orphanjones/Flickrp
This post is brought to you by Plumbing Q & A, where you can get all your plumbing questions answered.
When deciding whether to do a home improvement project yourself or hire someone, it’s useful to know how much money you earn in an hour. The April issue of Real Simple shares this two-part calculator.
Part 1 Income
Your monthly take-home income after taxes:
Add up all your costs associated with working.
Coffee runs with coworkers:
Commuting:
Clothing:
Dry cleaning:
Unreimbursed business meals:
Child care:
Subscriptions:
Business supplies:
Other:
Total work expenses:
Real monthly income (income minus work expenses):
Part 2 Hours
How many hours do you work in a month (40 hours per week times 4 weeks = 160 hours per month):
How many hours do you spend commuting (round trip commute x 20 days):
Additional hours spent on work (reading, continuing education, travel):
Total work hours:
Your hourly wage rate (real monthly income divided by total work hours):
Use your hourly rate to determine if it is a better idea to hire a professional or do the work yourself. But remember, just because hired help may be cheaper per hour than your hourly rate does not mean you have the money to spare!
March 17th, 2010 at 10:36 am
[...] (Double estimates from a contractor.) How much will this task cost to complete myself? (Supplies + calculate your hourly rate.) And lastly, how much will I really enjoy the [...]
April 29th, 2010 at 11:45 am
[...] Maybe you take care of their dogs while they drop the kids off at the after-school activities. My hourly rate is around $10 an hour. If I had to walk the dogs (30 minutes) and then take the kids to their [...]