tag:blogger.com,1999:blog-37886248.post3220133524320281404..comments2024-03-22T00:35:19.082-07:00Comments on Casual Kitchen: YMOYL Chapter 2, Part 1: Calculating Your Real Hourly WageDanielhttp://www.blogger.com/profile/02388302796031288076noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-37886248.post-6425253201827373372017-01-07T15:27:02.107-08:002017-01-07T15:27:02.107-08:00I hear you on job expenses and they shouldn't ...I hear you on job expenses and they shouldn't be double-counted. <br /><br />However, non-job related costs, like an unnecessary purchase (a "gazingus pin" as YMOYL likes to phrase it) or a cable TV subscription that you hardly use, etc., those costs are meant to be looked at in terms of units of worktime required to pay for them. And you *should* look at these purchases using a true real wage, which includes all job related timesinks that naturally occur along with work. Including "daily decompression" and "time till civil." ;)<br /><br />DKDanielhttps://www.blogger.com/profile/02388302796031288076noreply@blogger.comtag:blogger.com,1999:blog-37886248.post-78449527093765402802017-01-06T17:31:25.120-08:002017-01-06T17:31:25.120-08:00I agree with you 100% regarding the net pay issue....I agree with you 100% regarding the net pay issue.<br /><br />There is one other large issue...if I'm reading them correctly.<br /><br />When they calculate your "real wage", they net out job related expenses. I get it. But then, when they calculate how many hours you need to work, they use that netted down number. Can't do that -- you're double counting.<br /><br />By way of example, consider someone working 40 hours a week for $10/hr after-taxes, so they net $400. Say their job related expenses are $80 and that all other expenses are $320 (you break even). <br /><br />They would calculate your "real wage" as $8/hr ($400 - $80 = $320 / 40 = $8. But then they would say that the $80 in job related expenses cost you 10 hours of your "real wage" ($80 / $8/hr) = 10 hours, and that "everything else" would cost you 40 hours. But wait! That's 50 hours for what is truly 40.<br /><br />Personally, I prefer to use the net wage, then calculate based on that. So again, using the example, your job related expenses cost you 8 hours of work ($80 / $10/hr) and all other expense cost you 32 hours ($320 / $10/hr).<br /><br />You can still look at it that you work 40 hours to get 32 hours worth of spending.<br /><br />Another, yet theoretical, issue with their approach is that it actually looks like you're making money doing non-productive stuff. For example, if you spend 10 hours commuting, they show your "work related hours" as 50. Ignoring the $80 of job related expenses for this example, your net wage is $400/(40+10) or $8/hr. But that only holds true if you really think you're earning $8/hr while you are commuting.<br /><br />Again, I get what they're doing, and perhaps for their target market it is a better approach. I'd rather look at my true net pay and consider my time lost commuting separately.<br />Anonymoushttps://www.blogger.com/profile/07012320439010984534noreply@blogger.com