chipperd wrote: ↑
Sat Jan 27, 2018 5:57 am
roflwaffle wrote: ↑
Fri Jan 26, 2018 3:51 pm
OP, what's net your net per hour, including time spent getting ready for work/commuting? That IMO is a clearer metric than gross.
Combined, my wife and I work about 2,325 hours/year and will gross about 150k this past year. Net about $52/hour before commuting and getting ready. If you add in that time for both of us, the net per hour, using last year's income (pretty steady year to year) then our net drops to about $44.75/hour.
Interested to see your take on these numbers.
The only thing I can think of adding is commuting costs, but I'm guessing it won't change things much. On the face of it, I think you're obtaining more free time by avoiding net pay of *about $23/hour. Having said that, it's probably lower because income tax is progressive. If you apportioned the taxes paid for the top 60% of your income based on the dollar amounts per bracket and corresponding rates for those amounts/brackets, I'm fairly certain your net would be lower as would the dollar/hour trade off. My guesstimate is about $15-$20/hour, but I'm assuming your average rate for the top $90k of income tax is 25% and the average rate for the bottom $60k is 15%, which is just a random guess.
Anyhow, I think your income tax bracket adjusted net earnings, less commuting expenses, over the total time you spend for work (work plus commuting), less the avoid costs, over the time you don't have to work, gives you a good idea of the avoided earnings per hour. With your hourly being so high, if you keep your net down, your net hourly for working less should be much greater than the net avoided hourly for working more, which to me seems nice.
Above all else, I think it's a good idea to double check the order of my operations and assumptions too, since it's a big choice to make.
*$150000 per year over 2325 hours is $64.50/hour. The ratio of after tax earnings is $44.75/$64.50 = .69, and the after tax equivalent to $90000 is $62400, and then net is $35400, which is $23/hour over 1560h (30h*52w).