ajcjobs > BlogBreak > Archives > 2006 > November > 08
Wednesday, November 8, 2006
Is Work making you Poor?
The Atlanta Journal-Constitution
Have you ever actually sat down to calculate the cost of going to work? I bet the numbers will surprise you. Of course, we all know that having a paycheck is better than not having a paycheck.
So, being securely employed is definitely a good thing. But for younger employees, lower-paid employees and for anyone who is trying to save money or just trying to pull themselves out of debt, this opportunity cost can be a big strain the pocketbook.
Take a look at this scenario:
Jane is 26. She is single with no dependents and makes $25,000 per year, or roughly $12 per hour. Her net monthly income is $1,400, after taxes and her 401k contribution. She has a clerical position at a law firm, where she must dress professionally and attends college in the evenings part-time.
She lives in an apartment that she shares with two roommates, about 10 miles from her office, neither of which is convenient to mass transit. She drives a used 2001, 4-cylinder sedan. She doesn’t spend extravagantly, but likes to treat herself occasionally because she works hard.
These are her monthly expenses associated with going to work in any given month:
- Gasoline - $100
- Dry Cleaning - $50
- Clothing - $60 (she bought one new blouse and some extra stockings)
- Haircut, including tip - $45
- Lunches & Coffee Breaks - $75 (she usually tries to bring her lunch, but will sometimes go out with friends or colleagues)
- Birthday Gift for close co-worker - $15
- Food for potluck to honor retiring co-worker - $15
- Drinks after work to toast co-worker’s engagement - $20
- Gift basket order to support co-worker’s child’s fundraising efforts: $20
Grand Total: $400
That’s a staggering amount of money, given her take home salary. Yet, because she is eager to project a professional image and fit in with her co-workers and her immediate supervisors in order to advance her career, she feels as though she needs to blend into the social culture of her work environment and contribute when she can. In the end, she’s left with $1,000 a month for rent, utilities and food.
In Jane’s case, the lifestyle she needs to live in order to project the professional image that is important to her exceeds her financial ability to do so. So, what’s a girl to do?
Is employment causing you to be broke? How do you make ends meet?
