Introduction
The debate around the minimum wage is one that often gets people heated. While the government does need to protect its citizens and ensure that no one is stuck in a job that pays less than a livable wage, it also needs to understand that people are willing to work for less than that. What can be the reason that people accept a job that pays less than they deserve? Is it because they are desperate or because they are being taken advantage of? We will discuss this in detail and also give real data that proves whether or not $3 an hour is a livable wage. If you are looking for, Is 3 an hour good, then this article will help you to know more about this.
Is 3 an hour good?
Whether the $3 per hour wage is fair or not depends on many factors, including the country in which you work. In developed countries like the United States, $3 per hour would be below the federal minimum wage of $7.25. However, in developing countries like India, $3 per hour would be considered a very good wage. The huge discrepancy in wages between rich and poor countries is driven by the difference in productivity between them. $3 per hour is very high in a country that has a high percentage of poor people and low productivity. Apart from this, many other factors like the cost of living and lifestyle can affect how much you earn.
Money you can make per day with $3 an hour
The standard workday is eight hours long, and if you make $3 an hour, your daily income would be $24. Some workers, however, are required to work 12-or even longer shifts. They would receive a gross daily wage of ($3 x 12) = $36 for those workers. If you’re living on a $24 daily budget, you’re likely living pretty frugally and thriftily already. It’s unlikely that you could afford anything more than the bare necessities.
Money you can make per week with $3 an hour
The average employee works 40 hours a week, making $3 per hour, which equals out to just (3/x40) $120 per week, which is a very low salary compared to the average income. The median income for full-time workers in the United States was $900 per week in the second quarter of 2020, according to the Bureau of Labor and Statistics. So, if you’re only making
Money you can make per month with $3 an hour:
There are typically 40 work hours in a week and 4 weeks in a month. Your gross monthly salary before taxes will be $480 if you earn $3 per hour. You can calculate this figure by multiplying the number of hours worked in a month (160) by the hourly wage ($3).
Money you can make in a year with $3 an hour:
A 40-hour work week at $3 an hour, multiplied by 52 weeks in a year, will give you a gross pay of $6240. This is the amount earned before taxes and other deductions are taken out. For example, if all taxes were eliminated, the amount would be:
1.Social Security Tax
($6240 × 6) / 100 = $374
2.Medicare Tax
($6240 × 1.45) /100 = $90
3.State Tax
There are a few states in the US where you don’t have to pay any state tax, no matter how much you earn; these states include Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington state, and Wyoming. On the other hand, some states, like New York, New Jersey, Hawaii, and California, have very high state tax rates; their rates start at 10% and can go up to 15%!
Hence, if you earn $3 per hour, the net amount you’ll receive without paying any state tax is $5776, and let’s take another example, a person who lives in California has to pay 15% state tax, i.e., $936, so the net amount one will earn is $4840.
So, the question now would be, can a person survive on a $3 per hour rate? No, this salary is far too low, and even for a single person, it would be very difficult to make ends meet on this budget.
Plan a monthly budget of $3 per hour
If you’re wondering whether or not you can survive on $3 an hour, the best way to find out is by constructing a budget and doing the math. For example, let’s say you make $3 an hour and want to know what your monthly expenses would look like. A good rule of thumb for housing costs is that you shouldn’t spend more than 30% of your monthly income on shelter, so in this case, that would be $144. Then, add in other essential living expenses such as food, transportation, and utilities. The below illustration will give you a better idea of how much you would need to make each month to cover your basic needs.
Total monthly earnings $480
- 30% – Housing
- 10% – Utilities
- 10% – Insurance
- 10% – Food
- 10% – Transportation
The remaining 30% would still give you a safety net in case something unexpected comes up or if you want to add new features later on down the line.
Conclusion
Hope you found that answer for question, is 3 An Hour Good. If you make $3/hour, after taxes, you will make approximately $5,500 a year. Is this a good wage? Is it enough to live on? Yes, if you are willing to sacrifice, you can certainly survive on $480 per month. It can be quite challenging, but if you don’t have any debt, this wage can put food on your table and might fulfill some lifestyle needs as well.
