There are many things to consider when deciding which job to take but many would say that salary and benefits are at the top of the list things to consider.
And often when comparing two similar positions, the one with the higher hourly rate or salary is often chosen.
But sometimes we all fall in the trap of not knowing what we are actually making per hour. It may be easy to know how much your employer pays you for being clocked in for an hour but there are many other factors that go into it as well.
Commute Time
Driving to and from work can be a big time suck every day. This can really add up in gas money and time.
For example, let’s say you make $20/hour and work 8 hours per day. However because it takes you 1 hour per day to get to and from work, you are spending a total of 9 hours doing work related tasks.
This means that your new hourly rate is actually:
($20 x 8) / 9 = $17.78
And this is before we even talk about gas money and the wear and tear on your vehicle.
Work Uniform
Every job is different and the customary attire will differ as well. Most jobs however, require that you buy clothing that you wouldn’t normally wear. For many of us, this could easily come out to another $15/week if not a lot more.
You will also want to consider that time it takes to purchase and maintain your work uniform as well.
Child Care
Child care can get very expensive fast. And while child care expenses may not be avoidable it may be valuable to calculate your hourly wage after you pay for someone to watch your kid(s) while you work.
Other Factors
Other factors could include eating out while at work or the cost of the activities that you do to diffuse from a long day at work.
And there may be many factors that don’t show up directly in dollars and cents. This could be the stress that you experience, an unpredictable schedule, or required business travel.
When we start calculating our real hourly wage it can be eye opening to realize the true price of a certain job. Obviously, we all need an income and any job is often much better than no job at all. That being said, knowing our true hourly wage can help us make better career decisions down the road.