happier and more motivated to complete the $5000 saving challenge. In addition, it will keep you saving money and increasing your saving percentage each year.
This is exactly how to make saving money always fun!
Action Step: Select your rewards for each month of completing the transfer of money! This is your reward for sticking to saving 5000 in 6 months.
Bonus Tip – Tell Others for Accountability
Tell a close family member or friend about your money goal. They are the people closest to you and help build support for your cause.
You need to be on the same page with your spouse or partner. So, make sure that you are aiming and wanting to achieve the same savings goals.
How can I save 5000 fast?
You are ready to start saving money fast.
But the reality is not everyone has that extra money at their disposal (especially right now). What are some things you will need to get started on this challenge?
Saving 5000 in 6 months is possible by simply following these steps:
-Save $193.00 per week.
-Pay off your debts each time they come due, including all credit card and loan balances. This will make sure you don’t stop your money saving plan.
-Save $500.00 each month for a total of $6,000.
-Shred old receipts and throw away your bank statement to avoid seeing your balance.
-Use your savings to buy a mutual fund that will provide an average annual return of 5% over the next year.
Tips to Save 5000 in 6 Months:
Saving money is hard. It is not easy to find ways that are both quick and easy, but also useful in the long run.
That said if you’re struggling with your finances these days I have got a handful of quick-and-easy tips for saving thousands of dollars each year without much effort at all!
Just think about how many times a day you might be tempted by an impulse purchase or two.
You probably don’t make them every time because it would cost too much. But if you start thinking about these small purchases as a cost of living, it’s easy to see how the little things add up, and why saving money is so important.
Reduces expenses by $500 each month.
Increase income with overtime, find a side hustle or a 2nd job to make an additional $500 a month.
Limit Groceries Costs: Cancel food delivery service, resume weekly meal prep, and limit store visits.
Transportation: Consolidate trips, limit toll lane usage and take the free buses instead of Uber.
Memberships: Canceled unused memberships and subscriptions.
Credit card rewards: Redeem credit card rewards to help fund the things you cut from your budget or items for reward milestones.
Limit Impulse Purchases: Wait 24 hours before buying things.
Stop Getting Takeout Foods: Cook at home and save the difference.
Review Bills: Review bills and see if you can change plans or save money. There are many areas to look at, such as insurance plans, cell phone plan or other expenses. See if there are cheaper alternatives out there with better services for your family.
Sell Extra Stuff: Sell off extra things you no longer need and make a little bit of pocket money. You can sell your old clothes, shoes, books, games consoles or other items on sites like Amazon or Craigslist to earn some extra cash.
Side Gig Ideas: Side gigs can help you meet your savings goals. You might be able to make $5,000 or more in 6 months by doing something you are already doing. There are easy ways to earn a few extra dollars per day, so save up your money and get started today!
Start Investing: While you won’t make money fast, you will be making money on your money. That is called passive income and something everyone needs to learn. Start investing with this easy to follow course.
How to Save 5k in 6 months Chart
This chart provides a quick, easy, and useful guide for saving 5000. There are many ways to save 5000 in 6 months.
By Month – Same Amount
Total
Month 1
$834
$834
Month 2
$834
$1,668
Month 3
$833
$2,501
Month 4
$833
$3,334
Month 5
$833
$4,167
Month 6
$833
$5,000
This is how you can save up to be debt free or have a rainy day fund or larger emergency fund.
By Month – Lump Sum Amount
Total
Month 1
$1,500
$1,500
Month 2
$500
$2,000
Month 3
$500
$2,500
Month 4
$1,500
$4,000
Month 5
$500
$4,500
Month 6
$500
$5,000
Find more money saving charts.
How to save 5000 in 6 Months Bi Weekly?
Have you ever thought about how to save money, but all of the saving advice is based on month? Do you know what the best ways are or do not know where to start?
This is how to save 5000 in 6 months bi-weekly income.
Since you will be paid 13 times over the 6-month time period, you would have to save $385 from each biweekly paycheck.
How to save $5000 in 6 Months Bi Weekly?
Total
Week 1
$385
$385
Week 3
$385
$770
Week 5
$385
$1,155
Week 7
$385
$1,540
Week 9
$385
$1,925
Week 11
$385
$2,310
Week 13
$385
$2,695
Week 15
$385
$3,080
Week 17
$385
$3,465
Week 19
$385
$3,850
Week 21
$385
$4,235
Week 23
$385
$4,620
Week 25
$380
$5,000
All of the other steps apply to make this saving challenge happen.
How can I save $5,000 in 6 Months with Envelopes?
The 100 day envelope challenge is super popular right now.
To save $5,000 in 6 months with envelopes, you have one of two options either to save daily or weekly with a random drawing of an envelope.
Consistent Amounts Weekly Envelope to Save $5000:
Write the numbers 1-26 on each envelope.
For each envelope, you will save $193.
If you prefer to round to a flat $200 each week, you will save $5,200 or an extra two hundred dollars.
Various Amounts Weekly Envelope to Save $5040:
Write the numbers 1-26 on each envelope.
Envelope #1 you save $70.
On each envelope, you add another $10 to the previous amount. (Envelope #2 = $80, Envelope #3 = $90, etc)
On envelopes #24, 25, and 26, you save $300 those weeks
Don’t lose your envelopes!
How can I save $5,000 in 3 months?
Feeling a little bit more ambitious! That is great!
The 100 day money saving envelope challenge saves exactly $5,000. The idea is to save $100 every day for 100 days and then spend the saved amount in one month on whatever you need or want.
Learn more about the 100 day money challenge.
However, this is not feasible for many people because it takes a lot of discipline to do that consistently.
How to Save 5000 in 6 Months Calculator
A calculator helps a person figure out how much they can save in six months.
You know your income and expenses. Grab our free budget sheet and a calculator to figure out how much money you can save.
Saving $5,000 under 6 months is not attainable for everyone because some people will give up after 3 months when they realize how much sacrifice was involved with their savings plan.
That is where you need to stay strong and realize that even accomplishing 30% or 70% of your goal is more than doing nothing and saving zero dollars!
What will your life be like if you reach that goal?
Motivating yourself through small goals is easier when the reason why you’re saving is clear. Talk with family or friends about your reasons for wanting to save more and what it means to you.
More than likely at the end of saving 5000 in 6 months, you have done one of the following:
Whatever your goal is, that is the reason to stay motivated!
Update your progress on saving by sharing monthly updates of your savings progress as well as any important financial news that could inspire others!
Time to Save 5000 in 6 Months
The best way to save $5,000 in 2021 is to live below your means by not spending more than you earn.
Saving money is a great first step, but the next step is to invest your money.
Investing in the stock market is a good way to make sure your savings will grow and you can also take advantage of compounding interest.
This post provides seven quick tips for getting started with your savings goals in no more than 30 minutes a day over the course of six months (which adds up to about $500).
Are you up for the $5k money challenge?
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn what 40 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 $40 a year, how much do I truly make? What will that add up to over the course of the year when working?
Is my $40 an hour take-home pay compared to others in my industry? Is $40 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 $40 an hour should help you to breathe easier with your finances. You might wonder how can I start to increase my hourly wage to $45, $50 or $55 per hour?
Most of the hourly jobs that pay over $40 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 $40 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.
$40 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $40 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $40 = $83,200
$83,200 is the gross annual salary with a $40 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s break down how that number is calculated
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 $40 times 2,080 working hours, and the result is $83,200.
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 right between the above-average $75000 salary threshold and coming closer to a $100k 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 $40 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 $40 times 1,040 working hours and the result is $41,600.
How Much is $40 Per Month?
On average, the monthly amount would average $6,933.
Annual Amount of $83200 ÷ 12 months = $6933 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 $3,467.
How Much is $40 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 $40 = $1,600 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $800.
How Much is $40 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $1,600 and double it.
$1,600 per week x 2 = $3,200
Also, the other way to calculate this is:
40 hours x 2 weeks x $40 an hour = $3,200
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $1,600.
How Much is $40 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 $40 per hour = $320 per day.
If you work 10 hours a day for four days, then you would make $400 per day. (10 hours x $40 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $160.
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Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
$40 Per Hour is…
$40 per Hour – Full Time
Total Income
Yearly Salary(52 weeks)
$83,200
Yearly Wage (50 weeks)
$80,000
Monthly Wage (173 hours)
$6,933
Weekly Wage (40 Hours)
$1,600
Bi-Weekly Wage (80 Hours)
$3,200
Daily Wage (8 Hours)
$320
Net Estimated Monthly Income
$5,294
**These are assumptions based off simple scenarios.
Paid Time Off Earning 40 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 $83,200 per year.
This is the same as the example above for an annual salary making $40 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 $40 times 2,000 working hours, and the result is $80000 per year.
40 hours x 50 weeks x $40 = $80,000
You would average $320 per working day and nothing when you don’t work.
$40 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: $83,200
Federal Taxes of 12%: $9,984
State Taxes of 4%: $3,328
Social Security and Medicare of 7.65%: $6,365
$40 an Hour per Year after Taxes: $63,523
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$63,523 ÷ 2,080 hours = $30.54 per hour
After estimated taxes and FICA, you are netting $30.54 an hour. That is $9.46 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 $30 an hour wage is much different.
$40 an Hour Salary
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $40.01-40.99.
This is super helpful if you make $41 an hour, $42 an hour, $43 an hour, or $44 an hour.
You are probably wondering can I live on my own making 40 dollars an hour? How much rent or mortgage payment can you afford on 40 an hour?
We have figured out how much $40 an hour annually is $83,200.
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $40 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated that $40 an hour was $30.54 after taxes. That would average $5,293.60 per month.
According to the Cents Plan Formula, here is the high-level view of a $40 per hour budget:
Basic Expenses of 50% = $2646.80
Save Money of 20% = $1058.72
Give Money of 10% = $529.36
Fun Spending of 20% = $1058.72
Debt of 0% = $0
For someone making over $80K 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 $40 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $40 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$555
Savings
15-25%
$1387
Housing
20-30%
$1595
Utilities
4-7%
$347
Groceries
5-12%
$416
Clothing
1-4%
$69
Transportation
4-10%
$243
Medical
5-12%
$347
Life Insurance
1%
$21
Education
1-4%
$35
Personal
2-7%
$94
Recreation / Entertainment
3-8%
$187
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1640
Total Gross Income
$6,993
**This is a sample budget. You can adjust your categories based on your personal situation.
Can I Live off $40 Per Hour?
At this $40 hourly wage, you are making more than $80K per year. Slowly climbing to $90000 a year and you should live comfortably on this annual salary.
This is well over the median income of $60,000 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 $80K 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 $40 an hour annually?
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.
Just like any wage… you must spend less than your income. Plus consistently save.
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 $40 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $40 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 paychecks by $500 or $1000 will add up over the year.
At this point, you want to look for at least a $1 increase to $41 an hour, $42 an hour, $43 an hour, $44 an hour, or $45 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 $5,000 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 $40 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 $40 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 $40 an Hour
In this last section, grasp these tips on how to live on $40 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 $40 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 and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $40 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 $40 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!
Pick one of the money saving challenges and save more money than before.
Learn to 10k in 100 days with this envelope savings challenge!
It could be participating in a no spend challenge for the month.
Use budgeting apps to help you find more money to save.
Whatever it is challenge yourself.
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 need to 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 is 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 and 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 $40 an Hour
You can find plenty of jobs that pay $40 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:
$40 Per Hour Annual Salary
In this post, we detailed 40 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 40 dollars an hour annually…
$83,200
Up next is making over $95000 per 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 exactlyhow much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn how much your 45k salary is hourly. Plus find tips to make more money and live the lifestyle you want.
You want to know to look into this… Is 45k salary a solid hourly wage in today’s society?
45k salary is a solid hourly wage.
For most people, a solid entry-level job with a degree or certification would be paying just over $45,000 a year. The question that remains is can you make a living off $45k a year.
The median household income was $70,084 in 2021 not much different from the previous year (source). Think of it as a bell curve with $70 at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $55,350 for a 40-hour workweek; that is an increase of 1.1% from the previous year (source). That means if you take everyone’s income and divide the money out evenly between all of the people.
But, the question remains… can you truly live off 45,000 per year in today’s society since it is well below both the average and median household incomes? The question you want to ask all of your friends is $45000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $45000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $45k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this $45k salary?
$45000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 45k a year hourly. That way you can decide whether or not the job is worthwhile for you. The same is true when getting your first job out of college.
For our calculations to figure out how much is 45K salary hourly, we used the average five working days of 40 hours a week.
45000 salary / 2080 hours = $21.63 per hour
$45000 a year is $21.63 per hour
Let’s breakdown how that 45000 salary to hourly number is calculated.
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, divide the yearly salary of $45000 by 2,080 working hours and the result is $21.63 per hour.
Just above $21 an hour.
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $5K, it would increase your hourly wage to just under $25 an hour – a difference of $2.41 per hour.
To break it down – 45k a year is how much an hour = $21.63
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $45K salary Per Month?
On average, the monthly amount would be $3,750.
Annual Salary of $45,000 ÷ 12 months = $3,750 per month
This is how much you make a month if you get paid 45000 a year.
$45k a year is how much a 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 of $45k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$45000/52 weeks = $865 per week.
$45000 a year is how much biweekly?
For this calculation, take the average weekly pay of $865 and double it.
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 52 weeks = 260 working days
Annual Salary of$45000 / 260 working days = $173 per day
If you work a 10 hour day on 208 days throughout the year, you make $216 per day.
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$45000 Salary is…
$45000 – Full Time
Total Income
Yearly Salary (52 weeks)
$45,000
Monthly Wage
$3,750
Weekly Salary (40 Hours)
$865
Bi-Weekly Wage (80 Hours)
$1,730
Daily Wage (8 Hours)
$173
Daily Wage (10 Hours)
$216
Hourly Wage
$21.63
Net Estimated Monthly Income
$2,863
Net Estimated Hourly Income
$16.52
**These are assumptions based on simple scenarios.
45k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single 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%.
So, how much an hour is 45000 a year after taxes?
Gross Annual Salary: $45,000
Federal Taxes of 12%: $5,400
State Taxes of 4%: $1,900
Social Security and Medicare of 7.65%: $3,442.50
$45k Per Year After Taxes is $34,357.50
This would be your net annual salary after taxes.
Hourly Wage After Taxes
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$34,357.50 ÷ 2,080 hours = $16.52 per hour
After estimated taxes and FICA, you are netting $34,357.50 per year, which is $10,642.50 per year less than what you expected. That is significant!
Budgeting on $16 an hour is much different!
Taxes Based on Your State
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody who lives in a no-tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $45000 income can range from $30,757 to $36,157 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously, you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $45,000 income.
How Much is 45K a year Hourly Salary Calculator
More than likely, your salary is not a flat 45k, here is a tool to convert salary to hourly calculator.
Many entry-level jobs start at this range, which may make you believe that a business degree is worth it.
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person? And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $45,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $45,000 a year is slightly below the average income that you would find in the United States. Thus, you have to be wise with how you spend your money.
What a $45,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to rent in a decent neighborhood in LCOL and maybe an MCOL city.
Looking for ways to invest 100 to make 1000 a day.
Foucs on being financially stable.
You should be able to meet your expenses each and every month.
Ability to make sure that saving money is a priority, and very possibly save $3000 in 52 weeks.
When A $45,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 45k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending and extra expenses.
Break the paycheck to paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
Find low-stress jobs that pay well without a degree now.
$45K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money is left for fun spending.
This is how zero based budgeting works.
If you want to know how to manage 45k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $45000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$206
Savings
15-25%
$563
Housing
20-30%
$1069
Utilities
4-7%
$150
Groceries
5-12%
$313
Clothing
1-4%
$38
Transportation
4-10%
$131
Medical
5-12%
$225
Life Insurance
1%
$19
Education
1-4%
$38
Personal
2-7%
$38
Recreation / Entertainment
3-8%
$75
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$887
Total Gross Monthly Income
$3,750
**In this budget, prioritization was given to basic expenses and no debt.
Is $45,000 a year a Good Salary?
As we stated earlier if you are able to make $45,000 a year, that is a decent salary. You are making way more money than the minimum wage and close to double in many cities.
While 45000 is a good salary starting out in your working years. It is a salary that you want to increase before your expenses go up or the people you provide for increase.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $45k salary would be considered a lower middle class salary. This salary is something that you can live on if you are wise with money.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per person income (source).
The question you need to ask yourself with your 45k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in many modest cities, 45,000 a year will not be a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 45,000 per year.
If you are looking for a career change, you want to find jobs paying at least $60000 a year.
Is 45k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $45000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 45k a good salary for a family?
Many of the same principles apply above on whether $45000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains… Can you provide a good life for your family making $45,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 45,000 per year, then the combined income for the household would be $90,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $45000 Per Year?
As we outlined earlier in the post, $45,000 a year:
$21.63 Per Hour
$173-216 Per Day (depending on length of day worked)
$865 Per Week
$1,730 Per Biweekly
$3,750 Per Month
Next up is making $50,000 a year.
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than in Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 41,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and still making $45K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
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Kelly Suzan Waggoner
June 7, 2024 at 6:24 AM
Daily mortgage rates for Friday, June 7, 2024 (Andrii Yalanskyi via Getty Images)
New weekly data from Freddie Mac shows mortgage rates pulling back from highs as of Friday, June 7, 2024, while daily rates for 30-year and 15-year fixed terms inch lower to end the week.
The current average rate for a 30-year fixed mortgage is 7.03% for purchase and 7.04% for refinance — down 14 basis points from 7.17% for purchase and 9 basis points from 7.13% for refinance last Friday. Rates on a 15-year mortgage stand at an average 6.54% for purchase and 6.60% for refinance, a decrease of 9 basis points from 6.63% for purchase and 8 basis points from 6.68% for refinance over the past week. The average rate on a 30-year fixed jumbo mortgage is 7.15%.
Mortgage rates for Friday, June 7, 2024
30-year fixed rate — 7.03%
20-year fixed rate — 6.82%
15-year fixed rate — 6.54%
10-year fixed rate — 6.61%
5/1 adjustable rate mortgage — 6.84%
30-year fixed FHA rate — 6.75%
30-year fixed VA rate — 6.85%
30-year fixed jumbo rate — 7.15%
Mortgage rates for Friday, June 7, 2024
30-year fixed rate — 7.04%
20-year fixed rate — 6.81%
15-year fixed rate — 6.60%
10-year fixed rate — 6.61%
5/1 adjustable rate mortgage — 6.77%
30-year fixed FHA rate — 6.84%
30-year fixed VA rate — 6.68%
30-year fixed jumbo rate — 7.10%
Freddie Mac weekly mortgage report: Rates retreat after latest personal spending data
Freddie Mac reports an average 6.99% for a 30-year fixed-rate mortgage, down 4 basis points from last week’s average 7.03% for a 30-year fixed-rate mortgage, according to its weekly Prime Mortgage Market Survey of nationwide lenders published on June 6, 2024. The fixed rate for a 15-year mortgage is 6.29%, up 7 basis points from last week’s average 6.36%. These figures are higher than a year ago, when rates averaged 6.71% for a 30-year term and 6.07% for a 15-year term.
“Mortgage rates retreated this week given incoming data showing slower growth,” says Sam Khater, Freddie Mac’s chief economist, of the latest data. “Rates are just shy of 7 percent, and we expect them to modestly decline over the remainder of 2024. If a potential buyer is looking to buy a home this year, waiting for lower rates may result in small savings, but shopping around for the best rate remains tremendously beneficial.”
Freddie Mac updates its Prime Mortgage Market Survey data weekly on Thursday mornings.
Mortgage rates for June 7, 2024
Mortgage rates are determined by many factors that include inflation rates, economic conditions, housing market trends and the Federal Reserve’s target interest rate. Lenders also consider your personal credit score, the amount available for your down payment, the property you’re interested in and other terms of the loan you’re requesting, like 30-year or 15-year offers.
Because mortgage rates can fluctuate daily, it’s best to lock in a rate when you’re comfortable with the overall conditions of your mortgage or home loan.
Mortgage rates in the news
Mortgage lenders keep a close eye on the benchmark federal funds target interest rate set by the Federal Reserve, the U.S.’s central bank. Called the Fed rate, it’s the benchmark that affects rates on deposit accounts, loans and other financial products. Typically, as the fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts and money market accounts. Mortgage and home loan rates don’t follow the Fed rate as closely, but they do reflect the same elements the Fed evaluates when making decisions on the benchmark — especially inflation — which means as the Fed rate increases, mortgage rates also tend to rise.
The Federal Reserve increased the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic.
May 1, 2024: Fed holds benchmark rate unchanged for sixth time since July 2023
At the conclusion of its third rate-setting policy meeting of 2024 on May 1, 2024, the Federal Reserve left the federal funds target interest rate at a 23-year high of 5.25% to 5.50%, marking the sixth consecutive time the Fed’s held the benchmark rate unchanged since July 2023.
In its post-meeting statement, the Federal Reserve maintained “there has been a lack of further progress toward the 2 percent inflation objective.” The Federal Reserve is focused on a 2% inflation goal that’s ideal for keeping employment high and prices low. Despite speculation in March of three rate cuts by the end of the year, the Fed cautioned in its May statement that its rate-setting committee “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”
What to expect at the Fed’s June policy meeting
It’s widely expected that the Federal Reserve will hold the Fed rate at 5.25% to 5.50% at next week’s policy meeting on June 11 and June 12, 2024. There’s a 97.5% chance that the Fed will keep rates where they are, according to the CME FedWatch Tool, which measures market expectations for Fed fund rate changes.
Inflation appears to be on a downward trend, falling from a peak of 9.1% in June 2022 to rates that have ranged from 3% and 4% since May 2023. The May 3 jobs report fell short of employment expectations, showing 175,000 positions added in April — significantly lower than the 315,000 positions added in March — signaling a slowing job market that could relieve inflation worries and set off long-awaited cuts to the Fed rate.
The Consumer Price Index released on May 15 revealed consumer prices rose by 3.4% year over year, down from 3.5% in March — a modest decrease, but a step in the right direction for this widely used indicator for inflation. Producer Price Index data released on May 14 showed a moderate 0.5% increase in wholesale prices — or the prices paid to producers of goods and services — in the 12 months through April. Yet while these newest inflation readings suggest progress, it may not be enough for the Fed to lower rates at its rate-setting meeting next week.
Fed official Neel Kashkari said in a recent interview that while he’s “not ruling out” a rate hike, he expects the central bank will hold steady: “We could sit here for as long as necessary until we get convinced that inflation is sustainably going back down to our 2% target” — disheartening news for borrowers but super news for savers.
The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on June 12, at 2 p.m. ET.
NAR settlement offers ray of hope to summer homebuyers
While high mortgage rates could convince current homeowners to delay selling their properties, resulting in low housing inventory, a major change in the way Americans buy and sell homes may offer a ray of sunshine to prospective homebuyers. On April 23, a judge granted preliminary approval to a $418 million antitrust settlement with the National Association of Realtors that ends customary real estate broker commissions of up to 6% of a home’s purchase price starting in July. The settlement isn’t expected to affect mortgage rates, yet it paves the way for consumers to negotiate what they pay for an agent’s services, saving homebuyers money in the long run.
Dig deeper: When’s the next Federal Reserve meeting? The FOMC — and how it affects your finances
4 top factors that affect your mortgage rate
The difference of even half a percentage point on your interest rate can save you hundreds of dollars a month and thousands of dollars over the life of your mortgage, but the mortgage rate you’re ultimately offered depends on the mortgage you’re interested in, payments you’re willing to pay up front and your overall financial health.
Your credit score. Knowing your credit score can help you shop around for lenders you’re likely to get approval through, as well as understand the type of mortgage for your lifestyle and income. The best mortgage rates go to borrowers with good to excellent credit — typically a FICO credit score of at least 670 — though even with fair credit, you may be able to find a mortgage offering decent rates.
Your down payment. The more money you can put down toward your home, the better it benefits your interest rate. Paying at least 20% of your home’s purchase price up front generally results in a lower interest rate — and you can avoid mortgage insurance, which increases your total cost.
Your loan term. While the 30-year mortgage remains a popular way for Americans to purchase homes, you can find terms of 20 years, 15 years and 10 years. Shorter loan terms usually come with lower interest rates, though with higher monthly payments. Longer mortgage terms can result in smaller monthly payments, though you’ll pay higher total interest over the life of your loan.
Interest rate type. Mortgage rates come with two basic types of rates — fixed and variable. Fixed-rate mortgages offer a consistent interest rate over the life of your loan, whereas adjustable-rate mortgages (ARMs) often start with a lower fixed rate for an agreed-on time and then adjust to a variable rate based on market conditions for the remainder of your term. Choosing between these two rates depends on your financial goals and tolerance for risk.
Frequently asked questions about mortgage rates
What are mortgage lenders?
Lenders are financial institutions that loan money to homebuyers. A lender is different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, talking directly with borrowers and sending monthly statements.
What does it mean to refinance a mortgage?
Refinancing is a process of trading in your current mortgage to another lender for lower rates and better terms than your current loan. With a refinance, the new lender pays off your old mortgage and you then pay your monthly statements from the new lender.
What is an adjustable-rate mortgage?
An adjustable-rate mortgage — commonly called an ARM — is a type of home loan with a variable rate. Unlike a fixed-rate mortgage, which locks in an interest rate and predictable payments that apply over the full loan term, an ARM starts at an initial fixed rate for a period of three years or longer, after which it adjusts to a higher rate and then further adjusts periodically over the remaining life of the loan.
For a 5/1 adjustable-rate mortgage, the first number indicates the number of years at the fixed rate — or five years — and the second number indicates the rate at which the mortgage rate readjusts after — in this case, each year or annually.
Why are mortgage rates so high?
Mortgage rates are influenced by complicated factors like inflation, employment rates, the bond market and the overall economy. While the Federal Reserve doesn’t set mortgage rates, this central bank of the U.S. sets benchmark rates that indirectly affect rates on financial products like mortgages, personal loans and deposit accounts.
March inflation data came in higher than expectations, which is among the main concerns driving mortgage rates higher in April.
Can I negotiate my mortgage rate?
It’s not likely — lenders consider the market conditions and other financial factors when determining rates. You can, however, ask about how you can reduce costs in other ways when comparing mortgage lenders. For instance, many lenders offer lower rates in exchange for “mortgage points” — upfront fees you pay to your lender. A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan.
Editor’s note: Rates shown are as of Friday, June 7, 2024 at 6:25 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.
Sources
Primary Mortgage Market Survey, Freddie Mac. Accessed May 31, 2024.
Employment Situation Summary, U.S. Bureau of Labor and Statistics. Accessed May 10, 2024.
U.S. Economic, Housing and Mortgage Market Outlook, Freddie Mac. Accessed May 16, 2024.
Consumer Price Index Summary, U.S. Bureau of Labor and Statistics. Accessed May 16, 2024.
Producer Price Index News Release summary, U.S. Bureau of Labor and Statistics. Accessed May 15, 2024.
CME FedWatch Tool, CME Group. Accessed June 7, 2024.
Mortgage Industry Insights, Bankrate. Accessed June 7, 2024.
Inside: Learn what 19 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 $19 a year, how much do I truly make? What will that add up to over the course of the year?
Is $19 a living wage?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage?
In this post, we’re going to detail exactly what $19 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.
$19 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $19 per hour as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $19 = $39,520
$39,520 is the gross annual salary with a $19 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
breakdown of 19 dollars an hour is how much a year
This is how that number is calculated.
Typically, the average work week 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 $19 times 2,080 working hours, and the result is $39,520.
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.
Just under $40,000 a year.
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 $19 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 $19 times 1,040 working hours, and the result is $19,760.
How Much is $19 Per Month?
On average, the monthly amount would average $3,293.
Annual Amount of $39,520 ÷ 12 months = $3,293 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 on and on which days you get paid.
Plus by increasing your wage from $12 an hour, you average an extra $1200 per month. So, yes a few more dollars an hour add up!
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1,647.
How Much is $19 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 $19 = $760 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $380.
How Much is $19 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $760 and double it.
$760 per week x 2 = $1,520
Also, the other way to calculate this is:
40 hours x 2 weeks x $19 an hour = $1,520.
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $760.
How Much is $19 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 work day.
8 hours x $19 per hour = $152 per day.
If you work 10 hours a day for four days, then you would make $190 per day. (10 hours x $19 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $76.
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$19 Per Hour is…
$19 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$39,520
Yearly Wage (50 weeks)
$38,000
Monthly Wage(173 hours)
$3,293
Weekly Wage (40 Hours)
$760
Bi-Weekly Wage (80 Hours)
$1,520
Daily Wage (8 Hours)
$152
Net Estimated Monthly Income
$2,514
**These are assumptions based on simple scenarios.
Paid Time Off Earning 19 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 $39,520 per year.
This is the same as the example above for an annual salary making $19 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 $19 times 2,000 working hours, and the result is $38,000.
40 hours x 50 weeks x $19 = $38,000
You would average $152 per working day and nothing when you don’t work.
$19 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: $39,520
Federal Taxes of 12%: $4,742
State Taxes of 4%: $1,581
Social Security and Medicare of 7.65%: $3,023
$19 an Hour per Year after Taxes: $30,174
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$30,174 ÷ 2,080 hours = $14.51 per hour
After estimated taxes and FICA, you are netting $14.51 an hour. That is $4.49 an hour less than what you planned.
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 $14 an hour wage is much different.
$19 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 $19.01-19.99.
This is super helpful if you make $19.10 or $19.23.
You are probably wondering can I live on my own making 19 dollars an hour? How much rent can you afford at 19 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $19 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, above we calculated $19 an hour was $14.51 after taxes. That would average $2,514 per month.
According to the Cents Plan Formula, here is the high-level view of a $19 per hour budget:
Basic Expenses of 50% = $1,257.23
Save Money of 20% = $502.89
Give Money of 10% = $251.45
Fun Spending of 20% = $502.89
Debt of 0% = $0
Obviously, that is not doable for everyone when living above the poverty line. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun money.
To further break down an example budget of $19 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $19 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$199
Savings
15-25%
$527
Housing
20-30%
$856
Utilities
4-7%
$165
Groceries
5-12%
$263
Clothing
1-4%
$33
Transportation
4-10%
$132
Medical
5-12%
$165
Life Insurance
1%
$10
Education
1-4%
$16
Personal
2-7%
$49
Recreation / Entertainment
3-8%
$99
Debts
0% – Goal
$0
Government Tax (including Income Tax, Social Security & Medicare)
15-25%
$779
Total Gross Income
$3,293
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
Can I Live off $19 Per Hour?
Even living above the minimum wage by $5-6 can be a very difficult situation.
Is it doable? Absolutely.
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
A lot of times when people are making under near the minimum wage mark or slightly above, they feel like they are in this constant cycle that they can never keep up. They are not good enough to make more money. Feel like they are constantly struggling to keep up with bills and expenses. And things just keep adding on top.
You need to do is change your money mindset.
This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 19 dollars per hour. No going into debt for me.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $19 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $19 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 Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $19.50 will add up over the year. Even better $20 an hour is a win!
1. 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.
2. Look for A New Job
Another way to increase your hourly wage is to 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 $19 an hour is too much for you and 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.
Maybe a non phone work from home job is perfect for you!
3. 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.
Check out one of these early morning jobs.
4. 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.
5. Earn Passive Income
The last way to increase your hourly wage is to start earning 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 being financially sound.
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 $5,000 in his trading account and now has well over $36,000 in 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.
Tips to Live on $19 an Hour
In this last section, grasp these tips on how to live on $19 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 $19 an hour. 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 and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $19 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 $19 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.
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.
Learn how to live below your means.
3. 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!
Pick out our saving money charts to guide your savings journey.
It could be participating in a no spend challenge for the month.
Try the 30 day money challenge.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
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 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.
4. 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.
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 need to 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 is 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.
Here are resources now for you to pay off your debt:
Jobs that Pay $19 an Hour
You can find jobs that pay $19 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:
Administrative assistant
Customer service representatives
Housecleaning specialist
Delivery drivers
Warehouse workers
Trash Collector
Fast Food Restaurant Manager
Maintenance worker
School Bus drivers
Manufacturing Assemblers
Elder Care
Companies that pay more than $19 per hour:
Coors Brewery
Target
Amazon
Best Buy
DoorDash
Charter Communications
Wells Fargo
Bank of America
JP Morgan
Plus many companies pay a higher hourly rate in HCOL areas as well.
$19 Per Hour Annual Salary
In this post, we detailed 19 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 19 dollars an hour annually…
$39,520
This is right between $39000 per year and $43k 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!
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
One of the best things you can do for your future self is to save for retirement. Unfortunately, recent research indicates that a significant portion of Americans are falling short in this area. According to a 2023 survey, about 22% of Americans have less than $5,000 in retirement savings.
This highlights the importance of early and consistent financial planning for your post-working years. It’s never too early to start thinking about your financial future, and actively contributing to your retirement savings is essential.
If you’re looking for a way to sock money away for retirement, your 403(b) plan could be just what you need. These retirement plans are offered by employers in the nonprofit sector and some other careers, like public education and healthcare. If your employer offers a 403(b) plan, here’s what to expect.
Key Takeaways
A 403(b) plan is a retirement savings plan available to employees of tax-exempt organizations, public schools, and certain other employers. It functions similarly to a 401(k) but is specifically designed for the nonprofit sector.
Contributions to a 403(b) are automatically deducted from your paycheck, can be made pre-tax (traditional) or after-tax (Roth), and may be matched by your employer, providing significant potential for growth through compounding returns and employer contributions.
While 403(b) plans offer advantages like tax benefits and employer matching, they have contribution limits and penalties for early withdrawals, and the investment options are usually limited to mutual funds and annuities, which may carry higher fees.
403(b) Plan
A 403(b) is sometimes called a Tax-Sheltered Annuity (TSA) plan. For practical purposes, it’s basically a 401(k) plan for people who work for qualifying tax-exempt organizations, certain hospital organizations, or employees of public schools. Government employees, church workers, and even librarians might also have access to a 403(b) plan.
See also: What’s the Difference Between a 401(k) and 403(b)?
Your employer chooses what type of plan they are willing to offer, so you can’t choose to participate in a 401(k) instead. Your 403(b) plan will come with different investment options, usually in the form of mutual funds that allow you to create a portfolio that matches your risk tolerance.
However, it’s important to understand that the annuity agreement involved makes for a couple of tricky situations that might not apply to other retirement plans:
Withdrawals are subject to a 20% federal income tax withholding, except in specific circumstances.
To dissolve the annuity investment aspect of a 403(b), there might be a surrender charge of up to 8%.
Speaking with a professional to help you with these situations can help you understand some of the quirks involved.
How does a 403(b) work?
Your employer will automatically deduct your contributions to the 403(b) from your paycheck in many cases. This deduction is usually expressed as a percentage. For example, if you make $2,500 each paycheck and want your employer to withhold 4% of your income, $100 will be diverted to your retirement account each payday.
If you choose a traditional 403(b) arrangement, your employer will deduct your contribution from your pay before taxes are figured. This reduces your tax bill today, but you’ll still have to pay income taxes when you withdraw money later. On the other hand, your employer might offer a Roth option, which doesn’t result in a tax benefit today. Instead, your money grows tax-free, and you won’t have to pay taxes when you withdraw.
Some employers also match your contributions. For example, they may match a certain percentage of your income or offer a dollar-for-dollar match up to a cap. Either way, an employer match on your plan is free money that you can put toward your retirement.
Thanks to compounding returns, the money grows over time, and you have a chance to build wealth, so you have financial resources when you quit working. It’s possible to adjust how much you save by letting your human resources representative know, or by managing your contributions through your employer’s online benefits portal.
403(b) Contribution Limits
The government wants to encourage retirement saving, so they offer tax advantages when you contribute to a 403(b) plan. However, you can’t just put everything into a tax-advantaged plan. Your 403(b) comes with limits.
For 2024, you can contribute up to 23,000 a year, which is a $500 increase over the 2023 limit. If you’re age 50 or over, you can make extra contributions totaling $7,500 a year in 2024. The combined employer and employee contributions can be a maximum of either $69,000 or 100% of your most recent yearly salary, whichever amount is lower.
The IRS also allows for additional catch-up contributions if you’ve given 15 years of service with an employer. Pay attention to the contribution limits and your employer’s plan so you can take advantage of what’s available to you.
When can you withdraw money from your 403(b)?
Because your 403(b) is a retirement plan, you can’t just take money out when you want — at least not without paying a penalty. If you withdraw money before reaching age 59 ½, you’ll have to pay taxes, and the IRS will charge you an extra 10% penalty. The only exception is if you have a Roth account. At that point, as long as the account is at least five years old, you can withdraw your contributions without penalty.
Be aware, too, that when you reach age 70 ½, you’ll have to start taking Required Minimum Distributions (RMDs) from your non-Roth 403(b). The government uses a formula to determine how much you should be taking each year in RMDs. You’ll have to pay taxes on the amount, as with any other tax-deferred retirement plan withdrawal.
As you approach retirement and begin figuring out how much money to withdraw and which accounts to start with, consult a retirement professional. A knowledgeable professional can help you manage your different accounts and figure out how withdrawals interact with Social Security benefits.
What happens if you leave your job?
You might have a vesting requirement with your 403(b). Vesting requires you to be with an employer for a set amount of time before you get to keep all the money from the match. However, the money you contribute on your own is not subject to vesting.
In some cases, you might be able to keep your money in the 403(b) account, even after you leave. However, you can’t make new contributions. As a result, it might make sense to roll your money into an IRA. That will allow you to keep growing the account and control where the money is invested.
How much should you contribute to your 403(b) plan?
Putting money into an employer-sponsored retirement plan is one of the easiest ways to save. It comes out of your paycheck, so you don’t have to think about it. However, you might be concerned about how much you can afford to divert from other goals.
A good place to start is to maximize your employer match. If your employer will match your contributions up to 3% of your income, consider saving 3% of your income. That way, you at least get some additional free money going toward your financial future.
If your employer doesn’t offer matching contributions, your 403(b) is not required to meet the burdensome oversight rules of the Employee Retirement Income Security Act (ERISA). This means you could have lower administrative fees than you would with 401(k)s or other funds subject to greater oversight.
Factors to Consider
Next, you need to consider different factors related to your current situation. Some things to keep in mind as you determine how much to put into your 403(b) include:
Debt: High-interest debt can weigh you down. It’s ok to save a little less for retirement in the name of paying down debt faster. You can work toward both goals, but just know where the bulk of your focus should be, based on your goals.
Emergency fund: Once you have a baseline established for retirement saving, you might want to focus on another goal. Consider building at least three to six months’ worth of expenses in an emergency fund.
Other savings goals: Maybe you have goals like buying a home or starting a college fund. You don’t want to put your own retirement at risk to pay for your child’s college, though. Think about what you want your money to accomplish, and then go from there.
Once your goals are met, return to the 403(b) and considerably boost your retirement savings. It’s a good idea to increase your retirement savings each time your finances improve, or you get a raise.
How to Invest in a 403(b)
The investment options available in a 403(b) plan are generally more limited compared to other tax-advantaged retirement plans. These options typically include mutual funds and annuities.
Unlike 401(k) plans, it is not typically possible to invest in individual stocks, exchange-traded funds (ETFs), or real estate investment trusts (REITs) through a 403(b) plan. However, many 403(b) plans do offer low-cost bond and stock index funds, which are often recommended by financial experts for retirement investing.
To determine the right mix of stock and bond funds, you should consider your age, risk tolerance, and the amount of time you have before retirement. As you get closer to retirement, it may be appropriate to increase the proportion of bond funds in your portfolio.
Target-date funds, which are mutual funds that automatically adjust their holdings to suit your target retirement date, can be a good choice if they are offered by your 403(b) plan. Alternatively, you can consider investing in an annuity through your 403(b).
However, it is important to be aware that annuities can be complex financial instruments with high fees and potentially lower returns than other options. It is a good idea to speak with a financial advisor before deciding to invest in an annuity.
If your 403(b) plan does not offer the investment options you want, consider using an individual retirement account (IRA) to supplement your portfolio. If your employer offers a matching contribution to your 403(b) plan, ensure that you are contributing enough to take advantage of this benefit before investing in an IRA.
Are there other ways to prepare for retirement?
A 403(b) is not the only way to save for retirement. In fact, you should consider retirement planning holistically, working it into your other short-term and long-term money goals.
In addition to using a 403(b), you can also open an IRA to set aside money in an account that you have more control over. If you qualify, you might also be able to use a Health Savings Account to begin saving up for healthcare costs in retirement.
Please keep in mind that you might have other accounts from previous jobs. Rolling them all into one IRA can help you consolidate the money to more effectively plan for the future. Make sure you consider taxable investment accounts, savings accounts, pensions, and even Social Security benefits in your planning.
For the most part, though, the first step is getting in the habit of saving money. You might not feel like you have “enough” money to invest for retirement. This isn’t true. Even if you only set aside 1% of your income, it’s still better than nothing.
Here are some tips for managing your retirement portfolio:
Work toward increasing your contribution a bit each year.
Review your accounts once a year and rebalance as needed.
Consolidate accounts to reduce fees and improve management.
Be realistic about your retirement needs and plan accordingly.
Incorporate other financial goals and prioritize retirement.
Use windfalls, bonuses, and other unexpected income sources to pad your account.
Bottom Line
The earlier you start saving for retirement, the less you have to contribute each month to meet your goals. However, it’s better to start late than never. Put as much as you can into your 403(b) from the get-go, taking special advantage of any employer match. As you develop the habit of setting goals and saving for them, you’ll position yourself for financial success.
The online home decor market size is expected to reach US$ 206.05 billion by 2030, from US$ 97.39 billion in 2023, growing at a CAGR of 11.3% during the forecast period. Online home decor includes products such as furniture, textiles, decorative accessories, and more that are purchased online for residential or commercial spaces.
Market Overview:
The online home decor market involves sales of home decorative items like furniture, lighting, textiles, and other accessories through e-commerce platforms. It provides convenience to customers to browse, compare prices and designs, read reviews to select products from the comfort of their home.
Market Dynamics:
The online home decor market is witnessing high growth owing to growing internet penetration across regions. As per statistics, global internet users reached 4.95 billion in 2022, representing 63% of the world’s population and growth of 190 million new users over the past year alone. Growing preference for online shopping among consumers due to benefits like convenience, discounts, easy returns is another key factor augmenting the market growth. Furthermore, increasing disposable income and changing consumer lifestyles are also fueling the demand for home decor products globally. Vendors in the market are investing in virtual and augmented technologies to provide virtual platform for customers to visualize products which is further attracting more customers, thereby driving the market growth during the forecast period.
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Online Home Decor Market Drivers: Consumers preferring online shopping for better product options and competitive pricing
With the rise of e-commerce, consumers are now preferring online shopping over visiting physical stores for various home decor items. Shopping online provides them access to a huge variety of products from different brands, designs, styles, materials and price points under one roof. Customers can compare features and prices of multiple products sitting at home without having to visit multiple stores. Many online home decor retailers also offer consistent and competitive pricing along with regular discounts and deals which attract more customers. The ever-expanding product catalogs and convenient shopping experience has made online shopping a preferred choice for home decorators.
Availability of high-quality 3D product visualization driving higher online consideration and purchase
Online retailers have invested heavily in 3D product visualization and augmented reality/virtual reality technologies to provide superior shopping experience to customers compared to physical stores. Features like zoom, spin and placement tools allow customers to accurately visualize how different furniture, fixtures, paintings etc would look in their home interior before purchase. This improves their decision making and reduces post-purchase dissatisfaction. The realistic 3D simulations and ability to place digital products in real photos of customer’s rooms have made online shopping safer by addressing the inability to physically check products faced in online stores earlier. This has addressed a major concern for high involvement purchases of expensive home decor items and driven higher conversion rates.
Online Home Decor Market Opportunity: Increased focus on personalized customer experience
With rising competition from choice of both online and offline retailers, home decor companies are recognizing the need to Shift from mass marketing to more personalized customer experience strategies. There is a massive opportunity for retailers who can offer a tailored shopping journey to customers by understanding their individual design preferences, budget, home space requirement etc. Personalized product recommendations, instant connects to interior designers, customization or bundling of furniture sets specific to room layouts, curated decoration ideas are some ways to enhance customer experience. Building loyalty can be a key differentiator through engaging personalized touch-points that make customers feel special at every stage of their home decor journey. harnessing big data, AI and new technologies will help retailers convert this opportunity into competitive advantage.
Worldwide major and leading players within the market are:
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Segmental Overview
Online Home Decor Market segmentation offers an in-depth analysis of the various segments of the market, including application, type, end use, and region. The segmentation overview section offers crucial information about the market share, sales, and growth rate for each of the segments over the forecast period. Moreover, an examination of the relative multitude of significant sub-portions in the market has been canvassed in the report.Having a knowledge about the various segments and sub-segments helps businesses recognize the importance of factors that drive industry growth.
The titled segments and sub-section of the Online Home Decor market are illuminated below:
Global Online Home Decor Market, By Product Type:
★ By Product Type: Furniture, Home Textile, Home Decor, Kitchenware, Bathware, Garden Decor, Others (Wall Decor, Lighting, Rugs, and Mirrors) ★ By Price Range: Premium Price, Medium Price, Low Price ★ By Distribution Channel: Online, Offline ★ By End User: Residential, Commercial ★ By Material Type: Wood, Glass, Metal, Plastic, Ceramic
Regional Analysis for Online Home Decor Market:
📍 North America (United States, Canada, and Mexico) 📍 Europe (Germany, France, UK, Russia, and Italy) 📍 Asia-Pacific (China, Japan, Korea, India, and Southeast Asia) 📍 South America (Brazil, Argentina, Colombia, etc.) 📍 The Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, and South Africa)
Key Highlights of the Report
Offers a comprehensive and holistic analysis of the Online Home Decor Market. Evaluates the competitive environments, covering partnerships, joint ventures, acquisitions, and organic growth. Provides forecast information related to every region and sub-region of the Online Home Decor market. Includes information on the key opportunities and challenges faced by key industry players worldwide. Covers the Online Home Decor market’s current and future market outlook on industry drivers, market restraints, and regional constraints. The report answers a number of crucial questions, including:
➥ Which companies dominate the global Online Home Decor market? ➥ What current trends will influence the Online Home Decor market over the next few years? ➥ What are the market’s opportunities, obstacles, and driving forces? ➥ What predictions for the future can help with strategic decision-making? ➥ What advantages does market research offer businesses? ➥ Which particular Online Home Decor market segments should industry players focus on in order to take advantage of the most recent technical advancements? ➥ What is the anticipated growth rate for the market economy globally?
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Newfi Lending will begin working with a California real estate investment originator, allowing it to provide funding and help develop the company’s business over time.
Newfi’s strategic agreement and investment in Los Angeles-based BARH Dunmore, which was established in 2021, opens up “substantial funding capacity” for the latter, as it seeks to build its presence in the residential-transition loan space. Among the offerings of the latter company, which operates under the name Dunmor, are bridge funding, fix-and-flip loans and ground-up construction financing in both single-family and multifamily sectors and are aimed at small real-estate investor businesses.
“We are now set to embark on a new growth phase,” said Dunmor founder and CEO Franck Ruimy, in a press release. “These partnerships position us to continue delivering the high level of service our clients expect from us, complemented by even more robust funding solutions at highly competitive rates.”
The deal also puts into place a number of goals structured to strengthen cooperation between the two businesses over time.
“We are excited to partner with Dunmor,” added Newfi CEO Steve Abreu. “We continue to be impressed by the leading technology Dunmor has created for the RTL industry.”
In a separate agreement reached with an undisclosed offtake partner, Dunmor also said it will be able to secure hundreds of millions of dollars worth of funding capacity to expedite growth.
Newfi, the multichannel lender based in Emeryville, California, touts its “unique product development” that includes bank-statement and non-QM mortgages. It also offers a debt-service coverage ratio loan option aimed at investors, where potential rental cash flow is taken into consideration in underwriting. It introduced a shared-appreciation second-lien late last year as well.
Recent research conducted by RCN Capital and CJ Patrick Co. found housing investor sentiment improving this spring, with 42% of businesses in the space expressing optimism about market conditions over the next six months. In its winter survey, the same researchers found only a 39% share with an optimistic view.
Fix-and-flip investors appeared more content with current and anticipated future conditions than peers offering rentals. Approximately 43% of home flippers believe that the market will continue to improve compared to 32% of rental property investors.
The high cost of financing ranked as the top concern among investors surveyed, with 71% noting it as a major challenge.
But the real-estate investment community also saw some good news emerge in the first quarter, as new purchases increased annually for the first time in two years after a period of subdued volume, according to separate research from Redfin.
While fix-and-flip investors may seem more optimistic currently, the single-family rental market may offer more revenue potential, the real estate brokerage said.