Visualisation of large financial numbers
The well-known web comic xkcd has created a very detailed visualisation of what the large financial numbers, like millions and billions, actually mean. It’s sometimes difficult to comprehend exactly what it means when newsreaders mention a debt of £1 billion.
This visualisation is rather US-centric, but much of the information displayed is valuable for those of us on this side of the Atlantic. It starts with individual dollars, then compounds them to thousands (shrinking the scale). Continuing on to millions, billions and finally trillions, it gives a clear indication of just how much money we’re talking about. Check out the diagram here: http://xkcd.com/980/huge/ (you will need to zoom in!).
Modifications to the Salary Calculator design
Firstly, apologies for the long wait since the last update on the Salary Calculator blog. It’s been a busy summer and now the autumn is keeping me active, too!
However, I have been able to spend some time making minor alterations to the way The Salary Calculator is displayed in some browsers. The original site was built at a time when few computers had widescreen or high-resolution monitors, which is now not the case. When users with widescreen monitors viewed the old layout, bits of the site were displayed very far apart, making it difficult to use.
The new layout is fixed to a width that should be accommodated by almost all browsers, and should provide a better experience to those on widescreen monitors. I would really appreciate any feedback on how the new layout is working for you. At a later date, I’d love to improve the site design further, and to add those extra features you have all asked me for.
Rocky road to financial recovery
Although the UK entered recession as long ago as the second half of 2008 and officially exited recession at the end of 2009, a full recovery still seems a long way off. This week was one of mixed messages – some good and some bad.
First came the bad news that the Consumer Price Index (CPI) had increased from 4% to 4.5% in April. The CPI is used to measure inflation in the UK and to compare it with the government’s target of 2%. A low level of inflation (like 2%) is a sign of a healthy economy, but higher rates usually mean that the costs of goods and services are increasing faster than workers’ wages, leading to a lower standard of living. For those of us already finding it hard to make ends meet, this is obviously bad news.
On the flip side, however, there was news that unemployment fell in the first quarter of this year. The decrease was only slight, to 7.7% from 7.8% the previous quarter, but it is a promising sign – as is the fact that the number of people in employment has increased to 29.24 million, just short of the pre-recession peak of 29.57 million.
What does all of this mean? Well unfortunately, these numbers are just a small part of the complex system that makes up the British economy and predicting what will happen next is astonishingly difficult – as no doubt you’ve noticed in the past few years. However, it seems that the economy is continuing on its long, slow recovery from the greatest recession in living memory. The recovery appears to be fragile – which is one of the reasons that the Bank of England has left its base rate at 0.5% for the 26th month in a row. You know what they say – slow and steady wins the race!
Bonus payments added!
As requested by a large number of visitors to the site, The Salary Calculator has been updated to allow you to enter bonus payments. If you might earn a bonus from your employer one month, you can now use the calculator to see what kind of a difference it will make to your payslip that month.
Bonuses are typically paid as a one-off extra on top of your usual salary. Your employer will work out what extra deductions (tax, National Insurance and Student Loan) will be required that tax year because of this extra payment, and will add these on top of your usual deductions for that month. Yes, this unfortunately means that you’ll pay a lot of tax, NI and Student Loan that month (boo!) – but some of your bonus will be left for you to enjoy!
For the purposes of displaying the information The Salary Calculator assumes that your salary is normally paid monthly, and shows you what a bonus month would look like compared to a normal month. Similar calculations will be done by your employer if you are paid weekly. To get started, click here to check out The Salary Calculator with bonus payments.
April 2011 rates applied
The April 2011 tax and National Insurance rates have been applied to The Salary Calculator.
In comparison to last year, when rates for most of us were unchanged, there are a number of differences which will mean that your payslip will be different next month.
The standard personal allowance (the amount you can earn tax-free) is increasing by a thousand pounds to £7,475, but this is mitigated in some way for higher earners by the threshold for 40% tax being lowered to £35,000. Similarly, NI rates increased by one penny in the pound (to 12% and 2%) but the threshold for paying NI increased so lower earners may not be too badly affected.
To see how you’re affected, try out The Salary Calculator with your salary. The details of the figures used by The Salary Calculator are available on the About page.
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