Hours For Purchase

One lesson you’re bound to learn as you get older is that the cost of living increases. It doesn’t sound like a big deal, but wait until you’re full-time in the work force and you realize your boss really doesn’t care about your life as much as you had hoped.

There are things you desire that aren’t a necessity and there’s nothing wrong with that! There are sensible ways to go about obtaining your wants, and it starts with budgeting and organization. It actually starts with having a job, but say you already have that going for you. Let’s add some simple math into the equation and you’ll have your budget. I know, I know, more school is the last thing on your mind.

Say you work part-time at a minimum wage job and make $8.95/hr; $7.95/hr if your employer pays for health insurance, but that’s just as confusing as taxes, which brings me to my next point: organize your budget AFTER your first check so you know how much is taken out for taxes

• The situation: You work 20 hours a week at minimum wage, and get paid every two weeks (of course, this is just a basic example; everyone’s situation could be different).

• PayCheck Equation: 40 Hours X $8.95/hr = $358.00 – Federal and State Taxes = $299.11.

Around 16.45% of your Gross pay will go to taxes. What the heck, right? Enjoy it while you can, because it gets worse in full-time adulthood. Figure out what you want, but never spend money you don’t have – credit cards are very dangerous. Take your total paycheck, save a certain percentage, and then budget your costs before you purchase anything.

• Example: You want a $30 shirt with your $299.11 paycheck. Pretend you’re responsible for a moment and you save 75% of your earnings from each pay period. You’ll still have almost $75 to spend for two weeks (depending on your other expenses). That’s two shirts and a movie, or three movies and a shirt, or like a million games at a bowling alley

• Responsible Equation: Hours X Rate – Taxes (16.45%) – Savings (75%) = Spending money!

• A Friendly Reminder: Don’t forget to take into consideration gas for your car, your cell phone bill, and other things you don’t want to pay but must.

You have a job, you have your savings, and you have your spending money. Budget well and reward yourself!