Affordable means making sure that all your necessities in life can be provided without worrying much about the money to be spent. Nevertheless, everyone has their perception of what defines a comfortable lifestyle or living standard. There are several things to consider when defining what a good base pay per hour is to be able to live well.
Housing Costs
An important part of the expenses, which occupies one of the leading positions in the list of necessary ones, is the expenses on housing. Housing costs which include rent or mortgages have always been reported to be almost a quarter of the monthly expenses. According to the U.S. Department of Housing and Urban Development, affordable housing can be acquired at no more than 30% of your income. Hence, when determining an acceptable hourly rate for the work you will do, it is important to consider affordable rent in your region. It is therefore more appropriate to be paid a higher wage in these areas if they are costly urban areas.
Basic Necessities
As for necessity costs, these are the expenses incurred and required for food, transport, power, medical care, clothing, and taxes. The cost of these things also differs by place too, such as using public transport is costly in some cities compared to others. Add a rough estimate of your monthly Commodity Expenses to arrive at this take-home per hour wage necessary to cater to those needs. Always remember that medical expenses are not disregarded and can be quite high even for a young and fit person.
Debt Payments
This means they should include any form of bills such as student loans credit card balances or auto loans to determine the necessary hourly wage. Add the total costs of debt to know the exact number of hours needed to earn to cater for both expenses and debt. This will establish a starting wage requirement to help facilitate the subsequent steps.
Savings Goals
After all, it is recommended to have some money saved for a “rainy day” to be able to live without much worry. Savings enable you to meet expenses that are beyond your normal budget, meet large expenses, save for retirement, and meet other aims and objectives. The best course of action that can be taken is to have a fund for emergencies equal to three to six months of the current living costs. In addition, there may be personal necessities such as funds for retirement, and funds for leisure such as for vacations or a particular hobby. Determine the total amount of money you require to set as your target monthly savings and incorporate this with the basic hourly rate that will be required to meet your normal and constant expenses.
Lifestyle Desires
Comfort, therefore, does not only mean meeting the needs but also being able to fulfill some of the wants once in a while. Hemera, ‘posh’ items such as eating out, entertainment, travel, and acquiring good things are considered enhancers of lifestyle. Be pragmatic on the spending on things that are non-essential and allocate a measure of your income to them for the type of comforts you would like to have.
Income Taxes
Note that hourly wage is different from the wages you receive per hour because your wages are not the same as your hourly pay. Income taxes and payroll taxes do imply that your net amount of disposable income will be less. To be aware of the maximum you can make hourly and how much of it will get into your pocket after taxes, it is crucial to comprehend your taxation laws.
Therefore, the convenient rate per hour can be defined as the sum of necessary living costs, necessary expenses on credits, medical needs, taxes, and some more for saving and other individual preferences. This total dollar amount refers to what you should be making to live the kind of life you envision.
It is the amount you are supposed to be making to comfortably live every month. Subtract this from the total amount to derive the ideal minimum hourly rate of pay by dividing it by the average number of hours worked per month. Increase corresponding figures for expensive areas and compare actual expenses to enhance initial calculations. Of course, it is possible to design your income level, or the level of income that your family needs, and therefore, free from problems in this area.
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