Getting paid for your goods or services is a rewarding and motivating feeling to have. Ensuring that you are compensated fairly is a vital part of this rewarding feeling. So, what if you are getting paid $50 per hour, is that good?
On average, receiving $50 per hour pay is considered to be in the higher levels of hourly pay and is a substantial amount of money to earn. At $50 per hour earned, you can expect to earn $100,000 before taxes per year.
Having the earning potential of $50 per hour is nothing to scoff at because you will essentially be pulling in six figures per year. Keep reading to see what the overall package of $50 per hour works out to be per year and what you can do with it.
How Much is $50 Per Hour In A Year?
There are many tools on the internet that can help you figure out what your whole amount of take-home money would be per annum if you earned $50 per hour. There are also more advanced calculators on the internet where you can simulate potential taxes that you will have when you are taking home $50 per hour.
When searching, look for any type of finance calculator where you can enter basic information, and in return, it will give you round numbers of what your overall take-home amount will be as well as a potential after-tax amount since we all know that taxes are an inevitable part of life!
If you want a quick glimpse at what you can earn in a year if you make $50 per hour, look below to find a breakdown of pre-tax and after-tax amounts.
How Much Will I Earn Pre-tax if I Earn $50 Per Hour?
If you earn $50 per hour, you can expect to bring home $100,000 pre-tax every year.
This, of course, will fluctuate as you will most likely have a package of pay connected to your overall dollar amount of earnings.
There are usually health benefits, vacation allowances, investments, and other perks that are tied into how much your salary is really worth. When looking into what your overall pay package will be, make sure that you review your contract carefully with your Human Resources representative or line manager and ask questions if you do not understand something on your contract.
Related Financial Geek Article: Is Making $30 Per Hour Good Money?
How Much Will I Earn After Taxes If I Earn $50 Per Hour?
If you earn $50 per hour, you can expect to bring home $75,000 after-tax per year.
In the United States, you can expect to be taxed based on your situation, investments, returns on investment, assets, and much more for that tax year.
What About Taxes?
The list below details the various tax elements where your money is taken out monthly, weekly, or biweekly depending on how you get paid at your company.
What will your status be when filing taxes (the U.S. only)?
- Married filing separately
- Head of Household
- Qualifying Widow(er)
- Married filing jointly
When you fill out your taxes, this is the first question you will encounter and it determines the base amount of tax that you will owe.
Earning $100,000 per year pre-tax will set you up for the tax bracket between 12% – 22% of your earnings depending on which category you fall into.
Useful Article: 2021-2022 Tax Brackets and Federal Income Tax Rates
Beyond this base tax bracket, there are other bits of tax that you may owe. The list below details what those bits could be, but bear in mind that this is different for everyone as not every circumstance is the same.
- Social Security
- Health Insurance
As a rule, always go over your taxes diligently, research what tax breaks you can get, and keep an eye on how much comes out monthly as this will change depending on your work and family circumstances.
How Much Can I Save In A Year When Making $50 Per Hour?
Saving money is something that we all are looking to do considering the rising costs of living and leisure that keep going up year after year.
Now knowing that earning $50 per hour can equate to having a six-figure payday per year, the need to save might be a bit higher on the list. If you are looking to save, there are several ways to go about saving when you are earning $50 per hour at your job.
Make A Plan To Save Each Month
As a rule, when you are making a plan to save money each month, you should consider trying the 50/30/20 rule.
Essentially, you should plan to use 50% of your monthly take-home for bills, 30% for wants/needs, and 20% for investments, savings, or debt repayment. With this plan, you can figure how much is 20% of your monthly take-home and set that aside for your savings.
This plan is flexible, low-stress, and easy to manage if you are looking for moderate savings month-to-month.
Create a Budget For Monthly Expenses
Making a budget for your monthly expenses is another way to track and grow your savings if you are earning $50 per hour at your job. Not to be confused with making a plan, a budget is a set amount that you are to pay towards bills, necessities, debts, and savings.
There are plenty of tools available to help set a budget from books, online websites, and financial coaches. Once you know how much you would like to save per month, then you can start to create your budget for other expenses around this savings goal.
The Bottom Line: You Can Do A Lot With $50 Per Hour!
Hopefully, you can see that earning $50 per hour is an incredibly good thing and well above average for a take-home hour amount.
There is a lot that can be done with $50 per hour pay as was evident in this article. You can comfortably take home around six figures a year.