The true cost of a simple purchase is higher than you think.
Say you wish to purchase a flat screen TV for $700.00. You have $700.00 in your pocket and it is not enough because you forgot the sales tax. In NJ it is 7% or $49.00
But hold on if your employer paid you $700.00 gross, you would actually net somewhere around $490.00. To make this purchase you would have had to earn $1070.00 gross.
True cost is going to show you how much an actual purchase costs based on your income tax level and state sales tax. While this is represented in US Dollars, the calculations are exactly the same for any currency.
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