The first thing that a person wants to know when they begin a new job is how much their hourly rate is going to be. It is important to know that you will make enough money to live off of. Hourly rates a very important to us. We look forward to pay raises because it will help tremendously keep our heads above water. Hold on to your hats though, hourly wages aren’t everything. There are other things to consider when figuring out if the hourly wage we receive really matters.
Here is a look at some of the other things that make up our wages:
Medical/Dental/Vision
Health insurance is a major part of your yearly income. Going to the doctors is very expensive. It becomes even more expensive when you have to spend one day in the hospital. Imagine if you had to pay the bill completely out of your own pocket. You wouldn’t be able to do it even if the money your employer put into the insurance costs was instead put into your paycheck.
Dental insurance is one of the most important things to consider as well. You may be able to pay out of pocket for a routine visit, but what happens when you have to have extensive work done? You probably won’t be able to afford to pay cash for it.
Vision insurance isn’t routine at many workplaces. It should be though. The cost of getting an exam and possibly glasses or contact lenses can be huge. This type of insurance comes at a very low cost to the employer and will save you a few hundred dollars a year if you need eye care.
Insurance costs are considered part of your earnings. If you add what the employer pays for the benefits to the amount of money you don’t have to pay out of pocket, you are making far more money than you think.
Bonus Programs
Many work places offer incentives to their employees for a job well done. These come in the form of bonuses and have to be earned. Many companies offer great bonuses that add up to a lot of money by the end of the year. Keep in mind that you must work hard to earn these bonuses. They won’t just fall into your lap. If you find a job that offers bonuses, you can add that to your total income and it can make a huge difference.
Retirement Funds
Many businesses offer to set up a 401k program for you. You put a little of this into the account and it grows over time. The great thing about these is that most businesses will also offer a matching payment up to a certain amount of money. This isn’t tangible money right now but can make a big difference when it is time for you to move on to retirement. This adds up to a huge part of your hourly pay. Keep in mind that you won’t see a dime if you don’t contribute to the savings. The money that you make from interest alone for your retirement is worth the effort. Not to mention that the money you add to the account is tax-free until you withdraw it. That means you get more interest on it while it is there.
These are just some of the things that add to your total income for the year. The hourly rate that you make is important but not the most important thing about a job. When you think of the long term affects these other things can have on your income, it makes you think twice about giving it up. Does your hourly rate matter? It matters, but not as much as you thought it did.
