Suddenly, you find yourself entering a world where numbers come alive, swirling and dancing to the beat of hourly wages and annual salaries.

In this article, we will unravel the mystery behind the figure of $35. We will follow its path as it multiplies into a weekly wage, expands into a monthly income, and ultimately transforms into an impressive annual salary.

This is not just a mundane mathematical exercise; it is a profound exploration of the true value of your earnings.

Whether you’re a job seeker evaluating offers, or an employee negotiating a raise, rest assured that there is something here for you. So sit back, relax, and allow us to guide you through the journey of understanding how much you can make in a year when paid $35 an hour. 

$35 an Hour Is How Much a Year?

We’ve calculated the yearly income based on a $35 per hour wage, considering a normal 40-hour workweek. 

Here’s the step-by-step breakdown:

• Start with a typical workweek of 40 hours and a standard year comprising 52 weeks.

• Calculate the total number of working hours in a year by multiplying the weekly hours (40) by the weeks in a year (52), which equals 2,080 hours.

• Determine the gross annual income by multiplying the hourly rate ($35) by the total annual working hours (2,080), resulting in $72,800.

For comparison, a gross annual salary of $72,800 is considered middle-class income, as it surpasses the $50,000 threshold.

How About if You’re Working Part-Time?

The calculation changes slightly for part-time workers. 

Let’s say you work 20 hours per week instead of the standard 40:

• Begin with your weekly hours (20) and multiply this by the number of weeks in a year (52), which gives you a total of 1,040 working hours in a year.

• Next, calculate your gross annual salary by multiplying the hourly rate ($35) by the total annual working hours (1,040), equating to $36,400.

What Does $35 an Hour Translate to in Terms of Paycheck?

Monthly Paycheck

If your hourly rate is $35, your gross monthly salary should average approximately $6,066.60. This figure is derived by dividing the annual salary of $72,800 by 12 months. However, it’s important to note that this amount may vary due to factors such as the number of days in each month and the schedule of your paydays.

Salary Increase Insight: Should your hourly wage increase from $25 to $35, you could anticipate an average monthly increase of approximately $1,733. This represents a significant enhancement to your income.

Weekly Paycheck

For those interested in a weekly perspective, the weekly salary is calculated by dividing the annual salary of $72,800 by 52 weeks, resulting in approximately $1,400. This is the gross amount before any taxes and deductions are applied.

Bi-weekly Paycheck

If you receive your salary bi-weekly, you will typically receive two monthly paychecks. To calculate your gross bi-weekly salary, divide the annual income of $72,800 by 26 pay periods.

With an hourly rate of $35, your bi-weekly paycheck would be around $2,800, prior to any taxes and deductions.

Daily Paycheck

Your daily earnings are contingent upon the number of hours you work each day. For example, if you work an 8-hour shift, your daily earnings would be $280 (calculated at $35 per hour).

Paycheck Analysis: Hourly Rates and Earnings

How Does $35 an Hour Compare?

A wage of $35 per hour might seem like a substantial amount, and that’s because it is when compared to the national averages. If you’re working full-time at 40 hours per week, this hourly wage translates to an annual income of around $72,800. This figure significantly overshadows the median salary in the U.S., which stands at $56,473 per year.

Comparatively, the national average hourly wage in the USA is about $33.74, which puts $35 an hour above average. In biweekly terms, a $35 hourly wage would translate to approximately $2,800 before taxes.

Getting a job with a $35 per hour wage gives job hunters an edge over those starting their search. With this pay rate, candidates can expect attractive offers and valuable career guidance.

Is $35 an Ideal Hourly Wage?

That’s a question that tickles the mind, doesn’t it? Your location and lifestyle are the key ingredients in the secret recipe that determines the true worth of that paycheck. But let’s dig deeper and crunch some numbers with the federal poverty level in mind.

For all you fabulous singles out there without dependents, crossing the yearly income of the $13,590 mark would officially elevate you above the poverty line. On the flip side, if you have a family of four, then the target magic number becomes $27,740. 

We’re talking about a modest existence. Just sprinkle some budgeting magic, stay on top of those finances, and voila! You’ll be pleasantly surprised how far $35 an hour can whisk you away.

However, we must emphasize the importance of financial savvy and clever choices to maintain a comfortable lifestyle with a $35 hourly rate. By juggling your expenses skillfully and making wise financial decisions, this income level can splendidly cater to your individual needs and your lovely family’s necessities.

Paid Time off for Hourly Employees Earning $35 per Hour

Let’s never downplay the marvelous benefits of paid time off (PTO), particularly for those earning by the hour. PTO allows you to achieve a harmonious equilibrium between your professional commitments and personal life, all while ensuring your income remains steady.

Imagine this: a typical work week of 40 hours, stretched out over an entire year. Now, allow me to guide you through a pair of hypothetical situations that underscore the financial advantages of paid time off.

Scenario 1: Paid Vacation

Are you part of the fortunate group that enjoys a fortnight of paid leave each year? If so, give yourself a well-deserved round of applause! You maintain a steady annual income of $72,800, matching stride for stride with those enviable salaried colleagues of yours.

Scenario 2: No Paid Vacation

Regrettably, not every hourly worker is blessed with the luxury of paid vacation. In such instances, it’s vital to forecast a slight decrease in your annual earnings due to unexpected events or even some much-needed time off.

Imagine you take a two-week break without any pay; this leaves you with 50 weeks (or 2,000 hours) of work in a year, translating to an income of $70,000. So, while your day-to-day earnings might average around a cool two hundred dollars, remember to budget for those days when work takes a backseat. After all, everyone deserves a break.

How Much Is $35 an Hour After Taxes?

Have you ever wondered how taxes can impact your hourly wage? We’re here to guide you through it. Everyone’s tax situation is unique, but for the sake of clarity, let’s dive into this exploration with a few general assumptions:

• Federal tax rate: 12%

• Social Security and Medicare (FICA) rate: 7.65%

• State tax rate: 4%

• Gross Annual salary: $72,800

Now, let’s break down your potential tax deductions based on these assumptions.

Assuming you work 2,080 hours per year, we estimate your Net Hourly Wage to be: $26.7

So, if your gross hourly wage is $35, after taxes, you’ll take home around $26.7 per hour. That’s a difference of $8.2.

Remember, these calculations are just an estimate. Your actual tax rate and deductions may vary.

Did you know some states in the US don’t impose state taxes on salary income? If you live in one of these states, you’ll still need to pay federal tax and FICA, but imagine the potential savings! Here are those tax-free states:

• Alaska

• Florida

• Tennessee

• Nevada

• South Dakota

• Texas

• Washington

• Wyoming

• New Hampshire

Are you curious about what your net monthly income would look like if you lived in one of these states and earned $35 per hour? Let’s do the math together!

In a tax-free state, your estimated tax deductions would look something like this:

And your Net Monthly Salary? A cool $4,874

Isn’t it exciting to see how your financial landscape could change with just a little tax knowledge? 

Tips for Budgeting With a 35/Hour Salary to Maximize Savings

Cutting Corners Without Cutting Joy

Budgeting doesn’t have to mean sacrificing all the fun. It’s all about finding creative ways to save. Opt for potluck dinners instead of eating out, embrace second-hand shopping, or pick up a fun, free hobby.

You can still enjoy life while being financially responsible. Here’s how:

1. Embrace DIY: Do-it-yourself projects are not only fun but also cost-effective. For example, using a Cricut machine, you can create personalized greeting cards, home decor, and even clothing items. This can save you money and add a personal touch to your belongings. A Reddit user shared their experience with a Cricut Joy machine, indicating that it can make small cuts in corners, providing a unique touch to their DIY projects.

2. Learn to Cook: Eating out can be expensive. Learning to cook not only saves you money but also allows you to control what goes into your meals. It can be a fun and rewarding experience.

3. Second-hand Shopping: Thrift stores and online marketplaces offer a treasure trove of gently used items at a fraction of their original cost. It’s an eco-friendly option that’s kind to your wallet too.

4. Free Entertainment: Look for free activities in your community. Many cities offer free concerts, art exhibitions, and festivals. You can also opt for nature-based activities like hiking, picnicking, or beach days.

5. Trade and Barter: Swap items or services with friends or join a local barter group. This is a great way to get what you need without spending money.

Remember, the goal is to find a balance between saving money and enjoying life. It’s about making smart choices that align with your financial goals and lifestyle preferences.

The Magic of Automated Savings

Setting up automated savings is like having a financial fairy godmother. This ensures a portion of your paycheck goes directly into your savings account. Before you know it, your savings will start to accumulate without you lifting a finger.

The 50/30/20 Rule: A Tried and Tested Approach

The 50/30/20 rule is a classic in the realm of personal finance. This strategy involves allocating 50% of your income to necessities, 30% to wants, and the remaining 20% to savings and debt repayment.

Let’s crunch some numbers. Based on a $72,800 annual income, here’s how the 50/30/20 rule would play out:

• Necessities ($36,400): This includes rent or mortgage payments, utilities, groceries, health insurance, and car payments.

• Wants ($21,840): Think dining out, vacations, shopping sprees, and other non-essential expenses.

• Savings and Debt Repayment ($14,560): This category is all about the future you. Whether it’s paying down debt, saving for retirement, or building an emergency fund.

Adjust Your Budget Over Time

Budgeting isn’t a set-it-and-forget-it process. As your income, lifestyle, and goals change, so too should your budget. Regularly review and adjust your budget to ensure it’s still serving your needs and helping you reach your financial goals.

For instance, if you have a goal of buying a house in the next year, then you may prioritize increasing your savings rate to give yourself an edge. 

On the other hand, if you recently changed jobs and now make more money, you can increase your spending on wants without compromising your savings goals.

It’s all about finding that sweet spot that works best for you.

Emergency Fund

An emergency fund is a crucial part of any budget. Aim to save enough to cover three to six months of living expenses. This fund acts as a safety net for unexpected costs like medical emergencies or sudden job loss.

Tracking Your Spending Habits

Knowledge is power when it comes to budgeting. By keeping a close eye on your spending habits, you can identify areas where you might be overspending. There are numerous apps available that can help you track your spending and provide insights into your financial habits.

Here’s a quick look at some popular budgeting apps:

• Mint: Offers comprehensive budget tracking, bill management, and personalized savings tips.

• YNAB: Connects to your bank account to provide detailed spending insights.

• PocketGuard: Automatically categorizes your expenses so you can easily track where your money is going. 

Other popular options include Acorns and Digit. The key is to find what works best for you and your budgeting needs. 

Invest in Your Future

As part of your 20% savings, consider investing in a retirement plan, such as a 401(k) or an IRA. This not only provides a nest egg for your future but can also offer tax advantages. If your employer offers a 401(k) match, be sure to take full advantage, as it’s essentially free money.

Conquer the Debt Monster

Taking on debt is a crucial part of nailing budgeting on a $35-per-hour salary. Be in control by tackling high-interest debt, like those pesky credit card balances, as a priority. Your debt-to-income ratio fluctuates with your salary, so staying up-to-date is key.

Types of Jobs That Pay 35/Hour Salary

If you are looking for jobs that pay $30/hour, job search and career advice websites can be helpful. Some job titles that typically offer this salary range are:

These careers can potentially pay you a salary of $35 per hour or more. By putting in hard work and commitment, it’s achievable to reach that aim.

Side Hustles To Supplement Your $35 Income

In today’s world, having a side hustle has become an increasingly popular way to supplement income. For those earning $35 per hour, these additional income streams can help reach financial goals faster and provide a safety net for unexpected expenses. 

Here are some of the most effective and lucrative side hustles you can consider:

Freelancing

As highlighted by Forbes, freelancing tops the list of easy side hustle ideas. If you have a skill that’s in demand, such as graphic design, copywriting, or programming, you can offer your services on a freelance basis.

Delivery Services

Entrepreneur suggests delivering for PostMates as another great option for earning extra income. Similar to working for Uber and Lyft, this type of gig offers flexibility and the potential for tip income.

Ride Sharing

The Savvy Couple mentions ride-sharing as one of the best side hustle ideas. When the kids are at school, and you’re home with some spare time, driving for a service like Uber or Lyft can be a profitable way to make use of that free time.

E-Commerce

Investopedia ranks e-commerce as one of the most profitable side hustles. Platforms such as Amazon, Shopify, and Etsy provide an easy way to set up a virtual store and start selling products online.

As there are so many side hustles available, it’s important to find the one that best suits your lifestyle and goals. Consider which will work best for you and your budgeting needs.

Final Thoughts on a $35/Hour Salary

When budgeting on a $35 per hour salary, it’s important to remain mindful of your own needs and goals. Everyone’s financial situation is unique, so find what works best for you and adjust as required. 

With the right mindset and dedication, it’s achievable to create a sustainable budget that sets you up for financial success. So take charge and make your budget work for you. With focus, determination, and a bit of creativity, you can reach any financial goal.

The post $35 an Hour Is How Much a Year? appeared first on Good Financial Cents®.

This figure surpasses the GDP of several small nations. For instance, Samoa reported a GDP of approximately 830 million USD in 2022.

Or consider that according to Investopedia, 7-figure wealth is what puts you among the top 0.1% of the wealthiest people on the planet. This means that having nine figures puts someone at an even more elite level, one whose luxury extends far beyond mere financial freedom.

Only a small fraction of individuals or companies globally can boast such immense wealth. However, it is not an unattainable goal. Let’s take a look at some of the strategies you can employ to accumulate substantial wealth while also examining the lifestyles and pursuits of those who have successfully achieved it.

How Much Is a 9-figure Salary?

A nine-figure income signifies any earnings that flaunt nine digits, starting from $100,000,000 and soaring upwards. To put it into words, we’re discussing one hundred million dollars. 

Quite a mind-boggling figure, isn’t it?

It’s like being handed the keys to a kingdom of unimaginable wealth. But remember, this is a sphere occupied by only a select few worldwide. 

Their playgrounds? Often, you’ll find them in the tech sector, inheriting vast wealth or expanding an already thriving family business.

Now, let’s delve a bit deeper, shall we? 

When we speak of nine figures, are we referring to the lower end close to one hundred million, the middle ground around 550,000,000, or the staggering high end nearing 999,999,999?

So, the next time you find yourself daydreaming about a nine-figure salary, remember this: It’s not just a number; it’s a lifestyle, a testament to extraordinary achievements, and a beacon of exceptional success.

And who knows? With the right mix of passion, dedication, and a sprinkle of luck, you might just find yourself joining this elite club. 

After all, isn’t the sky the limit when it comes to chasing our dreams? 

Examples of People Who Earn 9-Figure Incomes

1. Cristiano Ronaldo: A Sports Icon – With an astonishing income of $105,000,000, this celebrated athlete is not just a football superstar but also a nine-figure earner.

2. Safra A. Catz: Leading Oracle – As the CEO of Oracle, Safra A. Catz’s leadership prowess is reflected in her staggering earnings of $108,200,000.

3. David Zaslav: The Discovery Dynamo – Captaining Discovery as its CEO, David Zaslav, commands a whopping $129,500,000.

4. Nikesh Arora: The Palo Alto Networks Powerhouse – As the CEO of Palo Alto Networks, Nikesh Arora’s genius is rewarded with a hefty paycheck of $125,000,000.

5. Roger Federer: Tennis Titan – This globally recognized athlete proves that sports can indeed yield nine-figure incomes, as evidenced by his impressive earnings of $106,300,000.

Case Study: What Does a 9-Figure Earning Look Like?

Understanding the intricacies of nine-figure earnings can be a complex undertaking due to the lack of universally defined parameters. For the context of this case study, we will consider an annual income of at least $432K as the lower limit for this category. It is worth noting that any figure below this threshold would classify one into the realm of billionaires.

Renowned business magnates such as Warren Buffet and Mark Zuckerberg exemplify this earnings bracket, with annual incomes reported around $51M and marginally less than $50M, respectively.

Reaching the stature of a nine-figure income earner typically necessitates either a substantial inheritance or proprietorship of a prosperous company with diverse revenue channels. The case of Elon Musk serves as a prime example, with his considerable income derived from two distinct sources – Tesla and SpaceX.

Aspiring for this scale of income undoubtedly sets a high bar. However, with the appropriate strategy and relentless determination, it is not beyond reach. Be prepared to tread a path akin to those who have already achieved this feat.

What Is the Potential Monthly, Weekly, Daily, or Hourly Income in the 9-Figure Range?

How Much Is 9 Figures Monthly?

To figure out the monthly income from a massive annual salary, just divide the yearly amount by 12. Keep in mind that this will give you a range of values. But if you want to earn a nine-figure salary, the smallest monthly income would be $8,333,333.33.

This question might take a different perspective if you’re raking in 9 figures every month. That means your annual income would be at least $1,200,000,000 or even more.

How Much Is 9 Figures a Week?

If we were to divide the 9-figure annual salary by 52 weeks, we’d be looking at a minimum weekly income that could make anyone’s head spin – a cool $1,923,076.9! .

While you’re at it, if you manage to rake in a solid 9-figure sum every week, your annual income will soar to a minimum of £52,000,000,00 or maybe even more. 

How Much Is 9 Figures a Day?

Want to know how much you can earn daily from a nine-figure income? Just divide it by 365! If you make money every day, your minimum daily earnings would be $273,972.6. That’s your ticket to the nine-figure club!

Here’s the breakdown:

Now, let’s say you take weekends and U.S. holidays off. In that case, you’d need to earn around $381,679.3 per day to make $100,000,000 per year. It’s a good goal to aim for if you want that nine-figure salary without burning yourself out.

How Much Is 9 Figures an Hour?

If you’re seeking a nine-figure income from hourly wages, the calculations are slightly different. Just divide your per day salary by 8 hours, and voilà! The minimum number is $47,709.90 per hour. This calculation is based on working days – usually 262 days per year in the US.

How Much Is 9 Figures After Taxes?

Achieving a 9-figure income is quite an extraordinary feat, one that is typically reserved for the most successful entrepreneurs, athletes, and entertainers in our society. It’s almost impossible to reach that level through a single salary alone. 

Calculating the exact tax on a 9-figure income can be a challenging endeavor. Taxes can vary greatly depending on many factors, including location, type of income, applicable deductions, and more. However, it’s safe to say that anyone earning in the 9-figure range will face a significant tax bill. 

What Is the Pathway To Achieving a 9-Figure Income?

If you are in pursuit of a 9-figure income, it is essential to have an understanding of the components that fuel this elusive status. What sets apart these high-net-worth individuals from the rest is their capacity to create multiple streams of passive income and capitalize on them. 

Here are some tips to help you achieve this milestone:

Acquire Valuable Skills and Experience

The first step towards achieving a 9-figure income is building a solid foundation of high-income skills and experience in a high-value field. This could be anything from technology and finance to entertainment and sports. The key is to become exceptionally good at what you do, often necessitating years of dedication, learning, and practical application.

Build or Join a High-Growth Venture

Next, it’s super important to either build or get involved in a high-growth venture. This could mean starting a business with a game-changing idea or joining a rapidly expanding company in a leadership position. The aim here is to use your unique skills and experiences to create substantial value and wealth, which could potentially lead to a massive income if the venture becomes incredibly successful.

Invest Wisely and Diversify Your Income Streams 

Who said you can’t have your cake and eat it too? Investing in the stock market, real estate, bonds, and other alternative investments is another way to generate a 9-figure income. It’s important to diversify your portfolio across multiple strategies so that you’re not overly exposed to any one asset class.

Let’s give you an example. 

If you’re already running a successful business, consider investing in cryptocurrency or another digital asset class to increase your income streams. This could provide an additional source of passive income that can help solidify your journey to a 9-figure salary.

Equities and Derivatives Trading

The stock market is an incredibly powerful tool that can help you to achieve a 9-figure income. Through equity and derivatives trading, you can tap into the world’s most lucrative markets and make substantial returns on your investments in a short amount of time. 

Learning how to navigate this complex ecosystem of risk and reward requires patience, dedication, and a lot of practice. Start by investing in the stock market or trading on a simulated platform to get comfortable with the process before taking it to the next level. 

Leverage Networks and Opportunities

Networking is a critical component of achieving a 9-figure income. By cultivating meaningful relationships with influential people in your industry, you can open doors to opportunities that might otherwise remain closed. These could include partnerships, investments, or high-profile job offers that can significantly boost your income.

Jobs That Pay 9 Figures

Earning a nine-figure salary is an incredibly rare achievement reserved for the top echelons of various lucrative industries. Here are some of the highest-paying jobs and industries that can bring in nine-figure salaries. 

Tech Company Bosses

Tech company bosses, particularly those at the helm of companies like Amazon, Facebook, and Tesla, are among the highest earners globally. Their compensation often comes in the form of stock options, which can value in the hundreds of millions or even billions when their companies perform well.

Examples Include: 

• Elon Musk, CEO of Tesla ($242.4 billion)

• Jeff Bezos, CEO of Amazon ($151.5 billion)

• Mark Zuckerberg, CEO of Facebook ($103.4 billion) 

Professional Athletes

In the world of professional sports, athletes like Cristiano Ronaldo, Lionel Messi, and LeBron James have managed to secure contracts and endorsement deals that push their annual incomes into the nine-figure realm. These athletes excel in their respective sports and have built strong personal brands, attracting lucrative sponsorship deals.

According to reports, these athletes earned more than $100 million in a single year:

• Cristiano Ronaldo ($200 million) 

• LeBron James ($385 million) 

Hollywood Celebrities

Hollywood is no stranger to nine-figure earners. Actors like Dwayne Johnson and Robert Downey Jr., thanks to their roles in blockbuster franchises, command massive salaries. Additionally, they earn significantly from endorsements, producing roles, and profit participation deals.

Media Stars

Media stars, especially those with a strong presence on digital platforms, can earn nine figures. For instance, YouTubers and influencers with millions of followers can generate substantial income from ad revenue, brand partnerships, and merchandise sales.

Hedge Funds & Investment Bankers

Investment bankers and hedge fund managers are some of the highest earners in the financial sector due to their expertise. Some notable examples include: 

• Ray Dalio: Founder of Bridgewater Associates ($19.1 billion)

• David Tepper: Hedge fund manager ($18.5 billion) 

• Carl Icahn: Founder of Icahn Enterprises ($10.1 billion) 

Pop Superstars

The music industry has always been a lucrative field for successful artists. Pop superstars like Taylor Swift and Beyoncé have made fortunes from their music sales, concert tours, and endorsement deals. These musicians not only create hit songs but also build powerful brands that amplify their earnings.

Entertainment (Actors, Singers, Dancers, Etc.)

Performers in the entertainment industry, including actors, singers, and dancers, can achieve nine-figure incomes. Successful film actors can earn millions per movie while top-charting musicians make a significant portion of their income from touring. Broadway performers and dancers in high-demand shows can also command high salaries.

Top-Notch Business Owners

Business owners, especially those who own large corporations or successful startups, can earn nine figures. This income comes from their business profits and, in some cases, from selling their businesses. Entrepreneurs like Elon Musk and Jeff Bezos have made billions from their ventures.

These careers represent the pinnacle of earning potential in their respective fields. However, it’s essential to note that reaching this income level requires exceptional talent, hard work, and often a good dose of luck.

Are 9-Figures Rich?

When we talk about money, figures, and digits start dancing in our heads. Six figures? That’s quite impressive. Seven figures? Now you’re playing with the big boys. But when we leap into the world of nine-figure incomes, we’re talking about a whole different ball game. It’s like comparing a kiddie pool to the Pacific Ocean!

A nine-figure income means someone is raking in between $100,000,000 and $999,999,999 annually. That’s right. There are more zeros in that figure than in a beginner’s Sudoku puzzle! This income bracket places individuals among the financial titans of the world. To put it plainly, if you’re earning nine figures, you’re not just rich—you’re Scrooge McDuck swimming in a vault of gold-level wealth.

But let’s be real, nine-figure incomes are as rare as a unicorn at a donkey convention. Even some of the world’s wealthiest individuals, like Bill Gates and Warren Buffet, didn’t make their billion-dollar fortunes overnight. It took years of smart decisions, a bit of luck, and probably a few sleepless nights.

And don’t forget, these ultra-wealthy folks aren’t waiting for a paycheck every month. Their wealth comes from various sources, including investments, real estate, and businesses3. They’ve got their fingers in so many pies; they could open a bakery!

What Does a 9-Figure Lifestyle Entail?

Living a 9-figure lifestyle is beyond the realm of what most people could even imagine. It involves not just extraordinary wealth but also the responsibilities and opportunities that come with it. Here’s a detailed look at what such a lifestyle might entail:

Extreme Luxury

A 9-figure lifestyle allows for some of the most opulent luxuries in the world. For instance, consider real estate: billionaires often own multiple properties around the globe. According to a report by Economics Times, the average billionaire owns 4 homes, with each worth nearly $20 million.

Traveling is another area where this wealth is evident. Private jet travel is commonplace among this group. The cost of owning a private jet can range from $3 million to over $90 million, not including the ongoing costs of maintenance, fuel, and crew salaries.

Philanthropy

Philanthropy is a significant aspect of a 9-figure lifestyle. Many ultra-wealthy individuals are committed to giving back to society. For example, Warren Buffett, one of the richest people in the world, pledged to give away 99% of his wealth to philanthropic causes.

The Giving Pledge is another example of this. Initiated by Bill Gates and Warren Buffet, it’s a commitment by some of the world’s wealthiest individuals and families to give away more than half of their wealth to solve societal problems.

Investments

Individuals with a 9-figure income often have vast and diverse investment portfolios. For instance, Jeff Bezos, the founder of Amazon and one of the wealthiest individuals on the planet, has investments spanning multiple industries. He owns The Washington Post, has a venture capital firm called Bezos Expeditions, and invests in space exploration with his company Blue Origin.

Personal Staff

Having a 9-figure income often means employing an extensive personal staff to handle daily affairs. For example, Oprah Winfrey, a billionaire media mogul, reportedly employs a team of over 3,000 staff, including gardeners, chefs, housekeepers, and security personnel.

This level of staffing isn’t uncommon among the ultra-wealthy. After all, managing a 9-figure lifestyle requires a lot of planning and assistance to make sure everything runs smoothly. 

Political Influence

The ultra-wealthy have significant influence in politics due to their large contributions to political campaigns and the influence they can wield over policy decisions. This influence can be used for both good and bad purposes, depending on who is wielding it. 

However, the effects of political influence by wealthy individuals shouldn’t be underestimated. It can have a profound impact on policy decisions and shape public opinion in powerful ways. This level of influence is not available to everyone, but those with 9-figure incomes typically use it to their advantage. 

Privacy and Security

With great wealth comes the need for privacy and security. People with a 9-figure income often invest in advanced security systems, hire personal security staff, and take measures to maintain their privacy.

This isn’t just to protect their money; it’s also about protecting themselves and their families from potential threats. After all, when you’re one of the wealthiest people in the world, there are bound to be a lot of eyes on you.

High-End Experiences

Those with a 9-figure lifestyle often have access to experiences that are out of reach for most. This can range from private concerts with top musicians to exclusive dining experiences with world-renowned chefs. 

This level of wealth also opens up opportunities to travel to the most luxurious places in the world. From private island getaways to luxury cruises, the experiences available to 9-figure earners are limited only by their imagination and budget. 

The Bottom Line – Making 9 Figures

Taking all of this into account, it is clear that those with a 9-figure income have access to exclusive and luxurious experiences, as well as the privacy and security often associated with great wealth. This level of influence can also be extremely powerful. Therefore, it should not be underestimated or overlooked. 

Overall, 9 figures is an amazing achievement and one that requires hard work and dedication. It is often an indicator of success and can open up a world of new possibilities for those who have achieved it. 

Regardless of your current financial status, never forget that anything is possible with determination and perseverance! With the right attitude and mindset, you, too, could one day reach 9 figures or more. Start planning today, and remember to take every opportunity that comes your way. With a bit of luck and the right attitude, success is just around the corner.

FAQs – Making 9 Figures

The post 9 Figures Is How Much? appeared first on Good Financial Cents®.

Did you know that according to the United States Bureau of Labor Statistics, the median hourly wage for all workers is $29 per hour? That means making $30 an hour is already above average. So, let’s see what your yearly take-home pay could look like with such a handsome hourly rate.

But wait, there’s more. We’ll also explore what type of jobs typically pay $30 an hour and how you can make sure that you get the most out of your salary. Stick around, and we’ll give you all the answers.

$30 an Hour Is How Much a Year?

We calculated the annual salary based on an hourly rate of $30 and assuming an average workweek of 40 hours.

Calculation Breakdown

Let’s break down the math to find out how much you could earn annually with a $30 hourly wage:

1. Consider an average workweek of 40 hours and an average year consisting of 52 weeks.

2. Multiply the number of hours in a workweek (40) by the number of weeks in a year (52) to calculate the total number of working hours in a year: 40 hours x 52 weeks = 2,080 hours.

3. Multiply the $30 hourly rate by the total number of working hours (2,080) to determine the gross annual salary: $30 x 2,080 hours = $62,400.

Keep in mind that this calculation represents the gross annual salary, not accounting for taxes, insurance, 401(k), or deductions. Nonetheless, it reveals the potential earnings for someone with a $30 hourly wage.

The gross annual salary of $62,400 is considered a middle-class income as it is above the salary threshold of $50,000.

Part-Time Work?

For those working part-time, the annual salary calculation differs slightly. Let’s assume you work 20 hours a week instead of the standard 40:

• Multiply your weekly hours (20) by the number of weeks in a year (52) to determine the total number of working hours in a year: 20 hours x 52 weeks = 1,040 hours.

• Calculate your gross annual salary by multiplying the hourly rate of $30 by the total number of working hours (1,040): $30 x 1,040 hours = $31,200.

What Does $30 an Hour Translate to in Terms of Paycheck?

Monthly Paycheck

With a $30 hourly rate, your gross monthly paycheck would average around $5,200. We arrived at this figure by dividing the annual salary of $62,400 by 12 months: $62,400 ÷ 12 = $5,200.

Keep in mind that the actual amount you receive may vary depending on factors such as the number of days in each month and your payday schedule.

If you were to receive a pay raise from $20 to $30 per hour, you could expect an additional average of $866 per month, significantly boosting your earnings.

Weekly Paycheck

The weekly salary for someone making $30 an hour would be calculated by dividing their annual salary of $62,400 by 52 weeks: $62,400 ÷ 52 = $1,200.

This equates to approximately $1,200 per week before taxes and deductions are applied.

Bi-Weekly Paycheck

Having a bi-weekly payday means that you receive two paychecks per month. To calculate your gross bi-weekly salary, divide the annual income of $62,400 by 26 paychecks: $62,400 ÷ 26 = $2,400.

With an hourly rate of $30, you would receive a bi-weekly paycheck of approximately $2,400 before taxes and deductions.

Daily Paycheck

Your daily paycheck is based on how many hours you work each day. For instance, if you work for 8 hours, your daily pay would be $240 (calculated at $30 per hour).

Earnings Overview: $30 per Hour Salary Breakdown

How Does $30 an Hour Compare?

Earning $30 an hour results in a yearly income of $62,400, which surpasses the national average income of $48,672 per year but falls below the median salary of $68,703 per year. Nonetheless, it is an excellent salary for someone who holds only a high school diploma or lacks a college degree.

Securing a job with a $30 hourly wage also provides a competitive advantage to job hunters compared to those just beginning their job search. With this pay rate, job candidates can anticipate receiving attractive job offers accompanied by valuable career guidance.

Is $30 an Ideal Hourly Wage?

Well, that’s a bit of a tricky question, isn’t it?

Your location and way of life play a huge part in determining the worth of that paycheck. But let’s try to break it down with the federal poverty level in mind, shall we?

For all you single folks out there without dependents, a yearly income of $14,580 deems you officially above the poverty line – congrats!

Got a family of four?

From a more analytical perspective, an hourly rate of $30 can indeed be suitable, contingent upon the cost of living in your area and your personal circumstances. As per the federal poverty guidelines, a single individual without dependents would surpass the poverty threshold with this rate. Further, a household of four would likewise be above the poverty line. 

It is important to stress, however, that financial prudence is critical in maintaining a comfortable lifestyle with a $30 hourly rate. By efficiently managing one’s expenses, this income level can adequately sustain both individual and family needs.

Paid Time Off for Hourly Employees Earning $30 per Hour

Don’t underestimate the power of paid time off, especially as an hourly employee. With paid time off, you can maintain a healthy balance between work and personal life while still securing a stable income.

Imagine working 40 hours a week throughout the year, and let’s dive into two scenarios that show how valuable paid time off can be to your bank account.

Case 1: Paid Vacation

Are you one of the lucky ones receiving two weeks of paid time off annually? If you are, pat yourself on the back! Your yearly earnings will stay consistent at $62,400, just like those fabulous salaried folks out there.

Case 2: Non-Paid Vacation

Unfortunately, not all hourly employees receive the glorious benefit of paid time off. In this case, it’s crucial to anticipate a modest dip in your yearly income due to unforeseen circumstances or even some well-deserved vacation time.

Let’s say you take two weeks off without pay; that leaves you working 50 weeks (2,000 hours) out of the year, earning you $60,000. So, while your daily earnings may hover around two hundred bucks a day, don’t forget to plan for those no-pay-off days.

How Much Is $30 An Hour After Taxes?

Understanding how taxes can affect your hourly wage is crucial. Although everyone’s tax situation is different, this article will make use of the following general assumptions:

Here is an estimation of your tax deductions based on the given assumptions.

• Federal Taxes: $7,488

• Social Security and Medicare: $4,773

• State Taxes: $2,496

Net Annual Salary: $47,643

We will calculate your hourly wage based on the assumption that you work 2,080 hours per year.

Net Hourly Wage: $22.9

Your gross hourly wage is $30, and your net hourly wage is $22.9, which means there is a $7.1 difference between them.

Please note that the calculations provided are an estimation only, and your real tax rate and deductions may be different.

Note: There are some states in the US that do not impose state taxes on salary income. If you live in one of these states, you will still need to pay your federal tax and FICA.

Here is a list of states that do not have a state income tax:

1. Alaska

2. Florida

3. Tennessee

4. Nevada

5. South Dakota

6. Texas

7. Washington

8. Wyoming

9. New Hampshire

What would your net monthly income be if you lived in any of these states and earned $30 per hour?

Let’s do math again!

Based on the assumptions provided, I have calculated an estimate of your tax deductions in a tax-free state:

Tips for Budgeting With a 30/Hour Salary to Maximize Savings

Bring out the best of your $30 per-hour salary by mastering the art of budgeting. With a solid budget, you’ll pave the way for a bright financial future by saving for the essentials, like retirement, emergencies, and other endeavors.

Be a Detective with Your Expenses

It’s time to journey into the realm of finance and uncover the mystery that is your expenses! Seek out the differences between your fixed expenses like rent or mortgage, car payments, and loan installments and your ever-changing variable expenses such as groceries, gas, and fluctuating credit card bills.

Conquer the Debt Monster

Waging a battle against debt is vital in mastering budgeting on a $ 30-per-hour salary. Take charge by striking down high-interest debt, like menacing credit card balances, first. Your debt-to-income ratio constantly changes with the ebb and flow of your salary, so it’s important to stay up-to-date.

Managing Discretionary Spending

To make the most of a $30-an-hour salary, keeping discretionary spending in check is crucial. Think of these non-essential expenses like entertainment and hobbies as the cherry on top – satisfying 5-10% of your income after covering the essentials. Once bills are paid, and savings are secured, you can enjoy the simple pleasures without breaking the bank.

Savings and Retirement – Your Best Friends on a $30/hr Salary

Automate your savings and watch your emergency fund grow effortlessly. And while you’re at it, why not hop on the 401k bandwagon? Enrolling in an employer-sponsored retirement plan unlocks pre-tax deductions from your paycheck and could provide an employer match.

With this dynamic duo, you’ll be on your way to securing savings and a rich retirement without missing a beat.

The table below shows the recommended budget percentages based on an hourly wage of $30.

Prioritize Expenses

As a budgeting whiz, take control of your expenses and pay your essential bills first – rent, utilities, and food reign supreme. Then, attending to other must-haves like transportation, insurance, and healthcare, you’ll create a well-structured budget that leaves room for those delightful discretionary expenses. It’s all about balance with a $30-an-hour salary.

Keep Your Budget in Check

Stay ahead of the game by continuously revisiting and fine-tuning your budget. As your financial landscape evolves, it’s crucial to keep your budget aligned with your current monetary reality. Don’t let your budget gather dust — consider it a living document, always prepared to accommodate life’s twists and turns.

Finding an excellent employer is another valuable piece of the puzzle. Be on the lookout for companies that value the importance of employee growth and development. More often than not, employers who appreciate their workforce will ensure that you gain relevant experience and certifications needed for better positions.

Let’s take the food service industry, for instance. Here, numerous business-savvy restaurants offer entry-level positions with ample training opportunities to help their dedicated employees climb the ranks. To cap it off, these techniques pave the way to not only bagging a $30-an-hour job but setting the stage for even greater monetary success down the line.

Types of Jobs That Pay 30/Hour Salary

If you are looking for jobs that pay $30/hour, job search and career advice websites can be helpful. Some job titles that typically offer this salary range are:

These careers can potentially pay you a salary of $30 per hour or more. By putting in hard work and commitment, it’s achievable to reach that aim.

Side Hustles To Supplement Your $30 Income

Looking to give your bank account that extra zing? Say hello to side hustles! These wonderful opportunities let you make some moolah on the side while enjoying your free time. Dive into these fresh ideas and watch your earnings soar:

Master the Online Marketplace

You don’t need to be an artist to launch a successful online store. Dive into the print-on-demand business without the need for upfront capital investments, and make your mark on platforms like Etsy, Shopify, and Amazon.

Delivery Driving

Transform your idle hours into a gold mine by taking up delivery driving gigs with crowd favorites like DoorDash, Uber Eats, or Instacart. Catch the dinner rush to maximize earnings and cherry-pick delivery jobs that fit your fancy!

Virtual Tutoring: Monetizing Expertise

Leverage your specialized degree and share your knowledge by becoming an online tutor, assisting students across the globe. With platforms like VIPKID and Chegg, you can cultivate a stable side income, earning up to $30 per hour.

Short-term Rentals: A Calculated Investment

For a fruitful side income, consider listing extra rooms with private entrances on short-term rental platforms like Airbnb. By maintaining a presentable and clean space with effective marketing, you can entice guests and yield higher returns.

Unleash Your Freelance Potential

No matter your expertise – be it photography, writing, tech, or beyond – freelancing opens up a world of opportunities. Capture stunning images for websites, pen engaging blog posts, articles, and reviews, or even put your design skills to work by creating websites and assisting as a virtual helper. With resourceful platforms like Fiverr, Upwork, and Freelancer, you control when and how much you make.

Blogging & Podcasting: Making the Most of Your Voice

In a digital age, content continues to reign supreme. Become an online sensation by starting your own blog or podcast, and speak to the world about your passions. This only requires a mobile phone and internet connection, so give it a go.

Share Your Skills

Use your unique talents to create positive change in your community! If cleaning and organizing is your jam, or if you have a magical green thumb, offer services like pet sitting, dog walking, child care, and handyman assistance to make some extra cash.

Final Thoughts on a $30/Hour Salary

The cost of living, housing costs, and taxes greatly influence how much money you’ll have in your pocket at the end of the month. When taking into account these three factors, a salary of $30 per hour on an annual basis can support a comfortable lifestyle that is above the poverty line.

The key to making this work is budgeting and smart money management. With diligence and dedication to financial planning, you can enjoy the benefits of your salary without having to worry about making more money.

$30 an Hour FAQs

The post $30 an Hour Is How Much a Year? appeared first on Good Financial Cents®.

These are all questions we’ll explore in this article as we take a look at the average hourly wage and how it affects your annual income and after-tax income. We’ll also make necessary calculations to figure out how much you can expect to make after taxes each year, along with strategies for budgeting and saving to make the most out of your money. So, if you’re curious about how far $60,000 can stretch in today’s economy, keep reading.

$60,000 a Year Is How Much an Hour?

Assuming you’re working a standard 40-hour week, you’d be raking in a cool $28.80 per hour.

When working 40 hours per week for 52 weeks a year, you’ll clock in 2,080 hours of work.

That’s quite the step up from the federal minimum wage, isn’t it? Of course, your exact hourly rate could vary based on your work hours, but one thing’s for sure: you’ll be making a pretty penny.

But what if you work more or less than the standard work week?

Well, the lowest you could go while still making $60,000 a year is $6.8 per hour—albeit by working every waking (and non-waking) hour of the year, which is, let’s face it, impossible.

On the flip side, working less could bump your hourly wage up to a whopping $57.6. To earn this average wage, you would need to work 20 hours a week, which adds up to a total of 1,040 hours. However, this depends on your work schedule and other factors, such as other obligations you may have.

How Does 60K a Year Compare?

Let’s get down to the nitty-gritty of your $60,000 salary and see how it measures up. In 2023, the United States national median income is $80,893 – a sweet 3.4% jump from 2022. So, with your $60,000 paycheck, you’re actually earning 25% less than the average Joe. Fear not, though! Remember that median household income represents families, not solo earners.

If your household has more than one income earner and rakes in a collective $80,000, congrats! Your clan is pretty close to the median income party in the good ol’ US of A.

Is $28.80 a Good Hourly Rate?

Now, let’s shift gears and approach this with a more analytical lens. Earning $28.80 per hour results in an after-tax income of approximately $46,000 annually, placing an individual or a small family above the 2023 federal poverty threshold.

However, it is crucial to acknowledge that one’s location and the cost of living therein play a significant role in defining a viable salary. For urban dwellers, particularly in places like New York City, the cost of living tends to be higher than the national average.

Consequently, researching the regional costs and evaluating whether a $60,000 salary truly qualifies as a “livable wage” becomes a necessary and prudent step to take.

Is $60K a Year Worth Your Time? 

While it might not make you a millionaire in NYC, this annual income can comfortably provide for a solid life in cities like Sioux Falls. All it takes is a knack for smart budgeting and cost-effective living arrangements to thrive on a 60K salary.

For singles enjoying solo living, $60,000 can be quite a generous budget.

However, if you have a family to provide for, you might place a higher importance on your time since you have to make sure your family’s needs are met. In the end, it is your decision whether earning $60,000 annually is worth the time you put in.

The key to thriving on this income is a spoonful of discipline in handling finances, carefully saving for retirement, and investing in experiences that enrich your life.

So find joy in what you do and make each moment count. Whether you’re a wide-eyed student trading monetary gains for the experience or a devoted family person, always remember that the optimal balance involves valuing both time and money.

How to Make More While Working Less?

Who wouldn’t want to make more money while cutting down on working hours? Guess what – it’s entirely achievable! To unlock this seemingly elusive treasure, you need to utilize your time efficiently and tap into your skills to their maximum potential. Ready to work smarter, not harder? Let’s dive in.

Obtain a High-Paying Position

As there is always room for growth, consider seeking a position offering an increased annual salary. The key to locating these jobs lies in networking within your industry and researching online job postings. An alternative approach is to employ the services of a career coach in discovering opportunities that provide better rewards for your efforts.

All of this can be improved if you focus on achieving high-income skills. This includes mastering a particular trade, obtaining a higher degree of education, or investing in yourself so that your salary is more than what you currently make.

Boost Your Earnings With Passive Income

One clever way to maximize your earnings is by reinvesting a part of your salary (from that median wage of $60,000 a year) into opportunities that create passive income. This way, you can watch your bank account grow as you snooze or enjoy that long-awaited vacation without the nagging worry of federal tax.

Excited yet? Take a look at these passive income generators:

• Rental properties for a steady income stream
• Peer-to-peer lending, becoming the bank and collecting interest
• Dividend stocks, reaping the rewards of business growth

Climb Corporate Ladder

Efficient and diligent work within your current job may open the doors for a promotion, increasing your annual earnings beyond median pay and widening your professional responsibilities.

Before taking any major steps, consult with your supervisor to gain insight into the available growth options within the company that may ultimately enhance your yearly salary.

Make Bank With Freelancing

Want more control over your schedule and your finances? Try freelancing! This side hustle lets you make some extra moolah while flexing your skills and giving you the freedom to manage your own hours. Trust us; your work-life balance will thank you.

Intrigued? Check out these freelancing side hustle gigs:

• Editing, polishing ideas to perfection
• Web design, making the virtual world your oyster
• Graphic design, letting your creativity rake in the bucks
• Bookkeeping, because everyone needs a numbers wizard
• Writing, because the content is king

Remember, nearly anything you do at your 9-to-5 can also be turned into a lucrative freelance service. So go ahead, give it a shot, and earn more on your own terms.

How Does a $60,000 Annual Salary Break Down?

Biweekly Pay Breakdown

Crunching the numbers for a $ 60,000-a-year salary reveals some exciting insights about your earnings every two weeks. Picture yourself working a full-time job, clocking in 40 hours each week with no overtime. Divide that annual salary of $60,000 by the 26 bi-weekly pay periods, and you’re looking at a cool $2,307.7 in your paycheck.

But hold your horses.

Remember the saying, “Nothing’s certain but death and taxes?”

Well, your take-home pay usually ends up less than your biweekly paycheck, all thanks to taxes and other deductions such as income taxes, pre-tax deductions (retirement accounts, health savings bank accounts, etc.), FICA (Social Security and Medicare) taxes, state and local taxes, other miscellaneous deductions required by your employer, and health insurance premiums.

Monthly Pay

Now, what if you’re paid monthly? The anticipation of receiving your paycheck might be a tad longer, but imagine the thrill of seeing higher numbers! On a $60,000 annual salary, you’ll bag a monthly paycheck of a whopping $5,000 before taxes and deductions.

You may get paid time off and federal government holidays, depending on your company. For the average person, this means you’re effectively making more money per hour than your hourly rate implies.

How Much Is $28.80 an Hour Annually?

Picture this: You make $28.80 an hour, which translates to roughly $59,904 annually. Not only are you ahead of the curve, but you’ll also be earning more than the national average of $58,563 per year, or $28.16 hourly, according to ZipRecruiter.

However, this number can fluctuate based on the total number of hours you work weekly. For instance, working 50 hours a week would increase your annual earnings to $74,880, while a 60-hour workweek would result in an impressive $89,856.

On the other hand, if you work less than 40 hours a week, your salary tapers off accordingly. A 30-hour workweek corresponds to $44,928 a year, while 20 hours of weekly commitment amounts to $29,952 per annum. Thus, it’s crucial to understand the expected work hours when considering a job that pays $28.8 an hour.

At the end of the day, it’s up to you to make the most out of your earnings and work smarter to increase your salary. Whether it’s freelancing, negotiating a higher wage, or taking on more responsibilities, there are numerous ways to increase your annual salary and take charge.

How Does Vacation Impact My Annual Salary? 

Vacation offers necessary respite and rejuvenation, but it may come at the cost of impacting one’s annual salary. It is crucial to examine the effects of taking time off on one’s finances.

Paid vacation days are part of most employment contracts and would not result in a salary reduction. Conversely, for employees who must take unpaid vacation days, their annual salary may be affected. 

For instance, an individual earning $60,000 annually would receive $2,307.60 bi-weekly. Should they opt for two weeks of unpaid vacation, it would reduce their annual earnings by the same amount. Furthermore, being absent from work may result in missed opportunities for raises or promotions. 

Therefore, the importance of considering how vacation impacts one’s annual salary cannot be understated. A balance between taking time off and focusing on career growth should be achieved to ensure financial stability.

How Much Is $60,000 a Year After Taxes?

Tax implications on a $60,000 salary should be considered thoughtfully, and the actual take-home pay depends on various factors, including your residence. Here, we provide general calculations for residents of tax-free states (for, e.g., Florida) and states with taxes (for, e.g., New York).

For an individual living in Florida, the tax breakdown is as follows:

On the other hand, a New York resident’s tax obligations would be:

Notice the significant difference in after-tax income due to state taxes. It’s essential to bear this in mind when calculating the final earnings from your annual salary.

State by State $60,000 a Year Salary After Taxes in 2023

Just like the federal government, each state and territory has its own tax brackets that are calculated in a similar way. 

However, since each state or territory can establish its own marginal tax rates and laws regarding taxable items, the amount of taxes you pay on a $60,000 salary may differ depending on where you live. The following table shows your after-tax salary for the 2023 tax year on a $60,000 salary:

Source: Worlds Salaries

What Types of Jobs Pay $60,000 Per Year?

There are a variety of jobs that pay $60,000 per Year. Here are some examples:

1. Cargo pilot
2. Makeup artist
3. Real estate agent
4. Dental hygienist
5. Instrument technician
6. Insurance agent
7. Power plant operator
8. HVAC supervisor
9. Yoga Instructor
10. Nuclear medicine technologist
11. Railroad conductor
12. Web developer
13. Sales representative
14. Claims adjuster
15. Electrical foreman
16. Truck driver
17. Boilermaker
18. Occupational therapy assistant
19. MRI technician
20. Solar installer
21. Aircraft Mechanic
22. Physical therapist assistant
23. Radiation therapist
24. Nuclear technician
25. Owner-operator driver

There are numerous job opportunities available that offer an annual salary of $60,000, as shown in the provided list. You have several options to choose from if you desire a salary of this amount. However, note that the list is not exhaustive but gives a fair indication of the job positions that provide this salary.

How to Budget $60,000 a Year?

Cut Unnecessary Monthly Expenses

Regardless of an individual’s yearly income, living within one’s means should be a priority. Analyzing and adjusting budgets is an effective way to achieve this goal. Identifying and eliminating non-essential expenses can help allocate funds toward debt reduction or savings.

Potential areas for adjustments include:

• Gym memberships
• Entertainment expenses
• Subscription services (magazines, music, etc.)
• Frequency of dining out
• Cable TV subscriptions
• Clothing purchases
• Travel expenditures

There could be more that can be reduced or eliminated to ensure proper budgeting of $60,000 a year.

Save for Retirement Early

The earliest you start saving for retirement, the better. Consider starting an IRA or contributing to a 401(k), especially while your income is still relatively high and you can benefit from the employer match. If your employer offers a 401(k) plan, setting aside just 10% of your annual salary (or $6,000 if you make $60,000 a year) can go a long way toward reaching retirement goals.

Avoid High Car Payments

Owning a set of wheels doesn’t have to equate to draining your wallet. Did you know the average monthly loan payment for a new car in the U.S. is almost $600, which represents more than 10% of a $60,000 annual income?

Keep in mind this figure doesn’t even include insurance, fuel, or maintenance costs. Try out these savvy strategies to stay car payment-free:

• Opt for a pre-owned vehicle
• Select a smaller, more economical car
• Purchase a used car with cash

Avoid Credit Card Debt

Using credit cards to fund your lifestyle is a common mistake that can easily lead to debt. A way to avoid credit card debt is by limiting your credit card usage to expenses that you can pay off fully every month. If you can’t afford to pay your credit card bill each month fully, it’s crucial to reassess your spending habits.

Sample Budget for Individuals Earning $60,000 per Year

If you want to understand better living on a $60,000 salary, consider comparing it to your monthly expenses. As an example, here’s a budget for someone earning $60k per year, which may be helpful.

Note: This budget prioritizes basic expenses and avoids debt.

Final Thoughts on a 60K a Year Salary

Yearly salaries can be quite the conversation starter. They’re different everywhere you go, and they’re unique to each individual and profession. A 60K salary might be considered modest in certain corners of the world, while in other places, it’s a pretty sweet deal. 

Just imagine living in the bustling metropolis of New York City – you’d need almost twice that amount to make ends meet! But set foot in rural Mississippi, and you’ll find that life on a 60K income can be quite lavish. To live your best life on a $60,000 salary, you only need a bit of financial savvy:

• Live beneath your means.
• Keep an eye on your expenditures.
• Always invest in yourself and your future.

So, what do you think – could you make it on 60K a year? Share your thoughts in the comments below.

The post $60,000 a Year Is How Much an Hour? appeared first on Good Financial Cents®.

Mint does a fantastic job of giving you numbers but falls short of providing any financial insight.

Then there’s Blueleaf, which I subscribe to for my clients and find to be excellent on both accounts, but it’s not available to the DIY investor.

So when I discovered Empower (formerly Personal Capital), I was so excited to learn more that I immediately signed up and synced all of my investment accounts to it.

Sign Up for Free

• Use their Fee Analyzer to find hidden fees
• The app is 100% free
• See all your money accounts in one place, in real time

What Is Empower (Formerly Personal Capital)?

Empower is an online tool, available from your desktop or phone, that will help you:

• Monitor all of your financial accounts in real-time – whether checking account, certificate of deposit, or retirement account

• Get objective investment advice designed to make you – not the advisor – money

• Provide investment options that are tailored to your goals

This is fantastic. You see, financial advisors that focus primarily on wealth management can be costly to keep around.

They charge either a percentage of assets managed or a flat hourly rate that can run as high as several hundred dollars per hour, plus trading commissions and administrative fees.

So, while these advisors can certainly be excellent, they’re mostly unreachable unless you have millions of dollars to invest.

What’s more, these wealth advisors aren’t really there to teach you how to put together a budget. They strictly manage your money.

Empower to the rescue.

I know what you’re thinking. “Okay, great, but why should I trust these new guys?” I’ve got to be honest with you. There were two words I saw on Empower’s website that made my heart skip a beat.

Those two words? Are you ready?

Fiduciary Obligation

Here’s a copy straight from their website:

Objective Advice: The sorry truth is that bankers and brokers are motivated to help themselves, not you. They are salespeople paid to push products, earning commissions and kickbacks when they do. In stark contrast, Empower is an investment advisor. We accept a fiduciary obligation to act in your best interest, and our advice must be aimed at making money for you, not for us.

This is absolutely key with any financial advisor you talk to, whether in person or online. Fiduciary duty means the party has a legal obligation to put their interests above their own.

Whereas normal brokers get paid commissions by getting you to churn your investments over and over (which costs you thousands of dollars in lost percentages here and there), Empower is putting a requirement on themselves to put your interests above theirs.

This is huge!

Seriously, there are major points for Empower from me on this one.

How Empower Works

Empower offers a free version and a premium version that features direct investment management. Whichever version you use, your account is actually held by Pershing Advisor Solutions, which acts as a trustee for your account.

The Free Version

With the free version, you get full use of the Empower platform as well as a free consultation from a financial advisor.

That advisor will give you a personalized analysis of your investments and recommendations as to what you can do with your portfolio. Your financial advisor can be contacted by phone, email, or by online chat.

In fact, the only feature that differentiates the free version from Empower’s premium product is its personalized portfolio management.

Other than that, the free version includes all of the many features and benefits that are available on the platform, including the ability to aggregate all of your financial accounts, the 401(k) analyzer, objective investment advice and investment check-ups, real-time financial dashboard, and access via the mobile app.

To show you how comprehensive their free platform is, take a look at this screenshot of their Portfolio Review from my free account:

This is just the “Holdings” tab on this feature. You can also get information on your performance and asset allocation. I can’t stress enough how valuable this information is for all types of investors – beginner or seasoned.

The Premium Version

Also known as their Wealth Management program, Empower’s premium program includes active management of your investment portfolio.

Like other similar products, they first determine your risk tolerance, personal preferences, and investment goals. Using that evaluation, they then create a portfolio tailored to fit within those parameters.

The fee structure for this service is as follows:

• 0.89% of the first $1 million

• 0.79% of the first $3 million

• 0.69% of the next $2 million

• 0.59% of the next $5 million

• 0.49% on balances over $10 million

These fees are quite reasonable when compared with fees of 1% to 2% that are customarily charged by active investment management services.

The fees apply only to the assets you have under management at Empower and not to other investments that may be aggregated on the site, such as your 401(k) plan.

And that’s it. There are no additional fees. Empower does not charge trading, commission, administrative, or any other types of investment fees. Your only cost is the annual, all-inclusive percentage that applies to your portfolio level.

Investment Strategy

Empower uses Modern Portfolio Theory (MPT) to manage your portfolio. MPT focuses less on individual security selection and more on diversification across broad asset classes. Those asset classes include:

• US Stocks (Which Can Include Individual Stocks)

• US Bonds

• International Stocks

• International Bonds

• Alternative Investments (Including ETFs and Commodities)

• Cash

Though Empower makes use of funds in constructing your portfolio, they may also include up to 100 individual securities in order to avoid being too heavily concentrated in a small number of companies.

I also discovered through my review that Empower uses an integrated investment approach to managing your investments, which is a pretty unique feature. This means that they factor in all of your investment holdings – including those not managed by Empower – in managing your portfolio.

For example, though they don’t manage your 401(k) account, your 401(k) allocations will be considered when making decisions about your investments that are actually managed by Empower.

Review of Empower Tools and Benefits

There is a long list of tools and benefits in using Empower. Some of the more interesting ones include:

The Investment Checkup

This tool analyzes your investment portfolio and gives a risk assessment of it to make sure that your level of risk is consistent with your goals.

This will help you to create an asset allocation that will get you where you need to go with your investments. Here’s a screenshot of their Investment Checkup from my Empower dashboard:

401(k) Fund Allocation

This tool can be used to analyze your employer-sponsored 401(k) plan, even though it is not under the direct management of Empower.

It can be used to help you with your asset allocation, at least based on the investment options that your plan includes. This is an excellent tool since most 401(k) plans don’t have any kind of investment management advice.

Retirement Planner

You can often find retirement planners or retirement calculators on various sites throughout the Internet. But what better place than to have it available where you also have all of your investment accounts listed?

Empower’s Retirement Planner allows you to run numbers on your retirement to make sure that you will be prepared when the time comes.

It allows you to incorporate major changes in your life into your retirement planning, such as the birth of a child or saving for college.

Net Worth Calculator

Since Empower aggregates all of your financial accounts on the same platform, they can also provide you with ongoing monitoring of your net worth.

This will enable you to get the most comprehensive view of your financial situation since it not only takes into account your assets but also your debts.

Net worth is the best single indicator of your overall financial strength, and this will give you an opportunity to track it.

Cash Flow Analyzer

Though our focus in this article has been primarily on the investment side of Empower, it’s important to recognize that it also includes a budgeting capability.

The Cash Flow Analyzer tracks your income and expenses from all sources, letting you know where you’re spending money (or spending too much of it), which will help you to make adjustments that will improve your overall budget.

Mobile App

Empower’s mobile app is a free feature that can be downloaded on Apple iPhone, iPad, Apple Watch, and Android. The mobile version has everything that is available on the desktop platform.

It will enable you to track your investment portfolio, as well as your banking and credit card activity while you’re on the go.

Tax Optimization

Empower uses tax optimization in the management of your portfolio. This feature is available to premium Wealth Management clients, and not if you are using the free version.

They use several tactics as part of tax optimization. For example, they include income-producing investments in tax-deferred accounts, while growth-oriented investments – that have the benefit of lower capital gains taxes – are held in taxable accounts.

In addition, they don’t use mutual funds but instead use exchange-traded funds with a mix of individual stocks since stocks can be easily bought and sold for tax-loss harvesting.

And speaking of tax-loss harvesting, they use this strategy to sell losing stocks, which offsets the gains on the sale of winning stocks. This strategy minimizes the negative impact on your investment portfolio from income taxes.

Site Security

Empower uses bank-level, military-grade encryption on the platform. They also perform ongoing third-party security audits to test their systems. They also use device authentication so that each device you link your account to must first be authenticated in order to be used.

Crash Test Your Portfolio

Investing expenses and taxes are the two things you can absolutely count on within the investing world. You can’t rely on gains every year, but you can guarantee you will be taxed and you will pay expenses.

That makes reducing those expenses one of two ways you can control your investing destiny.

Thankfully, Empower realizes this and offers you a really great tool to analyze the cost of your investments.

Where this gets interesting is you can do an analysis of your employer’s 401 (k) plan (as discussed above)  to discover whether your plan is amazing, just okay, or terrible when it comes to costs.

You might be the person to go to HR to reveal just how expensive your plan is, lay out a new plan that would cut costs for everyone, and end up getting a promotion just for running a cost analysis.

Even if you don’t get promoted to head investment advisor for your employer, at the very least, you’ll save your own retirement from exorbitant fees. And that’s a huge win we can all settle for.

Is Empower for Me?

The idea of wealth management means you need to have wealth to manage. If you’re struggling to get out of debt, that’s okay, but Empower probably isn’t the best fit for you.

In that case, Mint might be a better option, and you can see a full comparison in my complete Personal Capital vs Mint review.

However, if you are building up your retirement assets and want to be able to maximize your nest egg without gambling on penny stocks, then you should definitely sign up for the service.

All of the features, aside from the personalized portfolio management, are absolutely free, so there’s really no reason not to give them a try.

Final Thoughts – Empower (Formerly Personal Capital) Review – Managing All Your Investments in One Place

In the quest for a tool that offers both financial consolidation and insightful investment analysis, Empower (formerly Personal Capital) emerges as a frontrunner.

Unlike its competitors, Empower provides an all-in-one solution, ensuring users can monitor their entire financial spectrum while also gaining objective investment advice.

With many financial advisors charging exorbitant rates, Empower offers a more accessible alternative without compromising on quality. Their fiduciary obligation demonstrates a commitment to prioritize users’ financial interests above all else.

This dedication to transparency and accountability not only distinguishes Empower from many in the market but also earns it high commendation for its genuine dedication to the user’s financial growth.

How We Review Brokers and Investment Companies:

Good Financial Cents conducts a thorough review of U.S. brokers, focusing on assets under management and notable industry trends.

Our primary objective is to offer a balanced and informative assessment, assisting individuals in making informed decisions about their investment choices. We believe in maintaining a transparent editorial process.

To achieve this, we gather data from providers through detailed questionnaires and take the time to observe provider demonstrations. This hands-on approach, combined with our independent research, forms the basis of our evaluation process.

After considering various factors, we assign a star rating, ranging from one to five, to each broker.

For a deeper understanding of the criteria we use to rate brokers and our evaluation approach, please refer to our editorial guidelines and full disclaimer.

Empower (formerly Personal Capital) Review

Product Name: Empower - Personal Capital

Product Description: Personal Capital is a financial advisor and investment management company. They provide services such as wealth management, retirement planning, and portfolio management.

• [ Open a Free Account ]

Summary

Empower, originally known as Personal Capital, offers a comprehensive suite of financial tools that help users track and manage their finances. Its primary features include a dashboard that gives an overview of all assets, liabilities, and investments, a budgeting tool to track and categorize spending, and an investment checking tool that provides insights into one’s portfolio. The platform prides itself on its intuitive user interface, ensuring that both novices and seasoned financial experts can navigate and utilize its features with ease.

• Cost and Fees
• Customer Service
• User Experience
• Product Offerings

Overall

4.6

Pros

• The App Is Free to Use
• User-Friendly Interface
• Provides a Comprehensive Overview of Your Financial Situation
• Offers a Variety of Tools to Help You Manage Your Finances

Cons

• Limited Features
• Investment Management Fees
• Limited Access to Advisors
• Limited Investment Options
• Potential Conflicts of Interest

The post Empower (Formerly Personal Capital) Review – Managing All Your Investments in One Place appeared first on Good Financial Cents®.

WhatsApp has implemented spam detection technology to identify and take action against accounts engaging in suspicious behavior related to spamming activities. In a statement provided to CNBC TV 18, WhatsApp emphasized its commitment to user safety and revealed the presence of a grievance officer based in India. This officer serves as a contact point for users who have concerns about their experiences on the platform and are unable to report them through other channels.

The reports received by the grievance officer provide valuable insights into user complaints, enabling WhatsApp to take appropriate action against offenders. Additionally, WhatsApp has taken proactive measures to prevent abuse on its platform.

Recognizing the urgency to protect its user base, WhatsApp has launched a marketing campaign titled “Stay Safe with WhatsApp.” The campaign aims to educate users about the platform’s built-in safety features and tools, including Two-Step Verification, Block and Report, and Privacy controls. By leveraging these safeguards, users can fortify their defenses against online scams, fraud, and threats compromising their accounts.

Reports of unsolicited WhatsApp calls and messages from purported international numbers have inundated social media platforms, particularly Twitter. These calls often originate from phone numbers starting with country codes such as +251 (Ethiopia), +60 (Malaysia), +62 (Indonesia), +254 (Kenya), and +84 (Vietnam).

Despite the country codes indicating specific origins, it is essential to note that WhatsApp calls are internet-based, allowing scammers to operate from any part of the world. Certain agencies even facilitate the sale of international numbers for WhatsApp calls across various cities.

WhatsApp’s proactive stance, coupled with user awareness and the utilization of the platform’s security tools, can significantly reduce the risks associated with these scams. By remaining vigilant and informed, users can protect themselves and their personal information from falling victim to such fraudulent schemes.

Introduction to WhatsApp Scams

In today’s digital age, scammers are constantly adapting to new technologies and platforms to carry out their deceptive practices. WhatsApp, being one of the most widely used messaging apps globally with over 2000 million users (as of 2023), has become an attractive target for scammers. These scams range from phishing attempts to lottery frauds and everything in between. It is crucial to stay informed and vigilant to safeguard your personal information and financial well-being.

Common Types of WhatsApp Scams

Phishing Scams

Phishing scams are one of the most prevalent types of online fraud, and WhatsApp is not exempt from their reach. In these scams, scammers impersonate legitimate organizations or contacts and try to trick users into revealing sensitive information like passwords, credit card details, or social security numbers. They often send messages containing malicious links or attachments, which, when clicked, can lead to the installation of malware or the redirection to fake websites.

WhatsApp Verification Code Scams

WhatsApp verification code scams are designed to exploit the app’s verification process. Scammers pose as friends or contacts and request the verification code sent to the victim’s phone number, claiming they mistakenly entered the wrong number.

By providing the verification code, unsuspecting users unwittingly grant scammers access to their WhatsApp accounts, potentially compromising their personal data and even using their accounts to carry out further scams.

WhatsApp Lottery and Gift Scams

These scams play on people’s desire for easy money or extravagant gifts. Scammers send messages claiming that the recipient has won a lottery or is eligible for a lucrative prize. To claim the winnings, victims are asked to provide personal information or make a payment for processing fees or taxes.

Once the scammers receive the requested information or money, the promised prize never materializes, and the victims are left empty-handed.

WhatsApp Subscription Scams

In WhatsApp subscription scams, fraudsters target users by posing as official WhatsApp representatives. They send messages warning users that their subscription is about to expire and prompt them to renew it by clicking on a provided link.

However, the link leads to a fake payment page where scammers attempt to collect users’ payment details. Unsuspecting individuals who fall for this ruse end up compromising their financial information.

How Scammers Operate on WhatsApp

Scammers employ various tactics to carry out their malicious activities on WhatsApp. They create fake profiles, often using stolen or impersonated identities, to establish trust and credibility. These profiles may appear authentic, complete with profile pictures and personal information, making it harder to distinguish them from genuine contacts.

By exploiting the trust between friends and acquaintances, scammers can effectively deceive unsuspecting victims.

Warning Signs of WhatsApp Scams

It is important to be able to recognize the warning signs of WhatsApp scams to protect yourself. Here are some red flags to watch out for:

1. Unsolicited messages: Be cautious of receiving messages from unknown contacts or individuals you haven’t interacted with before. Scammers often target random users to initiate their fraudulent schemes.
   
2. Grammatical errors and typos: Pay attention to the language and grammar used in the messages you receive. Scammers may not have a strong command of the language, and their messages might contain obvious errors or inconsistencies.
   
3. Urgency and pressure: Scammers often create a sense of urgency to manipulate their victims into making hasty decisions. They may claim that immediate action is required to prevent a negative consequence or to secure a supposed prize.
   
4. Requests for personal information: Legitimate organizations and service providers rarely ask for sensitive personal information through WhatsApp messages. If you receive messages asking for passwords, bank account details, or social security numbers, be skeptical and avoid sharing such information.
   
5. Unusual requests for money: Be wary of messages requesting money transfers or payments for unexpected fees, taxes, or processing charges. Verify the legitimacy of such requests independently before taking any action.
   
6. Unverified sources: Verify the authenticity of any links, attachments, or requests you receive via WhatsApp. Scammers often use enticing offers or malicious links to trick users into divulging personal information or installing malware.
   
7. Unfamiliar URLs or domains: If you are directed to a website through a WhatsApp message, double-check the URL and ensure it matches the official website of the organization or service it claims to be associated with. Scammers often create fake websites that closely resemble legitimate ones to deceive users.
   
8. Unusual or unexpected messages from known contacts: If you receive messages from friends or acquaintances that seem out of character or suspicious, reach out to them through a different communication channel to confirm their authenticity. Their WhatsApp account might have been compromised by scammers.

Steps to Protect Yourself From WhatsApp Scams

Now that you are aware of the common types of scams and the warning signs to look out for, let’s explore some essential steps to safeguard yourself against WhatsApp scams:

1. Verify messages and links: Before clicking on any link or sharing sensitive information, independently verify the authenticity of the message or link by contacting the person or organization through a trusted source.
   
2. Enable two-step verification: Protect your WhatsApp account by enabling two-step verification. This adds an extra layer of security by requiring a PIN code whenever you register your phone number with WhatsApp.
   
3. Be cautious of suspicious requests: Exercise caution when asked to provide personal information or make payments. Verify the legitimacy of such requests independently and only proceed if you are confident in their authenticity.
   
4. Block and report suspicious contacts: If you encounter suspicious activity or receive scam messages, block the contact immediately and report them to WhatsApp. This helps prevent further communication and protects others from falling victim to the same scam.
   
5. Educate yourself and others: Stay informed about the latest scams and educate yourself about best practices for online security. Share this knowledge with friends, family, and colleagues to create a network of vigilant users.

Reporting WhatsApp Scams

If you encounter a scam or suspect fraudulent activity on WhatsApp, it is important to report it to the appropriate authorities. WhatsApp provides a simple and effective way to report scams directly from within the app. By reporting scams, you contribute to the collective effort of combating online fraud and protecting others from falling victim to similar schemes.

The Bottom Line – WhatsApp Scams

In conclusion, the rise of WhatsApp scams serves as a stark reminder of the ever-present threats lurking in the digital realm. As scammers adapt their tactics to exploit unsuspecting users, it becomes crucial for individuals to arm themselves with knowledge and take proactive measures to safeguard their personal information and financial well-being.

While specific statistics on WhatsApp scams may be elusive, the broader landscape of online scams paints a concerning picture. According to various reports, the global cost of cybercrime is estimated to reach trillions of dollars by the year 2025. Scams, including those targeting messaging platforms like WhatsApp, contribute significantly to this alarming figure.

From phishing attempts and lottery frauds to subscription scams, the tactics employed by scammers continue to evolve, making it imperative for users to stay informed and vigilant.

To combat this growing menace, WhatsApp has taken steps to enhance security measures, such as implementing spam detection technology and promoting user education through campaigns like “Stay Safe with WhatsApp.” By leveraging the platform’s built-in safety features and exercising caution when interacting with unknown contacts or suspicious messages, users can mitigate the risks posed by scammers.

In this age of connectivity, where communication transcends borders, it is crucial to remain vigilant and empower ourselves against the ever-evolving threats of online scams. By working together and taking a stand against scammers, we can create a safer and more secure digital environment for all.

The post Beware of WhatsApp Scams appeared first on Good Financial Cents®.

What Are High-Income Skills?

High-income skills are specialized abilities that are in high demand in the job market and can potentially generate a significant income for individuals who possess them. These skills often require a high level of expertise and are usually transferable between industries.

High-income skills can include a range of abilities, such as those related to sales, marketing, software development, data analysis, project management, financial management, public speaking, and others. The specific skills that are considered high-income can vary depending on the industry and the job market at any given time.

Importance of High-Income Skills in Today’s Job Market

In today’s job market, traditional education and job skills are no longer enough to secure high-paying jobs. Many industries are undergoing rapid technological advancements, which means that jobs that were once secure and high-paying are now being automated. In contrast, high-income skills are in high demand and can help individuals stay relevant and competitive in their respective fields.

Furthermore, high-income skills offer individuals the potential to earn a high income, even if they do not have a traditional college education.

By mastering a high-income skill, individuals can become independent contractors, start their own businesses, or work remotely, all of which offer greater flexibility and earning potential than traditional 9-5 jobs

Differences Between High-Income Skills and Traditional Job Skills

Traditional job skills refer to skills that are required for specific jobs or industries. For example, a doctor must have knowledge of medical procedures and healthcare, and a teacher must have knowledge of education and classroom management.

In contrast, high-income skills are often transferable between industries and can be used in multiple professions. For example, a person with strong project management skills could work in a variety of fields, such as construction, healthcare, or finance.

Additionally, traditional job skills often require a formal education, such as a degree or certification, while high-income skills can be learned through experience, mentorship, and practice. This means that individuals can acquire high-income skills without going into debt to pay for college or vocational training.

High-income skills are in high demand in today’s job market and offer individuals the potential to earn a high income and achieve greater flexibility and independence in their careers. Unlike traditional job skills, high-income skills are often transferable between industries and can be acquired without a formal education.

1. Copywriting

Copywriting is the art of selling by writing. It involves convincing people to take action through your writing. While it may be easy to persuade people verbally, writing to convince them to take action is a lot more complex. Copywriters are highly sought after because they are the ones who write promotional emails, home pages, and online product features.

To be a good copywriter, you need to be good with people, understand how they think, what they need, and how to best help them. You should also be skilled at structuring your paragraphs and words to make sense and sound compelling. The average salary for copywriters is around $55K, but depending on your niche, you can earn over $200K per year.

2. Sales

Sales is all about communication and convincing someone to do something. It’s not just about convincing people to buy a product they don’t need; it’s also about presenting an idea, interviewing for a job, or presenting a project to your boss. If you believe in the company you work for or the product you sell, then excellent sales skills are essential.

Average salespeople make around $50K per year, but those who work for businesses can earn six figures. If you’re good with people and passionate about helping them, sales could be the perfect fit for you.

3. Web Design

Involves designing beautiful websites that follow brand strategy and guidelines to develop a unique look. If you have a sense of design and creativity, web design might be the skill for you. The average salary for web designers is around $55K per year, but on platforms like Upwork, people charge between $65 to $80 per hour, which is more than $135K per year.

4. Digital Marketing

Digital marketing is the practice of promoting products or services through digital channels, such as search engines, social media, email, and other online platforms. As technology has continued to advance, digital marketing has become increasingly important for businesses of all sizes.

Digital marketing involves a variety of different disciplines and specializations, including search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, email marketing, content marketing, and more. Each of these areas requires a unique skill set and approach, but they all share a common goal: to connect with potential customers online and drive business results.

Another benefit of digital marketing is the wealth of data and insights that it provides. By tracking website traffic, social media engagement, email open rates, and other metrics, businesses can gain valuable insights into how customers are interacting with their brand online. This data can be used to optimize marketing strategies and improve overall performance.

As for the salary range in digital marketing, it varies greatly depending on the specialization and level of expertise. According to Glassdoor, the average base pay for a digital marketing manager is around $77,000 per year in the United States, but this can range from $71,000 to over $116,000, depending on the location, company size, and years of experience. 

In specialized areas like SEO or PPC, the salary can be even higher. Freelance digital marketers can also earn significantly more by working with multiple clients and charging an hourly or project-based rate.

5. Computer Science

If you’re passionate about apps, algorithms, and online processes, then computer science might be the skill for you. This broad term can encompass many areas like data analysis, software engineering, or machine learning. The average salary for computer scientists is around $75K per year, but on platforms like Upwork, people charge between $65 to $80 per hour, with some earning up to $150K per year.

Please note that these salary ranges are approximate and may vary depending on factors such as years of experience, location, company, and industry.

6. Consulting

Consulting involves using soft skills like communication, negotiation, and presentation to help clients find better solutions. It’s all about asking key questions, handling emotions, and understanding your clients to serve them better. While the average salary for consultants is around $75K, it’s not accurate due to the great resignation.

Independent consultants can earn between $90 to $150 per hour, but it’s not something you can learn online. You need to learn skills like negotiation, presentation, and sales to become a good consultant.

7. Content Creation

Content creation involves creating great content that will attract people to your business. You can do it for yourself or for others, like writing, content creation, and content management. If you do it for others, you can earn between $75-$150/hour.

Content creation is the process of developing engaging content that captures the attention of an audience. It can include creating written content, such as articles, blog posts, or e-books, as well as visual content, such as images, infographics, or videos. If you have a passion for creating compelling content and are skilled at storytelling, content creation may be a high-income skill worth pursuing.

Here are some points to consider when developing your content creation skills:

• Writing: The ability to craft well-written and engaging content is a valuable skill in today’s digital age. If you’re interested in writing, consider taking courses on writing techniques, storytelling, and copywriting. Practice writing regularly to hone your skills and build your portfolio.

• Video Production: Video content is becoming increasingly popular, and businesses are looking for skilled video producers who can create high-quality content. If you have an interest in video production, consider learning how to shoot and edit videos, as well as how to use video editing software.

• Social Media: Social media is a powerful tool for businesses to connect with their customers and promote their products or services. As a content creator, you may be tasked with developing social media content that is engaging and shareable. Consider taking courses on social media marketing and developing your social media skills.

• SEO: Search engine optimization (SEO) is the practice of optimizing content to rank higher in search engine results. As a content creator, you may be responsible for ensuring that the content you create is optimized for search engines. Consider taking courses on SEO and staying up-to-date on the latest SEO best practices.

• Graphic Design: Graphic design skills are valuable for creating visual content, such as infographics or social media graphics. If you have an interest in graphic design, consider taking courses on design software, such as Adobe Photoshop or Illustrator, and developing your design skills.

Overall, content creation is a versatile skill that can lead to high-paying opportunities in a variety of industries. By developing your content creation skills and building a strong portfolio, you can position yourself as a valuable asset to businesses looking to connect with their customers and build their brands.

8. Writing

Writing is a versatile skill that can open doors in various industries. Whether it’s creating content for a blog, writing copy for a website, or drafting an important business proposal, writing is a skill that can help you communicate your ideas effectively.

Strong writing skills are especially important for those working in fields like journalism, public relations, marketing, and advertising. Good writers can earn an average salary of around $60K per year, but top earners can make well into the six figures.

9. Project Management

Project management involves overseeing a project’s planning, execution, and closing phases. It requires strong organizational skills, leadership abilities, and the ability to manage resources effectively. Project managers are in demand in various industries, including construction, engineering, technology, and healthcare. The average salary for a project manager is around $80K per year, but top earners can make over $150K.

10. Public Speaking

Public speaking is the art of delivering a message to an audience. It’s a skill that’s useful in various industries, including education, sales, and politics. Good public speakers can engage their audience, convey their message clearly, and leave a lasting impression.

Public speaking can be a lucrative skill, with top motivational speakers earning millions of dollars per year. However, even an average public speaker can make a comfortable living, with an average salary of around $60K per year.

“Public speaking is a skill that can be learned and mastered with practice. It’s not about being perfect, but about connecting with your audience and delivering a message that resonates with them.”

– Grant Baldwin, author and professional speaker

11. Graphic Design

Graphic design involves creating visual content, such as logos, illustrations, and layouts. It requires creativity, technical skills, and the ability to communicate a message visually. Graphic designers are in demand in various industries, including advertising, marketing, and publishing. The average salary for a graphic designer is around $50K per year, but top earners can make over $100K.

12. Accounting

Accounting is the process of recording, classifying, and summarizing financial transactions. It requires attention to detail, strong analytical skills, and the ability to work with numbers. Accountants are in demand in various industries, including finance, healthcare, and government.

The average salary for an accountant is around $70K per year, but top earners can make over $100K. Accounting is a great career choice for those who are organized and detail-oriented. With the right qualifications, you can open your own practice or work in a large organization.

Accountants must be prepared to stay up-to-date on changing regulations and industry trends. They also must be comfortable working with computer software and technology, such as accounting programs and spreadsheets.

The Bottom Line – Increase Your Income with High-Income Skills

In conclusion, acquiring high-income skills can lead to a more fulfilling career and a better quality of life. These skills can take time and effort to develop, but the financial rewards can be significant. Whether you choose to learn a new programming language, improve your writing skills, or become a better public speaker, there’s always room for growth and development in today’s job market.

By investing in yourself and developing valuable skills, you can position yourself for success and achieve your career goals.

The post High-Income Skills to Upgrade Your Career appeared first on Good Financial Cents®.

And do you know 18% of American individuals are six-figure earners, according to Zippia? That’s a lot of money a person could earn in a year!

So, what exactly does it mean to make six figures? Is it as lucrative as everyone thinks?

In this article, we’ll explore what exactly goes into making a six-figure income and the types of jobs that can provide an annual salary in this range.

We’ll also explore other ways to increase your earnings if you already have a job that pays well but is not quite enough for the lifestyle you want.

How Much Is a Six-Figure Salary?

Earning a six-figure salary means you make an annual income between $100,000 and $999,999, which is far above the average salary of $53,490, according to the Bureau of Labor Statistics (BLS). That’s a huge difference, no matter how you look at it!

This amount is based on gross income, which is before taxes and other deductions are taken out.

If your gross salary is $110,000 per year, but your take-home pay is $80,000, you can still say you earn a six-figure salary. However, it’s important to note that a six-figure salary can cover a wide range of incomes and lifestyles ranging from middle-class to millionaire status. 

To be more specific, some people may indicate whether their six-figure income is low, mid, or high as follows:

How Much Can I Make a Month, Week, Day, or Hour in 6 Figures?

How Much Is 6 Figures Monthly?

To determine the monthly income of a six-figure annual salary, divide the yearly amount by 12. Note that this will give a wide range of values. However, the smallest monthly income to earn a six-figure salary would be $8,333.33.

Keep in mind that after taxes, the amount you receive will be reduced to a five-figure sum.

This question could have a different angle if you earn 6 figures per month. Then your annual income will be a minimum of $1,200,000 or more.

How Much Is 6 Figures a Week?

If we were to divide the six-figure annual salary by 52 weeks, then the minimum weekly income would be $1,923.08.

At the same time, if you earn 6 figures per week, your annual income will be a minimum of $5,200,000 or more.

How Much Is 6 Figures a Day?

To find out the daily earnings from a six-figure annual income, divide it by 365. This will give you minimum daily earnings of $273.97 if you earn money every day of the year. This is how you can become a part of the six-figure club.

Check out the calculations:

• $100,000 per Year / 365 Days = $273.97 per Day

Assuming you take weekends and U.S. holidays off, let’s calculate how much you would need to earn per day to make $100,000 per year. The amount comes out to be:

• $100,000 per Year / 262 Days = $381.68 per Day

This can be considered as a minimum amount to aim for if you prefer earning a six-figure salary without overworking yourself.

How Much Is 6 Figures an Hour?

To earn a six-figure annual income while working on all regular US workdays, you need to make at least $381.68 per day or $47.71 per hour (assuming you work eight hours per day). Even if you work overtime or part-time, you still need to maintain an average hourly wage of $47.71 to achieve this goal.

How Much Is 6 Figures After Taxes?

Your gross income determines the number of figures you earn. For instance, an income of $110,000 per year will likely be reduced to a five-figure net income after taxes.

Factors that can significantly affect the tax bills of six-figure earners include:

• Marital Status (Married or Single)

• Dependents (Whether or Not You Have Them)

• Tax Deductions (Standard Deduction or Itemized Deductions)

• Tax Credits (Whether or Not You Have Any)

• Investment Income (Dividend Income or Long-Term Capital Gains)

Although each state has its own tax laws, a six-figure salary can be whittled down to anywhere between $76,096 and $68,308 after taxes a. This figure will depend on where you live and your tax situation.

Furthermore, aside from income tax, FICA taxes for Social Security and Medicare also deducts 7.65%. This implies that your final take-home salary may go down by 32-38% compared to your gross pay.

Therefore, to ensure that you receive a six-figure income after taxes and deductions, you must aim for six-figure jobs that pay a gross salary of at least $150,000 a year. This will provide you with an after-tax income of no less than $100,000 per year.

TIP: You can reduce your tax payments by choosing to allocate some of your salary into tax-advantaged accounts like a 401(k) or a Health Savings Account.

How Can I Earn 6 Figures?

The real answer to this question depends on your perspective of a six-figure job.

Some people might be able to make the same amount of money by working part-time or freelancing, while some may require a full-time job.

Many people achieve their six-figure salaries through a combination of hard work, skill development, networking, and other strategies.

Here are some tips and suggestions that can help you achieve a six-figure income:

Create Multiple Streams of Income

You may want to invest in different income sources, such as stocks, rental properties, and side businesses, to diversify your income. This can help you generate a passive income that increases gradually.

Here are some examples of additional income sources apart from traditional jobs:

• Start an Online Service-Based Business

• Freelance Your Skills

• Sell Products or Services on the Side

• Buy Digital Assets

Negotiate Salary Increases

If you’re employed, use your successes at work to negotiate a higher salary with your current employer or switch jobs for better pay and benefits.

When it comes to salary negotiations, preparation is key. Here are some tips to help you get the most out of your conversation with your employer

• Research Salary Ranges: Find out what other professionals in your field typically earn. Knowing the market rate will help you make an informed decision and give you leverage in the negotiation process.

• Be Prepared: Come up with concrete evidence of your contributions to the company, such as increased efficiency or cost savings, that prove your value.

• Use Effective Communication Techniques: Speak confidently but respectfully and be sure to listen carefully during the negotiation process. Focus on phrases such as “I’d like to discuss my salary” rather than “I need a raise,” which can put pressure on the other party.

• Time It Right: It’s best to initiate a salary negotiation when you’re trying to move into a new role or after successfully completing an important project or goal for the company. Avoid negotiating at times when there may be negative sentiment towards you (for example, if you just received criticism from management).

Be Practical About Your Finances

Instead of splurging on material objects, allocate your funds towards investments that can generate multiple income streams and provide long-term financial security.

Develop Specialized Skillsets

Learning new technologies or becoming an expert in specific fields (such as programming, marketing, and sales) can open up many opportunities for high-paying jobs.

Take Calculated Risks

Make wise investments such as starting a business (or an additional one if you already have one). Investing in yourself is always a great way to earn money while developing valuable skill sets that you can use later.

Jobs That Pay 6 Figures

Here are some of the most in-demand jobs with salaries of $100,000 or more a year.

• Finance Manager

• Police Officer

• Petroleum Engineer

• Executive Chef

• Nuclear Power Reactor Operator

• Software Developer

• Real Estate Broker

• Information Technology Manager

• Actuary

• Computer Network Architect

• Salesperson

• Air Traffic Controller

• Dental Hygienist

• Physician

• Radiation Therapist

• Dentist

• Pharmacist

• Lawyer

• Physicist

How To Maximize 6 Figures?

Ah…if you are already earning 6 figures or close to it, congratulations, you are in the upper echelons of earners. Still, it is important to maintain good money habits and be intentional with your finances, even if you earn a six-figure income. Neglecting this aspect can make your income appear smaller than it actually is.

To maximize your earnings at this level, focus on financial planning and budgeting, as well as on improving your skills and knowledge.

Here are some helpful financial habits that can allow you to efficiently manage your income of six figures and make the most out of every dollar you earn.

Follow a Budget

Creating a budget is an essential step in setting yourself up for success when it comes to achieving your financial goals. A budget will help you gain clarity on your income and expenses, prioritize where your money should go, and help you create a plan of action.

When creating a budget, the first step is to determine your net take-home pay. Let’s assume that this number is $65,000 per year or $5,416 per month. From there, you can use Dave Ramsey’s recommended percentages as a guide to planning out how you would break down your monthly income:

Note: It’s important to remember that everyone’s financial situation is different, so feel free to adjust the percentages depending on what works best for you – as long as all of the categories add up to 100%, every dollar spent will be accounted for.

Build Savings

The term “save money” is somewhat cliché, but it’s important to put aside money for savings and investments. Even if you are bringing in a six-figure salary, it’s still important to live within your means and save money. Here are some tips to get you started:

• Make savings a priority by allocating 10% of your income as soon as possible. Set up an automatic transfer from your checking to savings account every payday.

• Once debts are cleared, aim for 15-20% of your income, which is the recommended rate for retirement funds.

• Keep your savings in an online account for maximum return on interest rates.

Pay Off Debt ASAP

No matter how much money you make, excessive debt can be detrimental to your financial, mental, and emotional health. If your goal is to maximize 6 figures in income, then it’s important that you make paying off your debts a top priority.

Start by focusing on high-interest credit card balances and car loans because every dollar of interest you pay is just money down the drain. After these are taken care of, you should work on paying off student loans, personal loans, and mortgages.

Once you’ve eliminated all your debt payments, then you can start putting more into savings and investments for retirement purposes and ultimately begin growing your wealth even further.

Avoid Luxury Lifestyle and Cut Expenses

One of the most common pitfalls is lifestyle creep—the idea that increased income leads to increased spending. You must resist the urge to buy more than necessary.

Here are just a few ideas for avoiding lifestyle creep and cutting expenses:

• Shop Around for Lower Insurance Premiums and Refinance Mortgages When Possible. Mortgage refinancing can often yield significantly lower interest rates, freeing up more money each month.

• Cancel Any Monthly Subscriptions You Don’t Use Frequently (Gym, Newspaper, Cable, Etc.). This can help reduce your monthly bills substantially over time.

• When Buying Something, Comparison Shop for the Best Deals and Conserve Energy Where Possible in Order to Reduce Your Utility Bill.

• Consider Getting a Less Expensive Cell Phone Plan or an Older Car That Is Paid Off. And finally, create meal plans for home dinners instead of eating out – this will help save a significant amount of money every month.

Invest Your Money To Grow It

One effective approach to increase your earnings is to invest your money for long-term benefits. However, this requires planning ahead and sacrificing present spending for future earnings.

Investing smartly is crucial if you aim to retire comfortably and have ample support for 30 years during your old age, so it’s important to take the time and assess your investment options.

What Would a 6-Figure Lifestyle Look Like?

If you make six figures, you could have a much better lifestyle compared to the national average salary of a little over $52,000 a year in the U.S. Doubling your current income would be necessary to reach a six-figure salary.

Your take-home pay can provide a comfortable lifestyle even after taxes, but this depends on various factors such as:

• Where You Live: Housing costs in certain cities such as San Francisco, Washington D.C., New York City, and Honolulu nearly demand a six-figure salary just to get by. If you choose a location with a lower cost of living, this can make affording a nice house easier.

• Your Healthcare Costs: Many of us struggle with the ever-increasing health insurance costs and medical expenses associated with serious illnesses or chronic conditions.

• How Much Debt You Have: If you have significant debt, it could be difficult to stay under your budget even if you make six figures.

• The Size of Your Family: Having children or providing for an aging parent can mean having less disposable income each month due to additional expenses like childcare or assisted living care.

• Your Tax Bracket: Investing in the right retirement plans and other tax-advantaged accounts can help reduce your taxes and leave more money in your pocket each month.

• Your Spending Habits: Living within your means is key to enjoying the lifestyle that comes with making six figures without being consumed by lifestyle creep.

Conclusion – Making 6-7 Figures

Earning a six-figure salary can be an incredible opportunity to live comfortably and provide financial security for yourself and your family.

However, it’s important to remember that budgeting, investing smartly, reducing lifestyle inflation, avoiding overspending, and planning for the future are essential if you want to make sure you remain within your means with a six-figure income.

With proper management of finances, those who have achieved this milestone will find themselves on their way toward achieving financial freedom.

FAQs – How Much Is Six Figures

The post How Much Is Six Figures? appeared first on Good Financial Cents®.

In this article, we’ll explore what it means to earn 20 dollars an hour and how much money that would add up to over the course of a year. We’ll also look at some ways you can increase your earnings and take home even more cash. So read on if you want to learn more about how you can join the ranks of those who enjoy higher-than-average salaries.

$20 an Hour Is How Much a Year?

To figure out how much you would make annually if you earned $20 an hour, it is important to understand how many hours you will be working in a year. Usually, a full-time job is considered to be 40 hours per week and 52 weeks in a year. So, let’s calculate how much money we would make in this example:

Calculation Breakdown

This means that if you worked for 40 hours a week and 52 weeks in a year, your gross income would be $41,600. The gross annual salary of $41,600 is below the middle-income worker’s desired salary of $60,000 and falls just under the $50,000 salary threshold.

Part-Time Work Scenario

Now, let’s look at how this changes for those who are working part-time. For example, if you worked 20 hours a week and 52 weeks a year, your total working hours would be 1040. So, the gross income, in this case, would be:

In this case, with a part-time job at 20 hours a week, you would make a gross annual salary of $20,800. Again, this amount is subject to taxes and other withholdings.

What Does $20 an Hour Translate to in Terms of Paycheck?

We will calculate the amount of money earned for one month, one week, two weeks, and one day.

Monthly Paycheck

To calculate your monthly income, divide your annual salary by 12. For example, if your annual salary is $41,600 based on working 2,080 hours per year, your monthly salary would be $3,466.67 ($41,600/12).

If you are paid every four weeks, your salary will be slightly different. To calculate your pay, multiply 40 hours per week by four and $20, which will give you a total of $3,200 every four weeks.

Weekly Paycheck

Your earnings for a week will vary depending on the number of hours you work. Assuming a full-time schedule of 40 hours per week and a pay rate of $20 per hour, your weekly earnings would amount to $800 ($20/hour x 40 hours).

If you work 20 hours per week part-time, you will earn $400 in wages for that week. it also depends on whether you are paid biweekly or weekly.

Bi-Weekly Paycheck

To calculate your biweekly salary based on a weekly wage of $800 for 40 hours, simply multiply by two. So if you work 80 hours in two weeks, you will earn $1,600. If you work only 20 hours a week, your biweekly salary will be $800, calculated by multiplying your weekly salary of $400 by two.

Daily Paycheck

Finally, if you worked for 8 hours a day and were paid $20 an hour, your daily earnings would be $160.

How Does $20 an Hour Compare?

If you earn $20 per hour, your annual income would be $41,600. Although this is lower than the national average income of $60,575 and the median income of $70,784, it is still higher than the minimum wage of $7.25 per hour. In addition, it is also higher than the average hourly wage for part-time workers, which was $14.48 in 2023.

Even without a college degree, a job that pays $20 per hour is a great salary. It also puts job seekers at an advantage over those who are new to job searching. With this wage, they can expect job offers with high pay and valuable career guidance.

Is $20 a Good Hourly Rate?

It is difficult to provide a clear answer to this question as it is influenced by factors such as your location’s cost of living and lifestyle. However, we can offer a rough estimate of how this hourly rate compares to the poverty level. 

If you don’t have dependents, the federal poverty level for a single person in 2023 is $14,580. However, if you have dependents, the poverty level goes up. For instance, a family of four has a poverty level of $30,000. 

Given these figures, we can deduce that making $20 per hour is enough to keep you and your family above the poverty line and maintain a modest standard of living.

Although $20 per hour is not a generous hourly rate, it is still feasible to maintain a comfortable lifestyle on this income through careful financial management and budgeting. With careful consideration of expenses, you can guarantee that your earnings are adequate to cover your necessities and facilitate a simple standard of living. With this hourly rate, you can even save up more money for the future.

Paid Time Off for Hourly Employees Earning $20 per Hour

Knowing if your employer provides paid time off is crucial for hourly salary employees as it can significantly affect their yearly income. To illustrate, we can consider two situations: one where they receive paid time off and one where they do not, assuming a 40-hour workweek throughout the year.

Case #1: Paid Time Off

If you are an hourly employee receiving two weeks of paid time off each year, your annual income would be $41,600. This is equivalent to the annual salary mentioned earlier.

Case #2: No Paid Time Off

Unfortunately, not all hourly employees receive paid time off from their employers. It’s crucial to prepare for a decrease in income, as there may be occasions when you need to take time off for sickness, urgent situations, or even a holiday.

For example, if you take a two-week unpaid break, your working year will be reduced from 52 weeks to 50 weeks. This means you will work for 2,000 hours (40 hours x 50 weeks) each year, earning an annual income of $40,000 (2,000 hours x $20 per hour). On the days you work, you will earn an average income of approximately $160, but you won’t earn any money on your days off.

By understanding the different aspects of hourly employment, such as monthly salary, unpaid vacation time, and median hourly wage, you can make an informed decision about your career path.

How Much Is $20 An Hour After Taxes?

Understanding your take-home salary after taxes is important, and budgeting can help with that. Taxes can take a big chunk out of your income, so it’s useful to calculate your actual paycheck as a salaried employee.

To better comprehend how taxes can affect your hourly wage, it’s crucial to consider that each individual’s tax circumstances vary. However, for this article, we will rely on the following fundamental presumptions:

• Federal Tax Rate: 12%

• State Tax Rate: 4%

• Social Security and Medicare (FICA) Rate: 7.65%

Gross Annual salary: $41,600

Here is an estimation of your tax deductions based on these assumptions.

• Federal Taxes: $4,992

• State Income Taxes: $1,664

• Social Security and Medicare: $3,182

Net Annual Salary: $31,762

Your annual salary after taxes and deductions is $31,762, which means you will be earning less than $40,000 per year.

To calculate your hourly wage, we’ll use the assumption that you work 2,080 hours in a year.

Net Hourly Wage: $15.2

So, the net hourly wage of an employee earning $20 before taxes is approximately $15.2 after all necessary deductions have been made.

Note: There are certain states in the US where you don’t have to pay state taxes on your salary income. In such states, you will only need to pay your federal tax and FICA. A list of these states which are tax-free for salary income is given:

1. Alaska

2. Tennessee

3. Texas

4. Nevada

5. Florida

6. Wyoming

7. South Dakota

8. Washington

9. New Hampshire

Based on the tax-free states provided, here is a breakdown of your salary after tax deductions.

• Federal Taxes: $4,992

• Social Security and Medicare: $3,182

Net Annual Salary: $33,426

Net Hourly Wage: $16.04

By understanding your taxes and deductions, you can better plan for the future, save up more money, and receive higher hourly good pay. Taking the time to budget your monthly salary can help you identify areas where you can make cuts or invest more. You can even use a salary calculator to understand your net income and taxes better, so you can make the most of your pay.

Tips for Budgeting With a 20/Hour Salary to Maximize Savings

Identify Your Expenses

Creating a budget should be the first step when you receive your paycheck. Knowing how much money comes in and out of your bank account each month helps you stay on track with your savings goals. To get started, list down all of your expenses for the month and see how much money is left after deducting your bills, loan payments, and other necessities.

Here are the most common expenses associated with a $20/hour salary:

1. Rent/Mortgage

2. Utilities

3. Insurance Payments

4. Transportation

5. Groceries

6. Savings & Investments

7. Eating Out/Entertainment

8. Clothing

9. Gifts & Donations

TIP: To keep track of your variable expenses, collect your receipts for a month and calculate the average.

Create a Budget

To stay aware of your expenses, it’s important to budget your money. An example budget planner can help you keep track of where each dollar is spent on a monthly or weekly basis. To begin, search online for a sample monthly budget.

Here’s the sample budget for $20 per hour after taxes

Minimize Debt

If you earn $20 per hour, it’s important to prioritize reducing your debt when budgeting. Begin by paying off high-interest debts, such as credit card balances. It may also be possible to negotiate a lower interest rate on loans with your lender.

Consider Living in Tax-free States if Possible

Living below your means is a crucial aspect of budgeting. Don’t overspend your income on unnecessary items, and remember that you can save more money if you live within your budget.

Consider living in one of the tax-free states, such as South Dakota, Washington, or New Hampshire, to maximize your savings.

Managing Discretionary Spending

To clarify, discretionary spending means spending on things that are not necessary, such as hobbies or entertainment. It’s suggested that you limit your discretionary spending to between 5-10% of your overall income. It’s important to pay your bills and put money into savings first, and then see how much you have left over to use on non-essential items.

Save and Retirement Funds Consistently

To secure your future, it’s crucial to save for retirement if you earn $20/hour. Try to contribute 10-15% of your salary to a 401(k) or IRA. It will gradually help you create a nest egg for a financially secure retirement. Additionally, consider setting aside at least 10% of your monthly salary for unforeseeable circumstances. An emergency fund will come in handy during unexpected financial situations.

Prioritize Expenses

Prioritize your expenses and pay the most important bills first. Rent or mortgage, utilities, and food should be at the top of the list, followed by other necessities like transportation, insurance, and medical expenses.

Review Your Budget Regularly

To keep your budget in line with your current financial situation, it’s important to review and adjust it on a regular basis since your expenses and income may vary over time. And, in this inflationary environment, it’s essential to review your budget regularly to ensure that you’re staying within your means and not overspending.

Do Some Side Hustle

Earning extra money on the side will help you save more. Look for freelance gigs or part-time jobs in your area that pay well and fit your abilities. Doing side gigs will help you make more money, pay off debts faster, and eventually reach your savings goals.

You will get a detailed list of side hustles in the next section of this article.

Side Hustles To Supplement Your $20 Income

If you’re like most of us, earning $20 an hour isn’t going to lead to financial freedom anytime soon. But don’t worry. There are plenty of creative side hustles you can start to supplement your income and reach your financial goals. Here are some ideas to get you started:

Freelance Writing

We know that freelance writing is one of the most popular side hustles out there and for a good reason. If you have a knack for writing, you can easily make extra money writing articles, blog posts, and web content for businesses.

There are plenty of opportunities out there, and you can set your own rates.

Pet Sitting

If you love animals, consider pet sitting as a side hustle. You can make good money by walking dogs, feeding cats, and providing companionship to pets while their owners are away.

Short-Term Rentals

One way to earn more money is by listing your spare room on Airbnb or other short-term rental platforms. Make sure the room is presented nicely, advertised effectively, and kept clean to attract guests. It’s also important that the room has a private entrance to ensure privacy for both you and your guests.

Don’t worry; if you don’t have the space for a rental, you can still make money with Airbnb by managing other people’s properties.

Etsy Shop Owner

If you enjoy crafting, Etsy is a great platform to sell your handmade goods. From jewelry to home decor, the options are endless.

Virtual Tutoring

Are you proficient in a specific subject and hold a degree in it? You can work as an online tutor and earn $20 per hour by teaching students from different corners of the world. It’s a great way to use your knowledge to help people learn and make money in the process.

Food Delivery

Sign up to become a food delivery driver for companies like Uber Eats, GrubHub, or DoorDash. These gigs typically offer flexible schedules and can help you earn extra cash.

Graphic Design

If you have a talent for graphic design, there are many businesses and individuals looking for someone to create logos, social media graphics, and other promotional materials.

Brand Ambassador

Companies need people to promote their brands at events, festivals, or in-store. This can be an exciting way to earn extra money and meet new people.

Virtual Assistant

Consider becoming a virtual assistant for business owners or freelancers who could use extra help with administrative tasks like scheduling appointments, managing social media, or handling email.

Types of Jobs That Pay 20/Hour Salary

If you’re searching for jobs that pay $20/hour, websites that offer job search and career advice can help. You can find job titles that fit this salary, like the ones listed below:

• Hotel Manager

• Virtual Assistant

• Wind Turbine Technician

• Dental Hygienist

• Carpenter

• Freelance Editor

• Athletic Trainers

• Maintenance Mechanic

• Bank Tellers

• Plumber

• Warehouse Workers

• Route Driver

• Heavy Equipment Operator

• Event Planners

• Medical Coder

• Occupational Therapy Assistant

• Insurance Agent

• Customer Service Managers

• Electrician

• Solar Installer

• Freight Broker

• Movers

• Entry-Level Marketing Jobs

• Interpreter

• Food Serving Job

• Hvac Technician

• Maintenance Workers

You can earn a salary of $20/hour or more in any of these professions. Dedication and hard work can help you achieve this goal.

Is $20 an Hour Enough to Buy a House?

While earning $20 an hour can be a decent income, it does not guarantee that you can buy a house. As shown in the table, several factors affect your ability to purchase a home, including your credit score, monthly debts, and down payment.

Assuming you have no monthly debts and a credit score of 760 or higher, you could potentially spend up to 50% of your gross income on buying a home, resulting in a total monthly repayment of $1,750.

However, if you have other financial obligations, such as car payments or student loans, your qualifying amount may be less. Therefore, it’s important to carefully consider all financial factors and ensure that you can comfortably afford the monthly repayments before purchasing a home.

Can You Live On $20 an Hour?

The ability to survive on a wage of $20 per hour depends on your individual circumstances. A single person with no dependents may be able to live comfortably on this amount, but if you are married and have to pay rent, it could be challenging to make ends meet with $20 per hour.

Final Thoughts on a $20/Hour Salary

A salary of $20 per hour can be an attractive compensation rate, particularly if you are looking for flexibility in your job. This wage provides a comfortable living for many, but it is important to consider your monthly expenses and budget before making any financial decisions.

Don’t forget to make use of free online tutorials and courses to increase your knowledge, making you more attractive to employers.

FAQs – $20 Per Hour

The post $20 an Hour Is How Much a Year? appeared first on Good Financial Cents®.

When I was in high school, there was a kid in my class who I definitely *thought* was rich. His family owned several fast-food restaurants and they had a huge house that was a lot nicer than mine.

He also drove a brand-new Dodge Stealth when he was just 16 years old, which is pretty over-the-top when you think about it.

In the meantime, his parents were more than happy to pay for all his friends to watch any pay-per-view event that came around – think OG boxing matches like Mike Tyson vs. Evander Holyfield.

This was a huge deal to me since my dad would never pay a few hundred bucks for me and my friends to watch a boxing match or some other pay-per-view sporting event. I could only imagine how rich his family was. After all, they always had extra cash to spend on cars, entertainment, and basically anything else they wanted.

Now that I’m older, however, I know most people who spend lavishly on material possessions and “stuff” are rich but not wealthy.

They might earn a lot of money, but that’s not the same as being wealthy.

In fact, earning a lot of money can easily put people on the path to going broke.

Rich vs. Poor: Difference

Before I dive into all the differences between being rich and wealthy, I also want to point out that the stats are all skewed for those of us lucky enough to live in the United States. Incomes considered “poor” here could put you in the “rich” or “wealthy” categories in a number of developing countries. Plus, the American version of “rich” is basically unheard of in many regions around the globe.

The World Bank classifies different countries into four different categories for analytical purposes — low income, lower-middle income, upper-middle income, and high income. When you look at the map on their website, you can easily see that the United States, most of Europe, and Australia are all high-income countries, whereas most of the continent of Africa and parts of Asia are considered low-income and lower-middle-income.

They also break down average incomes in various parts of the world, and the figures are very eye-opening. Just look at the difference between incomes in the United States and some of the other countries listed, and you’ll quickly see what I mean.

Average Monthly Income In 2023 (USD)

• Argentina: $785

• Bhutan: $340

• Ghana: $351

• Indonesia: $823

• Myanmar: $200

• Uganda: $111

• United States: $6,228

What Does “Rich” Mean?

With this in mind, I still want to nail down what it means to be rich vs. wealthy in the United States. For the most part, being rich in the United States means:

• Having a high income;

• Making it obvious you spend a lot of money; and

• Having the best of everything.

How much money do you need to be considered “rich” in the United States? That figure can vary by quite a bit since all kinds of people use credit cards and loans to fund the lifestyle they want. You know the type — they work in a “regular” job where you know their salary, yet they somehow have an exotic car and a huge house.

People who fall into this category earn a lot of money for sure, but that doesn’t mean they always keep it. It just means they earn that much in their jobs or with their business, and that they make sure everyone around them knows it.

I have actually met people who fall in this category — a ton of people, in fact.

Being Rich Is Limited to Living a Rich Lifestyle

I still remember the story of a married couple I worked with as a financial advisor. They each earned $250,000 per year, and they were only in their mid-thirties. My initial conversation with the couple helped me learn they wanted to retire at the age of 50, and that they were super motivated when it came to working hard for what they wanted.

Still, looking over all their financial accounts left me absolutely dumbfounded. While they earned half a million dollars per year, they only had $17,000 in total assets. That’s right; they were in their mid-thirties and they wanted to retire at age 50, yet they only had $17,000 in actual assets to their name!

This was partly due to the fact they weren’t saving or investing much at all, but it was also due to the massive amount of debt they had. They traveled a lot and they had a huge house. They also had nice cars and the boats and toys you would expect, and pretty much all of it was financed with debt.

This couple had a high income for sure, but their net worth was so low it actually shocked me. How can you calculate your own net worth? For the most part, figuring out your net worth involves taking all the assets you own and subtracting your liabilities. Whatever is left over is your net worth, which is an excellent measure of your actual wealth.

Crazy enough, this couple actually had a negative net worth when you subtract all the debt they had from the assets they had. You can watch my video on this couple here, but you probably have the gist of it already. This couple was definitely “rich” based on their income alone, but they were not wealthy at all. In fact, they had almost nothing to show for their incomes at all — at least, nothing but a mountain of debt and a pile of “stuff.”

Of course, this couple is not an anomaly at all. In fact, plenty of “rich” people have blown through their incomes with nothing to show for it in the end.

Some examples include:

These are just a handful of celebrities and athletes who earned millions of dollars but wound up broke in the end. However, there are many, many others that have done the exact same thing or are doing it as we speak.

In fact, most of us have been watching the fortunes of Johnny Depp disappear in real time. The cost of his legal battle with Amber Heard will cost untold millions on its own, and reports say he blew $1.1 billion dollars on private jets, islands, booze, and failed business ventures to boot.

We can hope he’ll be able to resurrect his career once his current legal battle is behind him, but he’s definitely on the way to losing it all if he doesn’t. After all, you can’t live like a king if you’re not earning anything, and he’ll have to make huge changes to his spending habits if he wants to get back on track.

Either way, examples like these show you can earn millions of dollars and still have nothing to show for it in the end.

However, that doesn’t happen if you’re actually “wealthy,” which I’ll explain in more detail below.

What Does “Wealthy” Mean?

According to recent data from Schwab’s 2023 Modern Wealth Survey, being wealthy required an average net worth of $2.2 million dollars or more in 2023. That’s higher than the $1.9 million in net worth that was required to be considered wealthy in 2022.

According to some background information shared by CNBC, different age groups also had their own feelings on how much money someone needed to have to be considered wealthy in the United States. Nearly two thirds of survey respondents say enjoying relationships with loved ones better describes what wealth means to them, rather than having a lot of money and nearly 66% of respondents say having time is more important than having money

While “wealthy” people also earn a lot of money, they handle their finances in a totally different way. For example, wealthy people focus on buying income-producing assets instead of depreciating assets. And they sure as heck don’t blow all their extra money at the mall.

Wealthy people also save and invest diligently over their entire lives, which helps them harness the power of compound interest so they can build even more wealth over time.

When people are wealthy, they don’t have to live paycheck-to-paycheck because they have considerable assets to back them up. Wealthy people often work in flexible jobs as a result, or they own their own business and work when they want to.

Wealthy people also:

• Have more control over their time and how they spend it;

• Keep track of their assets and investments so they can grow; and

• Spend time learning how to build even more wealth.

At the end of the day, wealthy people are like Bob Lotich, who recently launched a new book called “Simple Money, Rich Life: Achieve True Financial Freedom and Design a Life of Eternal Impact.” Lotich worked hard to build real wealth over the course of his life, and he ultimately gave away a percentage of his income based on his age while still paying off his home. Over the last few decades, Lotich has given away more than $1 million dollars without going broke or losing his “wealthy” status.

While wealthy people may get where they are in a few different ways, many people become wealthy through:

• Starting a profitable business;

• Investing in the stock market; and

• Building a real estate portfolio.

Some of the wealthiest people in the world also take all three of these steps plus several others on their way to riches.

Either way, wealthy people actually keep their money because they invest it for the future. They also live within their means, and they usually don’t feel the need to flash their money around. Ultimately, that’s why many wealthy people don’t drive fancy cars or live in huge homes. Instead of spending their extra money, they put their money to work.

A good example of this is Warren Buffet, who still lives in the home he bought in 1958 and drives a 2014 Cadillac XTS. Buffet lives frugally despite having billions of dollars, and he focuses on building more wealth instead of spending it.

Key Differences Between the Rich and the Wealthy

So, what are the biggest differences between people who are rich and people who are wealthy?

The chart below explains everything you need to know.

Rich or Wealthy: Which is Better?

By now, you are probably realizing that being wealthy is a lot better than being rich! After all, being rich means you’re still part of the rat race, and that you may wind up working forever. Being wealthy, on the other hand, means you get to live your life how you want and spend money on things you actually care about.

You won’t be surprised by this, but I definitely consider myself a “wealthy” person, and that actually has to do with a lot more than money. Being wealthy allows me to have complete control over my time — to attend all my children’s events and to pick them up from school each day.

Having wealth also means getting to pick and choose how I spend money, and being able to splurge on things that add true value to my family’s lives.

For example, I recently built a backyard oasis at my home, which I couldn’t have done if I was simply “rich” and just blowing all my income on flashy stuff. Our backyard pool is going to help my family create lifelong memories, which will yield generational dividends for decades to come.

You can’t put a price tag on that. And when you’re truly wealthy, you don’t really have to, either.

9 Key Steps to Becoming Wealthy

If you want to become wealthy instead of rich, you’ll have to change your thought process when it comes to how you spend your money. You will also need to stop caring whether other people think you’re rich or not, which can be a challenge when your ego has always been tied up in how much money you earn.

Want to become wealthy instead of rich? The nine steps below can help you get started.

Step 1: Avoid Debt Like the Plague

If you want to become truly wealthy, the first thing you should do is stop borrowing money! I’m not talking about taking out a mortgage to buy a home or borrowing money to start a business.

I’m talking about:

• Using credit cards to buy “stuff” you can never seem to pay off.

• Financing everything you can, from new appliances to furniture.

• Spreading out the payments on everything for as long as you can.

One specific monthly payment that’s likely killing your wealth is your car payment. This is especially true if your family has two car payments at a time, and if you’re the type of person who likes to upgrade to a new ride every few years.

According to the most recent State of the Automotive Finance Market report from Experian, which is from Q2 of 2023, the average monthly payment on a new car worked out to $729 at last count. Also, the average car loan lasted for 67.4 months!

Either way, becoming wealthy means making different decisions — decisions like picking a car you can buy in cash or driving your car for a decade so you can avoid car payments for several years.

Becoming wealthy also means skipping debt that doesn’t help you build wealth. For the most part, that means paying off your credit card balances each month and learning to live within your means.

Of course, wealthy people do take on debt — they just use it to their advantage. For example, wealthy people use leverage (a.k.a. debt) to invest in businesses and real estate so they can earn more money. That’s totally different from how rich people use debt, which usually involves financing cars, boats, furniture, and other “stuff” they cannot truly afford.

• Related: How My Grandmother’s 1998 Chevy Lumina Made Me Over $2 Million Dollars

Step 2: Invest in Personal Growth

Next up, you’ll want to invest some time and money into your own personal growth. This can mean things like:

• Hiring a mentor;

• Joining a mastermind group;

• Investing in personal coaching;

• Learning with the help of books and courses; and

• Building relationships by investing in others.

I like to refer to these investments as “income accelerators” because they can help you boost your income in ways other investments cannot.

I have personally participated in all five of these moves over the years, and I can say with confidence my investments in myself have yielded millions of dollars in added returns.

So, look for a mastermind group you can join, or reach out to someone you know who is doing work or running a business you’re interested in. Whatever you do, invest in yourself. I promise you won’t regret it.

Step 3: Build an Emergency Fund

Next up, you’ll want to make sure you have adequate cash stashed away for emergency expenses. After all, you cannot build wealth if a single financial emergency or unexpected bill could easily wipe out everything you have.

Unfortunately, not enough people have this kind of additional savings. In fact, a 2023 report from the Federal Reserve showed that 37 percent of adults don’t have enough cash to cover a $400 emergency expense.

How much do you need in your emergency fund? Most experts recommend stashing away three to six months of expenses somewhere you can easily access it, such as a high-yield savings account. If your current expenses are $7,000 per month, for example, this means you would try to save $21,000 to $42,000 just for emergencies and other expenses you can’t necessarily predict or plan for.

This may sound like an overwhelming task, but remember that you don’t have to build your emergency fund all at once! You can do it little by little over the course of several months or years. This might take some time but even possible for someone making $20 an hour.

Start by figuring out how much you can afford to save for emergencies each month, then set up a bank transfer for that amount at the beginning of each month or around your payday. Your money will inevitably grow over time, and you can earn some interest on your savings along the way.

Step 4: Build Your All-Star Team

Next up, you’ll want to build a team of people who are in your corner and supportive of your goals. Your team can include professionals who help you build wealth and manage your money, but it should also include friends and family members who don’t sabotage you or make fun of your ambitions.

As an example, you could:

• Finally hire a CPA to do your taxes and help you find areas to save.

• Hire a bookkeeper for your business so you can spend more time building wealth vs. doing grunt work.

• Join mastermind groups so you can meet like-minded professionals who support you in your endeavors.

• Spend more time with successful and happy people you know.

• Ditch friends that consume your energy and time without adding to your life.

• Hire a fee-only financial advisor that can help you create a long-term investment plan.

Motivational speaker Jim Rohn famously said most people become the average of the five people they spend the most time with, and I totally agree.

If you spend your time with your “rich” friends who are constantly looking for new ways to spend their money, it’s easy to do the same. If you spend time with “wealthy” people who are constantly working toward their next set of goals, on the other hand, some of that may rub off on you.

So, build your team of professionals and friends who can help you get where you want to be, and don’t be afraid to ditch anyone who is holding you back.

Step 5: Invest Your Income (20% or More)

Of course, you also need to invest faithfully if you want to build long-term wealth. Fortunately, there are many ways to do exactly that, and you will likely want to take part in several investing strategies at the same time.

Strive to invest 20% or more of your income in the following ways each month:

• Boosting contributions to your workplace retirement plan.

• Opening a Roth IRA and maxing it out.

• Investing additional money you have in a brokerage account.

• Learning more about crypto investing.

• Building a real estate portfolio, either through property ownership or alternatives like REITs.

No matter how you decide to invest, you should try to make your contributions automatic each month. Setting up automatic contributions will help you stay on track toward your investing goals, and that lets you spend your time and energy on some of the other steps on this list.

Where should you invest? Consider looking into the best investing apps like Robinhood, M1 Finance, and Acorns. If you want to get started in real estate without having to be a landlord, you can also look into investing with a real estate app known as Fundrise.

Here are some other resources that can help you start investing right away:

• What is a Brokerage Account?

• The Best Online Brokerage Accounts: For Beginners To Experienced Investors

• Should You Invest in Cryptocurrency?

• Best Crypto Exchanges of 2023

• 15 Ways To Start Investing Small Amounts Of Money

Step 6: Create Passive Income

Next up, you’ll want to focus on finding ways to build streams of passive income. After all, passive income hits your bank account whether you’re working or not, and you can use this income to build even more wealth over time.

Some of the best ways to build passive income include:

• Investing in dividend stocks.

• Investing in index funds.

• Creating a course you sell online.

• Writing a book or e-book you can sell over the over.

• CD laddering.

• Investing in Real Estate Investment Trusts (REITs).

• Starting an income-producing blog or website.

• Building an app or product you can sell.

These are just some of the ways you can build up passive income, but there are plenty of others. Either way, you’ll want to find ways to get your money working for you whether you show up or not. After all, it’s a lot easier to become wealthy when your money is constantly growing and producing income on your behalf.

This brings me to one of Warren Buffet’s best and most famous quotes: 

“If you don’t find a way to make money while you sleep, you will work until you die.”

Step 7: Focus On Your Goals

Most wealthy people also got to where they are by coming up with goals and pursuing them with fervor. I’m talking about short-term goals and long-term goals, and usually both at the same time.

When it comes to building wealth, common short-term goals to shoot for include:

• Creating (and sticking to) a household budget.

• Cutting spending so you can save and invest more.

• Paying down high-interest debt.

• Building an emergency fund.

• Looking for ways to earn more money.

Common long-term financial goals include:

• Building a profitable business.

• Investing a larger percentage of your income each year.

• Investing enough to retire on your own terms.

• Paying off your home.

If you’re aware you need to set goals but you’re not sure where to start, you should know you’re not alone. That said, you can start creating a list of goals by sitting down with pen and paper and making a list of things you want to accomplish. Some of them may be short-term goals you can work on right away, whereas others may take years or decades to complete.

If you’re struggling with goal-setting, my 10X GOALS ACCELERATOR course is also worth checking out. This course helps you figure out what your goals should be and how to execute on your plans.

Step 8: Focus On Contentment

As you start learning more about truly “wealthy” people, you’ll also notice they tend to be happy with what they have. They may not live in a mansion or drive a Ferrari, but they have a certain level of contentment that “rich” people never seem to achieve.

The fact is, becoming wealthy is really about a lot more than money. It’s about leaving the rat race so you have more time and energy to focus on the things and the people you love.

Becoming wealthy is about getting your kid off the bus each day and never having to miss their big game because you have to work.

In the meantime, being wealthy is also about controlling your money instead of letting it control you.

As Garth Brooks famously said, “You aren’t wealthy until you have something money can’t buy.”

This quote is so important because it’s so incredibly true. Becoming wealthy in a financial sense won’t mean anything unless you learn to be happy with the things you have that are priceless — things like relationships you have with your children, your spouse, your other family members, and your friends.

So, focus on building wealth for sure, but then learn to be happy with the life you’ve built and pour plenty of time and energy into nurturing the relationships you have been blessed with. After all, all the money in the world means nothing if you’re miserable in the end.

Step 9: Give Back

There’s one final step to being wealthy, and it’s one thing “rich” people rarely get the chance to do.

When you’re wealthy, you have to learn to give back. When you do, you’ll quickly learn that being generous is one of the most rewarding things a person can do.

Ways to give back can include:

• Giving money away to charity.

• Tithing at your church.

• Donating funds to causes you feel passionate about.

• Being generous with your time.

• Mentoring the next generation of people who want to become wealthy.

Giving back means you have finally made it — you can afford to give money away, yet you’ll still be immensely wealthy at the end of the day.

Is there anything better than that?

Work on becoming wealthy, and you can answer that question yourself.

Best Quotes About Wealth

Be Ethical

“All you have in business is your reputation. So, it’s very important that you keep your word.”

– Richard Branson, Founder of Virgin Group.

Money Is a Commodity

“Money is misunderstood. The fact is if you want to be successful the money will follow you. If you are a doctor, something else will follow you. If you are successful, there is an accompaniment and if your goal is just to make money, you won’t succeed. Money is a commodity to use, not to be dictated by.”

– Frank Lowy, former chairman of Westfield Corporation

Be Patient

“No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”

– Warren Buffett, Chairman and CEO of Berkshire Hathaway

Everyone Won’t Agree With You

“If you want to do something different, you’re going to come up against a lot of naysayers.”

– James Dyson, Inventor and Founder of Dyson Company

Be Persistent

“Never give up. Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine.”

– Jack Ma, Founder and Executive Chairman of Alibaba Group

Question Yourself and Get Feedback

“I think it’s very important to have a feedback loop, where you’re constantly thinking about what you’ve done and how you could be doing it better. I think that’s the single best piece of advice: constantly think about how you could be doing things better and questioning yourself.”

– Elon Musk, Founder and CEO of Tesla Inc.

Quotes from Well-Known Entrepreneurs or Business Tycoons

Jeff Bezos

• I believe you have to be willing to be misunderstood if you’re going to innovate.

• Life’s too short to hang out with people who aren’t resourceful.

• There’s no bad time to innovate.

Sara Blakely

• It’s important to be willing to make mistakes. The worst thing that can happen is you become memorable.

• We don’t have the luxury of time. We spend more because of how we live, but it’s important to be with our family and friends.

• We can make the world a better place, one butt at a time.

Michael Bloomberg

• Taxes are not good things, but if you want services, somebody’s got to pay for them so they’re a necessary evil.

• To a contrarian like me, constant advice not to do something almost always starts me quickly down the risky, unpopular path.

• I don’t know why you should be proud of something. It doesn’t make you any better or worse. You are what you are.

Warren Buffett

• There seems to be some perverse human characteristic that likes to make easy things difficult.

• Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.

• If past history was all there was to the game, the richest people would be librarians.

Larry Ellison

• When you innovate, you’ve got to be prepared for everyone telling you you’re nuts.

• I believe people have to follow their dreams–I did.

• I have had all of the disadvantages required for success.

Bill Gates

• Success is a lousy teacher. It seduces smart people into thinking they can’t lose.

• We make the future sustainable when we invest in the poor, not when we insist on their suffering.

• Your most unhappy customers are your greatest source of learning.

Elon Musk

• When something is important enough, you do it even if the odds are not in your favor.

• The only thing that makes sense is to strive for greater collective enlightenment.

• The single best piece of advice: Constantly think about how you could be doing things better and question yourself.

Larry Page

• Especially in technology, we need revolutionary change, not incremental change.

• If you’re changing the world, you’re working on important things. You’re excited to get up in the morning.

• We don’t have as many managers as we should, but we would rather have too few than too many.

J. K. Rowling

• It is impossible to live without failing at something, unless you live so cautiously that you might as well not have lived at all, in which case you have failed by default.

• It takes a great deal of bravery to stand up to our enemies, but just as much to stand up to our friends.

• It is our choices… that show what we truly are, far more than our abilities.

George Soros

• The worse a situation becomes, the less it takes to turn it around, the bigger the upside.

• Unrestrained competition can drive people into actions that they would otherwise regret.

• An open society is a society that allows its members the greatest possible degree of freedom in pursuing their interests compatible with the interests of others.

Oprah Winfrey

• What God intended for you goes far beyond anything you can imagine.

• Real integrity is doing the right thing, knowing that nobody’s going to know whether you did it or not.

• Breathe. Let go. And remind yourself that this very moment is the only one you know you have for sure.

Mark Zuckerberg

• The biggest risk is not taking any risk … In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.

• I think a simple rule of business is, that if you do the things that are easier first, then you can actually make a lot of progress.

• I think that people just have this core desire to express who they are. And I think that’s always existed.

Conclusion

The concepts of “rich” and “wealthy” are often used interchangeably, yet they represent profoundly different financial states and mindsets. While being rich is about flaunting monetary success and spending without restraint, being wealthy is about long-term financial stability, investing wisely, and prioritizing value over vanity.

Childhood memories and societal definitions might shape our perceptions of what these terms mean, but as adults, we realize that the surface glitz and glamour often mask underlying financial fragility. By contrasting the lifestyles of the rich, who often fall into the traps of debt and financial ruin, with the sustainable habits of the wealthy, the article sheds light on the importance of fiscal responsibility and forward-thinking. Ultimately, true wealth isn’t just about the balance in one’s bank account but the freedom, security, and quality of life it affords. It’s about living with purpose, intention, and, above all, financial peace of mind.

FAQ’s on Rich Vs Wealthy

The post Rich vs. Wealthy: What’s the Difference? appeared first on Good Financial Cents®.