Comments on: Why you Should Calculate your Real Hourly Wage http://20somethingfinance.com/why-you-should-calculate-your-real-hourly-wage/ Personal Finance Blog for Young Professionals Thu, 29 Jul 2010 23:56:16 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Little House Man http://20somethingfinance.com/why-you-should-calculate-your-real-hourly-wage/comment-page-1/#comment-4489 Little House Man Thu, 03 Sep 2009 09:20:38 +0000 http://20somethingfinance.com/?p=1197#comment-4489 I used to always live right near my work? Might as well move close and experince a new city / area if you have to cut down and travel and enjoy your free time. Maximise the $£ that your earn by not having to spend to get in to work, also meen can haev time for breakfast and over sleaping can still scrape in :) Great way to look at earnings : Jay 'Little House' I used to always live right near my work? Might as well move close and experince a new city / area if you have to cut down and travel and enjoy your free time. Maximise the $£ that your earn by not having to spend to get in to work, also meen can haev time for breakfast and over sleaping can still scrape in :)

Great way to look at earnings :

Jay ‘Little House’

]]> By: dawg http://20somethingfinance.com/why-you-should-calculate-your-real-hourly-wage/comment-page-1/#comment-4279 dawg Tue, 04 Aug 2009 06:25:29 +0000 http://20somethingfinance.com/?p=1197#comment-4279 I've approximated my hourly wage this way, although in less agonizing detail. I also try to calculate the value of goods and services to me as number of hours worked using that real hourly wage figure. It's rather shocking to realize that the cool new laptop in the window is worth more than 100 hours of worktime! It's a useful method for squaring up decisions like 'can I spend time making this myself' versus buying something in terms of e.g. haloween costumes. I’ve approximated my hourly wage this way, although in less agonizing detail. I also try to calculate the value of goods and services to me as number of hours worked using that real hourly wage figure. It’s rather shocking to realize that the cool new laptop in the window is worth more than 100 hours of worktime! It’s a useful method for squaring up decisions like ‘can I spend time making this myself’ versus buying something in terms of e.g. haloween costumes.

]]> By: Phinance http://20somethingfinance.com/why-you-should-calculate-your-real-hourly-wage/comment-page-1/#comment-3966 Phinance Wed, 17 Jun 2009 22:54:51 +0000 http://20somethingfinance.com/?p=1197#comment-3966 This is a really smart view on things! Awesome! I have friends who are willing to drive much further to a job that only pays about $3 more, but it gives them a nice "even" hourly wage that they are more proud of. Car maintenance can suck after a few years as well. This is a really smart view on things! Awesome! I have friends who are willing to drive much further to a job that only pays about $3 more, but it gives them a nice “even” hourly wage that they are more proud of. Car maintenance can suck after a few years as well.

]]> By: Britt (Your Roth IRA) http://20somethingfinance.com/why-you-should-calculate-your-real-hourly-wage/comment-page-1/#comment-3950 Britt (Your Roth IRA) Tue, 16 Jun 2009 12:57:02 +0000 http://20somethingfinance.com/?p=1197#comment-3950 This is a great point. Several years ago, I worked for a large regional bank. The bank tellers would always talk about how they’d like to have the branch manager’s job. When I asked why, they’d state because she makes XYZ amount of money. They were completely focused on the salary she earned instead of the total picture. They didn’t consider that when they arrived in the morning, the branch manager was there. When they left at night, the branch manager was there. When the bank closed late on a Friday, the branch manager was there. When it opened for a few hours each Saturday morning, the branch manager was there. They worked 36 hours a week making 40% of what the branch manager made. But they also had a life. The branch manager easily put in twice as many hours. They would have done just as well, salary wise, to go get a second part-time minimum wage job close to home. The total of those two jobs would probably add up to the same amount of hours worked and compensation. This is a great point. Several years ago, I worked for a large regional bank. The bank tellers would always talk about how they’d like to have the branch manager’s job. When I asked why, they’d state because she makes XYZ amount of money.

They were completely focused on the salary she earned instead of the total picture. They didn’t consider that when they arrived in the morning, the branch manager was there. When they left at night, the branch manager was there. When the bank closed late on a Friday, the branch manager was there. When it opened for a few hours each Saturday morning, the branch manager was there.

They worked 36 hours a week making 40% of what the branch manager made. But they also had a life. The branch manager easily put in twice as many hours.

They would have done just as well, salary wise, to go get a second part-time minimum wage job close to home. The total of those two jobs would probably add up to the same amount of hours worked and compensation.

]]> By: MLR http://20somethingfinance.com/why-you-should-calculate-your-real-hourly-wage/comment-page-1/#comment-3941 MLR Mon, 15 Jun 2009 23:08:42 +0000 http://20somethingfinance.com/?p=1197#comment-3941 On the flip side, I have had friends turn down job offers that were between $5,000 and $10,000 less. When you actually wind up looking at the difference in hours worked, work travel, business expenses, etc... they are making A LOT less with the higher paying job. If you put a value on leisure time, they are EVEN WORSE off! On the flip side, I have had friends turn down job offers that were between $5,000 and $10,000 less. When you actually wind up looking at the difference in hours worked, work travel, business expenses, etc… they are making A LOT less with the higher paying job.

If you put a value on leisure time, they are EVEN WORSE off!

]]> By: Craig http://20somethingfinance.com/why-you-should-calculate-your-real-hourly-wage/comment-page-1/#comment-3938 Craig Mon, 15 Jun 2009 15:37:08 +0000 http://20somethingfinance.com/?p=1197#comment-3938 Never thought to look at it that way to determine how much you actually make plus commute and what not. For your friend the added incentives at the old job were great. Problem is with new job is that the company won't raise the salary alone even if those benefits aren't there. It's looked at as a separate issue. Never thought to look at it that way to determine how much you actually make plus commute and what not. For your friend the added incentives at the old job were great. Problem is with new job is that the company won’t raise the salary alone even if those benefits aren’t there. It’s looked at as a separate issue.

]]> By: mostlyharmless http://20somethingfinance.com/why-you-should-calculate-your-real-hourly-wage/comment-page-1/#comment-3934 mostlyharmless Mon, 15 Jun 2009 00:13:52 +0000 http://20somethingfinance.com/?p=1197#comment-3934 I have not tried calculating it, mainly because it wouldnt do anything for me. It is however an Excellent exercise to do when evaluating a job offer. Everyone (hopefully) considers the cost of living expenses and moving expenses (often underestimated) but there are other little things that add up really fast: Sure they will be paying you 5000 more a year, but will the new job involve longer commutes? Will you have to dress like a grown up, or will your "i am a programmer" attire do? What about the number of hours you will be putting in? You think you will be working 60 hour weeks instead of 45-50 right now? What about the insurance and the employee contributions to 401k? Also important are other major changes. Will you need to buy a car because of this? I didnt have a car as a student, but i had to buy one when i moved for the job. If i had been in DC/other place with good public transport, i would not have had to get one right away. So getting a car? Nice. Here are the insurance premiums. Oh and here's what you will have to pay for gas. Turns out, you are now spending over 500 bucks a month just on the car. Thats 6000 bucks every year right there. Doesnt look like you'll be getting that xbox any time soon :P I have not tried calculating it, mainly because it wouldnt do anything for me.

It is however an Excellent exercise to do when evaluating a job offer. Everyone (hopefully) considers the cost of living expenses and moving expenses (often underestimated) but there are other little things that add up really fast:

Sure they will be paying you 5000 more a year, but will the new job involve longer commutes? Will you have to dress like a grown up, or will your “i am a programmer” attire do? What about the number of hours you will be putting in? You think you will be working 60 hour weeks instead of 45-50 right now? What about the insurance and the employee contributions to 401k?

Also important are other major changes. Will you need to buy a car because of this? I didnt have a car as a student, but i had to buy one when i moved for the job. If i had been in DC/other place with good public transport, i would not have had to get one right away.

So getting a car? Nice. Here are the insurance premiums. Oh and here’s what you will have to pay for gas. Turns out, you are now spending over 500 bucks a month just on the car. Thats 6000 bucks every year right there. Doesnt look like you’ll be getting that xbox any time soon :P

]]> By: bex http://20somethingfinance.com/why-you-should-calculate-your-real-hourly-wage/comment-page-1/#comment-3932 bex Sun, 14 Jun 2009 23:34:51 +0000 http://20somethingfinance.com/?p=1197#comment-3932 My wife's employer produces their version of these numbers every year when they generate their W2 statements. I would suggest that all HR departments do this. While we can quibble about the values and items included, it definitely starts a good conversation. My wife’s employer produces their version of these numbers every year when they generate their W2 statements. I would suggest that all HR departments do this. While we can quibble about the values and items included, it definitely starts a good conversation.

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