Financial Breakdown
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  1. #1
    Registered User Nada.Leona's Avatar
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    Default Financial Breakdown

    I did some calculations the other day. I determined how many hours I have to work in order to pay for all the things I need to pay for every month. Here's my calculations:

    Monthly Income = $1196.40
    Hours Worked = 140
    Hourly Wage = $8.55

    Rent = $593.00 or 69.5 hours
    Power = $22.00 or 2.5 hours
    Phone/Net = $46.66 or 5.5 hours
    Temp's Insurance = $22.71 or 2.5 hours
    Computer = $38.07 or 4.5 hours
    Long Distance = $5.00 or 0.5 hours

    Total = 85 hours

    Now, here's my question -- if I spend the money from 85 hours worth of work on my bills and utilities... where is the money from the other 55 hours worth of work?!!! That's a lot of money, and I never see any of it! :S

    Well, it has started me thinking. Now that I know what my actual take home after taxes pay is, I can start thinking about what I'm doing and say "This will cost me three extra hours of work. Do I really need this?" or "If I want to do/buy/eat this, I'll have to work another 4 shifts to do it. Is that something I'd be willing to do?"

    I like this idea. Let's see how it goes.

  2. #2

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    Nader,
    I think that's a great way to see where the money is actually going. I have often thought of doing somehting like this just to see how long my Dh has to work to support us. Aside from doing the tracking of daily expenditures, which I find so tedious, I think it's a great way to say
    "I don't really need that!"
    Good job!

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    We did this when dh had a really good paying job. Unfortunately, he would always reason that he only had to work a half an hour for this or that if he "wanted" something. I really should break it down again, but our income varies a lot right now. Thanks for bringing this up though.

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    Are you including taxes? If not, that's probably where a lot of it that you don't see is going.

    I have done such charts in the past--I think it's a great way to get a real connection between money and the things we use our money for.

  6. #5
    Registered User EmilyD's Avatar
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    Wink

    There is no food, clothing, or entertainment listed either. You certainly need the first two.

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    Default

    I think that is such a great way to look at it. I had my own little realization yesterday morning when I worked for a little while, then DH and I went to breakfast, we bought a paper, and DH played the crane machine. As we were walking out of the restaurant, I realized, we spent all the money I had just earned. For nothing! I could have made scrambled eggs and biscuits at home! What a waste!

  8. #7
    Registered User wanderinggrandma's Avatar
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    2 of 3DD's live out of state and clear across the US. I work PT to travel. Period. I have done the how many hours do I have to work to buy a ticket to Phily or Ft. Lauderdale game. Now with grandbabies I may have to kick up the hours at work.

  9. #8
    Registered User Nada.Leona's Avatar
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    I didn't include food, clothing or entertainment because they are not set expenses (yet ). Taxes are included in my final totals as well.

  10. #9
    Registered User emily_hope's Avatar
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    Default

    I like that idea. Knowing how long you will have to work to pay for something will make you really stop and think if you really want/need it.

  11. #10
    Registered User Nada.Leona's Avatar
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    Exactly. A good dinner out would cost me at least four hours work, and that is time I could spend doing other things -- especially when I have a personal chef! On the other hand, things like my regular groceries will cost me about the same amount of work, but will definitely be far more worth it to me -- each meal will only be about fifteen minutes worth of work!

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    awesome idea nader...
    sari... i have done this too...

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    Oh, this is a good idea

    Monthly Income = $1640.40
    Hours Worked = 160
    Hourly Wage = $10.25

    Rent = $925.00 or 90.2 hours
    Power/Gas = $100.00 or 9.7 hours
    Phone/Net/Long Distance = $95 or 9.3 hours
    Groceries/food = $200.00 or 19.5 hours
    CC Bills/Loan = $120 or 11.7 hours
    Entertainment/Other = 30.00 or 2.9 hours

    Total = 143 hours

    Where do my other hours go?

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    Quote Originally Posted by mikkismama View Post
    Oh, this is a good idea

    Monthly Income = $1640.40
    Hours Worked = 160
    Hourly Wage = $10.25

    Rent = $925.00 or 90.2 hours
    Power/Gas = $100.00 or 9.7 hours
    Phone/Net/Long Distance = $95 or 9.3 hours
    Groceries/food = $200.00 or 19.5 hours
    CC Bills/Loan = $120 or 11.7 hours
    Entertainment/Other = 30.00 or 2.9 hours

    Total = 143 hours

    Where do my other hours go?

    I don't see transportation on your list? Automobile or Renters insurance? Medical co-pays? Haircuts (well, not for your dh, judging by your adorable avatar! )? Clothing? Babysitter (or do you ever go out?)? Gifts?

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    Registered User FrugalMomof3's Avatar
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    Take Home Pay: $1640
    Hours Worked: DH is salary

    Mortgage: $885.25
    Water/Sewer/Garbage $55 (we are billed quarterly)
    Electric: $55
    Cable/Phone/Internet: $95
    Gas in Car: $60
    Groceries: $100
    Extras/Entertainment: $40

    Total Spent: $1290.55
    Leftover: $349.75

    Why does it never seem we have that much leftover?
    He's paid on the 5th and 20th of the month and child support is taken right out of his paycheck, and the bills listed above are approx. but they are always around that amount and our taxes and homeowners insurance is included in the mortgage payment.

    If we divide that $349.75 x 2 weeks, we're left with $174.85 to last till the next paycheck, I am trying to put away $20 each pay into the EF but it never feels we have that much left?

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    Quote Originally Posted by Valerie in WA View Post
    I don't see transportation on your list? Automobile or Renters insurance? Medical co-pays?
    All that comes out pretax and before net pay (which is what I listed)

    Quote Originally Posted by Valerie in WA View Post
    Haircuts (well, not for your dh, judging by your adorable avatar! )? Clothing? Babysitter (or do you ever go out?)? Gifts?
    I cut my own hair and clothes...don't know what those are. I guess its just the pennies we throw around here and there. Oh, and I forgot to add the $15 a week in laundry. Darn laundromat.
    I'll update above

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