I was planning on using this entry to detail my goals for 2012 but that will have to wait for another time. I recently came across this article on renewablewealth.com about your true hourly wage.
Like most people I work at a job. I live in Japan and I teach at a private junior and senior high school providing English education to young growing minds. It is a great job and I really enjoy myself, but how much does this job really bring in for me? Well lets find out.
First, totaling up on an average day all the time that I spend having to deal with work. Well I generally wake up at 6:30AM in order to get a shave in, eat a bit of breakfast, throw on a suit and be out the door by about 7:20AM. I catch the 7:30AM train and make it to my destination station 20 minutes later. A short 5 to ten minute walk and I am usually at my desk. Work officially starts at 8:20 AM and ends at 5:00PM. Play the reverse of the going to work game and I am usually home at my door by about 5:30PM. I've rounded a bit here to make it easier on me so I will round some more later.
My work pays for my train pass so I don't have to worry about paying for a car, gas, insurance, parking, etc. (it's pretty sweet!) Reading the article further I should also include about 3 hours a month I spend with work buddies drinking at a bar where we usually talk about our students, what's worked and what hasn't with lessons, etc. Other than that I don't spend much time thinking about work once I step off the school grounds.
So there are 365 days in a year, and 52 weeks. I receive Saturday and Sundays off. 2 days x 52 weeks = 104 days off for Saturday and Sunday. I sometimes have to come for festivals, or concerts so lets round down to 100 weekend days off. Japan in 2011 had 13 national holidays, and I also receive lots of paid time off where I don't have to come to work. Those include: spring break; 11 days, summer break 40 days, and winter break 15 days. All together 100+13+11+40+15=179 days off. 365-179=186 days of work per year (Wow! Almost half the year!)
I don't work every waking hour but spend 6:30AM to 5:30PM at work on work days, so 11 hours, and 3 hours a month decompressing from work. So (11x186)+(3x12)=2082 hours a year I spend working. I make approx. JPY310,000 a month after taxes (USD4032). JPY310,000x12months=JPY3,720,000 a year (USD48,300). Divide my yearly salary after tax by the number of working hours per year 3,720,000/2082=JPY1786 an hour. I'll round that down to JPY1750 an hour (or UDS22.77 an hour) as I said there are some random meetings, after school tutoring, etc.
I don't think that is a bad wage and I feel a fair trade for what I am doing. I'm really glad I did these calculations to see what my real wage is and give me a good idea of what I need to look at if I ever decide to change jobs. I'm hoping this real wage combined with a high savings and investing rate will allow me to reach FI before I hit 40.
What is your real wage?
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