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45k salary is a solid hourly wage.
For most people, a solid entry-level job with a degree or certification would be paying just over $45,000 a year. The question that remains is can you make a living off $45k a year.
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money out evenly between all of the people.
But, the question remains can you truly live off 45,000 per year in today’s society since it is well below both the average and median household incomes. The question you want to ask all of your friends is $45000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $45000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $45k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this $45k salary?
$45000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 45k a year hourly. That way you can decide whether or not the job is worthwhile for you. The same is true when getting your first job out of college.
For our calculations to figure out how much is 45K salary hourly, we used the average five working days of 40 hours a week.
Let’s breakdown how that 45000 salary to hourly number is calculated.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $45000 by 2,080 working hours and the result is $21.63 per hour.
45000 salary / 2080 hours = $21.63 per hour
$45000 a year is $21.63 per hour
Just above $21 an hour.
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
Just an interesting note… if you were to increase your annual salary by $5K, it would increase your hourly wage to just under $25 an hour – a difference of $2.41 per hour.
To break it down – 45k a year is how much an hour = $21.63
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $45K salary Per Month?
On average, the monthly amount would be $3,750.
Annual Salary of $45,000 ÷ 12 months = $3,750 per month
This is how much you make a month if you get paid 45000 a year.
$45k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $45k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of $45000/52 weeks = $865 per week.
$45000 a year is how much biweekly?
For this calculation, take the average weekly pay of $865 and double it.
$865 per week x 2 = $1,730
Also, the other way to calculate this is:
Annual Salary of $45000 / 26 weeks = $1,730 biweekly.
How Much Is $45K Salary Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x 52 weeks = 260 working days
Annual Salary of $45000 / 260 working days = $173 per day
If you work a 10 hour day on 208 days throughout the year, you make $216 per day.
$45000 Salary is…
|$45000 – Full Time||Total Income|
|Yearly (52 weeks)||$45,000|
|Weekly (40 Hours)||$865|
|Bi-Weekly (80 Hours)||$1,730|
|Daily Wage (8 Hours)||$173|
|Daily Wage (10 Hours)||$216|
|Net Estimated Monthly Income||$2,863|
|Net Estimated Hourly Income||$16.52|
45k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 45000 a year after taxes?
Gross Annual Salary: $45,000
- Federal Taxes of 12%: $5,400
- State Taxes of 4%: $1,900
- Social Security and Medicare of 7.65%: $3,442.50
$45k Per Year After Taxes is $34,357.50
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$34,357.50 ÷ 2,080 hours = $16.52 per hour
After estimated taxes and FICA, you are netting $34,357.50 per year, which is $10,642.50 per year less than what you expect. That is significant!
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $45000 income can range from $30,757 to $36,157 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $45,000 income.
45k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences of living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $45,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $45,000 a year is slightly below the average income that you would find in the United States. Thus, you have to be wise with how you spend your money.
What a $45,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
- You are able to rent in a decent neighborhood in LCOL and maybe a MCOL city.
- You should be able to meet your expenses each and every month.
- Ability to make sure that saving money is a priority, and very possibly save $3000 in 52 weeks.
When A $45,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 45k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
- You must pay off debt and cut all fun spending and extra expenses.
- Break the paycheck to paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$45K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 45k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $45000 a year salary:
|Category||Ideal Percentages||Sample Monthly Budget|
|Recreation / Entertainment||3-8%||$75|
|Debts||0% – Goal||$0|
|Government Tax (including Income Tatumx, Social Security & Medicare)||15-25%||$887|
|Total Gross Monthly Income||$3,750|
Is $45,000 a year a Good Salary?
As we stated earlier if you are able to make $45,000 a year, that is a decent salary. You are making way more money than the minimum wage and close to double in many cities.
While 45000 is a good salary starting out in your working years. It is a salary that you want to increase before your expenses go up or the people you provide for increase.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $45k salary would be considered a lower middle class salary. This salary is something that you can live on if you are wise with money.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per person income (source).
The question you need to ask yourself with your 45k salary is:
- Am I maxed at the top of my career?
- Is there more income potential?
- What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, many modest cities a 45,000 a year will not a good salary because the cost of living is so high, whereas these are some of the cities that you can make a comfortable living at 45,000 per year.
If you are looking for a career change, you want to find jobs paying at least $60000 a year.
Is 45k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $45000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 45k a good salary for a family?
Many of the same principles apply above on whether $45000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
As you can tell this is a huge dent in your income, specifically $12,980 annually per child. Here is how much you can expect to spend based on the number of kids:
- One Child = $12,980 per year
- Two Kids = $25,960 per year
- Three Kids = $38,940 per year
- Four Kids = $51,920 per year
- Five Kids = $64,900 per year
Personally, I believe the cost per kid drops some because you can pass down some of the baby essentials, clothing and you become savvier on where to spend money. Yet, the cost of feeding them will only keep growing.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $45,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
- The location where you live in.
- Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 45,000 per year, then the combined income for the household would be $90,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $45000 Per Year?
As we outlined earlier in the post, $45,000 a year:
- $21.63 Per Hour
- $173-216 Per Day (depending on length of day worked)
- $865 Per Week
- $1,730 Per Biweekly
- $3,750 Per Month
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 41,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and still making $45K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…