What do you think 70000 a year is how much an hour?
I will tell you shortly and how to calculate any salary?
But keep in mind any salary is good in one place and not the other
What is important, never take a salary and divide it by working hours per year
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You have to consider taxes applied in your state or province on your gross salary
Anyway in this post I will discuss 70,000 a year as a salary and its hourly rate
How much is 70,000 salary hourly?
We all know there are 52 weeks per year
When you go to work you work 8 hours a day with sometimes half an hour or an hour break
Your total hours are 9 hours per day
Our typical working days per week are 5 days a week with 2 days weekend
So we have 8 hours a day X 5 days = 40 hours per week
And Since we have 52 weeks then it becomes 40 hours X 52 weeks = 2080
Since all companies give 2 weeks vacation so we have 40 hours X 50 weeks = 2000
If you divide $70,000 by 2000 = $35 an hour then you won’t get accurate rate per hour
Why? actually because we have to deduct taxes from $70,000 gross salary
For example, in Canada with an average of 19.5% tax rate
I will calculate a cut of $70,000 X 19.5% = $13,650
This means you earn net $70,000 – $13,650 = $56,350
Finally, if you ask 70000 a year is how much an hour? it is $56,350/2000 = $28.175
Is 70,000 a good salary?
The answer which you won’t like
I would say it depends where you live
$70,000 in Canada, specifically in the GTA (Great Toronto Area) is good enough to cover your expenditures
But it will be very tight especially if you have a mortgage
Unless you bought your house before the spike that occurred in house market after 2010
Again $56,350 net per year is around $2,167 biweekly
As you get paid every 2 weeks and around $2,167 X 2 = $4,334 a month
This means you get 26 paychecks per year
And expect to earn 3 paychecks in 2 single months during the year
Since it is hard to find reasonable rent in GTA under $1,400
So I will assign $1,700 towards your rent and $2,200 if you are paying mortgage
For convenience, I will make it $2,000 for both rent and mortgage
And by deducting car insurance which is around $250
You will be left with $4,334 – $2000 for housing – $250 car insurance = $2,084
This means you have $1,042 left in every paycheck
How to budget $70,000 on monthly basis?
Realistically it is hard to make a budget for unknown amount for expenses
Especially if you don’t know the location
In this case, I will resume my amounts as if it is reflecting the GTA
Savings of 10% = $433.4
Rent/ Mortgage= $2,000 (46% of income)
Car Payment= $300
Car Insurance= $50
Health Insurance= $200 – no health insurance in Canada so this number goes to Car insurance in province like Ontario
Personal & Misc= $50
Total = $4,128.4 with $205.6 left to save in emergency fund or increase your savings
This was easy for me as I didn’t have to squeeze the numbers like in my previous post about if 40,000 is a good salary and how to budget $40,000?
How to live with $70,000 a year salary?
It is not about 70000 a year is how much an hour?
We are going to put a plan on how to live with 70,000 a year
As I listed above you won’t have enough after paying all of your expenses
That’s why you have to do your best to stay out of debt
- Stick to a budget and take it seriously
- Keep saving money and invest your savings in retirement plan to get more tax refund
- Reduce your expenses and try to lower your bills
- Build your emergency fund
- You should be able to stay on track by following steps 1 to 4, actually I don’t think you need the cash envelope method