Changing Jobs
Getting a different job can have a variety of immediate impacts, each discussed in the following sections.
A New Job Can Increase Your Paycheck
A job is always more than just a paycheck. Depending on the job you have, it can be an opportunity to test yourself, develop new skills, meet all sorts of new people, travel, express yourself, see your values turned into action, and so on.
If you're looking for a short-term boost in income, look into part-time freelancing opportunities (work you complete at home, evenings and weekends) or whether you can work overtime. Keep in mind, too, that most afternoon and evening shifts pay a premium to compensate you for the odd hours you'll be working.
When your financial situation is bleak, however, the paycheck can be the most important aspect of having a job. Whatever you do, don't take a job with no growth or one that is in direct opposition to your values just for the money — unless you can guarantee that the job is temporary.
If you think you can make more money at another job, however, do begin your search immediately. Even if you end up turning down another job offer, knowing what other jobs pay — and what other companies expect from you — is well worth the time spent searching.
Don't forget to look within your own company for a higher-paying job. Let your supervisor know that you're itching for more responsibility, and keep your eye on internal job postings. Take advantage of any training the company offers. In addition, find out what skills and training the job you have in mind calls for and see whether your company will pay for (or reimburse you for) classes at your local college or job-training site.
A New Job Can Reduce Your Commute
Reducing or eliminating your commute (which can happen if you find a job that lets you telecommute) means that you save gas and maintenance on your car. You may also, potentially, eliminate the need for a car altogether. Although many people commute more than an hour each way, commuting isn't free and it can take a toll on your finances.
Tangible Costs |
Amount You Pay |
Gasoline |
$ |
Oil changes |
$ |
Tune-ups |
$ |
$ |
|
$ |
|
Intangible Costs |
What You Give Up |
Wasted time |
|
Frustration |
|
TOTAL: |
$ |
A New Job Can Reduce or Eliminate Your Insurance Costs
If you pay more for your medical, dental, and life insurance than you can afford, look for a job that offers these benefits free or subsidizes them. Even if the job pays a lower salary, your bottom line may improve by having these benefits paid for. Use WORKSHEET 8-4 to help you decide.
Note that you'll first need to figure out the amount you pay every two weeks for insurance. If you pay for it on your own every month, divide that by 2.165. If you pay it semiannually, divide by 13; if you pay annually, divide by 26. If your employer takes it out of your paycheck every two weeks, use the amount shown on your pay stub.
You'll also need to know your gross income every two weeks on your current job and on the job you're considering. Gross income is the amount you're paid before taxes and deductions are taken out of your check. This is often stated as an hourly wage (say, $9.50 per hour) or as an annual salary ($19,000 per year). To find this amount, look on your pay stub for the amount listed as “gross income.”
Current job: Gross income per paycheck |
|
Insurance benefit deducted per paycheck or |
|
Insurance paid monthly |
- |
Current job: Income minus insurance costs |
$ |
New job: Gross income per paycheck |
|
Insurance benefit deducted per paycheck (if any) |
- |
New job: Income minus insurance costs |
$ |
Whichever income line is higher is your better bet for the time being.
A New Job Can Reduce or Eliminate What You Pay for Child Care
Working Mother magazine's annual listing of the best companies to work for includes child-care assistance as a criterion. As you're searching for a new job, use this list to find companies that offer the atypical benefit of on-site day care.
Some companies offer free or subsidized day care, either in the company's facility or at a day-care center close by. If child-care costs are putting your finances in jeopardy, seek out a company that offers this benefit.
If your child-care costs are high, consider getting a job with a company that offers day care, even if the job pays a lower salary. But be sure that the company offers a good insurance plan for your family. Use WORKSHEET 8-5 below to help you, keeping in mind that gross income is the amount you make before taxes and deductions are taken out and that, for this worksheet, your paycheck is assumed to arrive every two weeks.
Current job: Gross income per paycheck |
|
Insurance benefit deducted per paycheck |
- |
Weekly day-care costs multiplied by 2 |
- |
Current job: Income minus insurance and day-care costs |
$ |
New job: Gross income per paycheck |
|
Insurance benefit deducted per paycheck (if any) |
- |
Day-care benefit deducted per paycheck (if any) |
- |
New job: Income minus insurance and day-care costs |
$ |
A New Job Can Reduce Your Need for an Expensive Wardrobe
Although this may seem like a silly benefit to consider when changing jobs, the costs of buying and caring for clothing can add up throughout the year. If you're able to find a job that allows you to dress casually, with clothes you already own and can wash in a washing machine, you can save a bundle. TABLE 8-6 gives an example:
Existing Job (Annual Expenses) |
New Job (Annual Expenses) |
Suits, ties, shoes: $650 |
Khakis, knit shirts, loafers: $300 |
Dry cleaning: $525 |
Machine washing: $150 |
TOTAL: $1,175 |
TOTAL: $450 |
For this example, your annual savings amounts to $725. That's enough to buy a DVD player and about 50 DVDs! Or almost enough for a computer or a new sofa or new casual clothes for two more years.
