Maybe you’ve heard one of your friends saying he/she is making $20 an hour and on the ride home you were wondering “20 dollars an hour is how much a year”?
Or maybe you were looking to get a job and the ad was saying you get paid $20 per hour. Also, maybe you are worried that those $20 you get will not actually be $20 because the government will come and take its cut from your hard work (year, we all need to deal with it).
Needless to say, you’re here to find out how much is $20 per hour. If that’s the case, you came to the right place! By the end of this article, you will know exactly how much $20 per day is a year, as well as what you can do to make this amount (or more).
20 Dollars an Hour Is How Much a Year?
There are a ton of ways to make $20 per hour, but for the sake of this article let’s say you work a basic 9 to 5 job.
This means that you work 8 hours per day, 5 days per week.
If we were to multiply $20 by 8 hours, you would make $160 per day.
In terms of weekly wage, we should multiply 5 days by $160. This means you would make $800 per week.
Lastly, we will need to multiply $800 by 52 weeks in order to get the yearly salary: $800 x 52 = $41.600 per year.
We mentioned earlier that the government will come and take its cut out of your salary. This means that you will need to pay your taxes.
The tax rate will solely depend on where you are located, but let’s assume that you will need to pay 22% of your income because it seems realistic for most states.
So … what would be your net profit if you make $20 (or $41.600 per year)? Well, if you were to pay 22% to the government, this means you would have a remaining 78% for yourself.
We will calculate it like this because it’s the easiest way that I know of:
- Daily: $160 x 0.78 = $124.8 (net income)
- Weekly: $800 x 0.78 = $624 (net income)
- Yearly: $41,600 x 0.78 = $32.448 (net income)
Therefore, considering the taxes, $20 per hour end up being around $32.448 per year.
Is 20 Dollars an Hour a Good Salary?
Is $20 per hour good? Well, it depends on your location. Obviously, if you were to live in downtown Los Angeles, you would probably need to get some roommates and eat rahmen noodles.
On the other hand, if you live in middle of nowhere Alabama, $20 per hour (or $32.448 per year) would be good enough.
Considering the fact that you pay so much money for taxes, $20 is not really a lot. But if you have a 9 to 5 job, you need to deal with it. This is the unfortunate reality and you can’t do anything about it.
As a side note, I’ve recently registered my business in Bermuda so that I don’t pay any taxes. Also, I have a ton of friends that went to the Emirates in order to do the same thing.
There are a lot of countries in which you don’t need to pay any taxes if you have a business. However, if you have a job you are basically tied down to one place.(1)
How To Make $32.448 per Year (or $20 per hour) Without a Job?
In case you don’t want to make $20 per hour at a job, there are a ton of other ways to make money online. We are so lucky to live in this time, when everyone has a computer and a smartphone.
Believe me, not too long ago people like you and me didn’t have this kind of opportunities. In order to make money outside of a job, you needed a huge investment up front.
Also, you needed to hire a ton of employees and hope everything works out. Nowadays, you can realistically build a couple of income streams without any employees, and by automating your workflow with a software.
As mentioned above, there are a lot of ways to make money online, but I will tell you only 2 of them. That’s because I’m doing these myself and I know they’re working.(2)
Also, they are easy to understand and perfect for beginners.
Starting a blog has never been easier. Also, it’s probably the most affordable ways to make money online.
You will just need to get a web hosting service and a domain name. For example, Bluehost is the one I use and it costs about $3-$4 per month. Also, they give you a free domain name which is nice.
After that, you need to pick a niche and start writing articles about topics within that niche. If you’re consistent, you will eventually get some traction and start making some money with display ads and affiliate marketing.
The best part about having your own website is that you can eventually sell it for 35x to 40x the monthly income. For example, if your blog is making $1000 per month (believe me, it’s really not that difficult), you can potentially sell it for $35.000-$40.000.
2. Sales Funnels
Sales funnels are another great way for beginners to start making money. Also, their popularity will most likely continue to rise in the next couple of years.
A sales funnel is a series of pages that your customer goes through before making a purchase. It’s basically a customer’s journey and it’s designed to convert as many people as possible.
Think of it like this: a sales funnel is like your very skilled sales employee that works 24/7. Funnels have definitely changed the online business game since their rise in popularity from a couple of years ago.
If you want to learn how to build profitable sales funnels, I highly recommend taking the OFA challenge. You won’t regret it.