When you begin your search for employment, there is no denying that the salary attached to a job will have a huge influence on the jobs that you apply for.
But, it isn’t just the amount that you will be getting paid that might influence the types of jobs that you apply for. The way in which you get paid will likely have an influence on this too.
For example, if you have previously been paid by the hour, then it is likely that you will be eager to get a job that comes with a salary.
If you successfully get a job that pays a good salary, then it is an incredibly exciting time. But, once you break that salary down into an hourly rate, you might quickly realize that you aren’t being paid as much as you first expected. Especially when you budget your bills against your monthly income.
So, if you have recently been offered a job that pays $50,000 a year, you are likely wondering how much you will be earning an hour for that job.
In this guide, we’ll be taking a look at how much you will earn an hour with a $50,000 job, and if this is a good salary. So to find out more, keep on reading.
How Much An Hour Is aA $50,000 Salary?
Well, first things first, let’s take a look at what the hourly rate of pay is for a person working a job that comes with a $50,000 salary. When you first hear the number ‘$50,000’, it is easy to think that this is a lot of money, and that is because it isa lot of money.
But, when you begin to break that figure down, you will quickly see that it isn’t as much as you might have first anticipated.
To begin with, let’s take a look at what $50,000 is withouttaking into account any of the factors that reduce your salary.
By this, we mean that we will take a look at what a $50,000 salary is without taking into account taxes, retirement contributions, and medical insurance. As a base, let’s first take a look at how much you would earn an hour if $50,000 was your take-home pay.
There are 2 main types of shift patterns in the USA regarding hours. They are 40 hours a week, and 50 hours a week. It is possible that you might work more hours than these, but they would be considered overtime and would notbe factored into your salary.
In order to calculate how much an hour you will be paid, we first need to divide $50,000 by the number of weeks in a year, which is 52.
If you are on a $50,000 salary, you will be earning around $961.54 (without taxes, etc. taken away). So, if you are working a traditional 40-hour week, you will be being paid approximately $24 an hour.
Whereas, if you work a 50-hour week, then you will be being paid a lower hourly rate of around $19 an hour. But remember, we have drawn this figure withouttaking taxes and other deductions into account.
So, how do these hourly rates compare to the Nation’s average? We’ll be taking a look at this shortly, but first let’s take a quick look at the difference between hourly pay and a salary.
Salary Vs Hourly Pay
Across the globe there are 2 primary types of payment methods in employment. They are hourly pay, and salaried pay. When you first enter the world of employment, it is likely that you will take a job that pays by the hour.
That is because a lot of entry-level positions (waitressing, bar staff, etc.) pay by the hour because a lot of these jobs include variable hours. Whereas jobs with stricter hours, such as 9-5 shift patterns or 12-hour rotating shift patterns, tend to come with a salary.
There are benefits and drawbacks for both salaried and hourly jobs, and ultimately whether, or not, you are feeling the benefits will depend on the type of job that you do.
With a salaried job, you are only being paid for the hours that you are scheduledto work (unless there is a paid overtime agreement with your employer), whereas with an hourly job, you are paid for every hour that you work.
Most of the time, a salaried job is seen as more desirable than a job that pays by the hour. That is because you tend to get paid more an hour when your job has a salary, than when you are actually paid by the hour.
That is because the hourly rate in most salaried jobs is higher than the average hourly rate. Salaried jobs also tend to come with more flexibility, and you will often find that you can leave work for medical appointments without issue. Whereas if you do this in most hourly jobs, you simply won’t be paid.
However, a lot of the time, salaried jobs also tend to come with a lot more stress. With most salaried jobs, it is difficult to switch off from work, and you will frequently find that you are expected to work far more hours than you are paid for.
Due to the agreement between you and your employer, it can be difficult to refuse to work these hours, and you might find yourself consistently working more hours than you are paid for.
But, whether, or not, a job with a salary or hourly pay is a good job will depend on the position, and the relationship that you have with your employer.
Is $50,000 A Good Salary?
Now that we have taken a look at the differences between hourly pay and a salary, let’s take a look at whether, or not, $50,000 is a good salary.
In a way, the answer to this question is fairly subjective, and it will depend on your personal situation. But, let’s start by taking a look at this objectively.
There is no denying that $50,000 a year is a decent salary, and that is why a job with this figure attached to it is very appealing. However, $50,000 is not a high salary in comparison to the amount that you couldearn in your career.
Ultimately, whether, or not this salary is a good amount will depend on where you are in your career. If you are just starting out, then $50,000 is a good amount because it means that you will likely increase this amount in the future.
But, if you have been in your line of work for a long time, and you haven’t received a pay rise past $50,000, then this could be concerning.
That isn’t to say that $50,000 is a bad salary. This figure is a lot more than the minimum wage in all the States in the USA, and it is more than enough if you live within your means.
But, as you progress in your career, and as your expenses go up throughout the years, it is desirable for this figure to increase. Especially as the number of people you have to provide for increases.
However, as long as you are living within your means in the area of the country where you live, then $50,000 is a decent salary.
Especially if you only have yourself to provide for. But, as you progress through life, you might want to question if this is the amount that you want to be earning.
How Does It Compare To The Average?
In order to confirm if $50,000 is a good salary, we have to compare it to the average. The average salary for an American working full time is around $36,000 a year. So, if you are working a job that comes with a $50,000 salary, then you are earning considerably more than most Americans.
In fact, with a salary of $50,000 a year, you are earning closer to the average household income in America which is around $68 to $69,000. So, the amount that you are earning is close to the amount that a lot of 2 adulthouseholds earn.
But, just because you are earning more than average does not mean that you are earning a high amount of money. There are a lot of low-income earners in the USA, and this will bring down the overall average income for the USA.
So, just because you are earning more than average does not mean that you are among the highest earners in the USA.
It is important to also note that averages change. The averages that we have just looked at were true in 2019, but in 2021, it looks like the averages have increased.
In fact, in the second quarter of 2021, the average income was $990 a week. If you multiply this by 52 weeks, it comes to around $50,000. So, it could be argued that a $50,000 salary is now an average wage.
Despite this, $50,000 is still a great salary for a single person to bring home. If you are notthe only adult in your household, then earning this figure could allow you and your partner to comfortably earn a 6-figure annual income between you.
But, depending on where you live, and the means by which you live, this figure might not be as comfortable as you would expect. With that in mind, let’s take a look at how much you should expect to earn a month if you are on a $50,000 salary.
How Much A Month Is $50,000 A Year?
A lot of the time, when you are paid a salary, you will be paid on a monthly basis. There will usually be a set date of the month when you are paid, and you will receive your paycheck on this date, or the closest working day to it.
When you are paid monthly, you then have to plan your entiremonthly budget around this figure, so it is important that you know exactly how much you should expect to be earning a month. So, let’s take a look at how much you would earn a month if your salary is $50,000 a year.
Ignoring deductions for taxes, medical insurance, and retirement contributions, you will be paid more than $4,000 a month on a $50,000 figure.
In fact, you should expect to earn around $4,166 a year. So, as long as you live within your means, you will be able to live happily off of a $50,000 salary.
But, this is something that a lot of people struggle with. In the modern day, there is a huge focus on flashy things, and it is almost expected that you will buy a large house and drive an expensive car.
When you first start earning $50,000 a year, then it is likely that you will have the funds to be able to splurge on these things. But, once your family begins to grow, and you take things such as inflation into account, there is a good chance that these funds will quickly be restricted.
That is why a lot of people do notconsider $50,000 to be a good annual income, as it doesn’t leave you much room for growth.
That is why it is important to decide if$50,000 is a good salary based on whether you have maxed out your career, and if there is an opportunity for growth in the future.
If you are earning $50,000, and you don’t anticipate a pay rise at any point, then this pay could be considered low if the amount of people that you have to support increases in the future.
How Much Is $50,000 A Year After Taxes?
Now, it’s about time that we speak about the thing that we have been avoiding talking about, and that is taxes. While paying your taxes is something that you might be dreading, it is something that cannot be avoided. So, let’s take a look at how paying taxes will affect your income if you earn a salary of $50,000.
The deduction for your taxes is one of the largest losses that you will have from your income, and that is why it is one of the most painful. It is also one of the hardest to calculate because the amount that you will have to pay for your taxes will differ from year to year.
That is why it is impossible to give a specific figure for how much you will earn after taxes on a $50,000 salary.
There are 3 types of taxes that you will have to pay. They are state taxes, federal taxes, and social security/medicare taxes. The percentage that you will have to pay for each differs. But, for this example, let’s assume that the rates are 12% federal, 4% state, and 7.65% social security/medicare.
Calculating percentages is easy, so to figure out how much you have to pay in taxes you simply have to calculate all of these taxes as a percentage of $50,000.
For the 13% federal income tax, $6,000 will be deducted from your annual income. Likewise, for the state taxes, $2,000 will be deducted, and $3,825 for social security/medicare.
Overall, this means that $11,825 will be deducted from your annual income, so instead of earning $50,000, you will actually take home $38,175.
So, if the tax percentages that you are personally expected to pay are high, it couldtake a lot of money from your $50,000 salary.
But, this is just an example, and it is a high example too. However, it does demonstrate how greatly a $50,000 salary can be affected by tax contributions.
Is $50,000 A Year Middle Class?
Despite taxes, and inflation, $50,000 is still a good annual income. Especially if you only have yourself to provide for. In fact, $50,000 is actually a high enough annual income for you to be considered middle class if you earn this amount.
That is because any household income between $50,000 and $135,000 is considered to be middle class. So, while $50,000 is at the lower end of the scale, it is still considered to be a middle class income.
But remember, class is ranked by your overall household income. So, it is likely that if you and your partner both work that your overall household income will be well into the middle-class figures.
Potentially into the upper class figures. That is the great thing about being a multi-income household. That is why $50,000 is viewed as a more favorable income if you have another income entering your home too.
What Jobs Pay $50,000 A Year?
If you are interested in earning $50,000 a year, then it is likely that you will want to know what jobs you could apply for in order to achieve this. It is important to note that a lot of jobs that have a $50,000 salary are ones that you will have to train for. That is why a salary this high is usually associated with careers rather than jobs.
The good thing about this is that careers often come with the opportunity of advancement. So, while you will earn $50,000 at the moment, it is likely that your salary will increase in the future. So what are some jobs that will pay $50,000 (or more) a year? Let’s take a quick look.
The sorts of jobs that come with this high a salary are actually pretty varied. This is, of course, a good thing because it means that there are lots of opportunities for you if you want to earn this much.
These jobs include things such as being a property manager, being a pipe welder, and being an insurance specialist. But it isn’t just limited to this, for $50,000 a year you could also get a job as an executive assistant, sales representative, and a truck driver.
As you can see, some of these roles are ones that you will have to train for a number of years in order to achieve, whereas some of them are jobs that you could easily stumble into.
So, achieving a job that comes with a $50,000 salary is something that you could do in your lifetime.
Can You Live Comfortably On $50,000?
But, the most important thing that you probably want to know about a $50,000 salary is whether, or not, this is an income that you can live comfortably on.
Ultimately, this will depend on your personal situation, and the number of people that you have to support, but let’s take a deeper look at this.
In short, yes, you can live comfortably on $50,000. As we have said, this is considered to be a fairly high salary, and if you earn this amount you are actually considered to be middle class.
But, it is essential to remember that even those who earn 6-figure salaries are unable to live comfortably, and that is because they have pushed themselves beyond their means.
So, if you earn $50,000, it is crucial that you calculate your monthly income after taxes and essential deductions before you start splurging.
But, even if you treat yourself, you will still be able to live comfortably on a $50,000 salary as longas you only have yourself to support.
When you are a single-person household, your bills are significantly lower, and this means that you will have more disposable income to spend on non-essential items.
Likewise, if you earn $50,000 and your partner also brings home $50,000, you will be able to splurge on items that aren’t necessarily essential.
But, if you are a single parent, or you have to support an entire family on just your wage, then $50,000 is not a comfortable income. Especially if you have multiple children to support in your family.
If you have just one child, then you, your child and your partner will be able to live a comfortable life, as long as you live within your means. But, as that number increases, your finances will become more and more stretched as the cost of care for a child is just below $13,000 a year.
So, with every extra child that you have to support, the money that you will have to spend to support your family increases.
How Do You Calculate Hourly Rate?
A lot of the time, employers will not pay $50,000 on the dot. Instead, there will usually be a couple of hundred dollars difference, either above or below this figure.
While this difference is small, it does impact your income. So, let’s take a look at how to calculate the hourly rate. Here are some simple steps to follow.
Deduct Taxes
The first thing that you need to do is deduct your taxes from your overall income. To do this, simply find out the percentage that you are expected to pay on each tax a year, and calculate how much of your income makes up each tax. Add these figures together then deduct it from your overall salary.
Divide By The Number Of Weeks
Next, you will have to divide that number by the number of weeks in a year. There are 52 weeks in a year, so divide the number by this to calculate your weekly rate.
Divide By Your Hourly Contract
Finally, divide your weekly rate by the number of hours that you are contracted to work a week. This will usually be either 40 hours or 50 hours. Once you have made this division, you have calculated your hourly rate.
Summary
In short, if you are being paid a salary of $50,000 a year, you will be earning around $24 an hour if you work 40 hours a week, and $19 if you are contracted to 50.
But, this figure is beforetaxes, so once you deduct this, your hourly rate will be lowered. In this guide, we have taken a look at everythingyou need to know about earning $50,000 a year, so if you want to find out more, check out the guide above.
Hi, my name is Deborah White, and I love to save money where possible. I will be the first person to admit that I am frugal, but when you have three children and two low income salaries, saving money makes all the difference. This is why I decided to set up this site, to help others save money too.
