How much are you really making at your job?

I’ve been reading this book lately, called “Your Money or Your Life.” The basic premise of the book is that you can have both – your money and your life. He talks about people “making a dying” rather than “making a living.” If we were all going to work to make a living, wouldn’t we come home more energized?
The part of the book that stood out for me, especially as it pertains to budgeting, was a part where he talks about figuring out what you are actually making an hour. This was helpful for me as I was offered a job this week and I was trying to decide whether or not to take it. He said to decide what you make hourly, after taxes and then subtract any expenses that you incur because of the job. This might be daycare, clothes (or uniform), phone, gas, car (would you drive a different one if you weren’t working there?) and put a figure on all those expenses. Then figure out what your actual hourly wage is.
For example:
Salary $45 000 (based on a 40 hour work week)
After taxes/deductions:
$31 500 Hourly: $16.40
Expenses because of this particular job:
Daycare:$200 a month Hourly:$1.25
Gas to get to and from work: $200 a month Hourly: $1.25
Clothes for work: $100 a month Hourly: $0.63
Phone (have to have a blackberry because of work): $65 a month Hourly: $0.41
Lunches once a week at work , Tim Horton’s every morning: $20 a week Hourly:$0.50
Take out once a week: $30 a week Hourly:$0.75

After expenses, my hourly would be: Hourly:$11.61

So, in this example, I would be making $11.61 an hour after the expenses I incur because I’m working.
I’m not saying it’s bad or good to make $11.61 an hour (specifically for this case). I’m just saying sometimes it’s worth knowing how much you’re actually making.
This helps you when you’re figuring out if you are going to change jobs but it also helps you when you are planning on buying things. For example, if you want a new pair of shoes and they are $50. You might be thinking,” I make good money, I’m going to buy those shoes.” Now, you would think – I have to work 5 hours for those shoes, do I really need them?

Obviously there is way more to working than the money we make at our job – it has to be fulfilling. Often people choose a job for the satisfaction of the job and sacrifice being compensated well financially for it. I hope this just gives you something to think about for this week.
It definitely helped me figure out whether I was going to take that job offered to me or not.

Ways to Save

Let's get practical today.
Here are some ways that people save money monthly:
(I'm not saying I do all of these things - this is a combination of what people have told me they do as well as some of my own stuff)

Bills:
-switch to no fee banking (PC financial does this, I'm not sure who else does). They have no monthly fees and you can use any CIBC bank or PC kiosk for deposits and withdrawals.

-switch your phone to talk broadband (primus and vonage have this). This is a phone that is connected through your internet. It doesn't have as good of reception but the price is good - only $20 a month including call waiting, call display and call answer.

-shop around for insurance

-reduce your cell phone bill

-reduce your cable bill (do you really need all those channels?) We actually called star choice and completely shut ours off for the month of August this year. Not only are we saving some money, the kids are actually playing outside!

Food:
-stop buying pre-packaged foods (make more of your own)

-plan your weekly menu based on the sales at the grocery store where you shop.

-make home-made salsa when tomatoes are in season (this is just an example, you can also grill and chop green peppers when they're in season and then freeze to use in casseroles. Another idea is slicing peaches when they're in season and freezing them for smoothies or desserts to use in the winter. The possibilities are endless!)



Work:
-make coffee at home and bring it to work rather than stopping by at Tim Horton's

-pack a lunch for work instead of eating out all the time

-carpool

Entertainment:
-meet friends for dessert or drinks in a restaurant instead of dinner


Other:
-get books from the library instead of buying them (you can request the ones you want online and they will have them waiting for you behind the desk so you don't have to look for them all over the library)

These are just a few ideas. If you have some of your own, let's hear them!

Happy Budgeting

Thanks to everyone who did the grocery spending poll. It seems like most people who read my posts are pretty budget-savvy. The average Canadian family spends $668.00 (statistics Canada) per month on groceries and restaurant meals.
I don’t think living on a budget means that you’re constantly trying to save money around every corner. To me, it just means living within your means and having a plan for your money.
It doesn’t matter if someone spends $1000 a month on groceries or $400 a month. The person who spends $400 a month isn’t necessarily better at being on a budget – it’s the person who has decided on an amount and sticks to it.
I was on vacation this past week and talked to some people on the beach about their budget (not your typical vacation topic!) This one couple seemed to have a lot of money (expensive cars, ate out all the time, expensive boat toys) but they said every year they go in debt over their vacation. They said it always took the enjoyment out of the vacation, having to worry about how to pay for it afterwards.
This past year, someone got them on a budget and now they have their accommodations paid for before they get there and they bring along cash for their spending money. They said it is amazing to have a plan for your money. They still have all the nice things they had before, but they are much happier people.