When shopping for a wedding dress, I was given some sound advice: don’t try it on if you can’t afford it. Because if you fall in love with it, you will either be heartbroken when you can’t have it or you’ll blow your budget to get it.
What I love about this advice is that it is applicable to more than just wedding dress shopping.
For example, it works just as well when figuring how much rent you can afford. After all, the last thing you want to do is find your dream apartment only to discover it’s way out of your budget.
What’s Ahead:
Determine How Much Rent You Can Afford
Here are some rules of thumb to use when determining how much of your income should go to rent:
The 30% Rule
This rule is about as quick and easy as it gets when trying to decide how much you can afford to spend on rent: you should spend about 30% of your gross monthly income (before taxes) on rent.
Keep in mind the 30% rule doesn’t include utilities or any other housing expenses — it’s 30% of your gross income on rent alone.
So, if you bring home $3,000 per month, then you should aim to spend around $900 (or less) on your monthly rent ($3,000 x 0.30 = $900).
Source: Giphy.com
Keep in mind, this is just a general rule. The 30% rule is a good starting point, you may still need to adjust this figure based on what works best for you.
For example, if you live in a city with high rental prices, then you might be required to pay more than 30% just to find housing.
On the other hand, if you have student loan payments or other loans, then spending 30% on rent might be too high for your monthly budget.
Read more: How To Manage Student Loan Debt
The 30% rule has its origins in 1937 and the U.S. National Housing Act, which created the public housing program for low-income families. Income limits were established as eligibility for families that wanted to live in public housing. Back then, the rule was that, “a tenant’s income could not exceed five to six times the rent.”
Since then, the limit has increased. In 1961, the Housing and Urban Development Act established that the rent threshold should not exceed 25% of a family’s income. This was then raised to 30% in 1981 — a benchmark that’s since stayed the same.
The 50/30/20 Budget Rule
Another simple rule for determining how much of your income should go to rent is the 50/30/20 budget. This rule states you cam use 50% of your net income (after taxes) for your “needs.” Your needs include things like housing, utilities, car payments, and groceries.
Next, allot 30% of your monthly income for wants — things like clothing, eating out, and hobbies.
The remaining 20% should go towards saving, investing, and debt repayment.
Source: Giphy.com
So, if you bring home $3,000 per month after taxes, this would give you $1,500 per month to spend on your needs, $900 for wants, and $600 for saving, investing, and debt repayment:
To calculate 50% ($3,000 x 0.50 = $1,500).
To calculate 30% ($3,000 x 0.30 = $900).
To calculate 20% ($3,000 x 0.20 = $600).
Remember, the 50% is for all your needs, not just your rent alone. So make sure you have a good idea of how much you spend per month on things like food and utilities before deciding the exact amount you can put towards rent.
For help calculating your 50/30/20 budget, check out our handy 50/30/20 calculator.
The 50/30/20 rule was popularized by Senator Elizabeth Warren and her daughter Amelia Warren Tyagi in their book, “All Your Worth: The Ultimate Lifetime Money Plan.”
Other Considerations besides the Rent Price
While these rules of thumb are helpful starting points for determining how much rent you can afford, there are several other factors to consider — such as other expenses associated with renting, where you want to live, how much debt you have, and the kind of lifestyle you want.
Additional Costs Associated With Renting
Your monthly rent payment will likely be your largest housing expense, but it’s not the only expense. Often landlords require all sorts of extras. Here are some other things you’ll need to factor in:
Moving costs.
Security deposit.
Pet deposit.
Utility payments.
Renters insurance.
Parking.
Commuting costs.
Where Do You Want to Live?
If you’re looking in a high-cost-of-living city like San Francisco, where the average cost of a one-bedroom apartment is $2,995, then you might have to spend more than the recommended benchmark amount (or get four roommates).
On the other hand, if you’re looking for a place in a low-cost-of-living city and you make a high salary, you might spend less.
How Much Debt Do You Have?
You also have to consider how much debt you are carrying. If you are completely debt-free, then you might be able to pay a little more to your rent.
If you are drowning in student loans and credit card debt, then you probably need to be putting more of your income towards debt repayment.
Read more: How to Pay Off Credit Card Debt Fast
What Kind of Lifestyle Do You Want?
This is very important: don’t forget to think about the type of life you want to live. Your spending habits and other financial goals matter.
If you enjoy going out for dinner or spending extra money on hobbies, then make sure you are budgeting for these things. You don’t want to be house-poor and forced to spend all your time at home if what you enjoy most in life is being out and about.
Read more: When It’s OK to Spend Money
How To Reduce the Amount You Spend on Rent
If you want to decrease your housing expenses, there are some things you can do to reduce what you spend on rent:
Move to a city with a lower cost of living. If you can work remotely or you have the option to move to a cheaper city, consider doing it.
Move farther outside the city. Living in the city core can be expensive. If you want to reduce your rent, you can look into moving to the suburbs. This will often afford you more space for less money.
Get a roommate. Splitting housing costs with a few roommates can drastically reduce the amount you are spending on rent each month.
Negotiate with your landlord. Depending on where you live and the demand for rentals, you might be able to negotiate the cost of rent with your landlord. You can offer to prepay for a few months upfront in exchange for a discount. Or you could offer to extend the length of your lease if they are willing to reduce the monthly rent.
Offer to help your landlord. If you’re the handy type, offer your services to your landlord in exchange for reduced rent. Maybe you could paint or do minor fixes around the place for a cheaper monthly bill.
The Bottom Line
For many of us, we are spending the largest chunk of our income on rent.
While what you should spend on one month’s rent comes down to a few personal factors, like where you live and how much debt you’re carrying, simple rules like the 30% rule or the 50/30/20 budget can help set a baseline for what you can afford.
This guest post from the redoubtable Tyler K is part of the new “reader stories” feature here at Get Rich Slowly. Some reader stories contain general “how I did X” advice, and others will be examples of how a GRS reader achieved financial success — or failure. Tyler is an active commenter at GRS, and never afraid to share his opinion!
Like J.D., I once had a big problem with debt. Unlike J.D., I didn’t dig myself out from under that problem gracefully.
About eight years ago, I was a college student, living in an apartment near campus, and working full time while going to school. I felt like I was on top of the world. Here I was, seeing all my friends making $6 or $8 an hour, while I was making about $17. That seemed like a lot of money. It was about $35,000 a year — not just a college student’s salary, but a real salary. I felt like I deserved to be living it up a bit, especially considering all the work I was doing with a full-time job and a full time class load.
I went overboard. I spent well beyond the $35,000/year I was making (it wasn’t as much money as it felt like). I bought a Mustang, and modified it into an amateur race car. I had the latest laptop and a desktop computer with a flat screen display (in 2001). My $35k/year salary was enough to live on, but it wasn’t enough to support spending $1500 on a laptop computer and on a desktop computer and on high-performance cylinder heads, but that’s what I did.
I bought all of them, and more.
This kept up for a year or two. I kept justifying these purchases to myself, and my credit card balances slowly rose along with my required minimum payments. A bout of bad luck exacerbated the problem. I was mugged outside my apartment, and having no medical insurance, ran up an emergency room bill. My race car was stolen, and being 21 and owning a race car, I couldn’t afford comprehensive car insurance, I had liability only. I bought another car to replace it, again with borrowed money.
Things fall apart
Eventually, I realized I was in over my head. I was gasping for air. I couldn’t make my credit card payments and also pay my rent and buy groceries. I was driven to the edge, and I gave up. I stopped paying all my credit card bills, and they went into collections. I voluntarily surrendered my car to be repossessed. I figured if I was going to ruin my credit score, I might as well go all out — I even hired a bankruptcy attorney. She managed to stop the incessant flood of phone calls from creditors, but I found I couldn’t afford even to pay for the bankruptcy proceedings, and so that process stopped shortly thereafter.
At this point, I owed approximately $30,000 on about four different credit cards, the medical bill, and the car loan, all of these in collections. My credit had been destroyed, but my creditors had been silenced by the bankruptcy attorney. I decided to get my life in order and worry about paying back the debts I owed later. It was easy to justify — I could barely put food on the table and the credit card company was still bringing in billions every year. They didn’t need an extra few thousand dollars as desperately as I did. So I let my debts ride, and worked on running my life in a sustainable way.
Turning things around
The first thing I did was give up credit cards entirely.
I decided to only spend money I actually had, and so my purchases of toys slowed dramatically. My extravagances in life dropped to going out to eat with my roommate a couple times a week, and not at particularly fancy places. I got into bicycling as a hobby, on a used, mid-range road bike — not a brand new, high-end model like I would have bought before. And there I sat, content with the computer I already had, my modest bicycle, and the occasional trip out for dinner. I was living quite comfortably on my salary with my new outlook on life. For the first time in years, I felt comfortable with myself. I actually managed to save a few dollars from paycheck to paycheck instead of spending them!
I did decide that I needed a car, though. I hadn’t enough money to pay cash for one, and I doubted anyone would give me a loan, so still being young and in school, I asked my parents to help. This time though, I was much more conservative.
I borrowed about $5,000 from my parents and created a definite plan for paying them back. I bought a nine-year-old but well-maintained Honda Accord, and I stuck to the payments religiously. This time if I were to fall behind, not only would I give up my newfound peace I’d made with myself financially, but I’d be letting my parents down instead of faceless mega-corporations.
No credit needed
Shortly thereafter, I finished school, and took a software engineering job in San Francisco. Rents were higher in the city, but my salary doubled. My brother needed a car, and I worked out a deal with my parents to give him mine, along with the rest of the payments on the loan. I wanted to get a brand new one.
I went down to the car dealership with my pay stubs from my new job, and my ruined credit score, and a pre-approval I’d gotten online for a loan of up to $26,000. I was determined to make something work. As it turned out, this was easier than I’d anticipated. Car dealerships will do anything to sell cars, and that includes selling cars to people with horrible credit and a repossessed car on their credit report. I bought this car with no money down, which in retrospect, is the stupidest financial decision I’ve made since I began my financial recovery.
Still, it wasn’t a horrible decision — I now made a salary that could justify a car like this. Sure, I got a crappy 12% interest rate on the loan, but I eventually refinanced the loan to 10%, and a shorter term, and then I paid the loan off early, about two-and-a-half years after I first bought the car. When I called the bank to pay off the first loan (when I refinanced), they were practically begging me to take a credit card from them, seeing as I’d overpaid my car loan every single month, on time, for the life of the loan. But still, I wouldn’t break my ‘no credit cards’ rule, and I refused.
Renting an apartment was another thing I was scared to do with bad credit, but it turned out easier than I thought, as well. I got my first new apartment with my ruined credit when I moved to San Francisco. I decided to share a place with a friend of a friend. We found a two-bedroom place listed on Craigslist, and went to see it. It was a four unit building, quite common in San Francisco, owned by a little old Chinese lady. She didn’t care to even run a credit check. Two well-dressed young men showed up, with pay stubs indicating an above-average combined annual salary, and job titles of ‘Software Engineer’ and ‘Accountant’. She was more than happy to rent the place to us for $1800/month.
I continued my life living the way I had since I’d given up on my debt a few years ago, but now on a much larger post-college salary. I bought few toys, aside from the car and some furniture. I’d go out to eat with friends sometimes, or I’d go out for drinks occasionally with my new coworkers. I actually found money piling up in my checking account because I was making it faster than I even wanted to spend it. I had nothing I needed to buy.
After a year, my roommate took a promotion that had him moving from San Francisco to Denver. I decided that I wanted to get my own place, but $1800/month was too much for me to spend by myself. The little old lady who’d been our landlord actually asked if we’d reconsider staying, and if I could find another roommate, as we’d been such good tenants, but I told her I had to leave.
I was questioning my ability to get lucky with finding an apartment a second time, but figured I’d done it before, and I could do it again. I looked at one place I like, and decided to take it, but was turned down by the rental agency due to my bad credit. I found another place a few blocks away that actually ended up being nicer — It was an old Victorian house divided into two units, one upstairs and one downstairs. The family that owned the place lived upstairs and rented out the downstairs.
Wary because of my bad credit and previous rejection, I wrote down my story, and gave the owners my bank statement showing the money I’d accumulated in the last year I’d spent living below my means, and the phone number of the landlord that’d asked me to stay in San Francisco. In light of this information, they rented to me regardless of my credit score, and they too ended up extremely happy with me as a renter.
The road to recovery
Several years after I’d given up on my credit card bills, I was finally contacted again by one of my creditors (or really, the collection agency to which they’d sold my debt). They demanded, in a rude and threatening manner, payment in full of an outstanding debt over $10,000.
My girlfriend (now my wife), who worked at a law firm, asked a co-worker of hers to help me out. He was an attorney who had previously worked in this specific area, representing clients being sued by creditors, and had no sympathy for a threatening collection agency. With a single phone call on my behalf, he had the collection agency offering a settlement of about half their initial demand. I paid it in full from the surplus I’d been accumulating.
Slowly, over the course of several years, my other creditors would contact me, and we’d agree on a settlement like this. Eventually, the statute of limitations for them to collect on the debt through legal channels expired. After that, all I needed to mention to creditors was that I knew it was too late for anyone to sue me, and I’d have a reduced settlement offer.
Now, at the beginning of 2010, it’s been nearly seven years since this whole mess started, and these old marks are due to start dropping from my credit report soon. Surprisingly, I’ve found in the intervening time that I haven’t been impacted much at all by my poor credit — certainly not as much as you would have thought, given the emphasis the financial media puts on credit score.
I paid maybe 5% more than market value for the car I financed, not a huge deal.
I was turned down for one apartment rental.
I’ve since rented one other place, where I live now, in a manner similar to the second — it’s a privately-owned little house with landlords that live next door.
I told them my story, showed them my bank statements and pay stubs, and they were happy to rent to me, and I love it here. Aside from the lousy car interest rate and a single apartment rejection, I haven’t even noticed my poor credit score. Employers haven’t cared. Cell phone companies haven’t cared. The electric company hasn’t cared. For the most part, nobody but myself has even looked at my credit score for the past six years.
While all this has been happening, my life otherwise has been going fantastically. My career has progressed well, I make roughly four times what I did when the story started. I got married. I moved back to my hometown, which I love. I’ve been traveling a bit, to five other countries and various places in the US. My life is going as well as I could hope.
Strangely enough, I’m not sure that any of this would have happened if I hadn’t given up on those debts years ago. That began a change in lifestyle — a focus on experiences instead of things, on making do with what you have instead of needing the latest and greatest. Those lessons have shaped my life since then, and I don’t know if I would have learned them as well without going through that experience.
Final words
I was originally hesitant about sharing this story. I was afraid of being judged for the method I used to pay off my debts. I’m not proud about having done this, but at the same time, I don’t feel bad about it.
These credit card companies were willing to do everything in their power to make a profit off me. They had teams of actuaries calculating the exact interest rates and credit limits that would maximize profits from their customers, and they had the legal system at their disposal if they thought it would have been beneficial. I used the same tactics. I was never sued and in the end, I came to mutual agreements with my creditors that satisfied both parties.
Was it an ideal solution for either party? No, but once I was in in over my head, there wasn’t a realistic ‘ideal solution’. The situation was eventually salvaged, and now, years down the line, it’s water under the bridge.
Let’s be honest, reading the fine print of your renters insurance policy isn’t exactly fun.
After all, your insurance company doesn’t exactly hire John Green to write it, and trying to wrap your head around a bunch of legalese can be, well, exhausting.
But if you are one of the lucky ones that do read the policy, you may find that your renters insurance policy covers (and doesn’t cover) more than you originally thought.
What’s Ahead:
Surprising things that are covered by renters insurance
Items stolen from your car
Source: Giphy.com
Many renters insurance policies include off-premises renters insurancecoverage. This typically covers belongings that are outside of your home and provides the same coverage as your inside possessions. For instance, if your car is broken into and your laptop is stolen, you’ll be covered.
However, it’s important to note that your renters insurance will not protect your car against damage or theft (that’s a car insurance thing), it only covers the stuff inside the vehicle.
To be sure that you have all of the auto insurance that you need, check out our guide: What Type Of Car Insurance Do You Need?
Items stolen while traveling
Your off-premise coverage may also cover you in the event that you are traveling and your personal possessions are stolen.
This means that if your laptop, or iPad, is stolen from your hotel room while you’re on vacation, it’s likely covered by your renters insurance. This is because the stolen item is considered “insured property” and it will be covered whether it’s in your rental or not.
To ensure that your personal belongings are covered, it’s a good idea to contact your insurance provider before you leave on your vacation. Your insurer can help you determine if the personal property that you plan is protected under your policy or better left at home.
Living expenses
If your home is destroyed by an insured disaster and you can no longer live there, temporary living expenses like a hotel room, rent, meals, and the costs associated with storing your stuff may be covered by your additional living expenses (ALE) coverage.
Basically, ALE (not the beer) covers all of the expenses that you wouldn’t have had to pay for if you were still able to live in your home. However, if your home is destroyed by an uninsured disaster, let’s say water damage due to a flood, then you will not receive ALE coverage.
Other people’s injuries
If someone has an accident in your home, your renters insurance can help to cover that person’s medical expenses.
For you, this means that your clumsy best friend can finally come over for a visit without the worry of becoming a liability. After all, if she trips over a rug (or let’s face it, thin air) and takes a nasty fall, your renters insurance will have your back when it comes to medical bills.
This perk alone, which is typically covered under bodily injuryinsurance, is a great reason to get renters insurance.
Other people’s property
Your renters insurance may also cover damage to other people’s property and prevent you from having to pay for broken items out of pocket.
Let’s say your child throws a baseball through your neighbor’s window. Your renters insurance, thanks to personal liabilitycoverage, may help to cover some of the costs associated with repairing or replacing the damaged property.
Your family
Source: Giphy.com
You may be surprised to learn that many of the top renters’ insurance companies can cover anyone living under your roof that is related to you by blood, marriage, or adoption.
This means that if your mom comes to live with you for a few months, she will be automatically covered by your policy, as long as you have enough coverage!
However, if your house gets broken into and your roommate’s things are stolen, your insurance won’t cover their personal property. That is unless your roommate is also your sister.
Your pets
If you go to your friend’s house and your dog destroys her beautiful new couch, your renters’ insurance will cover it.
However, if your cute little pup destroys your new couch, your rental insurance will not cover the expense of replacing it (more on this below).
Surprising things that aren’t covered by renters insurance
Certain disasters
Most renters insurance will not cover disasters like floods and earthquakes. You may be able to purchase additional flood insurance coverage from a private provider.
If you are thinking about buying flood insurance, make sure that you know what it covers by reading our guide: What Is Flood Insurance? (And What Does It Cover?)
Similarly, you may be able to add earthquake coverage to your policy.
If your personal property is destroyed due to a volcanic eruption, wildfire, or tornado, you are likely already covered under your renters insurance policy.
Replacement costs
If your rental was robbed and the expensive sound system you bought five years before was stolen, you may be surprised to learn that you won’t get back enough money to fully cover the replacement cost, even though personal propertycoverage comes standard in most renters insurance policies.
This is because unless you have purchased replacement costcoverage, regular renters insurance will cover your personal belongings at their actual cash value (ACV).
For example, if your sound system cost you $2,500 five years ago, the insurance company might only offer you $1,000 to cover what it is worth today.
Expensive jewelry, art, or antiques
Source: Giphy.com
If you have expensive valuables like jewelry, art, or antiques, be aware that your renters policy might not cover these items. You may be required to purchase a “floater” policy to provide additional coverage for expensive possessions.
Most insurance policies will come with maximum limits for each type of coverage. So, let’s say you have a ring that costs $5,000, but your policy has a maximum coverage limit of $2,500 for jewelry, then it would be up to you to cover the difference.
You could also consider engagement ring insurance. You can learn what it does and does not cover in our article: Engagement Ring Insurance – Everything You Need To Know.
Property damage from pests
In the unfortunate event that your personal belongings are damaged by rats, bed bugs, or other rodents, bugs, or vermin, most renters insurance policies won’t cover the damage. This is true even if your infestation is so bad that you are required to leave your rental and find temporary housing.
Some renters insurance policies may offer bed bug insurance, but it is not usually considered part of a standard renters insurance plan and would come at an additional cost.
Summary
If you rent and assume that your landlord’s insurance policy will cover you in every situation, you may want to think again.
Renters insurance is the best way to ensure that your finances aren’t set back by a clumsy friend or major damage to your rental. While it’s an additional living expense, it’s often well worth the (low) cost.
The Low Country is full of gorgeous gardens. Why not enjoy one from the comfort of home?
Calling Charleston is a beautiful city with so many great neighborhoods and fun things to do. In order to ensure your next Charleston apartment checks all the boxes, don’t forget to have a clear list of amenities you can’t live without, like an amazing outdoor space. With excellent weather almost all year long, this is an essential amenity if you want to experience South Carolina living at its finest.
To ensure you’ve got one of the best courtyards or gardens in Charleston, check out this hand-selected list of some of the best options on the market today.
Source: Rent. / Elan Midtown
There’s an impressive courtyard waiting for you at Elan Midtown. This large, inclusive space has a few sections, with a strong indoor-outdoor recreational vibe. Surrounded by lush greenery, one particular spot that stands out is the outdoor grilling and dining area. There’s a nice long dining table set beside the gas grill and a sizable prep space. There’s also a colorful chill spot with its own outdoor rug for an added cozy touch. Wood decking rounds out the space and ties the whole thing together tastefully.
To live in Historic Charleston, you need a place like this in The Boroughs. An interesting neighborhood itself, this is only one of five historic areas in the city, yet it’s also subdivided into five additional boroughs. Within the immediate area, you’ll find plenty of local history including great parks, museums and so much more.
Source: Rent / Waverly Place
Having a little bit of greenery to stroll through at home is always nice, and the small garden space at Waverly Place delivers. The manicured lawn gives way to perfectly landscaped beds of trees, bushes and flowers.
Full of charm, the first thing you’ll notice living in North Charleston is the variety of parks. Located only a few miles from the city center, this is a quieter place to enjoy all the natural beauty of the area. It’s also a convenient spot to call home if you like to spend your time exploring the nearby inlets and islands.
Source: Rent. / The Grove at Carolina Park
Calling any community in Mount Pleasant home means easy access to stunning water views. This nearby suburb of Charleston literally rolls into the water. The sleek courtyard at The Grove at Carolina Park features stately seating, pruned hedges and a perfectly manicured lawn.
One of the local villages around Charleston, Mount Pleasant is full of boutique shops, delicious restaurants on the water and a wide variety of locally-owned businesses. To say it has character is an understatement, and living here gives you a small-town experience with modern touches. The Historic Downtown neighborhood consists of 30 blocks that bump into Shem Creek, a great place to grab a bite of the freshest seafood. This walkable area is also home to Alhambra Hall and a great playground, in addition to many historic sites.
Source: Rent. / Overlook Point
Setting aside specific areas for flowers and greenery to flourish, this little restful oasis at Overlook Point gets you close to nature. Surrounded by tight clusters of trees, it’s more like being in a clearing in the woods than a garden. Swinging pod chairs make it easy to curl up and lime green Adirondacks allow you to lay back and soak up all the natural beauty around you.
This great Charleston community is all about rejuvenation, relaxation and fun. That sentiment is perfectly put on display when exploring the rest of the outdoor amenities. They include features like a saltwater pool with poolside cabanas, outdoor gazebos and even more dedicated chill spaces under the sun. There’s even a classy Sip & Bark dog park for you and your four-legged roommate.
Source: Rent. / Alta Shores
Giving you more of a park-like feel, the green space at Alta Shores impresses no matter what you’re looking for. With a large lawn that rolls across the community and a central pond, you won’t have any trouble finding a private spot to sit and decompress. Large trees dot the area as do wooden benches that look out onto the most scenic spots in the area.
Another North Charleston gem, living here gives you access to a variety of recreational areas as well as an excellent pool and sundeck. Inside, amenities include a 24-hour fitness center as well as a lounge with a billiards table. Venturing out, you’re also close to plenty of shopping and a solid selection of unique dining options.
Source: Rent. / James Towne Village
There’s nothing missing in the lush courtyard area at James Towne Village. It even has a lovely row of hammocks beckoning you to lie down and enjoy the outdoors. Shaded, thanks to extended branches overhead, everything about this spot is idyllic. Set right beside the grill and umbrella-covered picnic table, the hammocks are also a great place to rest your eyes after a delicious outdoor meal.
The well-maintained grounds and nice amenity package are just the beginning of what’s to love about this Charleston apartment community. The location is great too. You’re within walking distance of the bus, making it easy to get further into the city without your car. You’re also close to Folly Beach, which is a great spot to take in both the ocean and Folly River. From here, you can surf, boat, kayak and fish.
Source: Rent. / Spanish Oaks
The garden at Spanish Oaks extends outside of the lovely little area pictured above. Beyond, you’ll find lots of green grass, a gorgeous fountain and even more swinging benches. From the hacienda-inspired architecture to the bricked pattern on the ground, this unique outdoor space is like nothing else in Charleston.
Food reigns supreme in the quaint West Ashley neighborhood. This tranquil environment in the heart of Charleston is full of fusion restaurants and lively bars. For those who love getting out and about, the West Ashley Greenway is surrounded by trails that extend eight miles through scenic wetlands.
Source: Rent. / Riverland Woods
Call your closest friends and circle up around the fire pit at Riverland Woods. There’s more seating than you’d expect, with almost a dozen light blue Adirondack chairs around the stone fire pit. Looking off into the grassy expanse, you can really feel separated from the bustle of the day.
Tall trees mask the apartments themselves, allowing you to feel truly separate when you’re in any of the extensive outdoor amenities. Here, you’ll find a cool deck space with plenty of seating overlooking outdoor table tennis and corn hole, as well as the tennis court. The pool area has great lounge chairs, umbrella-covered tables and an oversized cabana as well.
Source: Rent. / Greenwood at Ashley River
Part garden, part green space, all picturesque. At Greenwood at Ashley River, you’ll find carefully planned landscaping alongside mature trees and the cutest white picket bridge you’ve ever seen. Altogether it creates a timeless feel and tranquil spot on sunny days.
This North Charleston community offers a variety of amenities. Beyond the outdoor space, there’s also a proper courtyard, a soccer field and a bark park.
Source: Rent. / Heron Reserve
Surrounded by lush fronds of river bushes, sitting inside the gazebo at Heron Reserve puts you smack in the middle of a pristine and picturesque Low Country garden. You’ve got the water behind you and the thriving plants alongside.
Sidewalks wind through the trees and bushes, giving you easy access. This pet-friendly community is also home to a first-class workout space with cardio and weight machines. There’s also a clubhouse, barbecue area a fire pit.
Find an apartment with one of the best gardens in Charleston
There are certain things that every Charleston local knows, and the biggest is what an amazing place it is to call home. However, to find the perfect apartment in Charleston, you have to know what works best for you. Make sure you include an amazing outdoor spot so you can truly enjoy everything that makes this city great.
In just five years since college, I have experienced every living situation imaginable (read on for the list). Based upon my rental resume, one would think that once I found myself living alone, in a modest one bedroom, I would stay put. I didn’t.
Recently I made the difficult – but financially wise – decision to give up an apartment all by myself to move to a shared condo with a roommate. For the forfeited privacy, I will save $400 a month.
Sharing living space is never easy, but I think it is often most difficult when you are friends with (or in love with) your housemate(s). In fact, sometimes rooming with strangers makes a lot of sense. How do I know? Chalk it up to experience. Here’s a breakdown of where I’ve lived since college:
I rented a 10×12 room in New York City, across the street from a Harlem housing project, sharing the apartment with an immigrant single mother and her teenage son.
I lived back at home with my parents.
I lived with my girlfriend.
I rented a room in a home owned by a couple of guys my age.
I lived alone in a one bedroom apartment.
Now, I am back to living in a condo with a roommate (sometimes two, on the few days a month the owner is not traveling internationally).
When I was living with roommates previously, I couldn’t wait to have “a place of my own”.
Once I got that place, it was everything I had hoped for: peace and quiet 24 hours a day, and the freedom to cook, play the guitar, or have friends over whenever I pleased.
But, boy, did it cost me. It cost $1,000 a month, to be exact. Now, that rent included utilities – even cable and internet – and was a great deal for Eastern Massachusetts. But at the end of a year in that apartment, I realized I was paying for space I didn’t use, and didn’t need. Though I had achieved one goal of living alone, I was also deferring my other goal of owning a home, because every month of expensive rent was less I could put into the bank.
Between visiting friends, visiting my parents just fifteen minutes away, and traveling for business, I was hardly home. When I was home, I was usually sleeping. So I sucked up my pride, hit Craigslist, and amazingly found a perfect shared living situation just a mile from my old apartment (and my job – I got to keep my super-easy commute!)
In addition to having a bedroom and private bath on the 3rd floor of the condo, I had a great first impression of my roommate, which always helps. Two weeks in and we have hardly seen each other, which seems typical for busy professionals our age.
So far, I don’t miss living alone. I know sooner or later I will, but then I’ll just look at the $400 going into my bank account each month and all will be well.
Have you ever lived in a strange situation to save money? Or gone out on your own despite the expense? I’d love to know!
Are you considering going back to grad school? Have you wondered if the graduate degree you’re looking at will give you a good return-on-investment (ROI)?
It’s important to consider the full cost of graduate school (and its potential impact on your career and earning potential) before you blow $1,000 on test prep, entrance exams, and application fees, and certainly before you send off a deposit and give notice at your job. Our graduate school ROI calculator (below) can give you a sense of what you stand to get (and give up) by going back to school.
What’s Ahead:
How to use the grad school ROI calculator
Enter your age.
Enter your current salary (so the calculator can include opportunity costs).
Enter the total cost of graduate school for one year. Add together the following to get a rough estimate:
Total tuition you’ll have to pay at the university of your choice, plus any fees. (This can usually be found on the university’s website.)
Your cost for books or other materials. (For an MFA in creative writing, this will be almost nothing; for a law degree, a year of books might set you back $1,800. Do a little searching to find a rough estimate.)
Living expenses. (If your plan is to stay in your current city in your current place, your own prior spending should be a rough guide. If your dream school is elsewhere, consider browsing apartment listings and roommate ads to get a sense of how much you’ll have to pay for rent. Then factor in utilities, transportation, food, and entertainment. Your current budget might be an okay place to start, but you should definitely cut costs once you’re in school and living on loans….as this calculator will make clear!)
Enter the length of your program (in years).
If you want to opt for the advanced settings, enter the amount of student loans you expect to take out, along with the interest rate and term of the loan. Otherwise, we’ll use 6% and 10 years as an average.
Enter your expected salary upon graduation. It pays to get specific here: Don’t just look for the average salary for your profession, but for the average salary of that profession in the region you intend to live in. Lawyers in New York make a lot more than lawyers in Tampa. Be sure to use a reasonable first-year salary, not what you hope to make after five or 10 years in the field.
Once you hit submit, we’ll calculate the following:
The total cost of graduate school, including opportunity costs, tuition and fees, and loan interest.
Your lifetime earnings at your current salary, as well as your lifetime earnings at your projected post-graduate school salary.
Take a look at the lifetime earnings. How big is the difference and is it worth the cost, risk, and effort it takes to go to graduate school. Keep in mind that things change and nothing is guaranteed.
Also, if you continue to work while in school that reduces your overall costs as well. Perhaps you don’t need to borrow as much, and your opportunity costs will be lower. You’ll still be earning your previous salary while in school, or at least part of it.
Keep in mind that it isn’t always just about the numbers. If a higher degree gets you into a job you love, that’s worth a lot more than just money.
Summary
This calculator can do the math, but of course, you need to look at your whole life to make a decision like this. Continuing to work and live cheaply while in school will help keep costs down and reduce the overall negative impact of going back to school.
But also consider lifestyle, if you need a graduate degree to get your dream job the finances may not matter as much.
The chilly season is upon us. If you live in North America, you’ve probably had at least a few cold nights by now. Up in my neck of the woods — in the Boston area — we’ve had our central heat running for a few weeks. Which means we’re in full swing winterizing, with an eye to keeping the heating bills low.
Over the past few years, we’ve actually gotten pretty good at this. In New England, winter heat can eat up a big part of a family’s budget. Our heating bills used to run over $500 a month; last year, we had them down to $250 or less. This year, I’m hoping to go even lower.
No, we don’t live in a refrigerator. Our house is pretty comfortable all year round. Here’s how we keep the bills low.
Invest in Insulation and Efficiency
Small changes can have ripple effects, but big changes are worth even more. Last year, we had our walls insulated with blown cellulose insulation. We also replaced our 40-year-old oil burner with a high-efficiency natural gas system.
These home improvements aren’t cheap. Since they’re good for the environment as well as your budget, though, there are often government grants and loans available to help make them more affordable. We didn’t have the savings to do this, so we took out a 0% loan through our state’s energy-efficiency program. The loan payments are far less than the immediate savings on our heating bills. The upgrade is paying for itself already, and will continue to do so long after we’ve paid off this loan.
Of course, I used the savings from lower heating bills to accelerate paying off my higher-interest debt. I wouldn’t normally suggest taking out a loan as a step towards financial health, but in this case it clearly saved us money. It also helped shrink our whole household’s environmental footprint.
In addition to your heating system and your home insulation, you may want to think about upgrading your windows.
To find out what big-ticket investments will pay off, you can schedule a free energy audit through your utility company. They’ll send someone to your home who will walk through the house and give you a full report on ways to save energy and money. When we had ours done, the nice young man also replaced all our lightbulbs with compact fluorescents — free of charge.
Bundle Up
There’s no need to keep your house balmy enough for T-shirts all year. Make sure you and your family have good, comfortable warm clothing and don’t be afraid to use it.
When I was 21, I had a roommate who would turn the thermostat way down and walk around our chilly house wearing a winter hat and clutching a hot mug of tea. At the time, I mocked her with my friends as we lounged around their toasty living rooms. Now I’ve become that roommate. I’m always turning the thermostat down and telling the kids to put on a sweater.
I don’t want anyone here to feel cold — I hate being cold myself — but I’ve learned that wearing warm clothes is a cheap and easy way to stay cozy. Best of all, you can create your own personal heating zone. Don’t like it so warm? Take off a layer. There’s no fighting with your spouse about how warm to keep the living room.
Not that we keep it frigid. I set our thermostat in the mid-60s during the day, and turn it down at night when we’re all tucked into warm beds anyway.
If you don’t already have one, get a programmable thermostat. They make it easy to adjust the heat for different times of day automatically. You don’t have to worry about remembering to do it — it just happens.
Bundle the House Up, Too
Don’t just bundle yourself up. Adding layers to your house will make it feel warmer even if the thermostat stays at a modest temperature. I have a nice collection of Oriental rugs that I lay down this time of year, which keeps the hardwood floors warmer on little bare feet. This is essential because small kids lose their socks at an amazing rate, but it’s great just for giving the whole room a warmer feel, too.
I also put up window plastics and insulated curtains to cut down on drafts from the windows. If you haven’t done it already, spending a few hours going around your windows and doors with some draft-sealing putty or caulk will make a huge difference to how comfortable your home is in the winter.
Use Heating Zones
Chances are, you’re not using every part of your house all day long. If you live in a modern house, you probably already have several “heating zones” so you can program your thermostats to different temps in different areas.
If you live in an older house like mine, you probably have just one thermostat that controls the whole system. That means that if it’s 64 degrees in my living room, the heat kicks on. If it’s 65, the heat shuts off because it’s warm enough. Doesn’t matter what the temperature is in the rest of the house. There’s no way for the heating system to know that.
To solve this problem, I’ve created a bunch of “heat zones” in my house. By keeping the bedroom doors closed upstairs and hanging drapes in the hallway doors downstairs, I cut our drafty hallway and staircase out of the heating system entirely. Now the radiators in each room only have to heat those rooms, not those rooms plus several hundred square feet of largely unused hallway space.
I was shocked at the difference this made to how warm the house felt. Hanging the drapes to keep the heat in the rooms and out of the hallway is new this year: I just did it a few weeks ago. I won’t know for months yet whether it pays off in reduced heating bills or not. But the comfort factor was immediate and obvious.
The other heating zone change I made was to my workspace. I’m the only person home most of the day, and I spend most of the day in my office. Rather than keep the whole house toasty, I’ve lowered the temp on the main thermostat and set up a space heater in my office. This way, I can be as warm as I like without wasting a lot of energy warming up empty rooms.
What do you do to keep your heating bills low in the winter?
For past generations, “growing up” meant getting married, buying a home and starting a family.
That’s not necessarily the typical path anymore.
[find-an-apartment]
Nuclear families (those defined as a husband, wife and an average of 2.3 children) used to be the majority. These days, in many cities, living solo is common and may well be the new normal.
Read on to learn more about what it means to be in charge of your own apartment household of one!
Quickly-changing times In 1950, the majority of Americans who lived alone were male migrant workers, taking jobs in sparsely-populated rural areas like Alaska or the mid-West. For these workers, living alone represented a temporary situation — one that eventually made way for a typical married life.
Fast forward to 2011. The Census from that year showed that more than 30 million people live alone, compared to the 10 million living alone in 1950. Those 30 million people represent a whopping 28 percent of all United States households. These numbers show that traditional attitudes towards family life and its milestones are changing.
Should You Live Alone or with a Roommate?
The family of one According to Eric Klinenberg, a professor of sociology at New York University who has written a book on the solo living trend, the appeal of living alone will continue to grow in our tech-obsessed society. Klinenberg suggests that because our smartphones and computers connect us to one another on a 24/7 basis, many people crave alone time. Solitude provides the much-needed respite that many use to recharge their internal batteries.
Census data on marriages also suggests a reason for so many “family of one” households. According to a 2010 Pew Research study, Millennials (the name for the current generation of 18 to 29 year olds) just aren’t in a hurry to get married. Only 21 percent of them are married, in fact. By comparison, 42 percent of Baby Boomers were married by that age, and 29 percent of Gen Xers. It seems, for younger Americans, that living alone is the new definition of “grown up” — an important milestone to cross before moving on to the challenges of adult life, including – perhaps — marriage.
Single Serving: Tips on Cooking Smart for One
Solo in the city The majority of people who choose to live by themselves find urban centers. In fact, New York City and Washington, D.C., are half-populated by single households. In cities, where resources are accessible and transportation is more communal, the stage is set for individuals to carry out their lives without the same need for at-home support that used to be almost a necessity. It’s arguable, also, that the rise of the Internet has connected people in a way that mediates the need to share a home. For some, the city becomes their home.
“Living alone” and “being alone” are definitely not the same thing. Klinenberg actually found that those who live alone are more likely to be actively social than their married counterparts. He notes that living alone tends to make people seek out more social interaction, shattering the stereotype of the “lonely single guy/girl” and reinforcing that living alone can actually be liberating.
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.
We are going to under the cover and discover $13 an hour is how much per year.
For most Americans, this is hovering near minimum wage.
Let’s get this straight… This is not a livable wage.
If you are in high school or college and have support from your parents, then this is great spending money for you.
However, if you are making it on your own, $13 per hour will not make ends meet each month.
For most people, being at minimum wage is common and the goal is to make your way up the payscale and quickly!
In this post, we’re going to detail exactly what $13 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.
When living close to minimum wage, you must be know how to manage money wisely.
More than likely, you are living paycheck to paycheck and struggling to survive to the next paycheck. Take a deep breath and make this minimum wage just a season.
The ultimate goal is to make the most of your hourly wage with inspirations to make more money.
If that is something you want too, then keep reading. You are in the right place.
$13 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $13 per hour is an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $13 = $27,040
$27040 is the gross annual salary with a $13 per hour wage.
Breakdown of 13 Dollars an hour is how much a year
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiple the hourly salary of $13 times 2,080 working hours, and the result is $27,040.
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.
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 $13 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiple the hourly salary of $13 times 1,040 working hours, and the result is $13,520.
How Much is $13 Per Month?
On average, the monthly amount would average $2253.
Annual Amount of $27,040 ÷ 12 months = $2,253 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.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1,127.
How Much is $13 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 $13 = $520 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $260.
How Much is $13 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $520 and double it.
$520 per week x 2 = $1040
Also, the other way to calculate this is:
40 hours x 2 weeks x $13 an hour = $1040
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $520.
How Much is $13 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 $13 per hour = $104 per day.
If you work 10 hours a day for four days, then you would make $130 per day. (10 hours x $13 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $52.
$13 Per Hour is…
$13 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$27,040
Yearly Wage (50 weeks)
$26,000
Monthly Wage (173 hours)
$2,253
Weekly Wage (40 Hours)
$520
Bi-Weekly Wage (80 Hours)
$1040
Daily Wage (8 Hours)
$104
Net Estimated Monthly Income
$1,720
**These are assumptions based on simple scenarios.
Paid Time Off Earning 13 Dollars an Hour
Does your employer offer paid time off?
As an hourly, close to minimum wage employee, more than likely you will 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 $27,040 per year.
This is the same as the example above for an annual salary making $13 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, multiple the hourly salary of $13 times 2,000 working hours, and the result is $26,000.
40 hours x 50 weeks x $13 = $26000
You would average $104 per working day and nothing when you don’t work.
$13 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.
This is why you always wondering why your take-home pay is so much less.
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: $27,040
Federal Taxes of 12%: $3,245
State Taxes of 4%: $1,082
Social Security and Medicare of 7.65%: $2,069
$13 an Hour per Year after Taxes: $20,645
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$20645 ÷ 2080 hours = $9.93 per hour
After estimated taxes and FICA, you are netting $9.93 an hour. That is $3.07 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.
$13 an Hour Budget – Example
You are probably wondering can I live on my own making 13 dollars an hour? How much rent can you afford at 13 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $13 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 that $13 an hour was $9.93 after taxes. That would average $1720 per month.
According to the Cents Plan Formula, here is the high level view of a $13 per hour budget:
Basic Expenses of 50% = $860
Save Money of 20% = $344
Give Money of 10% = $172
Fun Spending of 20% = $344
Debt of 0% = $0
Obviously, that is not doable when living so close to minimum wage. So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $13 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $13 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$68
Savings
15-25%
$135
Housing
20-30%
$676
Utilities
4-7%
$135
Groceries
5-12%
$203
Clothing
1-4%
$23
Transportation
4-10%
$135
Medical
5-12%
$225
Life Insurance
1%
$19
Education
1-4%
$11
Personal
2-7%
$35
Recreation / Entertainment
3-8%
$56
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$533
Total Gross Income
$2253
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
$13 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 $13.01-13.99.
This is super helpful if you make $13.12, $13.35, or $13.77.
Living on $13 Per Hour
Living close to minimum wage can be a very difficult situation.
Is it doable? Probably not for long.
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, they feel like they are in this constant cycle that they can never keep up (which completely makes sense it is hard!).
When your thoughts are constantly focused on how you are struggling to keep up with bills and expenses, that is all you focus on.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I am making near minimum wage for now. I have aspirations and goals to increase how much I make. For now, I am going to make sure that I am able to live on my 13 dollars per hour. I’m going to try and avoid debt and payday loans at all costs.
Other Tips to Help You:
Check your minimum wage for your state and city. You might find a higher minimum wage in a nearby city.
Look to living in a lower cost of living area to stretch your money.
Find ways to minizine your basic expenses.
Thrive with a minimalist lifestyle.
Decide if a roommate or moving back with your parents would help.
Bike or walk to work.
In the next section, we will dig into ways to increase your income, but for now, you must focus on living on $13 an hour.
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 $13.50 will add up over the year. Even better $15 an hour!
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 $13 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.
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.
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 happens.
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 $13 an Hour
In this last section, grasp these tips on how to live on $13 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 $13 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 $13 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 your home $13 an hour minus all the taxes, FICA, social security, and medicare are taken out. That is your net income.
So, your net income has to be less than your net 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.
3. Make Saving Money Fun
You need to make saving money fun. Period.
It could be participating in a no spend challenge for the month.
Check out the 200 envelope challenge (which is doable on your income)
It could be challenging friends not to go to Target for a week.
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 101 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 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 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, it was not until week paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Jobs that Pay $13 an Hour
You can always find jobs that pay $13 per hour. Polish up that smile, fill out the application, and be prepared with your 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:
Cashiers
Back of the house restaurant staff
Landscape Laborer
Retail jobs
Paraeducators at schools
Janitors
Farm help
Warehouse workers
Fast Food Restaurants workers
$13 Per Hour Annual Salary
In this post, we detailed 13 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 13 dollars an hour annually…
$27,040
This is under $30000 per year and you need to make at least $45k 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!!
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.
We are going to under the cover and discover $12 an hour is how much per year.
For most Americans, this is hovering near minimum wage.
Let’s get this straight… This is not a livable wage.
If you are in high school or college and have support from your parents, then this is great spending money for you.
However, if you are making it on your own, $12 per hour will not make ends meet each month.
For most people, being at minimum wage is common and the goal is to make your way up the payscale and quickly!
In this post, we’re going to detail exactly what $12 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.
When living close to minimum wage, you must know how to manage money wisely.
More than likely, you are living paycheck to paycheck and struggling to survive to the next paycheck. Take a deep breath and make this minimum wage just a season.
The ultimate goal is to make the most of your hourly wage with inspirations to make more money.
If that is something you want too, then keep reading. You are in the right place.
$12 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $12 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $12 = $24960
$24960 is the gross annual salary with a $12 per hour wage.
Breakdown Of 12 Dollars An Hour Is How Much A Year
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, multiple the hourly salary of $12 times 2,080 working hours, and the result is $24,960.
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.
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 $12 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiple the hourly salary of $12 times 1,040 working hours, and the result is $12480.
How Much is $12 Per Month?
On average, the monthly amount would average $2,080.
Annual Amount of $24000 ÷ 12 months = $2080 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.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1040.
How Much is $12 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 $12 = $480 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $240.
How Much is $12 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $480 and double it.
$480 per week x 2 = $960
Also, the other way to calculate this is:
40 hours x 2 weeks x $12 an hour = $960
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $480.
How Much is $12 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 $12 per hour = $96 per day.
If you work 10 hours a day for four days, then you would make $120 per day. (10 hours x $12 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $48.
$12 Per Hour is…
$12 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$24,960
Yearly Wage (50 weeks)
$24,000
Monthly Wage (173 hours)
$2,080
Weekly Wage (40 Hours)
$490
Bi-Weekly Wage (80 Hours)
$960
Daily Wage (8 Hours)
$96
Net Estimated Monthly Income
$1,588
**These are assumptions based on simple scenarios.
Paid Time Off Earning 12 Dollars an Hour
Does your employer offer paid time off?
As an hourly, close to minimum wage employee, more than likely you will 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 $24960 per year.
This is the same as the example above for an annual salary making $12 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, multiple the hourly salary of $12 times 2,000 working hours, and the result is $24,000.
40 hours x 50 weeks x $12 = $24000
You would average $96 per working day and nothing when you don’t work.
$12 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.
This is why you always wondering why your take-home pay is so much less.
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: $24,960
Federal Taxes of 12%: $2,995
State Taxes of 4%: $998
Social Security and Medicare of 7.65%: $1,909
$12 an Hour per Year after Taxes: $19,057
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$19057 ÷ 2080 hours = $9.16 per hour
After estimated taxes and FICA, you are netting $9.16 an hour. That is $2.84 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.
$12 an Hour Budget Example
You are probably wondering can I live on my own making 12 dollars an hour? How much rent can you afford on 12 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $12 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 $12 an hour was $9.16 after taxes. That would average $1588 per month.
According to the Cents Plan Formula, here is the high level view of a $12 per hour budget:
Basic Expenses of 50% = $794
Save Money of 20% = $318
Give Money of 10% = $159
Fun Spending of 20% = $318
Debt of 0% = $0
Obviously, that is not doable when living so close to minimum wage. So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $12 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $12 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$62
Savings
15-25%
$104
Housing
20-30%
$645
Utilities
4-7%
$125
Groceries
5-12%
$187
Clothing
1-4%
$21
Transportation
4-10%
$125
Medical
5-12%
$208
Life Insurance
1%
$18
Education
1-4%
$10
Personal
2-7%
$31
Recreation / Entertainment
3-8%
$52
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$492
Total Gross Income
$2,080
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
$12 an Hour Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $12.01-12.99.
Here is a handy calculator to use if you make $12.60, $12.30, or $12.75 an hour.
Living on $12 Per Hour
Living close to minimum wage can be a very difficult situation.
Is it doable? Probably not for long.
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, they feel like they are in this constant cycle that they can never keep up with (which completely makes sense it is hard!).
When your thoughts are constantly focused on how you are struggling to keep up with bills and expenses, that is all you focus on.
You need to realize that your mindset is everything.
This is what you say to yourself… Okay, I am making near minimum wage for now. I have aspirations and goals to increase how much I make. For now, I am going to make sure that I am able to live on my 12 dollars per hour. I’m going to try and avoid debt and payday loans at all costs.
Other Tips to Help You:
Check your minimum wage for your state and city. You might find a higher minimum wage in a nearby city.
Look to living in a lower cost of living area to stretch your money.
Find ways to minizine your basic expenses.
Thrive with a minimalist lifestyle.
Decide if a roommate or moving back with your parents would help.
Bike or walk to work.
In the next section, we will dig into ways to increase your income, but for now, you must focus on living on $12 an hour.
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 $12.50 will add up over the year. Even better $13 an hour or $15 an hour!
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 $12 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.
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.
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 happens.
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 $75,000 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 $12 an Hour
In this last section, grasp these tips on how to live on $12 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 $12 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 $12 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 your home $12 an hour minus all the taxes, FICA, social security, and Medicare are taken out. That is your net income.
So, your net income has to be less than your net 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.
3. Make Saving Money Fun
You need to make saving money fun. Period.
It could be participating in a no spend challenge for the month.
Check out the 200 envelope challenge (which is doable on your income)
It could be challenging friends not to go to Target for a week.
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 101 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 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 you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, it was not until week paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Jobs that Pay $12 an Hour
You can always find jobs that pay $12 per hour. Polish up that smile, fill out the application and be prepared with your 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 for Jobs Paying $12 an hour:
Cashiers
Back of the house restaurant staff
Landscape Laborer
Retail jobs
Virtual Assistant – learn how to get started now!
Paraeducators at schools
Janitors
Farm help
Warehouse workers
Call center
Hotel Housekeeper
Delivery driver
Product demonstrator
Caregiver
Busser at restaurants
companies paying $12 an hour
Target
Amazon
Walgreens
Great Wolf Lodge
Olive Garden
Sonic
$12 Per Hour Annual Salary
In this post, we detailed 12 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 12 dollars an hour annually…
$24,960
This is under $30000 per year and you need to make at least $38k 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!
Spend your time wisely and make money doing it. All of these quick ways to make money are simple and easy to do!
Photo Credit:
www.swagbucks.com
Save money with coupons, promo codes, sales and cashback when you shop for clothes, electronics, travel, groceries, gifts & homeware. Get free gift cards and cash for the everyday things you do online.
Photo Credit:
www.rover.com
Get paid to play with pets! Earn money doing something you love.
Rover makes it easy and promotes you to the nation’s largest network of pet owners.
Shop smarter with Rakuten: Earn Cash Back at 2500+ stores or shop the marketplace for electronics, clothing, games, sporting goods, and more.
Photo Credit:
www.fetchrewards.com
Fetch Rewards is a free grocery savings app that rewards you just for snapping pictures of your receipts. That’s really it.
Free rewards on groceries on thousands of products every day, no matter where you get your groceries. Just scan your receipts and cash in!
Photo Credit:
www.earnwithdrop.com
Drop is the free app that’s giving out millions in cash rewards for the spending you do every day.
Photo Credit:
moneybliss.org
Whether you’re buying groceries, chowing down on takeout, or giving your wardrobe a serious upgrade, start with Ibotta and earn cash back on thousands of in-store and online offers.
Know someone else that needs this, too? Then, please share!!
