Is 19 Dollars an Hour a Good Salary?

Whether an hourly wage of $19 is a favorable salary depends on individual circumstances and external factors. Its value changes significantly based on location, personal financial habits, and the complete compensation package. Understanding these elements provides a clearer picture of how a $19 hourly wage translates into real-world purchasing power and financial stability.

Converting Hourly to Annual Income

An hourly wage of $19 translates into different gross income figures depending on the standard work week. For a full-time schedule of 40 hours per week, this amounts to a gross weekly income of $760. Over a standard month (approximately 4.33 weeks), the gross monthly income reaches about $3,290. For a full year (52 weeks), the gross annual income before any deductions is $39,520.

Impact of Location on Purchasing Power

The geographic location significantly influences the purchasing power of a $19 hourly wage due to varying costs of living. Major metropolitan and coastal regions typically have higher expenses for essentials compared to suburban or rural areas. For instance, average monthly utility costs in the U.S. range from $500 to $600, and grocery bills are around $504, but these can fluctuate greatly by state and city.

Housing costs, often the largest expense, show substantial regional differences. While the national average rent for a two-bedroom apartment is approximately $1,154 per month, and median single-family home prices are around $273,992, these figures can be considerably higher in major cities. Transportation costs also vary, with car payments, gas, and public transportation options differing across urban centers. A person earning $19 an hour might find it challenging to cover basic living expenses in a high-cost urban environment, but the same wage could provide a more comfortable lifestyle in an area with lower expenses.

Budgeting with an Hourly Wage

Effective financial management is important for individuals earning an hourly wage. Creating a detailed budget helps categorize expenditures into essential needs, discretionary wants, and savings or debt repayment. The 50/30/20 rule suggests allocating 50% of after-tax income to needs like housing and utilities, 30% to wants such as entertainment, and 20% to savings and debt reduction. This framework assists in prioritizing spending and identifying areas for adjustment.

Establishing an emergency fund is a key component of financial planning, with recommendations typically ranging from three to six months’ worth of living expenses. This fund provides a financial cushion for unexpected events like job loss or medical emergencies. Savings for this fund are generally best held in easily accessible, interest-bearing accounts like high-yield savings accounts. Consistent contributions, even small amounts, can build this safety net over time.

Additional Compensation and Benefits

The overall value of an hourly position extends beyond the direct wage, encompassing various non-cash benefits that contribute to financial well-being. Health insurance is a significant component, with employers often covering a substantial portion of premiums; for single coverage, employers contribute an average of $7,034 annually, covering about 83% of the premium. These benefits are important given that average annual premiums for single coverage were $8,951 in 2024.

Paid time off (PTO), which includes vacation, sick days, and personal leave, offers employees compensated time away from work. While there is no federal mandate for PTO in the United States, policies vary by employer and state, with some states requiring payout of unused PTO upon termination. Many companies also offer retirement plans, such as a 401(k), often including an employer match. The average 401(k) employer match in 2025 is between 4% and 6% of an employee’s salary, commonly structured as a 50% match on contributions up to a certain percentage of pay.

Beyond these, other benefits like tuition reimbursement programs can offer substantial financial advantages, with some companies providing up to $5,250 annually, which is often tax-free up to that amount. Additional perks, such as dental and vision insurance, life insurance, flexible work arrangements, and employee assistance programs, further enhance the total compensation package. These elements, while not directly increasing the hourly wage, reduce out-of-pocket expenses and contribute to long-term financial security.