Is 31 Dollars an Hour a Good Salary?

Is an hourly wage of $31 considered a good salary? Determining whether a particular income level is “good” involves more than just raw numbers; it requires understanding various contributing factors. This article explores the financial implications of earning $31 an hour, providing context through calculations, comparisons, and an analysis of personal circumstances and effective money management.

Understanding the Annual Equivalent

Translating an hourly wage into its annual, monthly, and weekly equivalents provides a clearer picture of total earnings. An hourly rate of $31, based on a standard 40-hour work week, results in a gross weekly income of $1,240. Over a typical month, this amounts to approximately $5,373. Annually, working 2,080 hours yields a gross income of $64,480. These calculations represent income before any deductions, such as taxes or benefit contributions.

Comparing it to Broader Averages

Comparing a $64,480 annual income to broader economic benchmarks offers valuable context. In 2024, the average annual salary in the United States was $62,027, according to the U.S. Bureau of Labor Statistics. The average hourly pay in the United States was $26.82 as of August 2025, with most hourly wages ranging from $25.00 to $27.88. The average individual income in 2024 was $73,471, and the median individual income was $50,200.

For households, the median income in the United States was $80,020 in 2024. About 40% of U.S. households earned over $100,000. While $31 an hour is above the national average hourly pay, its position relative to median household and individual incomes suggests it is a moderate income.

Influence of Location and Cost of Living

The real purchasing power of $31 an hour is significantly shaped by geographical location and its associated cost of living. Living expenses, including housing, transportation, and groceries, vary widely across the United States. Major cities typically have a higher cost of living. New York City, for example, is considered the most expensive place to live in America, with an average monthly rent for a one-bedroom apartment being $4,107 in 2025, and additional living expenses for a single person adding about $1,700 monthly. San Francisco, San Jose, and Seattle also exhibit high costs.

Conversely, many rural areas or smaller cities offer significantly lower costs of living, allowing the same $64,480 annual income to stretch further. Housing costs, a substantial portion of a household budget, can dramatically differ. A mortgage payment or rent in a high-cost urban center might consume a large percentage of the $31-per-hour income, leaving less for other necessities. In areas with a lower cost of living, the same income could afford a more spacious home, greater savings, or increased discretionary spending.

Impact of Personal Financial Circumstances

Beyond location, an individual’s personal financial circumstances heavily influence the adequacy of a $31-per-hour salary. Factors like family size and the number of dependents directly affect disposable income. A single individual might find this income comfortable, while a person supporting a family could face tighter budgetary constraints. Existing debt, such as student loans, credit card balances, or mortgages, also significantly impacts financial well-being. High-interest credit card debt can quickly erode income, making it challenging to meet other financial obligations.

Health expenses are another variable; without robust employer-provided health insurance, out-of-pocket medical costs can be substantial. The availability of other employer benefits, such as retirement plans, paid time off, or life insurance, adds considerable value to a compensation package, even if not directly reflected in the hourly wage. These benefits reduce the need for individuals to fund such needs entirely from their take-home pay.

For instance, the Federal Insurance Contributions Act (FICA) taxes, which fund Social Security and Medicare, are deducted from wages. In 2024, the Social Security tax rate was 6.2% on earnings up to $168,600, and the Medicare tax rate was 1.45% on all earnings, for a combined employee FICA tax rate of 7.65%. Federal income taxes are also progressive, meaning the tax rate increases with income, and taxpayers fall into different brackets based on their taxable income and filing status.

Managing Your Earnings Effectively

Effective management of earnings is important for achieving financial goals, regardless of the income level. Creating a budget serves as a foundational step, enabling individuals to track income and expenses, identify areas for cost reduction, and allocate funds purposefully. A budget helps ensure that expenses do not exceed income, promoting financial stability.

Establishing an emergency fund is another important component of financial planning. This cash reserve, ideally covering three to six months of living expenses, provides a safety net for unexpected costs like medical emergencies or job loss, preventing the accumulation of high-interest debt. Debt management strategies can help prioritize and accelerate debt repayment.

Considering basic savings and retirement contributions is also prudent. Contributing to retirement accounts, such as a 401(k) or an Individual Retirement Account (IRA), can offer tax advantages and allow money to grow over time. Financial guidelines often suggest saving a percentage of income for retirement, with some recommending 10% to 15% annually. These actions collectively contribute to financial security and the ability to manage an income of $31 an hour effectively.