You’re Poorer Than You Think
Let me show you how.
Most people have no idea how expensive life really is. We think in terms of our hourly wage — but almost none of that wage is truly ours to spend.
So much of what you “earn” is already spoken for.
Taxes.
Employment Insurance.
CPP.
Rent.
Insurance.
Car payments.
Utilities.
Subscriptions.
Each one takes a slice.
And when you actually run the numbers, your real hourly wage — your spendable wage — is shockingly low.
The $20/hour Illusion
Let’s say you make $20 per hour, working 40 hours per week.
That’s $1,600 every two weeks.
But after deductions?
You take home $1,250.
Now divide that by 80 hours:
$1,250 ÷ 80 = $15.63 per hour
You didn’t make $20/hour.
You made $15.63/hour.
But we’re not done.
The Pre-Spent Money
You need a car to get to work:
- $200 Car Payment (Bi-Weekly)
- $60 Insurance (Bi-Weekly)
- $30 Fuel (Bi-Weekly)
Now your $1,250 becomes $970.
$970 ÷ 80 hours = $12.13 per hour
Still feel like you make $20?
Let’s keep going.
The Cost of Existing
- $500 Rent (Bi-Weekly)
- $30 Internet (Bi-Weekly)
- $60 Utilities (Bi-Weekly)
Now your $970 becomes $380.
$380 ÷ 80 hours = $4.75 per hour
You’re not living on $20/hour.
You’re living on $4.75 per hour.
And that’s before:
- Food
- Gym
- Spotify
- Netflix
- Clothing
- Emergencies
That $15 Lunch?
If you think you make $20/hour, a $15 lunch costs less than an hour of work.
But if you’re really earning $4.75/hour in spendable money?
That lunch cost you over 3 hours of your life.
A $100 pair of shoes?
That’s 20+ hours of work.
Almost half a work week… for shoes.
The Fairy Tale Wage
Your gross income is fairy-tale money.
It never hits your account.
The only number that matters is your true discretionary hourly wage — what’s left after survival expenses.
If you start thinking in terms of your real hourly rate instead of your gross wage, your spending decisions will change immediately.
Stop living like you make $20/hour.
Live like you make $4.75/hour.
Your bank account will thank you.
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