$24 Dollars an Hour is How Much a Year? Is This Good Income?

So you’re earning 24 dollars an hour and would like to know how much this comes up as an annual salary. In this article, you’ll find out 24 dollars an hour is how much a year, a month, a week, and a day, so you can budget your income better.

Many employers offer compensation as an hourly wage. While this is quite the norm, you’re also left wondering if the hourly pay is enough for you to live on. For instance, can you live comfortably earning 24 dollars an hour?

Unfortunately, you can’t answer this question by looking at your hourly wage. Instead, you need to convert your hourly wage into different units to gauge if this income is good money.

In this article, we will answer this vital question: 24 dollars an hour is how much a year? What is your daily, weekly, and monthly income? What is take-home pay after taking out the taxes?

What is the Yearly Salary for 24 Dollars Hourly Pay?

The first thing we need to know to gauge whether 24 dollars is good to pay is to convert it into an annual salary.

24 dollars an hour is how much a year?

To find out your yearly income if you earn 24 an hour, we first need to know the following:

The number of hours a week you spend working
And the number of weeks you work in a year

Assuming you have a full-time job wherein you work 40 hours a week. You also don’t get paid vacation, so you work all 52 weeks a year. Now we multiply these two:

40 hours a week x 52 weeks in a year = 2,080 hours in a year

Therefore, an hourly employee who works full time without paid time off renders a total of 2,080 working hours.

Now to find your gross annual salary, we multiply this by 24 dollars an hour:

2,080 hours x $24 an hour = $49,920

So the equivalent annual salary based on the computation above is $49 920 before taxes.

But what if you get paid vacation?

Most employees are eligible for approximately two weeks of paid time off. That means you only work 50 weeks a year, bringing your total working hours to 2,000. If this is the case, we find your gross annual income by doing the following:

2,000 hours x $24 an hour = $48,000

So 24 dollars an hour annually is $48,000 before taxes.

$24 Dollars an Hour is How Much a Year After Taxes?

The computations we did above are based on gross income. Then 24 dollars an hour is how much a year after-tax income?

You must first know your tax rate to determine how much in state income taxes are taken off your paycheck. Your filing status and annual income determine your tax rate.

According to Forbes, people who earn over $41,775 but not over $89,075, whether single or married, paid $4,807.50 (plus 22% of the excess over $41,775) in income taxes in 2022.

Therefore, if your gross income is $49 920, your approximate net annual salary is around $44,000.

What is 24 an Hour Annual Salary if Working Part-Time?

Compared to salaried employees, hourly employees may work part-time.

There is no clear mandate on how many hours part-time work is supposed to be. But according to my research, these are jobs wherein you work 30 hours or less a week.

Let’s say you render 30 hours a week; how much is 24 an hour annually, then?

Again, we follow the same formula we used above when computing the full-time income of a person who works 40 hours a week. We only need to change 40 to 30 hours a week.

So 30 hours a week x 52 weeks = 1,560 total working hours in a year

1,560 hours x 24 an hour = $37, 440 annual income

If you take two weeks of paid vacation, then:

30 hours a week x 50 weeks = 1,500 total working hours

1,500 hours x 24 an hour = $36,000 yearly salary

Please note that these computations are based on your gross income. We still need to take out income taxes from them. Also, your income could change based on your overtime pay and other paycheck deductions.

Monthly Salary for $24 Dollars Hourly Wage

Most people set a monthly budget to manage their finances. After all, following a monthly budget is so much easier than following a quarterly or yearly budget.

So if you’re paid 24 dollars in hourly wages, how much would your monthly salary be?

The best way to find out is to divide your yearly salary by 12 months.

So if you earn $48,000 per year, you divide this by 12, and you get $4,000 monthly. It is different every month because the number of working days could vary. However, this is a safe estimate for your gross monthly salary.

But this is not your monthly net income yet. If we take out taxes and other deductions from your monthly paycheck, you’ll make around $3,666 in monthly income. Later, we will use this figure to draft an example budget for 24 dollars in hourly wage.

What is Your Weekly Income for $24 Dollars an Hour?

Do you want to know how much money you make a week working 24 hours?

To do this, you need to determine the number of hours worked per week. If you work full-time, then you work 40 hours a week. Therefore:

40 hours a week x 24 an hour = $960 per week

$24 Dollars an Hour is How Much Biweekly?

Some people get paid biweekly, so it also helps to know how much income you make every two weeks.

Finding your biweekly income is easy if you already know your weekly income. Based on our example above, you make $960 per week working full time for 24 an hour salary. We only need to double this figure to find your biweekly rate:

$960 per week x 2 = $1,920 biweekly

$24 an Hour is How Much Per Day

Let’s figure out your daily rate for an hourly wage of 24 an hour.

Finding your daily rate is easy. You just multiply the number of hours worked by 24, and that’s your daily income. So if you work full time at eight hours a day, then we do this:

8 hours a day x 24 an hour = $192 per day

Again, remember that this is gross income, and your total salary may vary depending on overtime pay, overtime hours, paycheck deduction, taxes, and more.

How to Budget 24 Dollars an Hour Income

In personal finance, proper budgeting is one of the best foundations for managing your finances. You have to cover all your basic expenses and hopefully have more money left for savings, investments, and other short and long-term financial goals.

How do you budget 24 dollars hourly salary? I’ve come up with this sample budget so you can visualize how you could manage your income of 24 dollars per hour. Of course, our financial situation could differ, so feel free to tweak this budget based on your needs and lifestyle.

Here’s an example budget assuming your monthly net income is $3,666.

Housing 30% $1,099

Food and groceries 15% $550

Utilities 10% $366

Transportation 10% $366

Insurance 10% $366

Personal expenses 10% $366

Fun Spending 5% $183

Savings 10% $366

Is 24 Dollars an Hour a Good Pay?

Looking at the example for a 24-dollar-an-hour budget, you’ll see whether this income level is good enough for you.

According to the US Department of Labor, the federal minimum wage is $7.25 per hour. So if you make 24 dollars an hour, you’re earning more than thrice than a minimum wage earner.

Meanwhile, the US Bureau of Labor Statistics says that the median hourly wage of an average person working in the private sector is $31 per hour. This means you need to make more money to earn as much as the average employee.

But that doesn’t mean it’s not a good income. Look at the example budget above and see that this hourly wage can already pay for your basic expenses, as long as you’re not living in high-cost areas. Also, 24 an hour is comfortable enough to live on if you are single and don’t have any dependents. But if you are the breadwinner of your family, you must strive to increase your hourly rate or find other sources of income.

What Can You Afford with $24 dollars an Hour?

You can see that you can afford housing at around $1,000, which is achievable enough in areas with low living costs. According to the US Census Bureau, the median mortgage for average Americans in 2017 – 2021 was $1,697. But if you live in a cheaper state like Arkansas, you should be able to pay your mortgage comfortably with this income.

You could also rent apartments for less than $1000 monthly in the Central United States, such as North Dakota, Iowa, Wyoming, and Kentucky.

Also, this living wage gives you a decent amount to allocate for basic expenses, such as food, transportation, utilities, and insurance. For instance, Go Banking Rates says that the average spending for food and groceries in 2020 was $412 a month. We expect this figure to have increased over the past two years due to inflation. But you should be adequately covered if you spend $550 a month on food.

However, if you have a large family living in a high-cost area, you’ll probably have to stretch your food budget. You could employ money-saving tips on food and groceries to make the most of your money. Consider making more meals at home, reducing eating out, brown bagging your lunch to work, and planning meals around what’s on sale or in season.

If you are frugal, this hourly salary gives you enough room to save money and even some room for fun spending. You even have enough to start investing.

Jobs that Pay 24 Dollars an Hour

If you think 24 dollars is a great starting hourly rate for you to live by, here are some of the jobs that pay 24 dollars per hour you might want to consider:

How To Make The Most Of Your 24-dollar Hourly Wage?

24 dollars an hour may or may not be enough for you. How do you make this hourly rate work for you and maximize it? Here are my top tips:

Create and follow a budget to cover all essential expenses and control spending.
Cut unnecessary expenses. Cancel unused subscriptions that keep eating monthly fees from your account.
Ask for a raise. Talk it out with your employer if you think you are due for a raise and deserve it.
Create an extra stream of income. Put up passive income sources, so they keep making money for you even when you sleep.
Proactively seek out side hustles. You could spend your spare hours working on other things that bring money. You could use any additional income you make to beef up your savings, contribute more to retirement, or spend on long-term financial goals.
Seek a new job. If you’re unhappy with your living wage, it might be time for a career change offering more money.

Conclusion

To recap, $24 an hour is how much a year?

It is between $48,000 to $49 920 if you work full-time. It varies depending on the number of hours worked if you take a paid vacation, your tax rate, and overtime pay. This is not your take-home pay yet, so make sure to factor in taxes in your calculations.

$24 an hour is decent pay if you are single, quite frugal, and do not live in an expensive state or city. It could reasonably cover all your essential expenses, and you’ll have some money left for saving, investing, and spending fun.

But personal finance is unique to everyone, so depending on your needs and financial goals, you may have to work more per week or find a new job if this hourly wage is not enough to live on.