Is an hourly rate of $28 good? The answer to this seemingly simple question is complicated because it depends on many factors. These factors include: where you live, what’s your lifestyle, how much debt you have, your line of work, your level of education and experience, and what goals you have.
For example, where you live will significantly affect your cost of living, so your dollar might not go as far in a higher-cost-of-living area than a lower-cost-of-living area.
In this article, we will take a look at whether an hourly wage of $28 is good for you and which factors play into this.
$28 an Hour is How Much a Year?
Let’s start with the big picture: how much would you earn in a year if you were paid $28 per hour?
To calculate your annual income, you’ll need to consider a few factors. First, you need to determine how many hours you work each week and how many weeks you work in a year.
Assuming you work full-time, which is typically 40 hours per week, you’d multiply your hourly wage by the number of weeks in a year. There are 52 weeks in a year.
So, the basic calculation looks like this:
$28 (hourly wage) x 40 (hours per week) x 52 (weeks per year) = $58,240
At $28 an hour, you would earn $58,240 per year before taxes.
If you work less than 52 weeks a year, or work more or less than 40 hours a week, then you will want to adjust the formula to get an understanding of how much money you are making per year.
How an Hourly Rate of $28 an Hour Compares to Other Individuals In The United States
According to data from the US Census Bureau for 2022, the median income for Nonfamily households in the United States was approximately $45,440 – which means that half of all individuals earned more than this amount, and half earned less.
$45,400 corresponds to an hourly rate of roughly $22 an hour.
So, with an hour rate of 28 dollars an hour, that is in the upper 50 percent of all earners in the United States.
With an hourly rage of $28 an hour, you are doing well and part of above-average earners in the United States.
Let’s look at some other factors to help you answer the question if an hourly wage of $28 is good.
Determining if an Hourly Rate of $28 an Hour is Good Relative to Where You Live
Where you live will greatly affect how much money you make. For example, in higher-cost-of-living areas, such as California and New York, wages are typically higher. In lower-cost-of-living areas, such as Mississippi and Oklahoma, wages are typically lower.
According to FRED (Federal Reserve Economic Data), here is the data for the Annual Per Capita Personal Income by State for 2022. We have summarized this data below.
| Alabama | $24.34 |
| Alaska | $33.13 |
| Arizona | $27.24 |
| Arkansas | $24.90 |
| California | $37.18 |
| Colorado | $35.66 |
| Connecticut | $40.85 |
| Delaware | $29.51 |
| District of Columbia | $46.50 |
| Florida | $30.58 |
| Georgia | $27.47 |
| Hawaii | $29.41 |
| Idaho | $26.22 |
| Illinois | $33.09 |
| Indiana | $27.85 |
| Iowa | $28.32 |
| Kansas | $28.92 |
| Kentucky | $25.05 |
| Louisiana | $26.26 |
| Maine | $28.59 |
| Maryland | $34.00 |
| Massachusetts | $40.84 |
| Michigan | $27.31 |
| Minnesota | $32.70 |
| Mississippi | $22.23 |
| Missouri | $27.19 |
| Montana | $27.75 |
| Nebraska | $30.44 |
| Nevada | $29.46 |
| New Hampshire | $35.90 |
| New Jersey | $37.84 |
| New Mexico | $24.76 |
| New York | $37.54 |
| North Carolina | $27.60 |
| North Dakota | $31.82 |
| Ohio | $27.83 |
| Oklahoma | $26.44 |
| Oregon | $30.18 |
| Pennsylvania | $31.33 |
| Rhode Island | $31.43 |
| South Carolina | $25.63 |
| South Dakota | $31.64 |
| Tennessee | $28.02 |
| Texas | $29.80 |
| Utah | $27.85 |
| Vermont | $30.39 |
| Virginia | $32.79 |
| Washington | $36.39 |
| West Virginia | $23.64 |
| Wisconsin | $29.43 |
| Wyoming | $34.30 |
So at an hourly wage of $28, you are making less than a lot of the state’s Per Capita Personal Income as seen above.
Something else to consider is whether you live in a city or rural area. Again, in cities, typically you can make more for your work.
Therefore, it’s essential to look at where you live and see how you compare to other earners in your area.
Is an Hourly Rate of $28 an Hour A Good Wage for My Age?
First, let’s take a look at some data from the U.S. Bureau of Labor Statistics on income and age. We have created the following table based on data from 2022 to find the approximate median earnings for full-time workers by age.
| Age | Annual Income |
| 16 to 19 years | $15.14 |
| 20 to 24 years | $17.69 |
| 25 to 34 years | $24.81 |
| 35 to 44 years | $29.60 |
| 45 to 54 years | $29.86 |
| 55 to 64 years | $28.86 |
| 65 years and over | $25.80 |
So if you compare your salary and age to this chart, depending on your age, if you make $28 an hour, you might be doing better or worse than the median hourly wage for your age group.
But remember, whether 28 dollars an hour is considered good for your age also depends on various factors, including your location, field of work, level of experience, and personal financial goals. Age alone is not the sole determinant of what constitutes a good salary.
In some regions with a lower cost of living, a $28 hourly wage can provide a comfortable lifestyle and the ability to save for the future, making it a good income for your age. However, in high-cost-of-living areas, this salary might require careful budgeting to maintain the same standard of living.
Ultimately, it’s important to focus on your own financial objectives and how your salary aligns with them. Assess your expenses, savings goals, and lifestyle choices to determine whether your salary enables you to meet your needs and work towards your financial aspirations, regardless of your age.
Is an Hourly Rate of $28 an Hour Good for Your Level of Education and Experience?
Another question you can ask yourself is if your salary is good for the level of education and experience you have in your field.
For example, if you just started working and only have limited education, then you most likely will not be getting paid as much as others who have been in the field for a long time.
At the same time, if you have been working in the same job or area for many years, then your level of experience should show in your salary.
Once again we looked into 2022 data released by the U.S. Bureau of Labor Statistics on weekly income based on education. We put together another table showing the annual median income earned by education level.
| Education Level | Annual Income |
| Less than a high school diploma | $17.03 |
| High school graduates, no college | $21.29 |
| Some college or associate degree | $24.22 |
| Bachelor’s degree and higher | $38.59 |
So if you compare your salary and education to this chart, depending on your level of education, if you make $28 an hour, you might be doing better or worse than the median hourly wage for your education level.
Something else to consider is which field you work in. For example, typically, jobs in medicine, technology, finance, or law will pay more than jobs in the service industry or other industries.
For example, if you are making more than $25 and are working in a service industry, then you are probably doing quite well relative to others in your industry.
Likewise, if you are working in a higher-paid industry, there may be more room to grow in your job.
How to Budget with an Hourly Rate of $28 an Hour
Budgeting is an important financial planning tool that helps you manage your income and expenses effectively. Here’s a sample budget for someone with an hourly rate of $28.
Remember that individual financial situations vary, so you may need to adjust this budget to suit your specific needs and goals.
- Salary after Taxes: Approximately xxxxxAfterTaxSalaryxxxxx (This is a rough estimate after assuming a xxxxxTaxRatexxxxx% tax rate)
Monthly Expenses:
- Housing:
- Rent/Mortgage: xxxxxRentxxxxx
- Utilities (electricity, water, gas, internet, etc.): xxxxxUtilitiesxxxxx
- Transportation:
- Car Payment: xxxxxCarxxxxx
- Gas: xxxxxGasxxxxx
- Maintenance and Repairs: xxxxxMaintenancexxxxx
- Car Insurance: xxxxxInsurancexxxxx
- Groceries and Dining:
- Groceries: xxxxxGroceriesxxxxx
- Dining out (restaurants, takeout, etc.): xxxxxDiningxxxxx
- Healthcare:
- Health Insurance Premiums: xxxxxHealthxxxxx
- Medical Expenses (co-pays, prescriptions, etc.): xxxxxMedicalxxxxx
- Savings and Investments:
- Retirement Savings (e.g., 401(k) or IRA): xxxxxRetirementxxxxx
- Emergency Fund: xxxxxEmergencyxxxxx
- Other Investments or Savings Goals: xxxxxInvestmentsxxxxx
- Entertainment and Recreation:
- Cable/Streaming Services: $50
- Hobbies and Entertainment: xxxxxHobbiesxxxxx
Total Monthly Expenses: xxxxxMonthlyExpensesxxxxx
Remaining Income after Expenses: xxxxxDiscretionaryxxxxx
With this budget, you have approximately xxxxxDiscretionaryxxxxx per month for discretionary income, saving for future goals, or additional investments. Be sure to keep track of your actual expenses and adjust your budget as necessary to ensure you’re on track to meet your financial objectives and maintain a healthy financial situation.
Remember, this budget is a general guideline, and your actual expenses may differ based on your unique circumstances and priorities. Always strive to save and invest for your future while enjoying your current lifestyle responsibly.
How to Increase Your Hourly Wage
If you’re looking to boost your hourly wage, there are several strategies you can consider:
- Skill Development: Enhance your skills or acquire new ones that are in demand in your industry.
- Negotiation: When starting a new job or during performance reviews, don’t hesitate to negotiate your wage.
- Further Education: Consider pursuing additional education or certifications that can increase your market value.
- Job Switch: Sometimes, switching to a different job or company can lead to a significant salary increase.
- Freelancing or Part-Time Work: Explore part-time job opportunities or freelance work to supplement your primary income. Apps like Fiverr or Upwork can be a great spot to post your skills and get hired for part-time work.
- Start a Side Hustle: Look to make more money by starting a side hustle. The folks over at the blog, Financial Panther, have put together a comprehensive list of over 70+ gig economy apps, with strategies and thoughts on each one. A lot of these you can do from your phone. The list includes dog walking/sitting apps, food delivery apps, picture-taking apps, secret shopping apps, and plenty more. It is a great resource to see all the different side hustle apps that are out there.
Will an Hourly Rate of $28 an Hour Help Me Become Rich?
An hourly wage of $28 can certainly help you build wealth and achieve financial success, but whether it will make you “rich” depends on various factors, including your financial goals, lifestyle choices, expenses, and savings/investment strategies. Here are some considerations:
- Financial Goals: The definition of “rich” varies from person to person. For some, it means achieving financial security and having enough to comfortably cover living expenses and retirement. For others, it means accumulating significant wealth. Your specific financial goals will determine what “rich” means to you.
- Lifestyle Choices: Your spending habits and lifestyle choices play a significant role in your ability to accumulate wealth. Even with a high salary, if you spend excessively or accumulate debt, it can hinder your path to becoming rich. Budgeting, practicing mindful spending, and living below your means are essential.
- Savings and Investments: Building wealth often involves saving a significant portion of your income and making smart investments. A high salary provides the opportunity to save and invest more, which can accelerate your wealth-building journey. Consider contributing to retirement accounts, investing in stocks or real estate, and diversifying your investments.
- Debt Management: Reducing and managing debt, such as student loans, credit card debt, and mortgages, is crucial for building wealth. High-interest debt can erode your financial progress, so it’s important to prioritize paying it off.
- Cost of Living: The cost of living in your area can significantly impact your ability to save and invest. In high-cost-of-living areas, it may be more challenging to build wealth, even with a high salary.
- Investment Strategy: Your investment strategy, including asset allocation, risk tolerance, and long-term planning, can greatly influence your wealth accumulation. Consulting with a financial advisor can help you make informed investment decisions.
- Time Horizon: Building substantial wealth often takes time and consistent effort. The longer your time horizon, the more potential you have to accumulate wealth through the power of compounding returns.
In summary, a $28 provides a foundation for building wealth, but it’s not the salary alone that determines your financial success. Becoming “rich” is a subjective goal, so it’s essential to define what it means for you and create a financial plan to pursue it.
Hopefully this article has been useful for you to answer the question: Is $28 an Hour a Good Hourly Wage?
