Today I’m continuing with my series on personal finance tips, inspired by this post over at The Simple Dollar: 60 Simple Rules of Personal Finance.
1. I’m writing a book called, “The Wealthy English Teacher” and there’s a chapter about finding the best job. I recommend that instead of just looking for one with the highest salary, salary per hour worked is a better model because a high salary often comes with a massive number of teaching hours, leaving no time for side-gigs. Instead, a low number of teaching hours but a decent amount of pay could be a much better option.
Pay per hour worked can also be helpful if you are thinking about changing jobs or careers. What at first glance may seem like a poor financial decision might not actually be the case if you can reduce work-related expenses or you can spend a lot less time doing it. Your time is worth something!
2. It’s kind of related to the cost per use model, just in reverse which I’m a huge advocate of when making big purchases. Out of all the things that I espouse on this blog, the cost per use thing is what my friends seem to have latched on and they bring it up all the time.
Anyway, over at The Simple Dollar, they recommend taking your salary after tax, and subtracting all work related expenses you pay out of your own pocket including commuting, work related meals, etc. and then dividing that number by the number of total hours worked (including hours worked at home). That is your true wage. I have a feeling that a lot of people might be surprised to discover how low it really is, especially if you put in a lot of time at night or on weekends and during “vacation.”