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1/ Your job is paying you less than you probably think.
I'm not talking about your net salary, but what you take home after your work expenses.
In this thread, we'll explore:
What your REAL salary is
How to calculate it
What it means for your quality of life
I'm not talking about your net salary, but what you take home after your work expenses.
In this thread, we'll explore:
What your REAL salary is How to calculate it What it means for your quality of life
2/ What is your REAL hourly wage?
Your real hourly wage takes into account all the hidden costs of your job, including additional time needed outside of your working hours, and expenses needed to maintain that job.
What is your REAL hourly wage?Your real hourly wage takes into account all the hidden costs of your job, including additional time needed outside of your working hours, and expenses needed to maintain that job.
3/ Your hidden time costs
This is time indirectly needed for your job, but not paid for by your employer.
How do you identify these? Ask yourself the following question:
Would I be spending my time on this activity if I didn't have to work?
This is time indirectly needed for your job, but not paid for by your employer.
How do you identify these? Ask yourself the following question:
Would I be spending my time on this activity if I didn't have to work?
4/ Here's an example week of unpaid time:
2 hours a day commuting
1 hour spent in the morning getting ready
1 hour in the evening unwinding after work
2 hours a week keeping up to date with industry news
37 unpaid additional hours a week spent related to your work.
2 hours a day commuting1 hour spent in the morning getting ready 1 hour in the evening unwinding after work 2 hours a week keeping up to date with industry news37 unpaid additional hours a week spent related to your work.
5/ 
Your hidden monetary costs
These are costs which you would not incur if you did not have this job. In the same way as those time costs, you identify these with the following question:
Would I be spending this money if I didn't have this job?
Your hidden monetary costsThese are costs which you would not incur if you did not have this job. In the same way as those time costs, you identify these with the following question:
Would I be spending this money if I didn't have this job?
6/ Examples of work related expenses:
Commuting related costs (fuel / tickets)
Food / coffee bought at work
Clothes you buy for your profession
Recreation costs associated with winding down
Go through a week and calculate what this costs you
Commuting related costs (fuel / tickets) Food / coffee bought at work Clothes you buy for your profession Recreation costs associated with winding downGo through a week and calculate what this costs you
7/ Calculating your REAL wage
Take your weekly salary
Deduct the hidden costs described above
Add your weekly hours to the unpaid additional hours
Divide the result of step 2, by the result of step 3
This new figure is your REAL hourly wage.
Calculating your REAL wage Take your weekly salary Deduct the hidden costs described above Add your weekly hours to the unpaid additional hours Divide the result of step 2, by the result of step 3This new figure is your REAL hourly wage.
8/ 
Why is this useful to me?
This allows you to compare different jobs, and appreciate the different costs.
If you work remotely, you may realise you can afford a LOWER salary but be BETTER off.
Why is this useful to me?This allows you to compare different jobs, and appreciate the different costs.
If you work remotely, you may realise you can afford a LOWER salary but be BETTER off.
9/ These lessons come from the book "Your money or your life" by Vicki Robin.
I'd highly recommend the book - it gives you far more awareness on your own finances, and also describes a path to financial independence. https://amzn.to/3beeg2T
I'd highly recommend the book - it gives you far more awareness on your own finances, and also describes a path to financial independence. https://amzn.to/3beeg2T
10/ Let me know what you think about this thread format. Should I be doing this more often?
Feedback is very welcome!
Feedback is very welcome!
@chris_herd - Thought you may enjoy this. It's a long-winded, but powerful argument for working from home.
