20 Dollars An Hour Is How Much A Year [Can You Live On It In 2024]
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Can you really live on 20 dollars an hour in 2024? Between the skyrocketing housing market and rising prices of groceries and gasoline in the US, it can be really difficult (if not impossible) to get by on $20 an hour.
In today’s economy, it’s not easy to make ends meet on a salary of 20 dollars an hour. Many people struggle to get by on such a low wage, especially if the work a a low number of hours.
That said, many people in America get by just fine on 20 dollars an hour.
In this post, we’ll give you a full breakdown of how much you’ll make if you earn $20 an hour before (gross income) and after taxes (net income).
Plus, we’ll explore some ways that you can make the most of your 20-dollar-an-hour salary. Including a free budget example.
Finally, we include a list of the top jobs that earn 20 an hour-no degree required!
20 dollars an hour is how much a year?
20 dollars an hour is $41,600 a year before taxes.
Here’s how we did the math (you can find free a wage calculator too):
40 (hours of work per week) multiplied by 52 (the # of weeks in a year) equals 2,080 work hours per year.
40 X 52=2,080
2,080 times $20 equals $41,600
If you work 25 hours per week (part-time) making $20 an hour, your yearly salary would be $26,000 before taxes.
25 X 52=1,300 and 1,300 X $20=$26,000
Related: Can you live on $18 an hour?
How many working days/hours in 2024?
If you want to get really precise and find out exactly much you’ll make for the year in 2024, (at an hourly rate of $20), you’ll need to know how many actual working days (total days minus public holidays and weekends) there are for the year.
How many working days in 2024?
There are a total of 250 working days for the calendar year of 2024. Therefore, if you work 40 hours a week, you’ll work a total of 2,000 hours in 2024.
Going off of this number (2,000), if you have a job working full-time with weekends and (unpaid) holidays off, making $20 an hour, you’ll clear an even $40,000 for the year.
How much is 20 dollars an hour per month?
If you work 40 hours a week and you make $20 an hour, your monthly salary (before taxes) would be $3,460.
173 (average hours worked per month) X $20 (an hour) = $3,460
25 hours per week at $20 an hour will gross $2,160 a month.
108 (average hours worked parttime per month) X $20 (an hour) = $2160
Related: Can you live on $15 an hour?
How much is $20 an hour bi-weekly?
$20 an hour (@40 hours a week) is $1,600 every (2) weeks before taxes.
80 (hours worked every 2 weeks) X $20 = $1,600
If you work 25 hours a week at $20 an hour, you’ll gross $1,000 every 2 weeks.
50 (hours worked every 2 weeks) X $20 = $1,000
How much is 20 dollars an hour per week?
If you work full-time, making $20 an hour, you’ll gross $800 a week.
40 (hours per week) X $20 (an hour) = $800
Working part-time (25 hours) per week, @20 an hour, you’ll gross $500 per week.
25 (hours per week) X $20 (an hour) = $500
Related: How much is $30 an hour per year? Can you live on it?
$20 an hour is how much a day?
An hourly pay of $20 multiplied by 8 (full-time) hours equals $160 a day before taxes.
8 (hours) X $20 (per hour) = $160
If you work part-time, 20 dollars hourly times 5 working hours a day equals $100 a day before taxes.
5 (hours) X $20 (per hour) = $100
How much is 20 dollars an hour a year after taxes?
If you earn a yearly income of $41,600, you can expect to pay about 15.6% ($6,489) in taxes.
This amount includes Federal income taxes, Social Security, and Medicare payments. If you live in a state that collects an additional state income tax (all but 9 states in the US), you’ll pay an extra 3.2% in state taxes.
Therefore, if you work 40 hours a week, your take-home pay will be about $35,131 a year.
If you work part-time (25 hours a week), your after-tax income will be about $22,596 a year.
Comparison chart of $20 an hour (working full-time)
The calculations below are based on an hourly wage of $20 for a person working full-time (40 hours a week).
| Time period | # of hours worked | Income before taxes | Income after taxes (average) |
|---|---|---|---|
| Daily | 8 | $160 | $135 |
| Weekly | 40 | $800 | $676 |
| Bi-weekly | 80 | $1,600 | $1,351 |
| Monthly (average) | 174 | $3,460 | $2,928 |
| Yearly (with unpaid vacation) | 2,000 | $40,000 | $33,845 |
| Yearly (with paid vacation) | 2,080 | $41,600 | $35,131 |
Related: How much is $40,000 a year per hour?
Comparison chart of $20 an hour (working part-time)
The chart below is based on a person earning 20 dollars an hour who works 25 hours a week.
| Time frame | Total # of hours worked | Income before taxes | Income after taxes (average) |
|---|---|---|---|
| Daily | 5 | $100 | $87 |
| Weekly | 25 | $500 | $435 |
| Bi-weekly | 50 | $1,000 | $869 |
| Monthly (average) | 108 | $2,160 | $1,883 |
| Yearly | 1,300 | $26,000 | $22,596 |
Can you live off of 20 dollars an hour?
If you’re a young worker, chances are you’re wondering if 20 dollars an hour is enough to live on. The answer, unfortunately, is maybe.
It depends on your location, your lifestyle, and how much money you need to get by.
In some places, 20 dollars an hour will barely cover your rent – while in others, it’ll leave you with some cash leftover at the end of the month.
The housing crisis has certainly made it more difficult for many of us to afford basic living expenses.
The cost of rent, food, and utilities are quickly going up, while wages remain stagnant.
Think about it…if you’re earning the minimum wage in America ($7.25), it would take at least two full-time jobs just to make ends meet in some states.
So what’s the verdict? Is 20 bucks an hour livable in today’s economy?
In most cities in America (excluding the most expensive), you can live on $20 an hour. You’ll just need to make some sacrifices and get creative with your budget.
Unfortunately, if you live in cities like New York City, San Francisco, or Honolulu, it’s next to impossible to get by on an annual salary of $41,600.
Is 20 dollars an hour good for a teenager?
Considering the fact that the majority of working teenagers earn minimum wage (or just over), yes, 20 dollars an hour is a good salary for a teenager.
If you are a teenager, there’s a good chance you keep your monthly expenses low by living with your parents. If this is the case, take advantage of a higher salary, and save as much money as you can for your future.
Cause, the way the economy is going in America, It’s gonna be expensive.
Can you buy a house if you make $20 an hour?
The answer to ‘can I buy a house on $20 an hour’ is complex.
It’s possible, but it depends on where you live. If you’re willing to live in a smaller house or a cheaper location, 20 dollars an hour is enough to afford a mortgage on a home that costs less than $200,000.
Given the fact that the median price of a home in the US in 2021 was $374,900, a $200,000 home (in many cities) will likely need some work done to it.
That said, if you want to live in one of the most expensive cities in America or buy a large home, 20 dollars an hour simply won’t be enough.
You’ll increase your chances of qualifying for a mortgage if you:
- Don’t have any debt
- Have an emergency fund in place
- Have a debt-to-income ratio of less than 43% (<36% is better)
- Aim for a monthly payment no more than $1,100 per month
Related: How much is 6 figures?
Tips to living on $20 an hour
- Save money by living on a budget-know where every dollar goes (use a budget planner to stay on track)
- Keep housing expenses low
- Save on auto and homeowner’s insurance-Gabi is a free service that compares rates and finds you the best deal on insurance
- Earn cash back when you shop with Dosh, Ibotta, Rakuten (you can use all 3 of these services at once!)
- Look for free or cheap ways to have fun
Related: $60,000 a Year is How Much an Hour?
Ways to make more money if 20 an hour is not enough
If you find that $3,460 is not enough to live on, there are plenty of ways to increase your monthly income.
- Ask for a raise
- Work for overtime pay
- Change jobs
- Go back to college (or trade school) to build up your skills
- Complete surveys in your spare time
- Add a side hustle (here’s a list of work-from-home jobs that’ll earn you an extra $1,000 a month)
Tip: Don’t be afraid to think outside the box when it comes to finding ways to earn extra money…ever thought about becoming a foot model?
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Jobs that pay $20 an hour with little or no experience/degree (updated for 2024)
Good news! According to an article by The Wall Street Journal, many companies will be raising wages for their employees in 2024!
Until then, there are plenty of jobs that currently pay 20 dollars an hour without a degree. Including jobs that allow you to work from home.
| Job | Average pay (per hour) | What they do |
|---|---|---|
| Bartender | $20.00 | Mix and serve drinks to customers |
| Chef/Head Cook | $25.66 | Oversee the daily food preparation at restaurants and other places where food is served |
| Lodging Manager | $27.25 | Make sure traveling guests have a pleasant experience at their establishment with accommodations and ensure that the business is run efficiently |
| HVAC Tech | $24.32 | Work on heating, ventilation, cooling, and refrigeration systems |
| Proofreader | $22.54 | Proofread manuscripts and publications, recommend changes to grammar, punctuation, and word choice |
| Property Manager | $25.68 | Take care of the many aspects of residential, commercial, or industrial properties |
| Graphic Designer | $25.66 | Create visual concepts, using computer software or by hand, to communicate ideas to customers |
| Tutor | $21.29 | Aides and supports learning of students |
| Massage Therapist | $20.97 | Treat clients by using touch to manipulate the muscles and other soft tissues of the body |
| Virtual Assistant | $22.00 | Works remotely, handling email, social media accounts, proofreading, graphic design, and more |
$20 an hour budget – example
Below is an example budget for someone who earns $2,928 per month after taxes using a 70/20/10 budget.
A 70/20/10 monthly budget breaks spending down as
- 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 | $1,100 |
| Utilities | $180 |
| Transportation | $250 |
| Groceries | $300 |
| Debt Repayment/Charitable Contributions | $293 |
| Health/Life Insurance | $100 |
| Long/Short-Term Savings | $585 |
| Entertainment | $120 |
20 dollars an hour final thoughts
So, is $20 an hour considered good money in America? More importantly, can you actually live on it? The answer is yes… and no. It really depends on your individual circumstances.
If you’re willing to make some sacrifices and live in a modest home or apartment, 20 dollars an hour is enough to get by. However, if you want to live in a major city, 20 dollars an hour just won’t be enough for your needs.
You may need to get creative and take some risks with side hustles or other part-time work to supplement your income in order to get by comfortably.
