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Apache is functioning normally

May 15, 2023 by Brett Tams

Today, I have a very informative article from Paul Kim of Ocho all about the benefits of having a solo 401k, how much you can contribute each year, and how a solo 401k works. Since many of my readers are self-employed, I thought this would be the perfect topic to cover today, as saving for retirement is so important! Enjoy Paul’s article below.

A solo 401k is one of the most powerful wealth-building tools for self-employed individuals. It comes with the highest contribution limits of any retirement plan, tax-free compounding, the ability to invest in any asset class, and more.

I’ve been self-employed for most of my professional life – 9 years to be exact. In my early 20s, I discovered the possibility of making money online, taught myself how to build blogs, learned SEO, and have been making a great living growing content businesses for nearly a decade.

Recently, I joined the team at Ocho as a full-time employee, and many people have asked me why I would ditch working for myself to become an employee.

I have two answers for them:

First, the founder of Ocho, Ankur Nagpal, built and grew his last company, Teachable, to a $250 million business in just a few years. Being able to work alongside him, along with the talented founding team he recruited, is an amazing opportunity. And after nearly a decade of solopreneurship, I crave working as part of a group to achieve a greater goal.

Second, what Ocho is building is something I passionately wanted to exist for a very long time – a supercharged, intuitive solo 401k plan for self-employed people like me.

I had heard of a solo 401k before joining Ocho, but like many people I’ve talked to, eventually dismissed the idea after realizing how complex (and expensive) it can be to set up and maintain a self-directed account. Major banks only offered a cookie-cutter version of the plan without any of the good features, and none of the other third-party providers looked promising enough to trust with my retirement savings.

At Ocho, we launched our self-directed solo 401k plan with checkbook control. And we completely reimagined the sign up flow and user experience to make it as intuitive and accessible as possible.

If you’re a business owner or self-employed (ie. you run a blog, freelance, or are a creator), I’d love to share some reasons why you should look into getting a solo 401k.

Even if you don’t care about retirement savings right now, the tax benefits of having an account can potentially save you tens of thousands of dollars each year.

Related content:

What is a solo 401k?

What’s a solo 401k? I’ll talk more about this in just a bit but, in short, it’s a special kind of 401k plan designed specifically for business owners and self-employed people. It offers the highest contribution limits, a big Roth account, and the ability to invest in any asset class with tax-free compounding.

Unlike a normal 401k, you don’t need an employer to sponsor a plan in order to participate.

As a business owner or self-employed individual, you can set up an account and start making contributions on your own.

How do you qualify for a solo 401k?

To be eligible for a solo 401k, all you need are two things:

Any sort of business activity.
No full-time W-2 employees that work over 1,000 hours per year in your business (excluding your spouse).

There are no income limits (all income levels are eligible whether you make a few hundred per week or have a seven-figure business), and any type of business entity qualifies. However, you cannot have any full-time employees other than your spouse. You can still work with contractors and freelancers, but W-2 employees that work over 1,000 hours per year that are not your spouse will disqualify you from a solo 401k.

What’s so special about a solo 401k?

A solo 401k gives you more control and flexibility than any other retirement plan. Let’s do a quick run through of all the benefits and features.

A quick note before we dive in: Not all plan providers will offer these features with their plans. If you’re looking to sign up for a solo 401k, make sure you do your research and find a provider that offers the benefits that you’re looking for.

1. Highest contribution limits

A solo 401k has the highest contribution limits of any retirement plan out there. For 2022, you can contribute up to $61,000 or $67,500 if you’re at least 50 years of age. For 2023, you can contribute up to $66,000 or $73,500 if you’re at least 50 years of age.

For comparison, a normal 401k plan has a contribution limit of $20,500 for 2022 and $22,500 for 2023. And a traditional or Roth IRA has a contribution limit of just $6,000 for 2022 and $6,500 for 2023.

2. Invest in any asset class

When you invest through a normal 401k that you receive from your employer, your investment options are usually limited to around a dozen mutual funds that are pre-selected by your company.

With a traditional or Roth IRA, you get a wider range of investment options, but you’re still limited to just traditional assets like stocks, bonds, ETFs, and mutual funds.

With a solo 401k, you can invest in any asset class. In addition to traditional assets, you can also make alternative investments into assets like cryptocurrencies, NFTs, real estate, precious metals, and private equity.

3. Tax-free compounding

As with most other retirement plans, a solo 401k comes with tax-free compounding. When you sell assets and make a profit, you don’t pay any capital gains tax. Instead, 100% of the earnings go straight back into your account, where it can get reinvested.

This also applies if you decide to invest in something like an investment property, which is possible through a self-directed solo 401k plan that allows alternative investments. All rental income you receive from tenants would be tax-free, and if you decide to sell your property in the future, all profits would also go straight back into your solo 401k account, completely tax-free.

4. Roth option

When you sign up for a solo 401k, many premium plan providers will offer you two different accounts.

A traditional (pre-tax) solo 401k account.
A Roth (post-tax) solo 401k account.

These work similarly to a traditional and Roth IRA. If you’re unfamiliar with how these work, here’s a quick breakdown of the two types of accounts.

With a traditional retirement account, you make contributions with pre-tax dollars (income that you haven’t paid taxes on yet). The amount you contribute to your account gets deducted from your taxable income for the year. However, withdrawals in retirement will be taxed as regular income.

With a Roth retirement account, you make contributions with post-tax dollars (income that you’ve already paid taxes on). You don’t get any tax breaks for making contributions, but your withdrawals in retirement are completely tax-free.

Example: Let’s say that you earned $80,000 this year and decide to contribute $20,000 into your solo 401k. If you contribute that money into a traditional solo 401k, it gets deducted from your taxable income and you only have to pay taxes on $60,000 of income rather than $80,000. However, if you contribute $20,000 into a Roth solo 401k, your taxable income is still the full $80,000.

Now let’s pretend that the $20,000 contribution gets invested and, over the next few years, grows to a value of $200,000. If it was invested through a traditional solo 401k, you’ll have to pay income taxes when you decide to make a withdrawal of your funds in retirement. However, if it was invested through a Roth solo 401k, because you already paid taxes on your contribution, your withdrawals in retirement would be completely tax-free.

5. Mega backdoor Roth

If you love Roth accounts, the solo 401k has another feature that lets you contribute even more money into a Roth solo 401k than is typically allowed.

Normally with a solo 401k, you can contribute up to $22,500 into a Roth account for 2023. If you’re at least 50 years of age, you can contribute up to $30,000. With a mega backdoor Roth solo 401k, you have the ability to contribute up to the solo 401k contribution limit entirely into your Roth account. Instead of being able to contribute just $22,500, you can contribute up to $66,000 ($73,500 if age 50+) into your Roth solo 401k for 2023.

6. The largest possible tax deduction

Because of its high flexibility, you have full control over what type of contribution you want to make into your solo 401k plan each year.

You can allocate some of your funds to pre-tax and the rest to Roth, you can do a mega backdoor and put the entire amount into a Roth solo 401k, or you can even decide to not contribute to a Roth account at all for the year.

If you decide to contribute everything to a traditional solo 401k, it’s possible to get a tax deduction of up to $66,000 ($73,500 if age 50+) for 2023.

7. Rollovers

You can rollover assets from any other retirement account, except a Roth IRA, into a solo 401k plan. If you have assets in another retirement account, rolling it over to a solo 401k immediately gives you access to more investment options.

For instance, if you have $50,000 sitting in your traditional IRA, you can roll it over tax-free into a solo 401k and invest the money into alternative assets.

There are no limits on how much you can rollover into your solo 401k, and rollovers do not affect your annual contribution limits. For example, if you decide to rollover $50,000 into your solo 401k this year, you’ll still have the full contribution limit of $66,000 remaining.

Solo 401k Contributions explained

Contributions to a solo 401k work a little differently than other retirement plans. Since you’re the owner of your business, you get to make contributions as both the employer and the employee. Each side has slightly different rules and limits. Let’s go through them below.

Employee contributions: As an employee of your business, you can contribute up to 100% of your compensation up to $22,500 for 2023. If you’re at least 50 years of age, you also get an additional $7,500 in catch-up contributions, bringing your total contribution limit to $30,000.

Employer contributions: As the employer, you can contribute up to 25% of your compensation if your business is incorporated, and up to 20% of your compensation if your business is not incorporated.

The total employee and employer contributions must not exceed the annual solo 401k contribution limit, which is $66,000 for 2023 ($73,500 if age 50+). Employee contributions can be made as pre-tax or Roth (or both), but employer contributions can only be made as pre-tax.

How do withdrawals work with a solo 401k?

Withdrawals from a solo 401k work similarly to other retirement plans. You can start making withdrawals from your account once you reach the age of 59½.

Withdrawals made before turning the age of 59½ are subject to a 10% early distribution penalty plus income taxes on the amount withdrawn.

For example, if you make an early withdrawal of $10,000 before you turn 59½ years old, you’ll have to pay $1,000 in penalties plus income taxes on the $10,000 withdrawn amount.

Traditional vs Roth withdrawals

After the age of 59½, withdrawals do not get hit with the 10% penalty.

However, depending on the type of account you withdraw from, you may still have to pay income taxes.

Qualified distributions from a traditional solo 401k are taxed as regular income, and the amount in taxes depends on your tax bracket and tax rates at the time of withdrawal. Qualified distributions from a Roth solo 401k are tax-free.

Solo 401k vs other retirement plans

Let’s take a look at how a solo 401k compares with other popular retirement plans like the IRA, SEP IRA, and 401k.

Solo 401k vs SEP IRA

The closest comparison to a solo 401k is the SEP IRA. Both retirement accounts are designed for business owners and they have the same contribution limits. However, there are some major differences to be aware of if you’re trying to decide between the two.

Roth option: A solo 401k has a Roth option while a SEP IRA only comes with a pre-tax traditional option. All contributions to a SEP IRA must be made as pre-tax contributions.
Catch-up contributions: The solo 401k and SEP IRA have the same contribution limit of $66,000 for 2023. However, a solo 401k has catch-up contributions while a SEP IRA does not. If you’re at least 50 years of age, a solo 401k allows you to contribute up to $7,500 more in 2023, bringing your total contribution limit to $73,500.
Investment choices: A solo 401k lets you invest in both traditional and alternative assets, while you can only make traditional investments with a SEP IRA. Put another way, a SEP IRA only lets you invest in things like stocks, bonds, mutual funds, and ETFs, while a solo 401k also lets you invest in alternative assets like cryptocurrencies, NFTs, real estate, and private equity.
Employees: SEP IRA owners are allowed to have full-time employees, while with a solo 401k, you’re not allowed to have any full-time W-2 employees that work over 1,000 hours in your business (excluding your spouse). The caveat is that SEP IRA owners must make equal percentage contributions for every eligible employee in their business. For example, if you decide to contribute 15% of your compensation into your SEP IRA, you’re obligated to also contribute 15% of every eligible employee’s compensation into their SEP IRAs as well.

Solo 401k vs 401k

A 401k plan is an employer-sponsored retirement plan.

In order to participate in a 401k, you must work at a company that offers one to their employees.

On the other hand, a solo 401k is for individual business owners and can be opened without an employer. Here are some of the major differences between a solo 401k and 401k.

Investment options: A 401k typically only lets you invest in around a dozen mutual funds that are pre-selected from your employer. You can’t pick out individual stocks of companies you like, you can’t invest in your favorite ETFs, and you can’t invest in alternative assets. In comparison, a solo 401k lets you invest in any asset class, whether it’s traditional assets or alternative investments like crypto, real estate, and private equity.
Contribution limits: As an employee, you can only contribute up to $22,500 into a 401k plan, or up to $30,000 if you’re at least 50 years of age. However, with a solo 401k, since you can contribute as both the employee and the employer, your contribution limit is 3x higher at $66,000 for 2023, or $73,500 if you’re at least 50 years of age.
Rollovers: Most 401k plans do not allow you to rollover your 401k assets into another retirement account while you’re still employed at the company. With a solo 401k, you can rollover your funds into any other retirement account whenever you want.
Roth option: While some employers do offer a Roth option as part of their 401k plan, most plans only offer a traditional 401k account. With a 401k, whether you have a Roth option or not is entirely up to your employer. With a solo 401k, you get the freedom to choose a plan provider that offers the benefits you’re looking for, like the Roth account.

Solo 401k vs IRA

The main difference between a solo 401k and an IRA is that a solo 401k is only for business owners while any individual with earned income can contribute to an IRA. Here are the main differences between the two plans.

Contribution limits: The contribution limit of a solo 401k is 10x higher than the contribution limit of a traditional or Roth IRA. A solo 401k has a limit of $66,000 for 2023 ($73,500 if age 50+), while an IRA has a limit of just $6,500 for 2023 ($7,500 if age 50+).
Investment options: An IRA only lets you invest in traditional assets like individual stocks, bonds, mutual funds, and ETFs. A solo 401k lets you invest in both traditional assets and alternative assets. Technically, you can also invest in alternative assets through an IRA through a self-directed IRA. However, these accounts typically do not give you something called checkbook control (explained further down below), which is very important if you want to invest in alternative assets.
Income limits: IRAs have income limits that restrict contributions or tax deductions if your income is too high. For example, with a Roth IRA, you cannot contribute at all if your modified adjusted gross income (MAGI) is over $153,000 for 2023. With a traditional IRA, you can still make contributions if your income is too high, but you won’t get any tax deductions for your contributions if your MAGI is over $83,000 for 2023.

How does checkbook control work?

At Ocho, we deliberately launched our solo 401k plan to come with something called checkbook control. Before we sign off, I wanted to share a little bit about it since many people I’ve spoken with have never heard of it before.

Checkbook control means exactly what it sounds like: You get control over your solo 401k account’s checkbook. Essentially, you have full control over your solo 401k’s bank and investment accounts and can write checks and wire funds directly when you want to make an investment.

Here’s how it works

When you sign up for a solo 401k plan, you get a separate bank and brokerage account for your solo 401k trust. As the trustee of your plan, you get checkbook control over those accounts and can write checks directly when you want to make an investment.

For example, if you want to buy crypto, you would open a new account with an exchange using your solo 401k plan trust as the owner, and fund your account using your solo 401k bank account. If you want to invest in a startup, you would simply write a check from your solo 401k plan trust bank account.

With other self-directed solo 401k plan providers, they’ll create the solo 401k plan docs for you, but you need to find a third party bank and brokerage and ask them to accept the docs and open your accounts for you.

With Ocho, we have integrated brokerage accounts and they’re created as a default part of your account instantly when you sign up. You can fund your accounts through your dashboard, make investments into traditional assets through our investment platform, or wire funds and write checks directly.

Checkbook control gives you complete freedom to invest in whatever asset class you want, without having to go through a plan custodian to approve your purchase and wire the funds for you. It’s one of the most powerful features of a self-directed solo 401k plan.

Conclusion

A solo 401k is one of the most powerful wealth-building tools for business owners and self-employed individuals. It comes with the highest contribution limits of any retirement plan, a mega-sized Roth account, tax-free compounding, and the ability to invest in any asset class.

To qualify, all you need is any sort of business or self-employment activity, with no full-time W-2 employees that work over 1,000 hours per year in your business. All business entities are eligible, whether you operate as a sole proprietorship, LLC, partnership, s-corporation, or c-corporation.

Surprisingly though, while being one of the most flexible retirement plans out there, it’s lesser known than other plans like the 401k or IRA. The reason is, setting up a solo 401k has always been a complex process, and requires reading through and signing dozens of pages of documents and application forms.

At Ocho, we completely redesigned the signup process from the ground up. What used to take hours or days now takes just a few clicks and can all be done through our website in under 10 minutes.

That was a long read! If you’re still here with me, awesome and thank you for reading to the end. If you’re interested in learning more about setting up a solo 401k, I’d be more than happy to answer any questions below and even help guide you through our application process if you decide to sign up.

Author bio: Paul Kim is a money nerd and finance blogger. Before joining the team at Ocho to work on content and education, he built two different finance media brands from zero to over a million readers per year. In his spare time, he likes listening to money podcasts at 2x speed while hiking with his dog, Elliot.

Are you saving for retirement? What questions do you have about solo 401ks?

Apache is functioning normally

May 14, 2023 by Brett Tams

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.

If you’re looking to make a big difference with your money, then read on.

You might be thinking that it’s unlikely for anyone to generate $100k in revenue on their first go.

But we have good news: You don’t need to – people can earn more than 10x the amount they had initially invested into them!

This is possible because there are so many ways to make money today that cost less than what most would consider “big-ticket” investments like a car or a house.

Today, you will learn from this article provides tips on how to turn $10k into more money in 2022.

The goal is to learn how to make your money work for you.

We have included 20 different ways to make quick and easy money.

The methods included are varied and include things like investing in stocks, starting a business, and finding work that pays well. This guide will help you get started on making extra cash quickly and easily!

What can I do with my 10K to make money?

There are many ways to make money with your 10K. You can use it to invest, save, or spend.

You can also use it to purchase items that will generate income such as rental properties, stocks, and businesses.

The most important thing is to find something that you enjoy and that will help you grow financially. Making passive income is even better!

How can I grow 10K to 100K?

The goal is to find the method that works best for you and makes the most money. That is who you will grow 10K to 100K this year.

There are many options available below to help you grow your money, so choose what will work best for you.

You don’t need expensive equipment or special skills to start making your money multiply. In fact, learning how to invest $100 to make $1000 a day is a common question answered here by Money Bliss.

You can start with simple methods and add on as you get better at it.

What are some fast ways to invest 10k to make 100k?

While it is difficult to make a living from one job, the ability to work multiple jobs has been shown in many studies as an effective way of generating income.

More and more people today, are focusing on ways to build passive income to grow their wealth.

Setting a goal of how to turn $10k into $100k is a great way to multiply your money.

Option #1 – Stock market investing

The goal of investing in the stock market is to earn profits by buying and selling stocks at a higher price than what was paid for them.

There are several ways to invest in the stock market, but the simplest way is to buy and sell individual stocks. You can also purchase mutual funds, which are collections of different stocks that are managed by an investment company or ETFs. Other investors prefer to look at dividend stocks.

Investments in the stock market can be risky, but if you do it correctly, you could see significant returns over time.

Related Learning: How To Invest In Stocks For Beginners: Investing Made Easy

Option #2 – Invest with Retirement Accounts

Investing in retirement accounts can help you turn 10K into 100K over time. By investing in a 401k, IRA, or other retirement accounts, you will have access to growing assets that can help you reach your financial goals.

When you invest money in a retirement account, the funds are held by the company and grow over time. This means that even if the stock market experiences tough times, your 401k or IRA will still be growing steadily. This is important because it allows you to delay taking major financial risks and focus on long-term planning instead.

By investing early in your career, you can build up a sizable nest egg that will provide security for yourself and your loved ones when you retire.

Option #3 – Invest in Rental Property

Investing in rental property can be a great way to make money. Rental properties often have high yields (the percentage of income returned to investors), and there’s never been a better time to invest in this type of property.

Rental properties are an attractive investment because they tend to have stable yields, which means you can count on making a certain amount of money every year.

In addition, rental properties are usually less risky than other types of investments, so you can feel confident about your returns even if the market goes down.

There are many ways to buy and sell rental properties, so you can find one that’s right for your financial situation. And since rents always go up (to some degree), investing in rental property is a guaranteed way to grow your money over time.

Option # 5 – Flip Stuff To Make Money

Flipping is the process of buying and selling assets in order to generate profits. It can be done through stocks, bonds, real estate, furniture, art, sports equipment, or any other type of material item.

There are a few ways to flip stuff for money. One way is to buy assets and then sell them at a higher price later.

For example, you might buy stock in a company and then sell it two months later for a higher price. This technique is called “swing trading.” Others do the buying and selling within the same day for “day trading.”

Another way to flip stuff is to wait until the asset has reached its peak value and then sell it. For example, you might buy property in downtown Chicago for $100,000 and wait six months until the market reaches its peak value of $200,000 before selling it for $200,000 minus commission.

On a smaller scale, many people flip items found at Flea Markets and easily make $100k with a few transactions. If that sounds like you, then take a free flippers class!

Option # 6 – Start An Online Business

Starting an online business is a great way to make money. There are a variety of ways to do this, and the sky is the limit!

Some people start their own businesses to create something they’re passionate about, and others start businesses in order to make extra money. Whatever your reasons for starting an online business, there are plenty of ways to do it fast.

In fact, learning how to make money online for beginners is a hot topic!

Option #7 – Start a Side Hustle

Not willing to start a full-fledged online business yet? Then, look at a side hustle. This is an extra job or business you do on the side to make money.

It is flexible, easy to start, and doesn’t require much time commitment. You can work part-time or full-time, as long as you’re able to devote enough time each week to it. And since it’s your own gig, you have complete control over its success!

There are plenty of resources available online that will help guide you through the process (including this blog post on best gig economy jobs). Just remember: don’t give up on your side hustle until it becomes profitable and meaningful to you – because once it does, that’ll be worth double the effort!

Option #8 – Invest In Cryptocurrency

Cryptocurrencies are digital tokens that use cryptography to secure their transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.

Many people view cryptocurrencies as a way to make money online. Bitcoin, for example, has increased in value by over 1,000% since its inception in 2009! While there is a lot of speculation involved with cryptocurrencies, if you’re patient, you can find opportunities to invest in them as well.

There are two main ways you can invest in cryptocurrencies: buying them on an exchange and mining them. Buying cryptocurrencies on an exchange allows you to quickly and easily trade them for other currencies or assets. Mining coins involves trying to solve complex mathematical problems that reward participants with cryptocurrency tokens.

While it’s important to do your own research before investing in any type of cryptocurrency, these fast ways could help you double your money within just a few short weeks!

Option #9 – Peer-to-peer lending (P2P)

P2P lending is a type of online lending where individuals lend money to other individuals, usually without any collateral.

P2P lending has become increasingly popular in recent years because it offers borrowers and lenders an alternative to traditional banking products. Borrowers can borrow money from multiple lenders at once, which gives them more options and access to financing. Lenders can earn interest on their loans while also taking advantage of the high demand for P2P lending products.

Because P2P lending is a new product category, there are still some risks associated with it. For example, borrowers may not be able to repay their loans, and lenders may not be able to collect on the loans they have lent out. However, the growth of P2P lending indicates that there is room for this type of financing in the marketplaces.

Peer-to-Peer Lending Options:

Option #10 – Invest in Yourself with Education

The fastest way to turn $10,000 into $100,000 is to invest in yourself. This is very often overlooked, but one of the best returns on investment that you can have.

Consider taking courses to improve your skillset or investing in real estate or stocks.

My favorite online courses to improve your income:

With hard work and dedication, you can make your money work for you and achieve your financial goals.

Option #11 – Day Trade (or Swing Trade) in the Stock Market

Investing in the stock market is a way to make money by buying and selling shares of companies.

There are two main ways to make money through investing: buying and holding (also known as long-term investing), and active trading (also known as short-term investing).

Many people in this popular investing course choose to become active investors by day trading or swing trading for income. In fact, many people have made the $1000 in a day club.

Option #12 – Trading Stock Options

Option traders can make money by predicting which direction prices will move and then trading on those predictions.

Trading options is risky because it’s possible for prices to change after you’ve bought or sold them – so your profits (or losses) may depend on how well you guess what’ll happen.

But if you do manage to make money by trading options, it can be very lucrative – especially over short periods of time (days or weeks).

First, before trading stock options, you must learn how to trade the underlying stocks first. Learn how to trade options with this VIP investing course.

Option #13 – Invest in an Initial Public Offering (IPO)

Wouldn’t you love to invest in Amazon (AMZN) or Google (GOOGL) when they first went public??

If you invested $500 into AMZN, it would be worth $855,505 (as of August 2022) – source)
If you invested $500 into GOOGL, it would be worth $27,502 (as of August 2022) – source)

An IPO is a type of stock market transaction in which a company sells shares to the public. An IPO offers businesses the opportunity to expand their reach and raise money quickly.

IPOs are popular because they provide investors with access to new companies at an early stage. As such, IPOs can be a great winner or a great loser of your capital. Thus, do your research.

Option #14 – Flip Websites

Flipping websites is a quick and easy way to make money. All you need is the right software and some knowledge of how the internet works.

Flipping websites means buying a website, fixing up the code, improving the SEO, and selling it to another owner or business. This process can be done quickly and easily with the help of some simple tools. By flipping websites, you can earn a profit while also increasing your web traffic.

Flipping websites is a great way to make money on the side and supplement your income. It’s also an excellent way to learn more about online marketing and build your own business skills.

Option #15 – Start Affiliate Marketing to Turn 10k into 100k

Affiliate marketing is a great way to turn 10,000 into 100,000 by earning money through promoting other people’s products. This is also known as an influencer. And you don’t have to carry inventory yourself!

There are a few different ways to get started with affiliate marketing, and the most important thing is to find an affiliate program that aligns with your goals and interests.

Once you’ve registered with an affiliate program, it’s time to start promoting! There are a variety of tools and resources available online that can help you build an effective affiliate campaign through social media or blog traffic.

Option #16 – Invest in REITs with Real Estate Market

Real estate investment trusts (REITs) are a type of investment that allows you to invest in real estate without having to own the property. This is done by investing in a portfolio of properties that are owned and managed by the REIT.

REITs offer investors several advantages over other types of real estate investments. These advantages include:

Low risk – REITs are typically less risky than other real estate investments, such as buying and holding single family homes or properties.
Lower fees – Unlike buying and holding individual properties, REITs pay relatively low management fees, which means your money is more likely to be returned to you quickly.
Liquidity – As long as there is demand for REIT shares, the prices will generally continue to rise, giving you an opportunity to make significant profits over time.

Investing in REITS can be a great way to diversify your real estate portfolio and achieve higher returns while avoiding some of the risks associated with other types of real estate investments.

My favorite REIT platforms are:

Option #17 – Invest in penny stocks

Penny stocks are a type of investment that is usually considered to be risky but can offer high returns if the right investments are made.

Penny stocks are small companies that trade on the stock market for under $2-10 per share. Because these companies are relatively new and often have little financial stability, penny stocks can be volatile – meaning they can rise or fall in price quickly while low or high volume.

Because penny stocks are so risky, it’s important to do your investigation before investing in them. However, if you make the right choices and invest in carefully chosen penny stocks, you could see high returns over time.

Option #18 – Make Money With Retail Arbitrage or Flipping

Retail arbitrage is the practice of buying products in one market and selling them in another market to earn a profit. Many do this with dropshipping.

There are a few fast ways to get started with retail arbitrage. The first is by using online tools like eBay, Facebook Marketplace or Amazon’s Selling Manager. These platforms make it easy to find specific items that you want to buy and sell at a profit.

All in all, you are looking for low price items and selling them for a profit.

By taking advantage of flipping methods like these, you can quickly increase your income without having to spend too much time researching each opportunity. Learn more with this FREE webinar.

Option #19 – Start A Service-Based Business

Starting a service-based business can be a great way to make money by finding clients willing to pay for your services. There are many different types of service businesses, and each offers its own unique opportunities and challenges.

Service businesses can be profitable in a number of different ways. You may be able to charge high prices for your services or offer them at a discount in order to attract customers.

There are several advantages to starting a service-based business.

First, you have control over your own schedule and work environment.
Second, you can set your own hours and earn a flexible income.
Finally, service businesses tend to be more recession-proof than other types of businesses because they don’t rely as much on consumer spending habits.

Option #20 – Buy a business

Buying a business is a great way to increase your wealth and expand your empire. There are many different types of businesses available for purchase, so it’s important to choose the right one for you.

There are two main reasons why buying a business can be beneficial. First, buying a business gives you access to valuable assets that you couldn’t otherwise own – like cash flow, customer lists, and intellectual property. Second, buying a business can help you build a dynasty by passing on the company name and legacy to future generations.

There are many different factors to consider when purchasing a business, so it’s important to consult with an experienced advisor and do your due diligence.

How to Turn 10K Into 100K FAQs

Obviously, you probably have a lot of questions when trying to decide on which investment opportunities are best for you. While affiliate programs may work for some, you may want to use your stock market knowledge. Maybe even a dog walking business?

Ultimately, you have $10k in investment capital to start with, now you have to make some decisions.

What are the best ways to turn $10k into $100k?

A lot of people have been asking themselves this question lately and wondering what they could do with their money in order to make a big difference in their lives and achieve financial freedom.

In addition, you probably have questions before you make this a reality.

How Can I Get Rich With 10K?

One of the best ways to get rich is to start with a small sum of money and grow it over time by being consistent in your actions.

Learn the best ways to invest 10k.

It’s not about getting lucky, but rather developing habits that will help you achieve your goals. With hard work and dedication, anyone can become wealthy over time.

How to Turn 10k into 100k in 1 year?

There are a few key things you need to do in order to turn 10k into 100k in 1 year.

You need to look for a business to start that has a lot of potential for growth and profit. Don’t forget, that you must be willing to work hard and put in the time and effort required to make your business successful.

You need to be passionate (and adamant) about turning 10000 dollars into 100000. If you are wanting a 900% return on investment, then you must be willing to put in the effort to make that happen.

How to turn 10k into 100k in a month?

For most people, it will take more than just one month to turn 10k into 100k.

Regardless of the path you choose, it will take time to get the education and experience needed to achieve such a high return.

The best options for faster success include: starting an online business, becoming an active stock market trader, or investing in real estate. There are many options available, but it is important to do your research and find what works best for you.

How Can I Turn $10k into $100k Passively?

The key right here is … passive income!

You want to find ways to make money passively – also known as making money while you sleep.

The most common way is through passive income streams, which include investments, real estate, and online businesses. Whichever route you decide to take, the key is to be patient and let the money grow over time.

Many people want to make 10k a month – passive income is even better!

How Do I Convert 10K Into 100K With Stocks?

There are a few different ways to convert 10,000 into 100,000 with stocks.

Buy and hold: This is the simplest option and can be effective for those who are looking to invest for the long term. By buying stock in a company and holding on to it, you will eventually see your investment grow over time.
Day trading: This involves buying and selling stocks quickly in order to make money based on the movements of the market. While this can be very exciting, it is also risky because you could lose all of your money if the market goes down.
Investing in Options: Options allow you to buy or sell a security at a set price within a certain period of time. This type of investing is often considered conservative because you don’t have to worry about losing your investment if the market goes down – you only risk losing money if the option doesn’t expire or hits its expiration date without being exercised (sold).
Dividend stocks reinvestment: When companies pay out cash dividends each quarter, many investors choose to reinvest that money back into more shares of stock – which increases their total ownership stake in the company over time.
Trade shares for assets: Some people choose to trade their shares of stock for other types of assets, such as real estate or precious metals. This allows them to diversify their portfolio and increase their chances of making a profit.

What are some risks associated with these methods?

As always, there are risks with any method of looking for a high rate of return. You must do your due diligence first to make sure the investment is worthwhile and not a scam.

When looking to make a high return on investment, it is important to be aware of the risks involved. Sometimes, these investments are not as secure as low-return options and can result in losing the original investment. It is, therefore, crucial to do your homework before investing in anything.

What are some other things to keep in mind when trying to double your money?

There are a few other things to keep in mind when trying to find a way to double $10k quickly.

Though it can be difficult to turn 10k into 100k, there are ways to make this happen. For example, by investing in stocks or real estate, one can see an increase in their original investment. Additionally, starting a business can also lead to a doubling of one’s money. However, it is important to keep in mind the risks associated with these ventures.

When you are trying to double your money, make sure you are looking at smart investments, saving wisely, and increasing your income. Additionally, don’t forget about enjoying life while you’re working towards this goal!

Be cautious about get-rich-quick schemes

There are a lot of get-rich-quick schemes out there that promise you can make money quickly by following a certain plan or investing in a certain product. While these schemes may seem promising at first, they’re often nothing more than scams.

The reality is that most get-rich-quick schemes don’t work the way they’re supposed to. In fact, many of them actually lead to losses for the people who try them. This is because most of these schemes involve high-risk investments or unproven methods.

So if you’re thinking about trying one of these schemes, be sure to do your research first. You might be able to find a better way to make money without risking everything you have.

What Skills Will Help You Make 100k Fast

The goal of this article is to help you turn $10k into $100K by the end of this year. No need for a fancy MBA or years’ worth of experience, just some simple skills that will help you.

More than likely, you will have to invest in an online course or even a few books to help you along your journey. For instance, I purchased a blogging course to jumpstart my entrepreneurship. Also, I dived straight into an investing course to further my stock market knowledge.

When you are growing your liquid net worth, you are looking somewhere to have your money make more money. The strategy you choose will be different than the person reading this same post. Buy, you have to show patience and know that you will reach your target based on your timeline.

There is a lot of content available to help you along your path.

As we discussed above, there are many different ways to make 10K to 100K this year, so choose the one that works best for you and gets results!

Source: moneybliss.org

Apache is functioning normally

May 12, 2023 by Brett Tams

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.

46k salary is a solid hourly wage when you think about it.

When you get your first job and you are making just above minimum wage making over $46000 a year seems like it would provide amazing opportunities for you. Right?

The median household income is $67,521 in 2020 which decreased by 2.9% from the previous year (source). Think of it as a bell curve with $68K 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 $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money evenly between all of the people.

But, the question remains can you truly live off 46,000 per year in today’s society since it is below both the average and median household incomes? The question you want to ask all of your friends is $46000 per year a good salary.

In this post, we are going to dive into everything that you need to know about a $46000 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 $46k 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 salary?

$46000 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 46k a year hourly. That way you can decide whether or not the job is worthwhile for you.

$46000 a year is $22.12 per hour

Breakdown Of How Much Is 46k A Year Hourly

Let’s break down how that 46000 salary to hourly number is calculated.

For our calculations to figure out how much is 46K salary hourly, we used the average five working days of 40 hours a week.

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 $46000 by 2,080 working hours and the result is $22.12 per hour.

46000 salary / 2080 hours = $22.12 per hour

Just above $22 an hour.

Key Points….

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.

Just an interesting note… if you were to increase your annual salary by $5K to $51000 a year, it would increase your hourly wage to almost $25 an hour – a difference of $2.40 per hour.

To break it down – 51000 salary / 2080 hours = $24.52 per hour

That difference will help you fund your savings account; just remember every dollar adds up.

How Much is $46K salary Per Month?

On average, the monthly amount would be $3,833.

Annual Salary of $46000 ÷ 12 months = $3833 per month

This is how much you make a month if you get paid 46000 a year.

$46k 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 $46k 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 $46000/52 weeks = $884 per week.

$46000 a year is how much biweekly?

For this calculation, take the average weekly pay of $884 and double it.

$884 per week x 2 = $1,769

Also, the other way to calculate this is:

Annual Salary of $46000 / 26 weeks = $1769 biweekly.

How Much Is $46K Salary 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 52 weeks = 260 working days

Annual Salary of $46000 / 260 working days = $177 per day

If you work a 10 hour day on 208 days throughout the year, you make $221 per day.

$46000 Salary is…

$46000 – Full Time	Total Income
Yearly Salary (52 weeks)	$46,000
Monthly Wage	$3833
Weekly Pay (40 Hours)	$884
Bi-Weekly Pay (80 Hours)	$1769
Daily Wage (8 Hours)	$177
Daily Wage (10 Hours)	$221
Hourly Wage	$22.12
Net Estimated Monthly Income	$2,926
Net Estimated Hourly Income	$16.89

^{**These are assumptions based on simple scenarios.}

46k 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 46000 a year after taxes?

Gross Annual Salary: $46,000

Federal Taxes of 12%: $5,520
State Taxes of 4%: $1,840
Social Security and Medicare of 7.65%: $3,519

$46k Per Year After Taxes is $35,121

This would be your net annual salary after taxes.

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

$35121 ÷ 2,080 hours = $16.89 per hour

After estimated taxes and FICA, you are netting $35,121 per year, which is $10,879 per year less than what you expect.

***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 that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.

Thus, your yearly gross $46000 income can range from $31441 to $36961 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 $46,000 income.

46k salary lifestyle

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 $46,000 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 cheap 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, $46,000 a year is below the average income that you would find in the United States. Thus, you have to be wise in how you spend your money.

What a $46,000 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.

Have some fun money in your budget.
Know being frugal green is helpful to stretch your budget.
You are able to rent in a decent neighborhood in LCOL and maybe a MCOL city.
You should be able to meet your expenses each and every month.
Participate in the 200 envelope challenge.
Ability to make sure that saving money is a priority, and very possibly save $3000 in 52 weeks.

When A $46,000 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 46k 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.

$46k Salary to Hourly

We calculated how much $46,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.

So, here is a handy calculator to figure out your exact hourly salary wage.

$46K 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 leftover is left for fun spending.

If you want to know how to manage a 46k 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 $46000 a year salary:

Category	Ideal Percentages	Sample Monthly Budget
Giving	10%	$268
Savings	15-25%	$690
Housing	20-30%	$1052
Utilities	4-7%	$134
Groceries	5-12%	$288
Clothing	1-4%	$23
Transportation	4-10%	$153
Medical	5-12%	$192
Life Insurance	1%	$10
Education	1-4%	$10
Personal	2-7%	$31
Recreation / Entertainment	3-8%	$77
Debts	0% – Goal	$0
Government Tax (including Income Tatumx, Social Security & Medicare)	15-25%	$907
Total Gross Monthly Income		$3833

^**^{In this budget, prioritization was given to basic expenses and no debt.}

Is $46000 a year a Good Salary?

As we stated earlier if you are able to make $46,000 a year, that is a decent salary. You are making more money than the minimum wage and close to double in many cities.

While 46000 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. It is okay to be driving around a beater car while you work on increasing your salary.

This $46k 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 46k 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 46k 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 46000 per year.

If you are looking for a career change, you want to find jobs paying at least $52000 a year.

Is 46k 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.

Learn exactly what is a good salary for a single person today.

Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably at $46000 per year.

And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.

Is 46k a good salary for a family?

Many of the same principles apply above on whether $46000 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 $46000 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 46000 per year, then the combined income for the household would be $92,000. 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 $46000 Per Year?

As we outlined earlier in the post, $46000 a year:

$22.12 Per Hour
$177-221 Per Day (depending on length of day worked)
$884 Per Week
$1769 Per Biweekly
$3833 Per Month

Next up is making $50000 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 38,000 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 $46k, then you probably need to look at asking for pay increases, picking up a second job, or finding 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 create a biweekly budget 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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Source: moneybliss.org

Apache is functioning normally

May 8, 2023 by Brett Tams

Last Updated on March 29, 2023 by Mark Ferguson

2014 was a very exciting year for me and I am looking forward to an even better year in 2015. I had a lot of big real estate goals for 2014, which I discussed in detail here. I did not accomplish all of those goals, but I did accomplish a lot and I know setting goals helped me achieve more than I would have without goals. For 2015 I am continuing to set big goals to push myself to achieve as much as I can. I love writing these articles because it helps me recount what I wanted to do, what I ended up doing and helps me plan the next year.

On the surface it looks like I fell way short on many goals, but when analyzing them it is not as bad as it seems.

My goal articles for other years

What real estate goals did I want to accomplish in 2014?

Here are the major goals I wanted to accomplish in 2014 and what I actually did in 2014.

I wanted to sell 15 fix and flips and I ended up selling 12.
I wanted to sell 300 houses as a team and we ended up selling 160
I wanted to buy 6 rentals and I only bought 3
I wanted InvestFourMore to reach 150,000 views a month and it reached 170,000 in October!
I wanted to buy a Lamborghini Diablo and I did!

As I mentioned I fell short on many goals, but I still sold 12 flips, sold 160 houses, bought 3 rentals and bought a Lamborghini. I think that was a pretty good year, even if it was not quite as good as I hoped.

Fix and flips in 2014

In 2014 I set a huge goal to flip 15 houses; I had previously flipped 10 houses in 2013. Flipping 15 houses takes a lot of work and a lot of planning. I assumed the biggest roadblock to that goal would be finding and buying that many houses to flip. I ended up buying enough houses to flip 15, but I could not find the contractors to do the work. I had to fire one contractor I had worked with for years and I ended up trying out at least four new contractors. I think one of those new contractors has worked out so far out of the four.

I learned a lot about flipping homes in 2014. I learned that having ten flips at one time is not a great way to do business unless you have the contractors to do the work. I will have held a few properties for almost a year and that is way too long on a flip. One of those properties did take about $60,000 in repairs and was an extremely long rehab. A before and after video is below.

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Fix and flip goals for 2015

For 2015 I am not going to be as ambitious on my flipping goals. There are a number of reasons I don’t want to flip 15 houses in 2015.

It takes too much babysitting of contractors and I would need to add at least a couple more.
It takes a lot of capital to fund all those flips and the repairs. I think all the flipping made it harder to buy rentals.
I can still buy as many properties, but instead of flip them myself, I could wholesale the properties.

My goal for 2015 is to flip 10 houses and wholesale 5 to 10 more. I have 8 flips right now so reaching ten should not be a problem, but I might sell a couple I have now as wholesale deals. If anyone is interested in some Northern Colorado deals, let me know!

Rental property goals in 2014

In 2014 I wanted to buy 6 rental properties to keep on track with my plan to purchase 100 rental properties. I only bought three rentals, which was disappointing, but better than not buying any! You can find the details on the properties below:

Rental property number nine
Rental property number ten
Rental property number eleven

These are all great properties and I will make a lot of money with them in the future. I have a total cash flow of about $6,000 a month coming in after I paid off rental property number one early in 2014. There are many reasons why I fell short on this goal as well.

I tied up much of my available capital in my flips
There were very few deals in the area for rentals
It is tough to focus on rental properties when I am also working on flips, my real estate team, and the blog. Plus I have a family that I spend as much time with as I can.

I want to shift much more focus on rental properties again, because they are such a great investment. The income from flipping is great, but I have to pay a lot of taxes on it and once I sell a house it stops making me any money. The rental property income keeps coming in every month with much less work and fewer headaches.

Rental property goals for 2015

For 2015 I want to get back on track buying as many rental properties as I can. I am going to flip fewer homes, which will give me more capital to buy rentals. I am also refining my direct marketing campaign, which should bring me more deals (I will have an upcoming article to discuss my direct marketing). I want to buy at least seven rentals in 2015 and that should put me closer to my goals of 100 rentals by 2023.

Real estate team goals for 2014

in 2014 I wanted to sell 300 homes as a team, but we sold about half that. I had sold over 200 houses in 2013 and 2012, but the market changed drastically. Prices increased, buyers increased and inventory decreased. For many agents, this was a good thing, but I focus on REO and HUD listings and that cut my listings down drastically. Our county went from 10 to 20 foreclosures a week in 2012 to 2-4 a week in 2014. Even though our sales went down drastically we accomplished a lot in 2014.

The team lost a couple of agents in 2014
The team added a couple of agents in 2014
The new agents are doing awesome and selling a lot of homes
Even though we sold less REO and HUD homes, we had many more traditional sales in 2014
The average price of our sales increased by 20%

We had a down year as far as houses sales, but the price per sale was up, our team is much stronger than it was and it is also more balanced. The best part is I have to do less work because I set my team up to be able to complete many of my tasks and sell houses on their own.

Real estate team goals for 2015

For 2015 I want to sell 200 houses, which is a big pullback from my previous goal. REOs and HUDs are even harder to find in 2015 than in 2014, which will decrease our sales. However, the new team members and training we implement should increase the number of sales from the other agents. I also want to add a couple more agents and my goal is to have every agent on my team make $100,000 a year.

InvestFourMore goals in 2014

2014 was a great year for the blog and thanks to setting up my team to handle much of the work I had more time to work on the blog. I wrote over 100 articles on the blog and the traffic peaked at 170,000 views in October. Traffic was down slightly in November and December due to the holidays and I stopped doing as much guest blogging on other sites.

I learned a lot about the internet, marketing, SEO and blogging in 2014. I continue to improve the site and I have met a lot of great people while blogging. The Complete Blueprint has been a great success and adding the conference calls has been very successful. If you missed it, I added CDs, a goals setting guide and a few more features recently. I am working on a system to help real estate agents as well that is almost complete and the REO kit has been very successful as well. My eBooks are doing well, which can be bought on Amazon.

InvestFourMore goals in 2015

In 2015 I want to increase traffic, increase my relationships with other investors and blogs and continue to improve my investing strategies by learning as much as possible. Here are some specific goals:

300,000 views a month by the end of 2015
Implement a new real estate agent success system
Borrow private money through the blog in 2015
Improve or create a new forum for InvestFourMore

Personal goals in 2014

In 2014 I accomplished a huge goal by purchasing a 1999 Lamborghini Diablo. I bought the car much sooner than I was planning on, but a great deal came up on a car that was the perfect color. I did not think I would be able to find that color again for a reasonable price for years so I jumped on it. I also thought Diablo prices were at a low point and I have already been offered $26,000 more than I bought the car for. I am not selling it anytime soon as it is awesome and a great marketing tool as well.

As for other goals I reached some, missed others, but had a great year. My wife and kids are doing great and we love the house we bought in 2013.

Personal goals for 2015

I don’t have any big goals for 2015 as far as car buying. I would love to buy an Aston Martin V8 or Lamborghini Countach at some point, but I don’t plan on doing it in 2015. I have personal income goals and a few more that I will keep private. I can’t share everything!

I hope everyone had a great 2014 and if not, then think of all the things you learned and don’t focus on how bad things went.

Build a Rental Property Empire

Source: investfourmore.com

Apache is functioning normally

May 7, 2023 by Brett Tams

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36k salary is a solid hourly wage; above most minimum hourly wage jobs.

For most people, an entry-level job would be paying just over $36,000 a year. The question that remains is can you make a living off $36k a year.

The median household income is $67,521 in 2020 which decreased by 2.9% from the previous year (source). Think of it as a bell curve with $68K 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 $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money evenly between all of the people.

But, the question remains can you truly live off 36,000 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 $36000 per year a good salary.

In this post, we are going to dive into everything that you need to know about a $36000 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 $36k 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 salary?

$36000 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 36k a year hourly. That way you can decide whether or not the job is worthwhile for you.

36000 salary / 2080 hours = $17.31 per hour

$36000 a year is $17.31 per hour

Let’s breakdown how that 36000 salary to hourly number is calculated.

For our calculations to figure out how much is 36K salary hourly, we used the average five working days of 40 hours a week.

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 $36000 by 2,080 working hours and the result is $17.31 per hour.

Just above $17 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 $7K to $43K per year, it would increase your hourly wage to over $20 an hour – a difference of $3.36 per hour.

To break it down – 43k a year is how much an hour = $20.67

That difference will help you fund your savings account; just remember every dollar adds up.

How Much is $36K salary Per Month?

On average, the monthly amount would be $3,000.

Annual Salary of $36000 ÷ 12 months = $3000 per month

This is how much you make a month if you get paid 36000 a year.

$36k 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 $36k 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 $36000/52 weeks = $692 per week.

$36000 a year is how much biweekly?

For this calculation, take the average weekly pay of $692 and double it.

$692 per week x 2 = $1384

Also, the other way to calculate this is:

Annual Salary of $36000 / 26 weeks = $1384 biweekly.

How Much Is $36K Salary 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 52 weeks = 260 working days

Annual Salary of $36000 / 260 working days = $138 per day

If you work a 10 hour day on 208 days throughout the year, you make $173 per day.

$36000 Salary is…

$36000 – Full Time	Total Income
Yearly Salary (52 weeks)	$36,000
Monthly Salary	$3,000
Weekly Wage (40 Hours)	$692
Bi-Weekly Wage (80 Hours)	$1,384
Daily Wage (8 Hours)	$138
Daily Wage (10 Hours)	$173
Hourly Wage	$17.31
Net Estimated Monthly Income	$2,290
Net Estimated Hourly Income	$13.21

^{**These are assumptions based on simple scenarios.}

36k 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 36000 a year after taxes?

Gross Annual Salary: $36,000

Federal Taxes of 12%: $4,320
State Taxes of 4%: $1,440
Social Security and Medicare of 7.65%: $2,754

$36k Per Year After Taxes is $27,486

This would be your net annual salary after taxes.

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

$27486 ÷ 2,080 hours = $13.21 per hour

After estimated taxes and FICA, you are netting $27,486 per year, which is $8,514 per year less than what you expect.

***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.***

Taxes Based On Your State

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 that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.

Thus, your yearly gross $36000 income can range from $24,606 to $28,926 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 $36,000 income.

How Much Is 36K A Year Hourly Salary Calculator

More than likely, your salary is not a flat 36k, 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.

36k salary lifestyle

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 of living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $36,000 a year is going to be extremely 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 afford the cost of living and maybe save more money. Thus, you have more fun spending left in your account each month.

As we noted earlier in the post, $36,000 a year is well below the average income that you would find in the United States. Thus, you have to be wise in how you spend your money.

What a $36,000 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.
Driving a beater car is normal.
You should be able to meet your basic expenses each and every month.
Not be able to afford many of the fun spending luxuries.
Ability to make sure that saving money is a priority, and very possibly save $5000 in one year.

When A $36,000 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 36k 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.

$36K 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 leftover is left for fun spending.

If you want to know how to manage a 36k 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 $36000 a year salary:

Category	Ideal Percentages	Sample Monthly Budget
Giving	10%	$150
Savings	15-25%	$450
Housing	20-30%	$884
Utilities	4-7%	$135
Groceries	5-12%	$270
Clothing	1-4%	$18
Transportation	4-10%	$135
Medical	5-12%	$150
Life Insurance	1%	$8
Education	1-4%	$8
Personal	2-7%	$24
Recreation / Entertainment	3-8%	$60
Debts	0% – Goal	$0
Government Tax (including Income Tatumx, Social Security & Medicare)	15-25%	$710
Total Gross Monthly Income		$3000

^**^{In this budget, prioritization was given to basic expenses and no debt.}

Is $36,000 a year a Good Salary?

As we stated earlier if you are able to make $36,000 a year, that is a low salary. You are making around or just above minimum wage.

While 36000 is a decent salary just starting out in your working years, it is a salary that you want to rapidly increase before your expenses go up or the people you provide for increase. If not, you will be left working multiple jobs to make ends meet.

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 $36k salary would be considered a lower class salary. You must make each dollar count in your budget.

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 36k 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 36,000 a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a decent living at 36000 per year.

If you are looking for a career change, you want to find jobs paying at least $45000 a year.

Is 36k a good salary for a Single Person?

Simply put, you can make it work.

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 comfortably for $36000 per year.

And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.

Is 36k a good salary for a family?

Many of the same principles apply above on whether $36000 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.

At the 36K salary with a family, you would need more than one income stream to make this possible without government help.

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 and this does not include college.

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 $36,000 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.
Desire to improve your career and make more money.
Your lifestyle choices.

You will not be able to afford everything on this salary.

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 36,000 per year, then the combined income for the household would be $72,000. 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 36000 Per Year?

As we outlined earlier in the post, $36000 a year:

$17.31 Per Hour
$138-173 Per Day (depending on the length of day worked)
$692 Per Week
$1384 Per Biweekly
$3000 Per Month

Next up is making $40,000 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 lower-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.

In addition, if you are early in your career, starting out around 32,000 a year, that is a okay place to be getting your career. However, if you have been in your career for over 20 years and still making $36K, 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.