Our pay is stated in one time frame - hourly, daily, weekly, monthly, annual. We are paid in another time frame, and we have expenses in all time frames. To get a perspective on the significance of our pay we need to see what it is relative to all of these time frames. Here Pay refers to Gross Income, your pay before any deductions, such as for taxes.

To add to the problems is that there are two types of time duration pay, Actual Pay and Effective Pay.

Actual Pay is what you get if you work a full year without any time lost. It is also the pay that you would get at the end each completed pay period (time frame),  Day, Week, Month .  For example, if you get paid every week, then this would be the actual amount paid after each completed week of work.

Effective Pay comes from taking the pay you earned from working part of the year and making it last for the whole year – the pay you earned working part of year is spread out over the whole year.  For example, if you work only half a year, then your Effective Pay will be half your Actual Pay. That is, if while working your Weekly pay check is $1000, the half amount is spread over the whole year. So, you only have, half that, $500, to spend on a weekly basis – instead of $1000.

Of course, if you work a full year without any time lost, then your Actual Pay and Effective Pay will be the same.

 Because of this, getting a perspective on your personal finances can be quite challenging. The math is tedious. But, here the spreadsheet does the math. You get the results for “What’s Your Pay Work”!

© Hulan E. Jack Jr. 2001 Revised Aug2004,Jul2007,Aug2008