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Many people look for the ways of personal financial management improvement and there is nothing weird. The better we handle money which is hardly earned the wealthier life we have. Designing an efficient budget, developing frugal strategies are important stages of money management but it is way more important to structure your personal time. It is very important to correctly decide how much time you want to spend working and how much time you want to spend playing with children.

That is why it is a great idea to calculate how much each your working hour costs. It is not as difficult as it may seem and you just need to divide your annual income by the number of working hours. For example, average citizen, let us call him Joe, with a middle income makes $60 000 a year. He works 5 days a week for 8 hours and he works 50 weeks a year. That means that Joe gets $30 for one hour of hard work. But here we need to count something more.

Each job demands additional costs like clothing, business meals, and business trips. Besides after a hard working day you search ways to reduce emotional and physical stresses which are caused by work. And everything this makes the meaning of your hour income less. Unpredicted costs which may suddenly occur in our lives also burden our salary.

For example if you urgently need to take a loan from PaydayLoansOnlineService to fix your car you need to remember that you will have to return a certain sum of interest. This amount doesn’t serve the aim of car repair that is why it comes out as additional burden to your hour wage.

This information is very useful when you decide which job is worth applying for. For example if you need to spend much time on the way to your work, if you need to wear a certain uniform or if you need to spend your time on business trips you will always be able to determine whether the salary which you are suggested to get is sufficient. For example you may get $35 per hour but you need to spend 20% of your salary on the things mentioned above.

That means that your income is $28. Or you have a good work on the Internet and you get $30. Pay attention that you don’t need to spend money on the uniform, transportation, business meals and so on.

This approach is also helpful whether you decide how to spend your time. This strongly stimulates to refuse from occupations which don’t bring real benefit to your lives. For example if you know that one working hour will bring you tangible result you will not waste this time on watching stupid TV programs. Even if you don’t set the working schedule by yourself and have to work from 9 to 5 you will know that watching TV late at night negatively influence your earning the next day.

Author

Robert Gombos

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