[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.57,0:00:03.71,Default,,0000,0000,0000,,- [Instructor] Let's say that\Nyou just got two job offers,
Dialogue: 0,0:00:03.71,0:00:05.07,Default,,0000,0000,0000,,and these jobs are pretty\Nidentical to each other,
Dialogue: 0,0:00:05.07,0:00:07.29,Default,,0000,0000,0000,,except for how they gave you the offer.
Dialogue: 0,0:00:07.29,0:00:12.29,Default,,0000,0000,0000,,So the first job, they tell\Nyou that it is $30 an hour,
Dialogue: 0,0:00:12.54,0:00:14.79,Default,,0000,0000,0000,,and they're going to\Nexpect you to be there
Dialogue: 0,0:00:14.79,0:00:19.50,Default,,0000,0000,0000,,40 hours per week.
Dialogue: 0,0:00:19.50,0:00:24.33,Default,,0000,0000,0000,,Then the second job, they're\Noffering you $60,000,
Dialogue: 0,0:00:24.33,0:00:27.63,Default,,0000,0000,0000,,$60,000 per year,
Dialogue: 0,0:00:27.63,0:00:28.80,Default,,0000,0000,0000,,and they're also assuming
Dialogue: 0,0:00:28.80,0:00:32.31,Default,,0000,0000,0000,,that you're going to be\Nthere 40 hours a week.
Dialogue: 0,0:00:32.31,0:00:35.16,Default,,0000,0000,0000,,Which one is giving you better pay?
Dialogue: 0,0:00:35.16,0:00:37.53,Default,,0000,0000,0000,,Pause this video and see\Nif you can figure this out.
Dialogue: 0,0:00:37.53,0:00:38.87,Default,,0000,0000,0000,,What's better?
Dialogue: 0,0:00:38.87,0:00:40.80,Default,,0000,0000,0000,,$30 an hour or $60,000 a year?
Dialogue: 0,0:00:41.79,0:00:44.61,Default,,0000,0000,0000,,Alright, now let's work\Nthrough this together.
Dialogue: 0,0:00:44.61,0:00:48.18,Default,,0000,0000,0000,,Now, one way that many\Npeople will often do this,
Dialogue: 0,0:00:48.18,0:00:50.67,Default,,0000,0000,0000,,and you might have just\Ntried to do it this way,
Dialogue: 0,0:00:50.67,0:00:52.37,Default,,0000,0000,0000,,but I'll tell you in a\Nsecond, is a mistake,
Dialogue: 0,0:00:52.37,0:00:57.37,Default,,0000,0000,0000,,is to say, okay, I'm going\Nto take my $30 per hour,
Dialogue: 0,0:01:00.03,0:01:04.77,Default,,0000,0000,0000,,multiply that times 40 hours per week,
Dialogue: 0,0:01:06.39,0:01:11.39,Default,,0000,0000,0000,,multiply that times four weeks in a month,
Dialogue: 0,0:01:14.70,0:01:19.70,Default,,0000,0000,0000,,and then multiply that\Ntimes 12 months in a year.
Dialogue: 0,0:01:20.94,0:01:22.86,Default,,0000,0000,0000,,Before I tell you why this is incorrect,
Dialogue: 0,0:01:22.86,0:01:26.76,Default,,0000,0000,0000,,let's actually calculate\Nwhat we get by doing that.
Dialogue: 0,0:01:26.76,0:01:31.76,Default,,0000,0000,0000,,If we take 30 times 40,\Nthat's going to be 1200,
Dialogue: 0,0:01:31.80,0:01:36.66,Default,,0000,0000,0000,,times four weeks is going to be 4,800.
Dialogue: 0,0:01:36.66,0:01:40.35,Default,,0000,0000,0000,,And then if we want to\Nmultiply 4,800 times 12,
Dialogue: 0,0:01:40.35,0:01:42.65,Default,,0000,0000,0000,,at the risk of me making\Na simple math error
Dialogue: 0,0:01:42.65,0:01:45.97,Default,,0000,0000,0000,,while y'all are watching,\NI will just do that here.
Dialogue: 0,0:01:45.97,0:01:49.21,Default,,0000,0000,0000,,4,800 times 12
Dialogue: 0,0:01:50.51,0:01:51.96,Default,,0000,0000,0000,,is equal to 57,600.
Dialogue: 0,0:01:51.96,0:01:53.22,Default,,0000,0000,0000,,Let me just confirm my math.
Dialogue: 0,0:01:53.22,0:01:57.48,Default,,0000,0000,0000,,So I took 30 times, lemme do it down here
Dialogue: 0,0:01:57.48,0:02:01.65,Default,,0000,0000,0000,,so you can see what I'm,\Ntimes 40 hours in a week,
Dialogue: 0,0:02:01.65,0:02:06.21,Default,,0000,0000,0000,,times four weeks, times\N12 months in a year.
Dialogue: 0,0:02:06.21,0:02:09.77,Default,,0000,0000,0000,,I got $57,600.
Dialogue: 0,0:02:09.77,0:02:12.60,Default,,0000,0000,0000,,$57,600.
Dialogue: 0,0:02:12.60,0:02:15.00,Default,,0000,0000,0000,,So if you just did that\Ncalculation, you might just say,
Dialogue: 0,0:02:15.00,0:02:16.81,Default,,0000,0000,0000,,oh wow, this job right\Nover here is better.
Dialogue: 0,0:02:16.81,0:02:20.70,Default,,0000,0000,0000,,$60,000 a year versus 57,600.
Dialogue: 0,0:02:20.70,0:02:22.89,Default,,0000,0000,0000,,But I just told you there is a mistake.
Dialogue: 0,0:02:22.89,0:02:24.63,Default,,0000,0000,0000,,Can you spot the mistake?
Dialogue: 0,0:02:25.47,0:02:28.32,Default,,0000,0000,0000,,Well, if you think about\Nwhat just happened,
Dialogue: 0,0:02:28.32,0:02:29.96,Default,,0000,0000,0000,,you didn't realize that most months
Dialogue: 0,0:02:29.96,0:02:33.33,Default,,0000,0000,0000,,actually have more than\Nfour weeks in them.
Dialogue: 0,0:02:33.33,0:02:35.40,Default,,0000,0000,0000,,There's actually 52 weeks in a year,
Dialogue: 0,0:02:35.40,0:02:36.69,Default,,0000,0000,0000,,and the way we just calculated,
Dialogue: 0,0:02:36.69,0:02:39.30,Default,,0000,0000,0000,,we assumed there's 48 weeks in a year.
Dialogue: 0,0:02:39.30,0:02:40.98,Default,,0000,0000,0000,,So the correct way to do this
Dialogue: 0,0:02:40.98,0:02:45.39,Default,,0000,0000,0000,,would actually be to\Ntake your $30 an hour,
Dialogue: 0,0:02:45.39,0:02:50.39,Default,,0000,0000,0000,,multiply it times 40 hours in a week,
Dialogue: 0,0:02:50.70,0:02:51.93,Default,,0000,0000,0000,,and then to get to the year,
Dialogue: 0,0:02:51.93,0:02:56.93,Default,,0000,0000,0000,,multiply that times 52 weeks in a year.
Dialogue: 0,0:02:59.10,0:03:03.00,Default,,0000,0000,0000,,And if we do that, we're going\Nto get a different number.
Dialogue: 0,0:03:03.00,0:03:05.92,Default,,0000,0000,0000,,So now, lemme do it up here.
Dialogue: 0,0:03:05.92,0:03:10.92,Default,,0000,0000,0000,,$30 an hour times 40 hours in a week
Dialogue: 0,0:03:11.04,0:03:14.97,Default,,0000,0000,0000,,times 52 weeks in a year
Dialogue: 0,0:03:14.97,0:03:19.21,Default,,0000,0000,0000,,gets us to $62,400.
Dialogue: 0,0:03:19.21,0:03:24.21,Default,,0000,0000,0000,,$62,400, which gives us\Na very different number.
Dialogue: 0,0:03:24.27,0:03:27.93,Default,,0000,0000,0000,,This is almost $5,000 higher\Nthan our previous number.
Dialogue: 0,0:03:27.93,0:03:29.22,Default,,0000,0000,0000,,And now all of a sudden it looks
Dialogue: 0,0:03:29.22,0:03:32.82,Default,,0000,0000,0000,,like the $30 an hour job is better.
Dialogue: 0,0:03:32.82,0:03:34.95,Default,,0000,0000,0000,,So the big takeaway from this video
Dialogue: 0,0:03:34.95,0:03:38.19,Default,,0000,0000,0000,,is if you're trying to convert\Nbetween hourly and annual,
Dialogue: 0,0:03:38.19,0:03:40.47,Default,,0000,0000,0000,,remember, don't just go for estimate
Dialogue: 0,0:03:40.47,0:03:41.46,Default,,0000,0000,0000,,how many weeks are in a month
Dialogue: 0,0:03:41.46,0:03:43.16,Default,,0000,0000,0000,,and then multiply you\Nby 12 months in a year.
Dialogue: 0,0:03:43.16,0:03:45.69,Default,,0000,0000,0000,,Or if you're going the other\Nway, divide by 12 months
Dialogue: 0,0:03:45.69,0:03:47.52,Default,,0000,0000,0000,,and then divide by four weeks.
Dialogue: 0,0:03:47.52,0:03:50.82,Default,,0000,0000,0000,,Think about multiplying\Nby 52 weeks in a year.
Dialogue: 0,0:03:50.82,0:03:52.98,Default,,0000,0000,0000,,Or if you're going from annual to hourly,
Dialogue: 0,0:03:52.98,0:03:56.49,Default,,0000,0000,0000,,think about dividing\Nby 52 weeks in a year.
Dialogue: 0,0:03:56.49,0:03:58.11,Default,,0000,0000,0000,,Now I know what some of y'all are saying.
Dialogue: 0,0:03:58.11,0:04:00.72,Default,,0000,0000,0000,,Well this might be roughly right.
Dialogue: 0,0:04:00.72,0:04:01.86,Default,,0000,0000,0000,,This $30 an hour looks better
Dialogue: 0,0:04:01.86,0:04:05.37,Default,,0000,0000,0000,,if I just take it all together like that.
Dialogue: 0,0:04:05.37,0:04:08.81,Default,,0000,0000,0000,,But maybe this job right\Nover here that isn't hourly
Dialogue: 0,0:04:08.81,0:04:10.47,Default,,0000,0000,0000,,is more salaried,
Dialogue: 0,0:04:10.47,0:04:12.63,Default,,0000,0000,0000,,and maybe they're going to\Ngive me other vacations.
Dialogue: 0,0:04:12.63,0:04:14.31,Default,,0000,0000,0000,,I'm going to get national holidays.
Dialogue: 0,0:04:14.31,0:04:15.51,Default,,0000,0000,0000,,I can take sick leave.
Dialogue: 0,0:04:15.51,0:04:18.60,Default,,0000,0000,0000,,And that might indeed be the case.
Dialogue: 0,0:04:18.60,0:04:19.65,Default,,0000,0000,0000,,So what I just showed you
Dialogue: 0,0:04:19.65,0:04:23.07,Default,,0000,0000,0000,,is a very superficial quick calculation,
Dialogue: 0,0:04:23.07,0:04:25.74,Default,,0000,0000,0000,,which I wanna make sure that\Nyou're going to do correctly,
Dialogue: 0,0:04:25.74,0:04:28.53,Default,,0000,0000,0000,,but you also have to think\Nabout other differences
Dialogue: 0,0:04:28.53,0:04:30.63,Default,,0000,0000,0000,,that might exist in the job.
Dialogue: 0,0:04:30.63,0:04:33.18,Default,,0000,0000,0000,,This job, for example,\Nbecause of the vacations,
Dialogue: 0,0:04:33.18,0:04:35.05,Default,,0000,0000,0000,,might not actually make you work
Dialogue: 0,0:04:35.05,0:04:38.67,Default,,0000,0000,0000,,as many weeks as the calculation implies.