Counting the Cost

Sometimes it's hard to determine the true cost of something.

For an experiment, let's start with your per hour earnings rate. Let's use $14.50 per hour. If you reduce that by social security (6.2%), medicare (1.45%), federal tax withheld (23%) and state tax withheld (3%), you are left with $9.62 take home.

For purposes of quick calculations, let's call that a take home pay of $10 per hour. Get your figure established before you next go shopping.

I think a carton of cigarettes costs more than $30. Therefore, you would work 3 hours to make that purchase.

If your minimum credit card payment is $120 a month, you give 12 hours of your time and talent to your employer to make that payment.

If your childcare costs are $70 a week, you have to work 7 hours (nearly a whole day) to pay the sitter.

If you heating bill that just arrived is $180, you work 18 hours or over 2 full days to meet that obligation.

Depressing or realistic? Just use this calculated number when you are faced with a need versus a want. Check your next pay stub. Divide the net by the number of hours to get your real net take home per hour.

'til later