Submitted by [deleted] t3_126uhxc in LifeProTips
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Submitted by [deleted] t3_126uhxc in LifeProTips
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By 50. OPs accounting for two weeks of unpaid leave.
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Because none of those are take home. You can not take unlimited unpaid time off. Also many jobs do not offer paid time off. So 2000 is a nice conservative estimate of yearly income.
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Ok. If you quit we need to adjust the number of hours for the calculation. PTO is meant to be used. Most workers will not have excess PTO. Health insurance benefits can not be used for rent. It is NOT income. You do not pay taxes on health insurance paid by your employer(except for a couple of cases like a domestic partner). 2000 gives you a reasonable, if not exact, number for the yearly income. Being conservative is important for anyone who doesn’t have the PTO benefits and is taking 2 weeks unpaid leave for sickness. All of this is for the US.
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Let’s remember that this is a quick estimate of yearly income. If you are considering jobs, then you should go into the details. Compare benefits, and whether the job offers PTO. I think we can both agree, that if we want a detailed report of income and benefits that OP’s formula isn’t good enough. As a quick head estimate for conversation and comparison it is certainly good enough.
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I mean you’re technically correct but I think OP was just being conservative as many people do not get that much PTO. Also it’s way easier to do the math on the fly
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LPT: If you’re getting promoted from hourly to salary and receiving less than a 25% raise, you may be working more for less, not counting overtime.
40 hours to 50 hours is 25% more hours, if that’s how long you’re expected to work.
I got promoted to salary but only work 35 hours, when I previously worked 37.5 hours as an hourly person. Definitely worth checking, but salary doesn’t always mean “work more”. In fact, since I get paid breaks I’m actually paid for more than 35 hours while on salary, but only work 35.
On hourly, I worked 37.5 and got paid for 37.5.
That’s awesome and I love that for you.
I tried to reverse this to find my hourly wage based off annual salary. It came pretty close, but was about $1.50 too high.
I’m guessing that has something to do with not taking the 2 weeks into consideration.
Assuming you have paid time off, it should be 2080 hours for 52 weeks
Nailed it. Makes sense.
If you are paid around $37.50 an hour, it will show as $1.50 too high. I think OP’s point is that you can put the calculator away and quickly calculate your approx annual gross by doubling the hourly rate and adding three zeros: eg $40 per hour will be approx $80,000 per year.
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19k seems like more than I used to make
That’s like half of minimum wage where I live, also you may have only worked 6-7.5 hour shifts instead of 8 hour shifts. Or maybe you didn’t work 5 days a week.
Minimum wage was about €9,50 during that time. It rose to €12 in 2022 tho
It was also a very low-time job, about 10hrs a week
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🤦🏻♀️ This isn’t a life tip. This is math taught to literal children and you still got it wrong. You never calculate based off of assumed two weeks off.
Isn't it a rather basic principle to be conservative when making financial estimates? We're not necessarily talking two weeks of vacation, it could be two weeks worth of emergencies and sickness spread throughout the year.
All financial decisions in your life that require an official check of your finances with the bank, government, or charity is based on 2080 working hours. Or an average of your last few paychecks.
I suppose we're talking two different areas of planning. Mine is budgeting, yours is bureaucracy.
Do whatever you want. Either way, this isn’t a LPT as it’s grade school math. (I know you’re not OP, stating it anyway since you felt the need to say something)
Double hourly wage and add 3 zeros or divide salary by 2 and subtract 3 zeros. Quick way to estimate.
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> assumes 2 wk/yr of sick leave, unpaid time off
lol
> 40hr/wk
I don't work 40 hours per week.
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[deleted] OP t1_jeb0dcj wrote
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