Monday, March 23, 2009

Money or Your Life Monday: How Much Does Your Job Cost You?

As I continue to try and get through the task of inventorying everything we own, the next step in Your Money or Your Life is trying to figure out how much your job costs you versus what you earn. This means taking into account the length of your commute, wear and tear on your car, cost of clothes, lunches, etc. The goal is to take all of the time (the book explains how to figure out what you make per hour) and out-of-pocket costs involved in getting to your job and doing the work, take the total and subtract it from your take-home wage. That amount is your "real" salary. For some people, this can be a huge difference. From there, you're supposed to assess whether you feel that what your earning and how you feel about your job are aligned.

Obviously, the book goes into much more detail. I'm determined to get through the inventory this week, as well as this exercise. I've driven down my work costs as much as I can, including:
  • I don't dry clean my clothes (even if it says "dry clean only," I wash the clothes in cold water and tumble dry them on low heat).
  • I only buy lunch on Fridays as a treat, otherwise I bring my lunch.
  • My commute to and from work is approximately 30 minutes.
My one big expense is what I spend on clothes and shoes for work. While I've tried to cut back, I know I can do more.

Stay tuned as I continue my journey...

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