You’re out with your friends, having a nice meal and catching up.
A friend tells you out of the blue that she has a new job and is making $45,000 annually.
Because she is starting a new job, it’s a big life change, she’s excited.
After she explains everything about her new job, you begin to wonder if $45,000 per annum is a fair salary.
Is she allowed to pick up the check for dinner now that she makes $45,000 per year?
Is 45,000 USD per year a reasonable wage? How much can you afford to make 45k a year?
Do you want to make easy, quick money?
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Let’s see how much $45,000 per year is really worth:
Hourly: 45,000/year = 21.63 an hour (40 hours per semaine)
Daily: 45,000/year = 173.08 per hour (8 hours per daily)
Weekly: 45,000/year = 865.38/week (52 weeks/year)
Yearly: 45,000/year = 3,750.00/month (12 months per annum)
The numbers shown above don’t reflect your actual take-home pay. It is important to consider the taxes that will be deducted from each paycheck. After you subtract taxes, you will have your net or true take-home pay.
My estimate is that 25% of our gross income goes to taxes. This is an estimation and taxes may be higher or lower. However, 25% is a good starting place.
After taking out 25% taxes, here’s how much you can make on $45,000 per annum:
Per Hour: 21.63×25% taxes = 5.41 taxes 21.63 x 25% taxes = 5.41 per hour.
Per Day: 173.08 x 25.5% taxes = 43.27 taxes. 173.08-43.27 = $129.81 net per day.
Per Week: 865.38 + 25% taxes = 216.35 taxes. 649.04 net per week = 961.53-240.38
Monthly: 3750.00 x 25 percent taxes = 937.50 tax. Monthly Cost: $2812.50 – 3750.00-1041.50
Unfortunately, taxes will always be due. Good news is that not all states have a wage tax, so you might be able to avoid the state wage tax.
Alaska, Florida and Nevada are the states that do not currently tax wages.
40000 is the hourly rate
Is 45,000 A Good Salary?
The Bureau of Labor Statistics (BLS) reported that the median wage paid to workers in the United States was $957 per Week or $49,764 annually (assuming 52 weeks of work).
In 2019, wages were 5.7% more than they were a year ago.
It’s difficult to determine if 45,000 per annum is a fair salary for your situation. This is because it all depends on your individual circumstances. It all depends on how much you are used to earning. A salary of 45,000 would be a great deal if you are used to earning 30K per year.
However, if you are used to earning 50,000 per annum, it may be difficult to adjust to a salary of 45,000 annually. We can help you budget to make 45,000 a year work for your family.
As you can see, savings is always the first line in our budget. We strongly believe that you should always pay yourself first. Saving, saving, and then spending more is the only way to make it financially. We recommend that you save at least 15% of your income. 20% is even better.
This budget shows you how to save 15% while still being able to afford your day-to-day living expenses.
Net Monthly Income: $2812
Monthly Budget for a Couple
Savings: $420Housing costs: $900Car Pymt cost: $350Utilities: $200Insurance: $200Phone $20 (Get Unlimited Talk and SMS for $10 per Month with Tello)Food Cost: $200 (check our $50/Week food budget)Personal: $250Entertainment: $255
Here’s the exact same $2812.00 budgeted for 4 people:
Savings: $420Housing: $300Car Payment: $300Utilities: $250Food: $400 (Get this Cheapest Groceries list)Personal: $200Entertainment : $200
You can see that $45,000 a year is a reasonable wage for families and couples. However, you will need to work hard to make it happen. To start, create a budget to see where your money is going.
Why should I have a budget?
Although people hate the term budget, a budget is a way to tell your money what you want. A monthly budget gives you control over your money. It is easy to make a simple budget.
Many people believe that a budget restricts their ability to spend money. My experience is that it’s the exact opposite. Budgets are liberating!
What is a Budget?
Simply subtract your monthly expenses from your monthly income.
Remember to take care of yourself first. Also, list your savings first on your budget. This is your budget. A budget gives you control over your spending and allows you to adjust it at any time.
Imagine if you took out a car loan, and paid it off. You now have the freedom to decide what to do with the money you borrowed for your car payment.
I would always recommend putting money that you don’t need for bills into savings.
It doesn’t matter if it seems like a lot of money. But it will over time.
What if I can’t afford to save money?
It is impossible to not save money.
You will never be able to save money if you don’t. Are you willing to live from paycheck to paycheck? It’s not possible!
This is too difficult. Even if you have never been able save money before, you can start now to learn how to do it.
Start small
First, you need to create an emergency fund.
This fund is used to cover any type of emergency. You don’t need to borrow money or take out a credit card.
Financial emergencies can happen at any time, so be prepared.
You should only open a separate savings account for emergency situations. The goal is to have at least $1000.00 in the savings account.
How can you increase savings?
Once you are comfortable with sticking to your monthly budget, and saving money each month, you will likely want to increase the savings rate.
There are many ways to increase your monthly savings.
Although it may require some creativity, a penny challenge will pay off.
Similar: How to Save $5k in 6 Months
You can try a side hustle
I am currently working side jobs to pay for my Florida trip this spring.
I decided that I did not want to use my full-time salary and set myself a challenge to make enough money from a side job to pay for the condo we will be staying in for a month this spring.
Since mid-September, I have been working around 15-20 hours per week on my side gig. It hasn’t been difficult and I am well on my way. Some side gigs that I have taken on are temporary and not permanent. Others are part-time, permanent gigs.
Take a bow
Knowing how much $45,000 per annum is really worth, you can now make an educated decision about whether this is a fair salary for you and/or your family.
Side gigs are a great way to make more money to live the life you want.
You might also consider moving to a state or city where the cost to live is lower, so the $45,000 per annum will go further for your family.
What is the Hourly Rate of $45,000 per Year? Is $45,000 a good salary? Dollarsanity.

Did you miss our previous article…
https://www.goldcoastmoneyonline.com/these-grants-could-be-eligible-for-dyslexics/