How Much Are You Working For?

Tell me who’s ahead:

  • Mr. A.: Earns $60,000, Spends $65,000, Profits -$5,000*
  • Mr. B.: Earns $60,000, Spends $58,000, Profits $2,000
  • Mr. C.: Earns $60,000, Spends $45,000, Profits $15,000

That wasn’t too hard, was it?  I even did the math for you.  Now, what are they working for? Let’s assume they all work 40 hour weeks and get paid vacation.

  • Mr. A.: Gross hourly wage: $28.85 per hour, Hourly profit: -$2.43 per hour
  • Mr. B.: Gross hourly wage: $28.85 per hour, Hourly profit: $0.96
  • Mr. C.: Gross hourly wage: $28.85 per hour, Hourly profit: $7.21

So, let’s get this straight:  Mr. A. worked 2080 hours for the year (40 x 52).  He earned $28.85 per hour, and had a loss of $2.43 per hour worked.  Compare with Mr. C., who worked the same number of hours for the same rate, but he walked away with $7.21 per hour of profit.

I don’t know about you, but I would rather be Mr/Ms. C.  I like to feel that all my hard work over a year amounted to something substantial and that I kept some of my money to enjoy over time.  You can also see why us financial planner types might be inclined to carp on someone who habitually overspends, especially on consumables.

So I leave you with the question: how much are you working for?

* Somebody borrowed $5000 more than they earned (tsk, tsk.)

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