When looking for a new job, it’s typical to try to figure out if it will be a good salary or wage. So you see one that will pay $30,000 per year? But how much is that an hour? And is that even a livable wage?
Well, many people in the U.S. get an average salary of $30,000. Keep reading for the whole breakdown of it!
How much is $30000 an hour?
Assuming you work 40 hours every single week of the year (52 weeks), you would be working 2080 hours per year. That would make a salary of $30,000 a year come out to about $14.42 an hour.
$30,000 per year breaks down to:
- $14.42 per hour (Annual ÷ 2080 hours)
- $115.36 per day (Hourly x 8 hours)
- $576.92 per week (Annual ÷ 52 weeks)
- $1,153.84 biweekly (Weekly x 2)
- $2,500 per month (Annual ÷ 12 months)
However, after taxes, $30000 would be reduced to $23,800 – $25,700 per year depending on the state you live in. Your total take-home paycheck would be:
- Weekly paycheck= $457.69 to $494.23
- Biweekly paycheck= $915.38 to $988.46
- Monthly paycheck= $1,983 to $2,141.66
Whoa! That’s a $159/month difference between the highest and lowest taxed state. Meaning, one person could be paying $1,908 extra per year in taxes. To make the most of your salary, you might want to live in a state that does not tax your income.
States that don’t tax wages: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee (per Investopedia)
Is $30000 a year good?
$30,000 a year is good for a single person, but it might be a stretch for a family unless it is one of multiple income streams. However, it can work depending on where you live and how you budget. For example, here’s a post on how my family of two budgeted and lived on $2,500 per month in San Diego (that’s an expensive city!).
If you need to survive on $30,000 a year, it may be accomplished through budgeting and reducing your expenses.
How to Live on $30,000 a Year
Despite your salary, the most important thing is to live below your means. Regardless of income, the main reason why people end up in debt is because they are spending more than they earn. If you want to live a life of financial freedom, that is not good.
The 4 main steps to being financially secure with your income are to:
- Create a budget: Learn how to create a simple budget here.
- Save money: Remember, save first then spend.
- Lower your expenses: Here are 40 frugal living tips that I live by.
- Pay off debt fast: Paying the minimum results in crazy interest fees. Fast track your debt payoff by doing these things.
Learn more tips with my guide: How To Live On A Budget.
For example, you can save on housing by:
- Renting out a room
- Living in a smaller home
- Living outside of the city and having longer commutes
I also have a post on how I spend $200 per month on groceries for two!
30k is an ok salary. But, if you just can’t make this salary work for your lifestyle, then it might be best to look for a better paying job, or pick up a side hustle.
Example budget for a $30,000 salary
Not sure how to budget on $30,000 per year? Maybe this will help.
This budget breakdown will be based on the after-tax monthly salary of $1,983. Of course, the expenditures in your life may be completely different.
Play around with the numbers and find what will work for you, while still allowing you to save money and live a good life.
- Savings of 10% = $198
- Rent/ Mortgage + Utilities= $661 (⅓ of income)
- Car Payment= $0 (You can purchase a cheap Honda or Toyota for about 2k.)
- Car Insurance= $100
- Health Insurance= $100
- Cellphone= $50
- Internet= $50
- Gas= $60
- Groceries= $100
- Personal & Misc= $100
- Entertainment= $50
- Total = $1469 with $514 leftover
It may be hard to budget on this salary, but it is doable. The key is to prioritize your needs and not waste money on unneeded things.