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.
In case you have any plans of changing your current employment, you should be in the know of the money that you can make in the given period. This information is vital for anyone who either wishes to opt for a new career, venture into a new project, discontinue working for some personal reason like bringing up children or taking care of parents.
The reservations regarding finances have held back many an individuals from venturing into their own business. It might not be a feasible idea to limit the options for the sake of money. Consider the expenses that are factored as a result of your current employment. These can be under the heads of commuting (car and gas), food and clothing as well as other necessary items.
One major factoring you need to do is the commuting expense. With the gas prices soaring each day, commuting is a costly proposition. Moreover, the vehicle requires some amount of maintenance also. You can start by factoring in the amount of this wear and tear as well as the fuel costs for a week. These days it is also possible to take help of the Internet that has several templates for factoring this number in the 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.
Another factor in your take home pay is any food expenses you incur while on the job. These innocuous expenses can add up quickly and often go unnoticed by working individuals. That morning cup of coffee or breakfast goodie coupled with the lunch at a sit down or take out restaurant can quickly become expensive. Additionally, these meals can often pack on pounds, which can lead to health issues.
If you have children, you are certain to find a substantial portion of your pay check is going towards child care costs. These costs must also be used when factoring your take home pay, since you would not incur the bills if you were not working.
One important factor that needs to be considered in the take home pay is the business expenses. What comes next is a revelation for you, as you will discover the enormous amount that is spent on the items related to business. Contrary to the perception of the amount being spent on friends and family members the truth is that business expenses eat into a lot of cash. Whatever you are on a lookout for, changing career, launching a new business, staying back at home for raising kids, the final amount should facilitate you in making a decision.
