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Despite wages in the U.S. increasing by a whopping 11% in May 2022, most people still find it hard to cope with the tough economic times. Gas prices are at a historic high, meaning everything else is priced higher.
$47,000 a year is a decent wage, although slightly below the average wage of $53,490. But how much does $47,000 translate to per hour? Is it still decent, or does it put you in the minimum wage bracket? Well, keep reading to find out.
$47000 Is How Much an Hour?
To answer this question, we first have to figure out how many working hours there are in a year. A year has 52 weeks. Most people work five days a week for 8 hours a day. This translates to 40 hours of work a week. Let’s do the math.
52 (weeks) x 40(working hours) = 2,080
$47,000/2,080 = $22.59 per hour
Earning $47,000 a year means you earn $22.59 per hour, which is almost three times the minimum wage. That’s not bad, but don’t forget that Uncle Sam needs his cut. So, $47,000 is how much an hour minus taxes.
It’s also worth noting that this is the hourly rate before taxes and other deductions. Also, you’ll want to check with your employer about the payment structure. Some employers pay weekly or bi-weekly, but most pay at the end of every month.
$47000 a Year Is How Much an Hour After Taxes
The federal government requires all employees and business owners to pay a percentage of their income as tax. How much you’ll pay in taxes depends on what tax bracket you fall into. Individual taxpayers earning between $41,770 and $89,075 pay 22% of their income as tax. Let’s get our math on yet again.
22% of $47,000 = $10,340
$47,000 – $10,340 = $36,660
After taxes, you’ll remain with $36,660. So, how much does this translate to per hour?
$36,660/2080 = $17.625, or roughly $17.63
Earning $47,000 a year means you’ll have to pay $4.96 ($22.59 – $17.63 =$4.96) out of your $22.59 per hour in taxes. You’ll take home $17.63 per hour, which is still above the minimum hourly wage.
$47,000 a Year Is How Much a Month?
Given that we have 12 months in a year divide $47,000 by 12 months to get the monthly wage.
$47,000/12 = $3,917
Earning $47,000 a year will get you $3,917 per month before taxes.
$47,000 a Year Is How Much Bi-Weekly?
If earning $47,000 a year will get you $3,917 a month, how much will you make every two weeks? With 52 weeks in a calendar year, divide the total salary by 52, then multiply the result by two since it’s bi-weekly. The math is as follows.
$47,000/52 = $903.85 or roughly $904
$904 x 2 = $1,808
$47,000 a year is roughly $1,808 every two weeks.
$47,000 Is How Much a Week?
How much do you earn weekly if $47,000 a year translates to $1,808 every two weeks? Simply divide this figure by two.
$1,808/2 = $904
You’ll take home $904 every week if you earn $47,000 per year.
$47,000 Is How Much a Day?
Assuming that you work five days a week, eight hours a day, multiply the number of working hours in a day (8 hours) by the hourly rate before or after taxes. In this case, we will use the $22.59 an hour.
$22.59 an hour x 8 hours a day = $180.72 rounded off to the nearest dollar gives us $181 dollars.
$47,000 a year roughly translates to $181 every work day.
Summary for a $47k Salary Before and After Taxes
|$47,000 a Year||Before Taxes||After Taxes|
|Yearly (2080 Hours)||$47,000||$36,660|
|Monthly (160 Hours)||$3,917||$3,055|
|Biweekly (80 Hours)||$1,808||$1410|
|Weekly (40 Hours)||$904||$705|
|Daily (8 Hours)||$181||$141|
|Hourly (1 Hour)||$22.59||$17.63|
$47K Salary Lifestyle
Different people have different lifestyles, from penny pinchers to spend-thrift hedonists. Either way, we all have to eke out a living with what we have. While you can’t afford a Beverly Hills mansion with $47,000 a year, it can afford you a decent living.
Living in a big city like New York, $47,000 may require a fair bit of thrifting. That’s because prices for basic commodities tend to be higher in big cities. Everything from housing, food, and transportation will be more expensive than in smaller cities and towns. You’ll have to stretch every dollar you earn and prioritize your spending, putting basic needs first and overlooking certain wants.
It’s also worth noting that what $47,000 can afford now isn’t what the same amount can afford in the future. Inflation and other factors can adversely affect the prices of basic goods and commodities. A couple of questions you need to ask yourself are:-
- Am I at the peak of my career?
- Can I create a secondary income source?
- Do I hold a permanent position at work?
- What are the hurdles to increasing my yearly income?
While $47,000 may be enough now, you need a backup plan to ensure you’re safe from inflation and other events that may affect your financial stability. Consider starting a side hustle.
$47,000 a Year Budget Example
A fair degree of financial prudence is necessary to live comfortably with $47,000 a year. Here’s how you budget $47,000 a year.
These are essential needs for living a comfortable life. Some of your basic needs expenses include:
- Housing (20-30%): $1018
- Utilities (4-7%): $156
- Transportation (4-10%): $160
- Groceries (5-12%): $315
- Healthcare(5-12%): $196
- Retirement (10-15%): $392
Personal needs are expenses that have little impact on how you live your current life. Some of these expenses include:
- Entertainment and recreation(3-8%): $100
- Giving and gifts(10%): $200
- Cosmetics and hygiene(2-7%): $80
- Miscellaneous spending(5-8%): $200
Total spending (basic and personal expenses): $2,817
If you follow this budget, you’ll spend $2,887 out of the $3,055 you earn monthly (after taxes). This means you’ll save about $238 for emergencies or saving for major purchases. This is an excellent blueprint for budgeting your $47,000 to get you through the year. Use one of the many budgeting apps on the Apple Store or Play Store to help you with your budget.
Is $47K a Good Salary for One Person?
$47K is definitely a good salary for a single person. The salary can cover all living expenses and still have enough left to save and buy a few luxury items.
Is 47K a Good Salary for a Family?
With a family, you have more mouths to feed, meaning you really have to stretch your $47,000 salary. This shouldn’t be a problem for a family of three or four. However, you might need to supplement your income if you have a large family.
Can You Live on $47,000 a Year?
Yes, you definitely can live with $47,000 every year. However, you’ll need to adopt proper spending habits to live comfortably on such an income.
Conclusion: Is $47,000 a Year a Good Salary?
Now that you know $47,000 a year is how much an hour, is it a good income? Although $47,000 a year is slightly below the national average wage, it’s still enough to live comfortably and cover all basic expenses. What’s more, you’ll likely have enough left over to cover basic expenses.
If you budget properly and eliminate unnecessary spending, $47,000 a year will be more than enough for you and your family if you live in a city with a low cost of living. If it’s’ not enough, it’s time to consider a secondary income source.