# \$32,000 a Year is How Much an Hour? [Is It a Good Salary?]

Wondering \$32,000 a year is how much an hour? Want to know how much it will be when calculated on an hourly, weekly, bi-weekly, and monthly basis?

Let’s say your typical work week is eight hours a day and forty hours a week adding up to \$32,000 annually; you’ll get an hourly pay of \$15.38. Of course, it doesn’t take taxes into account. And is based on the assumption that you work the entire 52 weeks or go for a paid annual leave.

So, will this be a good enough salary? And will it be sufficient for you to earn a living, support a family, purchase a house, or probably even afford an unpaid vacation? Read on to find out the answers to all of these questions.

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## \$32,000 a Year is How Much an Hour?

As laid out before, an employee making \$32,000 annually will earn \$15.38 on an hourly basis, before counting in the tax deductions and while working eight hours a day, five days each week in the year.

Here’s the math: \$32,000 divided by 2080 (no. of working hrs in a year) = \$15.38 an hour

## How Much is 32,000 a Year Per Week, Biweekly, and Per Month?

So, we’ve given you the average hourly wage you’ll get from a \$32,000 annual salary. Let’s do some math to arrive at your daily, weekly, bi-weekly, and monthly wages prior to taxes.

Again, assuming you work five days a week and for eight hours each day:

• 5 working days a week x 52 weeks in a year = 260 working days; 32,000÷260 = \$123 per day
• 40 working hours a week x 52 weeks = 2,080 working hrs; 32,000÷2,080 = \$15.38 per hour
• Your hourly wage multiplied by the total number of working hours per week; 15.38 x 40 = \$615.4 per week
• Your weekly wage multiplied by two; 615.4 x 2 = \$1,230.8 biweekly
• Finally, your weekly wage is multiplied by the number of weeks in a month (4);615.4 x 4 = \$2,667 per month. Or, you can multiply your biweekly wage by two: 1,153.6 x 2 = \$2,667 per month.

So, if you’re working a 9-5 job, five days a week for 8 hours a day, on a 32,000-salary per annum, you make \$15.38 hourly, \$615.4 weekly, \$1,230.8 biweekly, and \$2,667 monthly.

## \$32,000 a Year is How Much After Taxes?

The taxes incurred on your salary will depend on your tax bracket, filing status, tax exemptions, and the place you live in. The federal government imposes a progressive tax system, which means that those who earn more money are taxed at a higher rate than those who earn less.

Considering all the above, let’s find out \$32,000 a year is how much after taxes? We can calculate the approximate income tax using the net salary calculator.

Generally, a gross annual income of \$32,000 for an individual residing in New York results in an 18.6 percent tax deduction, which equals a total tax deduction of \$5,949. So after the \$5,949 taxes have been subtracted from the \$32,000 annual gross salary, your take-home pay will be \$26,051 per year.

So, calculating hourly, weekly, biweekly, and monthly paycheck for a \$26,051 net pay will give you approximately:

• Hourly: \$12.5 – calculated at 8 hours a day, 40 hours a week, and 2,080 hours a year,
• Weekly: \$500 (12.5 x 40),
• Biweekly: \$1,000 (12.5 x 80),
• Daily: \$100 (12.5 x 8),
• Monthly: \$2,165 (22 working days x 100 weeks).

Notably, this hourly rate can change depending on your state of residence.

For example, a resident of Nevada earning a \$32000 salary will attract a tax of 14.4% which results in a total of \$4,529 income tax deductions and a net yearly salary of \$27,472. This translates to an equivalent hourly wage of \$13.2. I’ll explain this later.

## Is \$32,000 a Year a Good Salary?

The answer to this question may depend on factors such as where you live, your lifestyle, family obligations, and if you have other sources of income.

According to the U.S Department of Labor, the current minimum wage is an hourly pay of \$7.25. Does this make a \$32,000 annual salary or \$15.38 per hour good money? Maybe, maybe not!

For instance, it would be a hassle to live on an annual salary of \$32,000 in New York City or California because the cost of living is considerably high.

At the same yearly salary, you might not strain so much in states like Mississippi and Kansas. So, it really all comes down to your individual circumstances.

## Can You Live Comfortably on \$32,000 a Year?

It may not be practically feasible to live comfortably on a \$ 32,000-a-year income. To support a family and live comfortably, you may have to strain your budget to make ends meet on \$32,000. However, if you live alone or live in an area with a relatively low living wage, you can make do with \$32,000 a year.

States with no state income tax including Nevada, Alaska, Florida, New Hampshire, South Dakota, Tennesse, Texas, Washington, and Wyoming may sound appealing.

It is worth noting, however, that even in these states, you will still pay the federal income tax, social security, and medicare, hence the 14.4% tax paid by the residents of Nevada as I mentioned earlier.

Further, states with no income taxes often make up for it by increasing taxes on sales and property. So, even in places like South Dakota and Washington with zero state taxes, the cost of living is pretty high!

I have shared tips to help you make do with a 32000 salary later in the article. Meanwhile, you can check out this post on how to stop living paycheck to paycheck.

## Where to Live on \$32,000 a Year?

If you want to live on \$32,000 a year, you may want to avoid major cities even in states with the lowest living wage. Consider remote places, like a small town, where housing and general living costs aren’t high.

The states where your chances of living on \$32,000 a year are higher include South Dakota, Kentucky, Arkansas, Mississippi, and Tennessee.

And, the top eight cities in the United States where you can live comfortably on \$32,000 a year include:

1. Memphis in Tennessee;
2. Shreveport in Louisiana;
3. Cleveland in Ohio;
4. Toledo in Ohio,
5. Rochester in New York;
6. Montgomery in Alabama;
7. Brownsville in Texas; and
8. Columbus in Georgia.

Still, even in such states, a living wage of \$32,000 works best for individuals. For a family, you would have to make approximately \$20 per hour. Check out \$21 an hour is how much a year to get an idea.

## Can You Buy a House With \$32,000 a Year?

It is possible to buy a house with a \$32,000 annual salary. However, how much house or the value of the house you can afford can vary from one individual to another even with the same salary.

For starters, annual income is just one of the factors that determine the mortgage that you can get. Other factors include debt to income ratio(DTI), your credit score, how much of your income you can dedicate to mortgage payments (front-end ratio), and how much downpayment you can afford.

Let’s say you want to buy a house worth \$200,000. Using this mortgage calculator for a general guideline, we can input varied figures of a downpayment, interest rate, and loan repayment periods to see what that means for you.

For example, if you have a downpayment of 20% of the home price which is 40,000, and you manage to get a mortgage loan at a 4.5% interest rate, and a loan repayment period of 30 years, you will need to pay a monthly installment of \$810 plus property taxes and insurance.

The figure changes, of course, when any of the variables above change.

## Can You Retire on \$32,000 a Year?

You can retire at \$32,000 a year, or any other salary for that matter if you plan for it in advance. Planning includes budgeting as early as now, living below your means, creating a financial plan, saving as much as you can, and paying as much of your debt as possible before retirement.

Financial experts also recommend delaying social security, planning for unexpected healthcare expenses, being flexible to relocate to a low-cost area after retirement, and working for longer if possible even if it is just part-time.

You can browse this list of low-stress jobs to do after retirement.

## Tips for Living on \$32,000 a Year

If you’re earning \$32,000 a year, you need to think about everything – from the basic expenses to wants. The best advice we can give is only to spend money on what you absolutely need and spare as much as you can.

Here are a few tips for living on \$32,000 a year.

1. Screen your needs and decide the ones that aren’t necessary. Then, fizzle them out, at least for now, and focus on the essentials; you can gradually save for others and buy them later.
2. Check your current spending habits and efforts on money management. List your fixed expenses, including your mortgage, utility, and other monthly expenses. Then, list your variable expenses, like shopping trips, and divide your monthly expenses into categories. Check out these 24 free printable budget templates that can help you keep track of your money.
3. Review the budget you set and identify areas you can cut back on. For example, you can cut your cable cord and use a streaming alternative or negotiate with vendors for a fee reduction. You can also cancel subscription services you don’t need and reduce your energy bill by using LED lights or a programmable thermostat.
4. Monitor your credit score; you should have a good one if you want to make the most of your money. A good credit score will help you obtain better terms on loan products, consequently reducing how much you spend on debt repayment.
5. Prioritize your financial goals, listing them in order of importance; this way, you can make bite-sized steps that your \$32,000 can sustain.
6. Always save before you spend. Then, try your best not to use the money you’ve saved without a good plan.
7. Finally, avoid borrowing, but if you have to, be sure to pay it up fast to avoid spending extra on interest.

## How to Budget for \$32,000 a Year?

Whether or not you’re expecting extra cash at the end of the month, you want to know where the little you have is entering. Several budgeting strategies are available for a \$32,000 annual salary, but here are some important general steps to follow.

• Determine your monthly income and calculate your monthly expenses. You can review a few months from your bank account to see where your monthly income is going. Include all the fixed expenses like mortgage and car payment adding variables like groceries and gas.
• List your monthly expenses and compare them with your monthly take-home salary after all the deductions.
• Outline your goals and priorities, creating a plan on how to spend without overspending. If you find that your expenses outweigh your income, you’ll need to spend less – or make more.

## Jobs That Pay \$32,000 a Year

Jobs that pay an annual salary of \$32,000 are usually entry-level jobs and can be great for new graduates. Most of these jobs only require minimum education. Some often hire applicants with little to no prior experience and put them through on-the-job training.

Below is a table showing some jobs that pay approximately \$32,000 a year along with their primary job duties.

## Tips to Increase Your Income

If you’ve realized “how much is 32k a year hourly” and discovered it’s not enough, you can work to raise it. You can increase your hourly wage and monthly income in the following ways:

1. Ask for a raise – not the go-to step for most people but it is the fastest way to boost your income over time.
2. Hone in your talent and passion and start a side job – for example, tutor some high school or college students for extra cash. Check out these side hustles that can earn 1000+ per month!
3. Join the networking business; you’ll typically be working remotely, so it won’t interfere with your 9-5 job.
4. Sign up on a freelancing site and offer your skills in exchange for money; you’ll earn daily this way. If you do it well, you may leave your 9-5 job and probably have people working under you.
5. Pay off your debts if you’ve got any, and avoid entering more debts. You’ll be surprised at how much your monthly income will increase when you don’t have debts to pay.

## Example Budget for a \$32,000 Salary

If you’re having trouble budgeting your salary, here’s an example of a budget for a \$2,165 monthly take-home pay,

• Pay Mortgage – \$1000
• Pay Utility bills – \$200
• Pay for Car Insurance – \$100
• Pay for Health Insurance – \$100
• Groceries for the month – \$100
• Phone +data subscription – \$100
• Gas – \$100
• Miscellaneous – \$200
• Total = \$1900; you have \$265 left – you can add that to your savings or fulfill some of your financial goals.

## \$32,000 is How Much an Hour: Final Thoughts

In answering the question, “\$32,000 a year is how much hourly?” you need to consider your living conditions, among other things. However, \$32,000 a year can be enough, maybe even more than enough, if you are accountable for your spending.

If you have mouths to feed, it may be more challenging, and you may have to make more sacrifices than someone who lives alone. However, by making wiser spending decisions, you can live on \$32,000 a year.

You only need to remember that being stretched and debt-free is better than having some money while accruing debts. With debts, you know your monthly income is gone even before it arrives. However, when you’re debt-free, you’re in total control of where and how you spend your money – and you’ll be at peace.