Once past the world of summertime–only jobs – and this usually happens immediately upon graduation – one of the decisions you are likely to confront involves jobs and pay grades. Not too many professors address it inside of the classroom, but compensation is one of the most important aspects of a career. After all, it’s the primary reason that most people attend college, study vigorously for finals, and work hard in the first place! Income is usually doled out in one of two fashions: hourly or salary.

Jobs that pay by the hour don’t automatically pay less per hour than salaried jobs, as is often believed. Often they are the highest paying jobs for newly minted graduates. One of the main differences between the two is that jobs which offer compensation by the hour often don’t include benefits in the pay package. Running out the numbers of pay minus what you’ll spend on items like life insurance might make you think that hourly pay is much less than salaried. However, for a few years at the outset of one’s career, those benefits are less necessary than they become later in life. That in mind, hourly pay can often be larger at an outfit that compensates by time.

On the other hand, landing a job that pays a salary and offers benefits might just make you feel as if you’ve hit the lottery. That feeling will last until almost exactly before you’re asked to work your first sixty hour week – for zero increase in pay! Running out the numbers often yields a pretty low hourly rate indeed. To the upside, salaries typically increase much faster than hourly wages.