Before taking a job, it’s good to know what you’ll be getting yourself into. Are you able to live on that wage, or do you need to negotiate for something higher?
How much is $42k per hour? Keep reading for a full breakdown from daily to monthly. I’ve also included a monthly budget example.
How much is $42000 a year per hour?
If you work 2080 hours per year, a salary of $42,000 a year would equal $20.19 an hour. After taxes, your salary would be a few thousand dollars less at anywhere from 32k to 35k. To make $42,000 per year after taxes are taken out, you would need a salary of about $52,000 per year (or $25 per hour).
$42,000 per year breaks down to:
- $20.19 per hour (Annual ÷ 2080 hours)
- $161.52 per day (Hourly x 8 hours)
- $807.69 per week (Annual ÷ 52 weeks)
- $1,615.38 biweekly (Weekly x 2)
- $3,500 per month (Annual ÷ 12 months)
However, after taxes, $42000 would be reduced to $32,200 – $35,400 per year depending on the state you live in. Your total take-home paycheck would be:
- Weekly paycheck= $619.23 to $680.77
- Biweekly paycheck= $1,238.46 to $1,361.54
- Monthly paycheck= $2,683.33 to $2950
If you live in a state that does not tax wages, you would be able to keep more of your paycheck.
States that don’t tax wages: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee.
Is $42,000 a good salary?
$42k per year is a great salary depending on your family dynamics. In fact, here’s my $2,5000 monthly budget breakdown. However, everyone’s situation and finances are different.
What counts as a good income depends on your location, cost of living, family size, and various other personal factors. On any salary, the most important thing is to budget and live below your means.
The 4 main steps to attaining financial freedom are:
- Create a budget: You can start with this simple budget.
- Save money: Remember, save before you spend.
- Lower your expenses: These are 40 frugal living tips that I live by and have saved me thousands!
- Pay off debt fast: Paying the minimum results in crazy interest fees. Fast track your debt payoff by doing these things.
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.
Related: Salary vs Hourly Wage: What’s The Difference?
Monthly Budget for $42,000 Salary
Here is an example of how much you should budget for your total monthly expenses. This budget may not seem realistic to you, but remember, living costs vary greatly by state and city. One person may be able to spend way lower in one category than another.
If the amounts don’t work for your life, play around with them a bit. Once you take on a frugal mindset, you’ll be surprised at the many ways to save money monthly. And don’t forget, always save first and foremost!
This budget breakdown assumes that you make $2,683.33 per month and are single.
- Savings of 10%= $268
- Rent/ Mortgage= $894 (⅓ of income)
- Utilities= $200
- Car Payment= $200
- Car Insurance= $100
- Health Insurance= $200
- Cellphone= $50
- Internet= $50
- Gas= $60
- Groceries= $150
- Personal & Misc= $200
- Entertainment= $100
- Total = $2472 with $209.33 leftover
More money could be saved by buying a cheap cars cash or lowering the “Personal & Misc” and “Entertainment” budgets. Before you get started budgeting, it’s useful to track your current expenses to see what money is being overspent on.