Placing your finances in order is one of the hardest things for an adult to coup with. Knowing how much money is actually being earned after taxes should be the prime subject in high school. Nevertheless, when you are done reading, you would have a better understanding on the subject.
If you want to generate a budget in order to manage your money in a better way and to secure your finances for the future, you surely need to determine your income first. There are a few things that need to be figured out.
Calculate your hourly income:
There can be different ways to calculate your hourly income. For example, if you are a salaried employee and you get paid throughout the year, you can easily calculate your hourly rate via dividing your yearly income by the number of hours youâ€™ve worked throughout the year. For accurate calculations, you need to know the exact number of hours that youâ€™ve worked for. This can be done well on a spreadsheet software. However, if you do not wish to indulge in formulas that you skipped math class for, then simply fill out our form on stubsondemand.com and get accurate Net Pay determined in no time.
Even if you get paid per project, you can determine your hourly rate by following the same formula as for the salaried employee. You too need to know the exact number of hours that youâ€™ve worked for the project and divide your income by the number of hours and you get your hourly rate.
Our Paystub Generator is an easy to use tool to calculate how much you earned per hour as it contains the number of hours worked and the hourly rate.
Calculate your weekly income:
Your gross weekly pay is always reduced to your net pay after the subtraction of your employee tax deductions and other services that your firm promises to provide you. Your employer usually withholds the taxes and are sent to your state/federal agencies. In order to determine your weekly income, you must know the exact number of hours that youâ€™ve worked throughout the week. Using the Paystub Generator you can calculate your weekly pay to the last decimal.
Calculate your monthly income:
Once you know your hourly and weekly income it gets easier to calculate the monthly income. If you work on hourly basis, for example, you work 8 hours a day, now multiply your hourly rate by the number of hours worked per day. Then subtract the number of days you took holiday for. Now multiply your daily rate with the number of days worked in a month. Now you get to know your monthly income.
If you get paid as a bi-weekly, you can calculate your monthly income in a very easy manner. For example if you make $600 in a week then multiply 600 by 52 and you get your annual income which is $31200. After you get your annual income, divide it by 12 and you can easily get to know your monthly income which is $2600 almost.
To determine how much money youâ€™re bringing in, you should also subtract your taxes and other services from your gross pay. Only then youâ€™ll get to know the exact amount that you bring in the end of month.