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Cost of working
Old 06-30-2005, 12:29 PM   #1
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Cost of working

Im getting close to finaly calling it quits but the wife is starting to have second thoughts. Of coarse I expect her to continue working. She is just worried that if I quit I may expect her to watch her spending. Anyway, I have started running some numbers on what it cost me to work and wondered what others have found.

By going to one income our tax savings would be $420/month.
Eating lunch at home would probably save about $200/ month.
Get rid of one of the work vehicles, I have a 911 Porsche that I drive on weekends that I'll keep. Should save about $150 / month.
Car and Home Maintenance that I could do if I had the time. $100/ month.

These are just off the top of my head. We also just paid off the mortgage so that is $1200/ month payment we don't have to come up with.

I also pay $1650 a month in taxes from my check. I also put $1170 a month in the 401K.

So I come up with expenses and taxes costing me $2520 a month. So this is what it cost me to just go to work. The 401k money is of coarse savings but its not seen on my takehome pay. Add that and it's up to $3690.
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Re: Cost of working
Old 06-30-2005, 02:02 PM   #2
 
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Re: Cost of working

I'd say you're right that you'll save money by not working. But make sure you are honest with yourself about how much you are saving. $200 saved by not eating out -- did you go out every day and spend $10 more than it's going to cost you to make lunch at home?

If you figure driving costs of 30 cents a mile, you'll only save $420 per month if you drive 25 miles less each work day.

And you can save more if you use your time for aggressive grocery savings techniques, hanging laundry instead of using the dryer, cooking from scratch, etc.
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Re: Cost of working
Old 06-30-2005, 02:48 PM   #3
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Re: Cost of working

Quote:
Originally Posted by dm
Of coarse I expect her to continue working.* She is just worried that if I quit I may expect her to watch her spending.
Hmmmm, you expect her to work and she's bringing home the real spending cash income (not just savings). I can see where she'd feel entitled to have a say about how it's spent... otherwise she just might stay home and start her own savings program.

Another retiree savings tactic is notifying the insurance companies of your new retiree status. That Porsche's insurance might drop if they have a break from "commuting" to "pleasure" use, some insurance companies give breaks on home & personal property insurance because they presume that you're home all day to take care of the insured assets (ha!), and of course you can probably cancel your life/disability insurance.
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Re: Cost of working
Old 06-30-2005, 06:24 PM   #4
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Re: Cost of working

* * You'll also save on wardrobe, dry cleaning, those office gifts and parking.

* * On the other hand, your grocery bill may go up to pay for those lunches. Also, if you're home all day, you'll be using more electricity for lights, computer, TV, air conditioning, etc.* Your winter heating bills may go up a bit, too.
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Re: Cost of working
Old 06-30-2005, 07:02 PM   #5
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Re: Cost of working

I find that I drive and eat out just as much as before. The difference is
that now I am paying

JG
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Re: Cost of working
Old 07-01-2005, 02:40 PM   #6
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Re: Cost of working

DM,

I think you also have to look at what is your net after working costs are subtracted from your gross income. Whatever is left will either have to be made up by other income; not spent or not saved.

If you have a large amount of $$ after your work related expenses, I can see where your spousal unit might be a bit PO'd by you wanting to pull back on her lifestyle.

Marriage only works though a mutual agreement. She will always agree that .........you are always wrong.....it is always your fault.......you obviously don't understand her......and you never listen to her.

Otherwise, if you both have all this stuff worked out....then go for it. 8)
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Re: Cost of working
Old 07-01-2005, 03:45 PM   #7
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Re: Cost of working

I have been tracking our spending for the last year and a half and even with two kids in college, and us paying for it, we should be fine. We are now down to one in school and he will hopefully be out in 2 years. With no mortgage payment her take home is more than we spend a month now. We have about 600K not including her pension and we should still be able to put away around $1500 a month. The kids college has been running around $2000 a month so that will hopefully go down some as the one is out now but still living at home.

Ive been putting all my salary into savings so I know we could do it. She just worries because I do try to watch our spending, but we do live pretty good.
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Re: Cost of working
Old 07-01-2005, 05:40 PM   #8
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Re: Cost of working

Quote:
Originally Posted by dm
She just worries because I do try to watch our spending, but we do live pretty good.*
This sounds like one of those "Nice work if you can get it" type things. But I am wondering, what is the payoff for her?

It sounds like she is not only the wife and mother of this family, but will also be the sole breadwinner. That is an awesome concentration of power, DM, my man.

Ha
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Re: Cost of working
Old 07-01-2005, 06:24 PM   #9
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Re: Cost of working

Of the 25 years we have been married I have always had a job and put in alot of time. She was 19 and still in school. She now has two masters and a specialist. She went into teaching so she always had summers off, exept now that she went into administration. She is fine with this and I do plan on making things easier for her around the house, so she will have more free time also.

I just waited for the kids to grow up to be a SAHD.

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