![]() The more frequently it's compounded, the faster it accumulates. Interest can be compounded daily, monthly, quarterly, or annually. How quickly your money grows depends on the interest rate and the frequency of compounding. Because of this, compounding interest makes the principal grow exponentially, meaning as interest accrues and the quantity of money increases, the rate of growth becomes faster. In other words, with compound interest, you earn interest on previously earned interest. Use the Real Hourly Wage Calculator to better understand the relationship between your income and your work related expenses.Compound interest is a kind of interest based on adding the original principal with the accumulated interest from previous periods. For example, if the new employer offers a higher technical wage, but the work related expenses are also higher, switching jobs may not make sense financially. If you are considering changing jobs, understanding the real value of each wage being offered can help you make an informed decision. First and foremost it will help you to better manage your money by illustrating the impact work related expenses can have on your income. Knowing your real hourly wage can be invaluable. Finally, bonuses and vacation pay also help to boost your bottom line. Likewise, if your employer offers retirement benefits, or matches your 401(k) contributions this also adds to the actual hourly wage. For example, if your job provides health insurance this value added service actually adds to your actual hourly wage. There are work related benefits that can increase a worker's real hourly wage. Clothing Expenses – Some jobs require workers to purchase and wear uniforms, and these clothing costs will further reduce a person's real hourly wage.Child Care – 40+ hours of child care a week reduces a worker's real hourly even further, sometimes by as much as $3.50 an hour.These costs often get overlooked, but in extreme cases they can seriously impact a person's wage profile. Commuting – Travel to and from work costs money, both in fuel and in wear and tear on your vehicle.In some areas of the country, state income tax will also reduce a worker's real hourly wage. While these are typically deducted from your paycheck, they do have an impact on your actual hourly wage. Taxes – Federal income and social security taxes take up a large portion of a person's earnings.The following are some of the more common work related expenses that can seriously impact a person's earnings: But other expenses can be more subtle, and can escape the attention of even the most vigilant worker. Taxes are a constant for everyone earning an hourly wage, and most of us make allowances for them when anticipating our next paycheck. Work related expenses can have a major impact on a person's hourly wage, and some can be more difficult to calculate than others. The Real Hourly Wage Calculator will help your determine how much money you are really earning per hour, so you can better manage your time and money and get the most out of every paycheck. But calculating a person's actual hourly wage can be tricky, and there are a great number of variables to be considered. It can help you build a better budget, and it can help you compare and contrast prospective job offers. ![]() ![]() Knowing your real hourly wage is important. But is that your REAL hourly wage? When you take into account various work related expenses, not to mention taxes, you are probably earning less than you think. ![]() ![]() After all, your hourly wage is printed in black and white on your pay stub. How much are you being paid an hour? That should be an easy enough question to answer. Office gifts (birthdays, showers, etc.) per month:īe sure to include sales-tax and any finance charges that might apply.īased on your Real Hourly Wage, this is how many hours you will have to allocate to working in order to pay for the above purchase price (Hope you enjoy your work!): Unreimbursed work-related clothing expenses per month: Or entire daycare if not working would eliminate it completely.Ĭalculator computes cost at 66% of purchase (amount above actual cost of food). Your share of daycare expenses per pay period: Other work-related transportation costs per workday: Work-related miles you drive your own car per workday:Ĭalculator computes cost at 55 cents per mile. Minutes spent getting ready for work per workday: Minutes of work-related commute time per workday: ![]()
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