orphanjones/Flickrp
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When deciding whether to do a home improvement project yourself or hire someone, it’s useful to know how much money you earn in an hour. The April issue of Real Simple shares this two-part calculator.
Part 1 Income
Your monthly take-home income after taxes:
Add up all your costs associated with working.
Coffee runs with coworkers:
Commuting:
Clothing:
Dry cleaning:
Unreimbursed business meals:
Child care:
Subscriptions:
Business supplies:
Other:
Total work expenses:
Real monthly income (income minus work expenses):
Part 2 Hours
How many hours do you work in a month (40 hours per week times 4 weeks = 160 hours per month):
How many hours do you spend commuting (round trip commute x 20 days):
Additional hours spent on work (reading, continuing education, travel):
Total work hours:
Your hourly wage rate (real monthly income divided by total work hours):
Use your hourly rate to determine if it is a better idea to hire a professional or do the work yourself. But remember, just because hired help may be cheaper per hour than your hourly rate does not mean you have the money to spare!
