Do you keep a tab on the amount you bring home in a given pay period Is the number on your paycheck the only thing that matters If the answer to these questions is yes, then you need to do some re-thinking. You need to take account of a number of expenses, also known as factoring that helps you determine amount of money at your disposal.
This is more important at a time when you’re contemplating a change of job. If you have a fairly good idea of how much money you make in any given pay period, you will be able to assess your situation and take the decision whether or not you can afford to change your current career, begin your own project, or stop working altogether in order to care for a child, parent, or family member.
Sometimes, you want to run your own business, but hesitate to do so due to fears regarding finances. Don’t let that stop you. Instead, make an assessment of your income by factoring in a variety of expenses that are associated with your current employment. These are expenses associated with your work, such as car, gas, food, and clothing expenses and so on.
One major factoring you need to do is the commuting expense. With the gas prices soaring each day, commuting is a costly proposition. Moreover, the vehicle requires some amount of maintenance also. You can start by factoring in the amount of this wear and tear as well as the fuel costs for a week. These days it is also possible to take help of the Internet that has several templates for factoring this number in the take home pay.
Most businesses and offices enforce a strict dress code. This expense should also be factored into your take home pay since you would not otherwise make these purchases. In addition to factoring in clothing purchases like suits, shirts, shoes, and other business attire, also include the cleaning bills for these items. Most dress clothing cannot be cleaned at home, forcing you to invest money in expensive dry cleaning bills.
Another factor in your take home pay is any food expenses you incur while on the job. These innocuous expenses can add up quickly and often go unnoticed by working individuals. That morning cup of coffee or breakfast goodie coupled with the lunch at a sit down or take out restaurant can quickly become expensive. Additionally, these meals can often pack on pounds, which can lead to health issues.
If you have children, you must factor in the portion of your pay check that goes towards child care costs. If you were not working, you would not be paying these bills.
Thus, you need to consider all related business expenses when you calculate your take home pay. These expenses are astounding. Once you realize how much of your income goes into earning it, you may find it easy to take the decision to change your career or start your own business or just quit working to take care of your home and children.