18 Dollars An Hour Is How Much A Year: Can You Live Off Of It?
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18 dollars an hour is how much a year? Calculate your annual, monthly, and weekly salary (before and after taxes) and determine whether you can actually live off of $18 an hour.
This post is a complete guide to making $18 an hour including how much you’ll earn per year, month, and week (before and after taxes). You’ll also discover the answer to “Can I live off $18 an hour?” We even include a sample budget to get you started. Finally, we break down the best jobs that earn 18 dollars an hour without a degree!
Let’s get to it.
18 Dollars an hour is how much a year
$18 an hour is $37,440 per year.
Here’s how we arrived at this number:
40 hours of work per week multiplied by 52 (the number of weeks in a year) equals 2,080 hours worked per year.
Multiply the total hours worked per year (2,080) by $18 to get $37,440. This is the amount you’ll make in annual income per year before taxes, otherwise known as gross income.
Working full-time
For the record, in America, if you work between 35-40 hours a week, you are considered a full-time employee.
Our calculations above are based on a 40-hour workweek multiplied by 52 weeks a year.
If you work 35 hours per week and earn $18 an hour, you will make $32,760 per year.
35 hours per week multiplied by 52 weeks in the year is 1,820 hours worked. If you multiply 1,820 by $18 an hour, you get $32,760.
Working part-time
Part-time is considered anything under 35 hours worked per week. Typically, part-time employees work between 20-29 hours a week.
If you work 25 hours per week at $18 an hour, you will earn $23,400 a year before taxes.
How much is 18 dollars an hour a year after taxes?
If you make $37,440 a year, you’ll pay 15.1% (on average) of your income in federal taxes, social security, and Medicare. You’ll pay even more if you live in a state that collects an income tax.
This brings your approximate annual take-home pay or net income to $31,769 if you work full-time (40 hours per week) and about $20,473 a year if you work part-time (25 hours per week).
Now, let’s address the elephant in the room…
Can you live off of $18 an hour?
The US Census Bureau estimates that the annual median personal income for 2019 was $35,977. So, if you make $37,440 (or more) a year, you can consider yourself just above average (as far as earnings in America go).
The bright side is that a full-time job making $18 an hour would put you well above poverty guidelines ($12,750 a year) for a single individual.
Related: Can you live on $30 an hour?
That’s all well and good, but can you live (comfortably) on $18 an hour?
According to a recent study by Go Banking Rates you can’t, but this will really be determined by your spending habits and how you spend on your basic expenses.
Based on a recent survey they conducted, which took into account rising housing costs as well as basic living expenses, you’ll need to earn anywhere between $58,321 a year (to get by in Mississippi) all the way up to a minimum of $136,437 a year to get by in Hawaii.
I mean, really…who wants to live in Hawaii anyway?
I don’t know what kind of MATH their smoking because, up until recently, our family has never earned more than $50,000 a year…
In fact…
My husband and I lived on $40,000 ($19.23) an hour for years while raising our (3) children in Colorado (which has a state income tax), and somehow, we managed to survive.
We even bought a nice 3 bedroom 2 bath home on that salary which we later sold (in just 24-hours) for a tidy profit.
Currently, my son manages to live well on just $15 an hour, working part-time while living in a city with a high cost of living index.
Based on personal experience, if you are single, and live in an area with a low cost of living, you can live quite well on $18 an hour.
Can you buy a house making $18 an hour?
Mmmmm…MAYBE.
The answer to “can you buy a house when you make $18 an hour” is a tricky one that depends on a handful of factors.
For example, if you:
- Have a healthy savings account
- Know how to budget
- Live in a low-cost of living area
- Have a debt-to-income ratio <43%
Then, yes, you can afford to buy a (modest) home on $37,400 a year.
However, if you:
- Struggle to live on a budget
- Live in a city with a high cost of living index
- Have a debt-to-income ratio >43%
- Work less than full-time
You cannot afford to buy a house on $18 an hour.
Tips to live on $18 an hour
As I mentioned earlier, my son lives well on $15 an hour in a big (expensive) city. Here’s how he does it:
- With the exception of a small student loan (he does not have any debt)
- He keeps his food costs low
- He lives with a roommate
- He’s frugal and budgets his money wisely
- He lives on less than he earns
Ways to make more money if $18 an hour isn’t enough
If the tips above don’t appeal to you, there are a plethora of ways to increase your income if you find that $18 doesn’t quite get you the lifestyle of your dreams.
You can:
- Ask for a raise
- Look for ways to make money online-blogging, surveys, freelance writing, become a VA, sell your skills on Fiverr
- Take on a part-time side hustle-clean houses, babysit, drive for Uber, do odd jobs
- Turn your hobby into a cash cow
- Sell feet pics for extra cash
Jobs that earn $18 an hour
According to the U.S. Bureau of Labor Statistics, the majority of jobs that make $18 an hour do not require prior experience or formal education, however, you will need a high school diploma to be considered for employment just about anywhere.
| Job | Average pay (per hour) | What they do |
|---|---|---|
| Animal Control Worker | $18.07 | Controls abandoned, dangerous, or unattended animals |
| Audiovisual Equipment Install/Repair | $18.99 | Install, repair, or adjust audio or other electronic entertainment equipment in homes or other venues |
| Camera Repair Tech | $18.69 | Repair and adjust cameras and photographic equipment, including commercial video and motion picture camera equipment |
| Crushing, Grinding, and Polishing Machine Setter | $18.06 | Set up, operate, and repair machines that crush, grind, or polish materials |
| Healthcare Support Worker | $18.49 | Home health aides, nursing assistants, physical therapy assistants |
| Quality Control Inspector | $18.82 | Examine products and materials for defects |
| General Maintenance and Repair Worker | $18.79 | Fix and maintain machines, mechanical equipment, and buildings |
| Motorcycle Mechanic | $18.19 | Inspect, service, and repair motorized power equipment |
| Optician | $18.19 | Help fit eyeglasses and contact lenses, following prescriptions from ophthalmologists and optometrists. |
| Pipe Layer | $18.66 | Lay pipe for storm or sanitation sewers, drains, and water mains |
Sample budget for $18 an hour
Here’s a sample budget example for someone who earns $2,647 per month after taxes using a 70/20/10 budget (70% of income spent on monthly expenses including entertainment, 20% set aside for retirement & savings, and 10% allocated for debt repayment):
| Expense | Amount |
|---|---|
| Rent/Mortgage | $950 |
| Utilities | $150 |
| Transportation | $225 |
| Groceries | $300 |
| Charitable Contributions | $100 |
| Entertainment | $127.90 |
| Long/Short-Term Savings | $529.40 |
| Debt Repayment | $264.70 |
How much is $18 an hour per day?
$18 dollars an hour times 8 hours equals $144 a day before taxes. After taxes, you’ll net about $122 per day if you work full-time.
If you work 5 hours a day at 18 dollars an hour, you’ll take home approximately $79 a day after taxes.
How much is 18 dollars an hour per week?
18 dollars an hour at 40 hours a week is $720 per week (before taxes) and around $611 per week after taxes.
$18 dollars an hour at 25 hours a week (part-time) is $450 per week (before taxes) and about $394 after taxes.
$18 an hour is how much bi-weekly?
$35 an hour (@40 hours a week) is $1440 every (2) weeks before taxes. This averages out to around $1,324 bi-weekly after taxes.
If you work 25 hours a week earning $18 an hour, you’ll take home around $853 every 2 weeks.
How much is 18 dollars an hour per month?
If you work 40-hours a week at $18 an hour, you’ll gross $3120 per month.
You’ll take home (net) around $2,647 a month if you earn $18 an hour and work 40 hours a week.
Working part-time (25 hours a week) making $18 an hour, you’ll gross $1,950 a month and take home (net) about $1,706 a month.
$18 an hour final thoughts
In short, 18 dollars is $37,440 a year which is above the minimum wage and is enough to live on in most areas as long as you do not have any dependents.
Most jobs earning $18 an hour do not require a degree and are in stable, high-growth industries such as manufacturing, health care, and technical fields. The majority of these jobs offer opportunities for growth relative to training/increased education.
If you learn the importance of budgeting, live a frugal lifestyle, and look for ways to increase your income as your expenses increase, there’s a good chance you’ll do just fine on $18 an hour.
