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You just landed a new job and realized your annual salary is $42,000. So $42,000 a year is how much an hour? Is this a decent salary or reasonable compensation for all those hours of hard work you put in?
Income expectations tend to differ from individual to individual since the expenses and needs aren’t the same. Find out how much you can expect to earn per hour for a $42,000 salary and whether you can live off the amount.
$42000 a Year is How Much an Hour?
If you put in 40 hours per week, your breakdown of $42,000 a year will be $20.19 per hour (42,000/2080 hours). This calculation is based on people who work 40 hours a week, 52 weeks a year.
However, your income will be lower after taxes by a few thousand dollars. To make $42,000 per year after taxes are deducted, you would need an income of $52k per year or $25 per hour.
$42000 a Year is How Much a Month?
If you earn $42,000 a year, you’ll make $3,500 per month before taxes, assuming you’ll be working 40 hours a week. Some full-time employees can work up to 50 hours a week. So, the income will vary if you work fewer or more hours.
This calculation uses $42,000 to arrive at the monthly salary of $3,500 a month.
$42000 a Year is How Much Biweekly?
A bi-weekly salary means you get paid after every two weeks. When you get paid this way, budgeting can be tricky. You’ll need to be careful not to run out of cash before sorting out all the bills.
A biweekly pay for a $42,000 annual income a year, working full-time at 40 hours a week, will be $1615.2 before taxes ($20.19 by 80 hours).
$42000 a Year is How Much a Week?
Since $42,000 a year is $20.19 an hour, your weekly income for 40 hours will be $807.60 before taxes. To arrive at this, you multiply $20.19 an hour by the number of hours you work a week, typically 40.
$42000 a Year is How Much a Day?
$42,000 a year is $161.52 a day before taxes if you work eight hours a day. Multiplying 8 hours by $20.19 an hour, you’d make $161.52 a day.
$42000 a Year is How Much After Taxes
If you make $42,000 a year, your take-home pay would be around $32,253 to $35,452 using a tax income calculator. The after-tax income typically varies depending on the state you live in. Some of the common paycheck periods will be like this after taxes:
- Weekly paycheck = $620.25 to $681.76
- Biweekly paycheck = $1,240.50 to $1,363.53
- Monthly paycheck = $2,687.75 to $2,954.33
If you’re lucky to live in a state that doesn’t charge income tax, you’ll have a bigger paycheck. Some of these states include:
- New Hampshire
- South Dakota
Can You Live Off $42,000 a Year?
Even though living on an income of $42,000 a year might seem challenging. Most Americans are used to living off of even lower income. Remember that the current federal minimum wage is $7.25 per hour. So, you’ll be earning almost three times the standard hourly rate.
The effective way of finding out how to live off $42,000 a year is to draft a budget. Many people overlook budgets but creating a realistic budget assists in visualizing where your money should go and what expenses should be trimmed.
- Draft a realistic budget: This will assist you in living comfortably, especially if you earn a low wage. Consider your financial goals, debts, expenses, and lifestyle when creating a budget.
- Pay yourself first: Never wait until the end month, expecting money will remain in your account to save.
- Learn to cut costs: Implement various money-saving tips to stretch your income.
After completing the calculation and implementing the required cost-saving measures, you might need to start a side hustle to increase your salary.
Side hustles allow you to save cash and pay off all your debts. They can be long-term or temporary but will play a considerable role when your budget is strained. Some of the side hustles to do include:
Take Paid Surveys
Taking part in online surveys won’t make you a lot of cash, but you can earn a few dollars on the side. You can make enough bucks to cover some bills and personal expenses or put it towards your emergency fund kit.
Survey Junkie is one of the online market research communities you should consider. You only need to share your opinions to assist brands in advancing their products.
Drive for Lyft or Uber During Your Free Time
Becoming a Lyft or Uber driver will help you make up to $500 monthly. You can do this work during your day off or on weekends.
Rent Out Your Extra Room
If you have an extra room you don’t use, find a roommate to make extra cash. However, you must be selective about the people you invite to your house. But once you get the right person, this can be a good source of extra income.
Sell Handmade Items
If you’re crafty, you can make handmade items since people like buying them. Esty is the best place to sell your handmade products.
Monthly Budget for a $42,000 a Year Salary
Here’s a sample of how much you can budget for your monthly expenses. While this budget might seem unrealistic, bear in mind that the cost of living varies from city to city and state to state. An individual might spend less in one section than another.
If the figures don’t fit your lifestyle, twerk around with them. You’ll be surprised at how much you can save each month if you’re frugal. This monthly budget for $42k a yearly salary assumes you make $2,687.75 per month after taxes and are alone.
- 10% savings = $269
- Mortgage or rent 1/3 of income = $895
- Utilities = $220
- Car payment = $200
- Car insurance = $140
- Health insurance = $200
- Gas = $150
- Food = $160
- Internet = $40
- Entertainment = $100
- Miscellaneous = $200
The total is $2,574, meaning you’ll have a balance of $113.75.
You can save more money by cutting down on entertainment and miscellaneous. You can also buy a cheap car. Before creating a budget, pay attention to your current expenditure to determine where the extra cash is going.
Conclusion: Is $42,000 a Good Salary?
Now that you know $42000 a year is how much an hour, is it a good wage? $42,000 a year is a good income to live on when you have a small family. But if you have several dependents and are the family breadwinner, this income might be insufficient.
However, you can manage your spending by drafting a monthly budget. Creating a budget and sticking to it is a perfect way to live comfortably and save up a few bucks each month.