Cost of Working

[NMAmy]

Comments on another thread have made me curious. If you do not have young children that require daycare/after school care costs, how much does it really cost you to work?

I'm very surprised at these comments because I have no big work-related costs. I spend probably $30 per week for gas and if I wanted to reduce that, DH and I could carpool (he works slightly different hours than I do) or take the bus which goes from door to door. That $30 also includes all my weekend errands, doctor visits, etc so it's not exclusively for work. I have free parking at work, as well.

I have to eat lunch whether I'm at home or work. I bring lunch from home and only eat lunch out very occasionally so I don't consider that to be a cost as I'd probably eat out more often and have to pay for a lot more activities like movies, museums, etc. if I wasn't at work.

I've been pretty close to the same size since my 20's so I have a pretty large work wardrobe of classic items built up. I very rarely buy new clothes unless something actually wears out. I also wear a lot of these clothes for other occasions besides work so I don't consider them exclusively work clothes that I'd only ever purchase for that purpose. I don't buy clothes that need to be dry cleaned.

So, really, less than $30 per week is what it costs me to work. I'm sure my earnings put us in a higher tax bracket but the money I earn is still more than the taxes we pay.

I honestly can't think of any other work related costs so maybe I'm missing something. I'm sure someone will enlighten me!

How about you?

 

[sam_gordon]

It's going to vary on the industry. Gas, meals, and clothing (for those that require special clothing) are the easy items to include. You can also include wear and tear on a car, or even just having a car (taxes, insurance, etc). Do you need a computer or special programs at home? What about attending lectures, trade shows, taking classes, etc? Do you have to pay to park a car? Ladies (and men in entertainment) might need more or better makeup than what they'd use if they didn't work. What about subscriptions to trade magazines, newspapers, or websites?

That's what comes to mind off the top of my head.

 

[BellsFam]

We live in an area where public transport isn't an option, you are at least a 30min drive to work where the pay is decent. We could never commute, and commuting with coworkers is out of the question also.

We pay for daycare but aside from those things it is more expensive for me to work than not.

I worked for 5 years and took 4 years off to be with DD, I'm now back working and things are very different! While I ate at home every day it's cheaper to do that than even pack a lunch. I buy more food now that we pack lunches vs making a lunch out of whatever is in my cabinets.

DD and I didn't do much that wasn't free while unemployed and now we do actually take trips to museums and vacation.

Also with me working we spend more because it's available to do so. Our clothes are more expensive and when I wasn't working we got by with two cars that were paid off. We now have a car payment where before we didn't.

I agree with pp that makeup, hair products, hair stylist, clothes are all now expenses that I would not have incurred before.

I don't consider my day to day expenses as the "cost of working" it's really an overall thing.

 

[goofyintoronto]

Here free parking is unheard of. In Toronto where I work i pay $105/month in parking...which is considered pretty cheap. Then about $40/week on gas.....thats pretty much all it costs me to work i believe.

Oh wait....food. I usually buy my lunch. so thats another $40/week (yikes!).

 

[morgan98]

Comments on another thread have made me curious. If you do not have young children that require daycare/after school care costs, how much does it really cost you to work?

I'm very surprised at these comments because I have no big work-related costs. I spend probably $30 per week for gas and if I wanted to reduce that, DH and I could carpool (he works slightly different hours than I do) or take the bus which goes from door to door. That $30 also includes all my weekend errands, doctor visits, etc so it's not exclusively for work. I have free parking at work, as well.

I have to eat lunch whether I'm at home or work. I bring lunch from home and only eat lunch out very occasionally so I don't consider that to be a cost as I'd probably eat out more often and have to pay for a lot more activities like movies, museums, etc. if I wasn't at work.

I've been pretty close to the same size since my 20's so I have a pretty large work wardrobe of classic items built up. I very rarely buy new clothes unless something actually wears out. I also wear a lot of these clothes for other occasions besides work so I don't consider them exclusively work clothes that I'd only ever purchase for that purpose. I don't buy clothes that need to be dry cleaned.

So, really, less than $30 per week is what it costs me to work. I'm sure my earnings put us in a higher tax bracket but the money I earn is still more than the taxes we pay.

I honestly can't think of any other work related costs so maybe I'm missing something. I'm sure someone will enlighten me!

How about you?

I posted this exact same comment on the thread you are referring to.

I don't have children and have no day care costs. I do have some minimal parking, extra gasoline for commuting, dry cleaning costs, etc. But they are really minimal.

I feel the same way at lunch. I posted that I have a couple of lunch meetings during the week that are work provided or on an expense account. The rest of the days I usually bring a lunch and eat while working at my desk.

Like you, I have been working for years and have learned to shop sales and for timeless work pieces. I would still need some clothes even if I didn't work.

Unless you become a recluse when you stay at home, I believe you will still spend on gas and you may still meet someone every now and then for lunch.

I also am fortunate in that I am a good cook and so is my husband (plus we are health conscious). We cook every night during the work week. We can put a great meal on the table in 30-40 minutes and we do. I don't spend extra eating out three nights a week of anything like that.

Plus work pays for my cell phone and I have great insurance coverage. It would cost more per month to be added to my husband's plan. Not to mention, 401(k) and matching.

We do pay more in taxes since I work, but we also take home substantially more money.

 

[Christine]

My costs are pretty low, I think. I saw that other thread and I though, WOW, those are some high expenses. So......

I work 28 miles from my office but I carpool with my neighbor. I pay $26 per week for gas to cover the days I drive. The rest goes to my local trips around town so not all of the $26 is to get to work.
I don't pay parking.
I rarely go out to lunch anymore because I am too busy. I used to spend a lot more on that but I don't anymore.

My biggest expense would be my clothing budget and that is my choice. In the winter I do still wear tights or pantyhose because that is the accepted practice here where I work but they last me a long time. I might spend $50 on that every 2-3 months.
I do buy some new things every year. I will usually get a new "fresh" pair of black dress slacks and some new sweaters, but like you NMAmy, I have basics that I have worn for years.

Now, in the past, there have been times where I have had to pay for parking or public transportation. Those factors could always come into play if my job decides to move or they decide to start to charge for parking. But so far, I haven't had those expenses for about 8 years. I make enough money though that those expenses would not make me quit work. But I can see for someone on the lower end, it would. For instance, my DD now makes about $31,000 a year but works locally with no parking or public trans. She is trying to get a job in DC but she has to be careful that she gets enough of a raise to offset those cost that she will have going into the city. We are hoping she gets something close to where I work so she can join our carpool and not pay those costs.

 

[bdcp]

I know I spend money I never would if I didn't work. Gas is minimal because I would be out running errands anyway and work is 13 miles from home so I could easily do 26 miles a day otherwise. That said, because I'm at work I buy startbucks almost every day which is $4 plus I buy lunch most days ($7-8). I also have work clothes because we are business casual so I have more than I would have if I was home. Parking is free. I make pretty good money but if I had daycare expenses for 2 kids, it would eat up at least 1/2 of what I make, probably more. I know people whose daycare/school expenses for 2 kids is 2K+/month. When I was home with my boys for 14 years, we definitely spent less on things because I had the time to shop the best deals, etc. We also had very relaxing family meals cooked at home and weren't running errands on weekends.

I remember when my kids were young (so in the early 90's) there was an article out that showed you had to make something like $30,000/year to more than break even. The reasons were: day care, taxes, commuting, clothing, meals. People who work tend to make less meals at home and eat out more. Also, people forget when a family has a combined income, odds are they are in a higher tax bracket than they would be on just one salary. So, when one parent stays home, they aren't losing the entire salary. Back in the early 80s' a friend of mine did daycare and one of the mom's of one of her daycare kids actually only cleared 75 cents an hour after daycare which meant she was really losing money if you looked at the cost of her working.

 

[Christine]

I know I spend money I never would if I didn't work. Gas is minimal because I would be out running errands anyway and work is 13 miles from home so I could easily do 26 miles a day otherwise. That said, because I'm at work I buy startbucks almost every day which is $4 plus I buy lunch most days ($7-8). I also have work clothes because we are business casual so I have more than I would have if I was home. Parking is free. I make pretty good money but if I had daycare expenses for 2 kids, it would eat up at least 1/2 of what I make, probably more. I know people whose daycare/school expenses for 2 kids is 2K+/month. When I was home with my boys for 14 years, we definitely spent less on things because I had the time to shop the best deals, etc. We also had very relaxing family meals cooked at home and weren't running errands on weekends.

I remember when my kids were young (so in the early 90's) there was an article out that showed you had to make something like $30,000/year to more than break even. The reasons were: day care, taxes, commuting, clothing, meals. People who work tend to make less meals at home and eat out more. Also, people forget when a family has a combined income, odds are they are in a higher tax bracket than they would be on just one salary. So, when one parent stays home, they aren't losing the entire salary. Back in the early 80s' a friend of mine did daycare and one of the mom's of one of her daycare kids actually only cleared 75 cents an hour after daycare which meant she was really losing money if you looked at the cost of her working.

There were times when my kids were both in daycare, that I probably was losing half of my income. One of the things these articles above never mention or factor in (at least the ones I read) as the long-term cost of quitting to the person doing the quitting (usually the woman).

Depending on the job you hold, you are losing out on two biggies: Continued relevancy in the field that you work in and employer and employee contributions to a retirement account or pension. These are intangibles to many parents because you can't feel, touch, see, or spend your relevancy and you cannot spend your employer contributions to your retirement so when you lose them, at that point in time when you are a tired, worn out mom, you don't think about it.

I seriously considered quitting when my second child was born. I was tired, he had medical issues, and I wasn't making much. But my field is kind of "niche" and had I pulled myself out of that job market and tried to get in 15 years later, I would have been really, really out of luck. The skills and policies changed so much that I would have had to start at the bottom if I could even get in. I would have been trying to come back in during the WORST economic time.

As it stands, I stayed in, dragged through it all. Got 3 really good promotions over the years so my income has more than doubled. My retirement account is looking good, and I have job stability that came from putting in all that time.

I don't think there is anything wrong with opting out, but I think people don't necessarily consider the losses you take that aren't right there in your wallet at the time. Of course, some people work jobs that don't require relevancy nor do they get decent retirement benefits.

 

[Kitty 34]

I'm a substitute teacher. I live about a mile away from the school I sub at so I really can't count gas money. I might spent 2-3 dollars on lunch if I buy it there.
And other than paying $45 dollar a year for the permit, it really doesn't cost me much at all to go to work.

 

[indimom]

I worked from home for years. There were lots of savings from staying home.
We had one car. That was a huge savings. Little to no gas, super low mileage, one set of tags, one insurance payment, repairs and oil changes for one car only.
Now we have two cars. Double those expenses. I also work 40 miles away. A ton more wear and tear. It's hard to measure but the costs ARE there and it's not just gas.
I wore one outfit per day. No changing into a new outfit "after work." DH and I both have to change after week each day. Double the laundry costs. (And some people require a professional wardrobe for work. That can add up over time.)
Heck I shower more. Before, once each morning. Now I shower both before work and after. More water, soap, etc. (And yes, I have to. I've got thin curly hair. I can't style it without washing it. And I'm a nurse, I need a shower after work.)
I was home to prepare all meals daily, prep a menu using coupons, etc. Now, it's much harder to create from scratch, sometimes it's hard to find time to cook at all. Higher grocery costs and more eating out.
I've got added training costs.
I'm pitching in for baby showers, bridal showers, and various other staff celebrations at work. Didn't have that when working from home. (Not required, but still, I am spending that extra money.)
Uniforms for work.
Education for my degree. (My work-from-home job didn't require an education.)
DH and I pack our lunches for work so no real change there. BUT, I think that's rare in the general population. Especially if fast food or a cafeteria is available. I'm one of only 3 in my department who pack daily. The VAST majority of hospital employees eat from the cafeteria and it's NOT cheap.
Licensing.
I never paid a penny in child-care for my two kids. Massive savings for DH and I.
I had costs when I worked from home, but I could write off those expenses on my taxes. I was also able to write off a percentage of homeowner expenses. Not a ton of money, but I don't get that benefit now.

I have a feeling that I SEE these costs because I didn't have them before. People who have always worked outside the home may not realize how much can be saved when one person stays home.

All that said, I'm EARNING a bit more now, even with these costs. So whether it is cost effective to stay home depends on your income opportunities, education, etc. Every family has to make these decisions individually because every situation is different.

 

[bdcp]

To continue with more from my above post, I was home with both my boys for 14 years and had no issues going back to work and making good money. I work 32 hours per week and have built a pretty good 401 in the 18 years I've been back. DH made sure to fund his well during the years I was home also. We have way more put away than most people. Also, during the years I was home we were putting a minimal amount into an IRA which we later rolled into something better. It's all choices. As I said in the other thread on staying home, I loved it and when I did go back, part time when they were 12 and 14, every penny I made was there to be used to play and pay for college. For both boys, we paid for college as we went because we weren't used to living on two salaries. I know many people who were sucked into the "you have to have two incomes" and they then buy a house that requires both incomes and go on this vacation and be involved in umpteen sports, etc. They then, can't see any way, except two incomes, even though a lot could live on one if they made different choices.

 

[Minnesota!]

We carpool, dh has free parking. Work is 7 miles from home. I bring lunch and breakfast most days, as well as coffee and anything else I might want. Dh either brings his.or goes home.on lunch.

My work clothes, I get them at a thrift store. My entire work.wardrobe was probably around 300/and lasts all 4 seasons. I might buy a new shirt or pants once ot twice a year when I purge my closet.

Daycare costs were huge...456/week, and ate a lot of my check. But, it was temporary and I was glad to pay that out for the interim to advance in my career.

My kids are now old enough to stay home alone, so no costs there.

 

[teller80]

My work costs are minimal, but I will say we eat out way more now that I am working (I was a SAHM for 11 years). But that's a choice, so I don't really factor that in too much.

 

[IndyRnRfan]

Not much. I live 7 miles from work. Spend about $40 a week in gas for all my running around in my truck, clothes are just what I mormally wear whether at work or on weekends, I pack my own lunch so add another $10-12 on top of gas. I am licensed so I have a small fee of $10 for a background check every couple years and I have to be cpr certified which cost me $30 every couple years.

For those of you who have "major" costs for work make sure you check your tax codes. Many things required for a job are tax deductible in my state.

I also don't consider money put away for retirement as cost. Not sure if anyone looks at that differently.

 

[Disney Doll]

It's probably going to vary based on location/regional costs.

Here gas is abouy $3/gallon. My commute is short, about 10 minutes and parking costs are about $33/month so not bad for me.

But I do know people who drive or train into NYC and their costs are quite a bit higher. Now their salaries probably still make it worthwhile to to do that but the margon might be close.

I have known people who have, when they ran Their numbers, have realized that they were only really earning $100-$200/week.

 

[Tiffylv]

.

 

[Andtototoo]

Not much for us. We are not big clothes horses -- my dh has 5 pairs of pants/khakis he alternates and about 15 shirts. We replace as necessary. If he were at home, he'd still have to replace clothes as they wore out, so I don't see any real additional cost. His gas costs him about $50/week and I suppose if he were home, he might spend $5-10/week on gas. He gets his oil changed about 4/year, so I suppose if he were home that cost would be cut in half, saving us a whopping $50/year. The biggest cost of work is his parking permit which is $1000/year. His salary more than compensates for those short-term costs, plus there are long-term benefits to him staying in the workforce such as paying off our mortgage fast (in 6 years -- HUGE savings because the tax deduction of mortgage interest does not come close to what you are actually paying in interest), plus the extremely important long-term benefit of retirement savings.

Based on what I've seen when those outside the workforce try to re-enter, if he stayed home for years, there is also the long term loss of retirement savings and the reality that when he tried to get back into the workplace, his degree would now be "old" and considered useless, so he'd have to return to school to get more updated and therefore attractive education. That updated education would be a huge cost. Then there is also the risk that if I divorced him, he only gets spousal support for a short time and would have to find some job asap and might not be able to afford to update his education, so he'd be working 2 crappy jobs to make ends meet.

 

[Colleen27]

It really depends on the situation.

If/when I go back to work, I expect pretty high costs. Odds are I'll have a 40-50 mile commute (one way) because we live in a rural area and the jobs just aren't around here. So gas will be a big expense, and potentially parking as well depending on where I end up working. My insurance will go up as well; we get a discount based on how few miles I drive now that will go away when I'm commuting. I know we'll eat out more because putting in 40 hours plus that commute, I'm not going to want to cook every day, and I've told DH more than once that the first thing I'm doing when I go back to work is hiring a once-a-week cleaning service because I'm not a stellar housekeeper with all the time in the world. Childcare would still be the biggie, though - our youngest is 7 and the teens are too busy with their own school/activities to be everyday sitters, so we'd need after school care for at least a few more years still. All in all we estimate our expenses will go up by $250-300/week when I go back to work, not counting the initial outlay for a professional wardrobe.

Even DH, with no costs for childcare or a work wardrobe, spends about $75/wk on work-related expenses between gas and coffee/lunches on days he doesn't pack his own.

 

[teller80]

I am a single mom so I have to work. I pay $280/month for before and after school care for my son. I have to pay for both because of my work schedule. When school is out some random day I have to pay extra for that was well. The horror which is a day when school is out and daycare is also closed I have to pay $120 for one day of a babysitter. During summer I pay $640/month for childcare. A random week off, like spring break, costs $160. Also for my job sometimes I have to go to training overnight and while I'm paid for that I also have to pay a sitter $200 to stay with my kid.

Childcare is by far my largest work related expense. Parking is free. Gas is probably somewhere around $30 per week. I bring lunch most of the time. I am a surgical nurse though and have to wear a certain color scrubs, so that can sometimes make it hard to get a good deal when I have to buy something very specific. They are also disgusting so I try to wash them every night in hot water. So that adds up for water, detergent, and wear and tear on my washing machine.

Overall, of course being a single mom I have no other option and I do come out far ahead even with all the expenses. If I had a second child it'd be getting very tight. Especially since my kid at 7 is in the lowest cost category for daycare...if I had a baby right now I think the daycare my kid goes to costs $880/month for an infant. Luckily that isn't happening!

Wow, that's a hit. I hope you are using flex spending for childcare - it should save you money.

 

[DawnM]

Dang, I liked you up until this comment.

I will try to still like you.

Comments on another thread have made me curious. If you do not have young children that require daycare/after school care costs, how much does it really cost you to work?

I'm very surprised at these comments because I have no big work-related costs. I spend probably $30 per week for gas and if I wanted to reduce that, DH and I could carpool (he works slightly different hours than I do) or take the bus which goes from door to door. That $30 also includes all my weekend errands, doctor visits, etc so it's not exclusively for work. I have free parking at work, as well.

I have to eat lunch whether I'm at home or work. I bring lunch from home and only eat lunch out very occasionally so I don't consider that to be a cost as I'd probably eat out more often and have to pay for a lot more activities like movies, museums, etc. if I wasn't at work.

I've been pretty close to the same size since my 20's so I have a pretty large work wardrobe of classic items built up. I very rarely buy new clothes unless something actually wears out. I also wear a lot of these clothes for other occasions besides work so I don't consider them exclusively work clothes that I'd only ever purchase for that purpose. I don't buy clothes that need to be dry cleaned.

So, really, less than $30 per week is what it costs me to work. I'm sure my earnings put us in a higher tax bracket but the money I earn is still more than the taxes we pay.

I honestly can't think of any other work related costs so maybe I'm missing something. I'm sure someone will enlighten me!

How about you?