Jobs can be a great thing. They pay the bills, help you save money, and maybe even more. However, have you ever added up how much money your job is actually costing you?
Yes, your job may be costing you money.
In certain situations, your job might cost you more than it’s worth.
I have had countless readers email and tell me about situations where they are paying $1,500 a month for childcare despite earning only $1,000 a month. Or, there are people spending $1,000 per month on their commute for a job that earns them $1,000.
While these two situations seem like no brainers, surprisingly many people spend a lot of money so they can work!
Actually, everyone spends at least a little money to work.
Here are some average annual costs you may be paying in order to work:
- Childcare – $11,666
- Clothing – $600
- Food – $2,600
- Time – Priceless
- Sanity – Priceless
- Commuting – $7,000 to $11,000
- Outsourcing – $1,000+
- Missing out on life events – Priceless
Now, I’m not saying everyone should go into work today and quit their jobs. Your job probably has other benefits, such as health insurance or you may genuinely love your job.
What I’m saying today is that you may want to evaluate your options, think about the below when you are debating your next job offer, and come up with pros and cons to a position. You may even want to look for a new job that is more worthwhile than your current one.
As a personal finance blogger I am all for people earning a living, paying their bills, and saving for retirement, but you always want to be realistic with your options.
Below are expenses you may be paying in order to work:
Childcare
The average cost of daycare is $11,666 per year.
This is one of the biggest costs of working, and most people only pay for childcare if they need a place for their child to stay while they work.
Many times you may find your cost even higher than that, especially if you have more than one child in daycare or if you live in a big city such as New York City.
Clothing
For many jobs you will have to buy some sort of wardrobe that fits the company’s dress code.
This may mean khakis, business clothing, polos, or something else. Whatever your job may be, I’m sure you have to buy something clothing-wise in order to fit your company’s policies.
Let’s estimate this at $50 per month for work clothing, which is probably on the low end considering the average person spends around $150 per month on clothing.
Food
Your job may be costing you to spend more money on food in a few different ways.
You might spend more on food by going out to eat for lunch, emotional eating, snacking, and more.
You also may be spending more on eating out when you are not at work, because you might be too tired (or lazy) to make your own meals.
Let’s estimate this at $50 per week on extra food spending, which is probably on the low end.
Sanity
Towards the end of my day job I found myself spending a decent amount of money in order to keep my sanity, as I really disliked my day job. I was spending money on clothing, food, and more because I thought I “deserved” it for how unhappy I was.
You might be doing the same.
You may spend money on massages, getaways, clothing, food, and more all because you do not like your job.
Commuting
The average person spends anywhere from $7,000 to $11,000 to own a car each year.
While this amount of money may seem high, there is a chance you spend somewhere in that range too. There’s the actual cost of the car, fuel costs, car insurance expense, and car maintenance, which can quickly add up to a lot of money.
Let’s not also forget the amount of time it takes to commute. According to the U.S. Census Bureau, the average travel time to commute to work is 25.4 minutes, or approximately 50 minutes round trip each day.
In some cities, the average commute can be much longer. If you live in New York City, Chicago, or Los Angeles you may spend over an hour on your round trip commute every day.
Outsourcing
You may outsource certain tasks around your home because your job doesn’t allow you the time for them.
This may include lawn maintenance, house cleaning, meal prep, and more.
Let’s estimate this at $100 per month spent on outsourcing. Some people spend much more on this, whereas others may spend less. If you’re outsourcing each month, though, it’s most likely at least $100 per month.
Missing out on life events
Your job might also cause you to miss out on important life events.
You may miss spending quality time with your family and friends, you may be too tired to reach a dream of yours, you may be too stressed out to do anything outside of work, and so on.
Time
Time is something everyone wishes they had more of. If your job is costing you more money than it’s worth, then you are wasting a ton of time by continuing to work there.
There are 168 hours in a week. If you spend 40 hours a week working, 4 hours each week on your commute, and 5 hours every week getting ready for work, then you are spending nearly a third of your week on your job, and that doesn’t even include sleeping!
How much is your job costing you? Is it worth it?
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I totally agree on the point of sanity and oh boy, what I wouldn’t give to quit my job and spend all my time with my children. When I was self employed as a web developer I used to be able to work at home and be around to see my girls grow up, take them too and from school and all that stuff, it was without a doubt priceless!
That said, there are perks to my job. I get a mobile phone and have the bill paid for. I could get a brand new Apple Mac laptop if I wanted (but I have my own, albeit old one). There are many people up the ladder at work that have a company car and have their petrol paid. So there are advantages also.
Yes, there are advantages 🙂
At the moment I’m still at my 9-5 job… soon to be previous job. I’m still building some cushion for “rainy days” if something don’t go as planned.
I’m making almost twice the money I make in my 9-5 with my online business and will soon be self-employed.
So to answer your question: No my job is not worth it 😉 It’s costing me 10h a day and 1/5 of the money I earn with it.
Great plan!
My day job is simply a source of livelihood or me and nothing more. My passion is to start my own online business and work for myself. My job pays me a lot more than it costs me and that’s the only reason I stay.
What type of online business are you interested in?
I’m interested in creating informational products like eBooks and online courses. It’s a very competitive field, hopefully I can make a living off of it.
Awesome!
I’m a stay at home mom (blogger, but not making enough to call it a job yet!). We are anxious to pay down debt, and we discussed the possibility of me substitute teaching. That would be flexible work, but by the time I pay taxes, a sitter, and other things you’ve mentioned here, I would likely bring little to nothing home at the end of the day. So we are looking into more creative ways to earn extra.
How long have you been blogging?
About 8 months. I’m still trying to build traffic, but I’ve been reading your site and learning a lot! I found you on Pinterest.
Oh awesome! 🙂
I’m less than 5 years from retirement. It’s a good job, but a long commute. I love to write and am wanting to start a blog for fun. Michelle, your blog is one of my favorites. Your content is so precise and your uncluttered pages make it easy to read and enjoy. You are my blogging mentor.
You should start a blog! 🙂
I just finished Your Money or Your Life, so I was recently thinking how much my job costs me. Luckily my commute is free since I walk to work, but I pay a premium for rent since I live in Manhattan. The other thing it makes me spend money on is suits and dress clothes, and lunches since I would make my lunch if I wasn’t working. My costs would definitely go down if I didn’t have to work 🙂
I’ll have to check this book out, you’re the second person to mention it.
Jobs don’t necessarily have to be all or nothing. While I’m definitely hustling to semi-retire as soon as possible, I’ve also tweaked my regular job so that it doesn’t cost me as much. I work from home one day per week with my mom there to watch the kids – less commuting and one fewer day of daycare. The hubby stays at home one day per week too and work one day in a local office. So, I only have to make the long commute three times per week and pay for daycare three days per week. I’m very lucky to have this flexibility.
I agree!
Great article! When I was expecting my first child, I did similar math. It wasn’t worth it to me to keep the full time job and put my baby in full time day care. After all the expenses, I was still making some money but not enough for me to be separated from the baby. So I took half my salary and put it away for the duration of my pregnancy to create a cushion. Then negotiated a work at home consultancy with current employer. Time is way more value to me than money. No regrets!
Great idea!
Wow 3 hours a day is a lot!
Nice!
What type of business are you planning on launching? I’d love to hear more!
Interesting! Sounds awesome 🙂
Great article. So many of the things you spoke about are things we forget about. Like the 45 min. to work and the hour back home. Clothes are a biggie. I retired last Nov. and am very surprised at how much money I am saving by not shopping on my lunch and not snacking at my desk. Even though my retirement is a few hundred dollars a month less than my paycheck was I am saving three times as much money. An now my daughter and I have a blog and with luck in the future she can stop working out side the home.
Great job saving so much money!
Although I enjoy the people I work with, I do NOT enjoy having to get up at 5am and then drive 45 minutes to work while my husband , who is retired, stays home. Time freedom is and an increase in income is what I’m seeking. Due to the fact that I don’t have a degree, the possibility of advancement is slim. Thank you so much for your insight.
Sincerely,
Rebecca
Thanks Rebecca!
Interesting perspective. My day job is costing me a lot of time. There is so many other things that I could be doing during between the hours of 9-5. In due time, I will be free from it though.
Thanks!
In my last corporate role, I worked remotely and had to take a 3 hour (one way) plane ride 2 or 3 weeks a month. Even though I didn’t pay for the travel, the toll that it took on me was immeasurable. If you’re not mindful, your job can overtake your life.
I am in the process of migrating from the corporate life to the entrepreneurial life.
I’m already seeing the benefits. But more to come.
Awesome!