There is usually a big gap between the number given on your paycheck and the money you bring home in a given pay period. The number on your paycheck is not realistic. Indeed, if you want to know the exact money you have at your disposal, you must first factor in a number of expenses.
If you are looking at quitting your current employment for any reason, you should be completely aware of how much money you make in any given pay period. This information is critical for anyone who whishes to change their current career, begin their own project, or stop working all together 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.
With the rising price of gas, any length of commute is quickly becoming costly. Add that to the costs of maintaining your vehicle and all its component parts and you have a necessary expense regarding your work. Figure out the amount of gas you use in a week’s time, in addition to the wear and tear performed on your car. The internet has several templates for factoring this number into your take home pay.
If you're working in a business or office that enforces a strict dress code, you should factor in this expense into your take home pay since you would not otherwise make these purchases. Also, don't forget to include the cleaning bills for the suits, shirts, shoes, and other business attire. Since most dress clothing cannot be cleaned at home, you spend heavily on dry cleaning bills.
Apart from the expenses on commuting and dress you need to consider your food expenses in your take home pay. The food expenses you incur while on the job can add up quickly and often go unnoticed. After all, you spend the best part of the day at work and a morning cup of coffee or breakfast goodie coupled with the lunch at a sit down or take out restaurant can add up to a huge expense. What's worse is that these meals can lead to health problems that involve further expenditure.
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.
Perry Hoines is the chief writer for, and editor of
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