Want to know how much you make per hour if your annual salary is $40,000? Keep reading to find out!
$40,000 Per Year is How Much Per Hour?
When weighing the costs and benefits of a potential job or side hustle, it’s a good idea to convert your pay into an hourly rate. This will help you to know if the job is worth your time based on the opportunity cost. If you assume 2,080 hours in the work year, your hourly income would amount to roughly $19.23 per hour. In the figure above, this assumes a 40 hour work week for 52 weeks. Do you get vacation or personal time off of work? Then you’ll actually be making more per hour. Below are a few examples.
For those with 2 weeks of paid time off (PTO) per year, your true hourly rate would be $20 per hour.
For those with 3 weeks of paid time off (PTO) per year, your true hourly rate would be $20.41 per hour.
However, this can also work in the opposite direction. Do you find yourself consistently working 50 hours per week? If so, your hourly pay would amount to $15.38. This is significantly less per hour.
$40,000 a Year is How Much Per Paycheck?
Now that you know your hourly rate, you might be wondering how much that would be per paycheck. We’ve calculated it for you!
For those paid monthly (12 times per year), your pay would be $3,333.33 each month before any deductions
For those paid biweekly (every 2 weeks), your pay would be $1,538.40 before any deductions
For those lucky enough to be paid weekly, your pay would be $769.20 each week before any deductions.
How Much is a $40,000 Salary?
The average household income is roughly $56,000 in the United States making a $40,000 salary slightly above average assuming a dual income.
Is $19.23 a Good Hourly Rate?
If you’re making $40,000 a year, or $19.23 per hour, you’re probably wondering how that compares to others. To put things in perspective, the minimum wage is currently $7.25 per hour, meaning you make more than twice (almost 3 times!) the minimum wage.
If you make $40,000 per year, you will make $153.84 per day (assuming a normal work week)
Want to Make More Than $40,000? If $40,000 isn’t enough for your lifestyle, there are many ways you can make more money. Below are some of the best ways you can make more money if you have a $40,000 salary.
Drive for a Ride-Hailing Service
While this might not be the most sexy option to make money, it does work and is quite simple to get started. You can register on various ride-hailing service websites and can get approved in less than one week. You can make as much as $20 per hour for your time driving, but you’ll need to deduct some common expenses like fuel and car maintenance.
Ask for a Raise
Many people overlook this option of making more money out of fear of being rejected. It’s important to realize that there are only two potential outcomes of asking for a raise, yes or no. Every additional dollar you could end up making could go towards paying off debt or saving for retirement.
Pick Up a Part-Time Job
If you work a normal desk job from 8-5, you’ll probably have some time available on week nights and weekends. You can use this time to work a part-time job giving you a boost to your income. Even if it doesn’t pay as well as your day job, it’s still an excellent way to knock out debt and take control of your finances.
The market for flipping furniture, electronics, sneakers, and many other items has exploded over recent years. When it comes to furniture, consumers looks the unique character that antique pieces may relish and are willing to shell out a sizable amount for them. Electronics can be considered more easy and quicker to flip in some cases. While you might not make as much per piece as you would furniture, you can increase the quantity of sales because of the lower time requirements.
Can I Invest Making $40,000 a Year?
No matter the amount of money you make, you should always try to save some of it for investing. Between retirement accounts and other investment accounts, try to invest as much as you can to maximize the effects of compound interest.
Conclusion: Making $40,000 Annually
A $40,000 annual salary is certainly more than many American’s make. However, if you do not feel as if it is enough, there are many methods you can use to make more money. Between flipping furniture, or driving for a ride-hailing service, your options are endless. Looking for to learn how much other salaries are per hour?
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