If You’re Making Just $15 an Hour, You Can Still Grow Financially — Here Are 8 Expert Tips
Written by
Yaël Bizouati-Kennedy
Edited by
Cory Dudak
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Hourly workers face a specific set of challenges kylwhen it comes to saving money and growing their earnings. The variation of the number of hours worked combined with a lack of benefits can make budgeting more difficult for these workers.
In turn, it comes as no surprise that 62% of hourly workers said they plan to leave their jobs in 2023, citing not having enough benefits as the top reason, according to a survey by Legion.
To put this in context, the federal minimum wage in the U.S. is $7.25 per hour, but the minimum wage varies from state to state. As of Sept. 1, the District of Columbia had the highest minimum wage in the U.S., at $17 per hour, followed by Washington, at $15.74, according to the Department of Labor.
Several experts say there are a few steps hourly workers can take to not only grow financially but secure a sound future.
Create a Budget
That’s easier said than done as hourly workers’ earnings can vary from week to week or month to month.
Yet, some experts said that understanding where every dollar of your wage is going is paramount to success.
“Use budgeting apps or simple spreadsheets to track your expenses. This will help identify areas where you can cut back and save more,” said Taylor Kovar, CFP, CEO of The Money Couple and Kovar Wealth Management.
Kovar also recommended allocating a portion of your income to savings as soon as you receive your paycheck.
“Treat savings like a non-negotiable expense,” he added.
Other experts echoed the sentiment, saying that while it doesn’t sound exciting, it’s the No. 1 way to increase financial literacy.
According to Kyle Enright, president of Achieve Lending, start by setting financial and lifestyle goals — with a spouse and family members as applicable.
“Once you are clear on your goals,” he said, “then create a budget around the goals, using whatever tool you like: app, spreadsheet or pencil and paper.”
Make Getting Out of Debt a Priority
If you are carrying credit card debt, this is key, as paying less than the full balance every month, you end up paying more than the purchase price of what you bought.
“For example, if you carried $3,000 in credit card debt at an 18% interest rate and made just a 3% minimum payment, that would be $90 per month,” said Enright, adding that it would end up costing almost $2,700 in interest alone — and take almost 16 years to pay off.
“The total of interest and the principal (initial amount you charged) adds up to be about twice what you charged in the first place.”
Pay on Time
Along the same lines, Enright said paying on time is one of the best personal finance habits you will ever develop if you are looking to grow your money, as you’ll save on interest and late fees, which can then go toward building savings and wealth.
“It’s also the single best way to maintain a good credit score,” he said, “which has benefits ranging from upping your ability to get a future loan to lowering vehicle insurance rates and even getting another job.”
Make Sure You Are Prepared With Insurance
Another tip is to not forget about insurance.
“If you encounter a disaster — whether a car accident, fire or theft at home or loss of a job,” Enright said, “the last thing you need is to face mounting debt while you manage the problem.”
Whether or not your employer covers it, every person needs basic health insurance.
“You also need vehicle, homeowner or rental insurance,” he said, “and ideally disability insurance. If you have a family or other dependents, life insurance can be very important.”
Calculate Your Net Worth
Simply put, your net worth is the total value of your assets minus your liabilities.
Understanding what a net worth means and where you stand might help you bolster your finances.
To determine, list your assets and include the value of your home, retirement funds, savings accounts, stocks and bonds, jewelry and your car, Enright explained. Then subtract your liabilities and include mortgages, student loan debt, vehicle loans and any credit card debt.
“If your net worth is negative, you need to revisit expenses and earnings,” he said. “Revisit your net worth annually to see how you are progressing.”
Sharpen Your Skills Without Spending
“Knowledge is power and doesn’t always have a price tag,” said Shavon Roman, personal finance expert at Heal Plan Invest.
Roman suggested tapping free resources at your local community college or Harvard’s online courses to boost your brainpower.
“With every new skill,” Roman said, “you’re not just smarter, you’re more marketable.”
Open a High-Yield Savings Account
A high-yield savings account can offer you much more in interest earnings than a traditional savings account and it offers the exact same functionality when it comes to protecting and managing your savings, said Erika Kullberg, personal finance and debt expert and founder of Erika.com.
“There is no reason not to open a high-yield savings account that will make it possible to grow your savings faster and often for free,” she said. “Many high-yield savings accounts are found at online banks that also don’t charge monthly maintenance fees.”
Hustle on the Side
Roman also suggested considering the side gig economy — not just as extra cash but as a financial tool.
It’s not only about increasing your income, as it can unlock doors to tax deductions and credits, she added. “A side hustle can be more than a gig; it’s a financial power move.”
Finally, Roman argued that working an hourly job can be the catalyst for becoming a millionaire with the right strategy.
“It will take time,” she said, “however, hourly workers can have a secure life filled with happiness and financial peace with the right plan and time.”
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