Quickly Convert Your Hourly Rate to Annual Salary With This Mental Shortcut
Let’s say you get paid by the hour. And you want to figure out how much this will be in the form of an annual salary. You can count the numbers by week and then multiply them, but there is an even easier way to do this without having to iterate over them.
Redditor upcarl points out that all you have to do is double your bid and then add three zeros. So, if you make 25 an hour, the doubling is 50, and with three zeros, you get $ 50,000. This is not entirely true, but it should help you navigate.
This is also not a new concept. Author Ramit Sethi mentions this trick in his book I’ll Teach You to Be Rich . He points out when it might come in handy:
This is based on a 40 hour total work week and does not include taxes, but it is a good general trick. And it is most often used when you are deciding whether to buy something or not. If this pair of pants costs you 8 hours of work, is it worth it?
You can find more information on the links below.
I will teach you to be rich | Ramit Sethi via Reddit