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.
This is more important at a time when you're contemplating a change of job. If you have a fairly good idea of how much money you make in any given pay period, you will be able to assess your situation and take the decision whether or not you can afford to change your current career, begin your own project, or stop working altogether in order to care for a child, parent, or family member.
Many individuals have goals of running their own business, but are often held back due to fears regarding finances. Instead of limiting your options for the sake of money, carefully examine how much money you actually make by factoring in a variety of expenses that are associated with your current employment. These expenses may include car, gas, food, and clothing expenses or other necessary items for your work.
Commuting to work is becoming more and more expensive as the price of gas keeps rising. When you add the costs of maintaining your vehicle and all its component parts you have a necessary expense regarding your work. You need to take into account the amount of gas you use in a week's time plus its wear and tear. You can use the templates on the internet to factor this number into your 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.
Apart from the expenses on commuting and dress you need to consider your food expenses in your take home pay. The food expenses you incur while on the job can add up quickly and often go unnoticed. After all, you spend the best part of the day at work and a morning cup of coffee or breakfast goodie coupled with the lunch at a sit down or take out restaurant can add up to a huge expense. What's worse is that these meals can lead to health problems that involve further expenditure.
If you have kids, then the childcare costs might dig deep into your paycheck. In case you don't happen to be working, the question of meeting these bills does not arise; hence these costs also need to be factored from the take home pay.
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.
