If you want to know how much you’ll get in an hour, we’ll need your annual salary — so please provide that!
If you don’t have an annual salary, then please provide your hourly wage. If you don’t know what your hourly wage is, we can help!
If you want to know the time value of money concept, we’ll need a conversion rate — so please provide that too!
Do you 58k a year is how much an hour? If not, Check it here!
How much do I make per hour?
First, find out how many hours in a week; one week is considered to be 7 days. Multiply that number by 2 in order to get the approximate number of hours in a fortnight (2 weeks). One fortnight is considered to be 4 weeks.
Multiply 4 by 2 again for the total hours for one month. There are roughly 240 hours in 1 month. Multiply that number by 52 weeks (most employers pay weekly) and you get roughly 5,080 hours. This amounts to 5.080 x 52 = 31760 hours in a year.
So, how much money do I get in an hour?
If your employer pays hourly instead of biweekly or monthly, divide by the number of hours you work in one week and multiply by the number of hours you work in one fortnight: 31760/52 x 2 = 947.5 ($9.47) per hour a fortnight Simply divide your annual salary by 6 (to nudge our calculations a little less than halfway between hourly and annual rates): 12000/6 = $947.5 per hour. If your employer pays hourly, divide your annual salary by 52: 12000/52 = $53.64 per hour. My final answer: $947.50/hour
What this Means to You
First, we need to take a step back and ask ourselves what effect this has on our lives? Assuming that you are getting paid on an hourly basis which is almost always the case in today’s world at least one of these formulas will be close to accurate.
As was mentioned earlier, there is also the time value of money concept involved in all of these calculations. So if you are earning $947.50 per hour, but are saving or investing that money instead of spending it, the value of the money will grow much faster than the “hourly wage.” But if you spend that money instead, it loses some of its potential value over time.
You could go a step further and try to calculate how much your savings or investments were growing annually by dividing your yearly interest rate by 12 (months) or 5 (weeks), arriving at a similar number. However, keep in mind that most financial institutions round their numbers down to the nearest cent per month or cent per week.
Here are some points discussed-
1. Money is the most liquid asset.
A liquid asset is one that can be easily converted to cash. Liquid assets include savings accounts, stocks, mutual funds, bonds and certificates of deposit (CDs).
While these assets are generally not as safe as other types of investments, a stock may go up or down, while a bond may default; they can easily be converted to cash if you need the money.
Money is the most liquid form of wealth because it’s what we all need to live on.
2. Interest rates are generally lower than the rate of inflation.
The average annual interest rate for a savings account is around 1-2 percent today. That’s more than 3 times the inflation rate of around .25 percent, which also works out to less than 1/3 the rate of increase in a general price index (like the CPI).
That means that money saved in a savings account will grow at a fairly predictable rate, regardless of inflation or price changes. But the more time that money stays in a savings account, the more value it loses by earning less interest than the rate of inflation.
Keep in mind also that there is some risk that you could lose your principal investment, if a bank goes out of business, for example. That’s why it’s important to diversify your portfolio and choose investments with solid track records of earning interest.
3. Don’t rely on short-term loans to get by.
Short-term loans or payday loans are generally not a good idea. Payday lenders often charge very high fees and interest rates, so they’re widely considered predatory lenders who prey on those who don’t have many other options for getting cash in a pinch.