Having a job is a big part of adult life. Some people love their jobs while others might not. Whether you work full-time or part-time, or even have a side hustle in mind, jobs help pay the bills, save money, and contribute to personal growth.
But have you ever thought about how much your job might actually be costing you? Yes, it might be costing you more than you realize. When you subtract the expenses of keeping that job from your take-home pay, you might be surprised by how little is left each month.
For example, some readers have told me they spend $1,500 a month on childcare but only earn $1,000 a month. Others spend $1,000 a month on commuting for a job that pays the same amount. It sounds crazy, but it’s true.
Many people don’t realize how much they spend just to work. Here are some average annual costs you might be paying:
– Childcare: $11,666
– Clothing: $600
– Food: $2,600
– Commuting: $7,000 to $11,000
– Outsourcing: $1,000+
– Missing life events, sanity, and time: Priceless
Now, I’m not saying you should quit your job today. Your job has benefits like health insurance or personal satisfaction. But it’s worth evaluating your options and considering the total cost of working. Make a list of pros and cons to help you decide. You might even find a job that’s more worthwhile.
As a personal finance blogger, I support earning a living, paying bills, and saving for retirement. But you need to be realistic about your options.
Here are some expenses you might be paying to work:
**Childcare:**
Daycare costs an average of $11,666 per year, varying by location. For instance, Washington, D.C. has the highest costs at over $20,000 annually. Childcare is so expensive that some families are having fewer children. Even after your child starts school, you might still need to pay for before or after care.
**Clothing:**
Many jobs have dress codes requiring specific attire, like khakis, polos, suits, or nice shoes. This could cost around $50 per month, though the average person spends about $150 monthly on clothing. These clothes are often only worn to work.
**Food:**
Do you buy coffee on the way to work? Eat out with coworkers? Go out for happy hour or dinner because you’re too tired to cook? These can add up quickly. You might spend $50 to $70 per week on extra food.
**Sanity:**
If you dislike your job, you might spend money to make yourself feel better, like on clothing, food, massages, or getaways.
**Commuting:**
Owning a car can cost $7,000 to $11,000 per year, including the car itself, fuel, insurance, and maintenance. The average commute is about 25.4 minutes each way, adding stress and time to your day.
**Outsourcing:**
You might pay for services like lawn maintenance, house cleaning, or meal prep because you don’t have time. This could be around $100 per month.
**Missing out on life events:**
A demanding job might cause you to miss important life events, quality time with family and friends, or pursuing personal dreams. This is hard to put a price on.
**Time:**
If your job costs more than it’s worth, you’re wasting time. There are 168 hours in a week. If you spend 40 hours working, 4 hours commuting, and 5 hours getting ready, that’s almost a third of your week.
**What’s the other option?**
While traditional 9-5 jobs seem like the only option, there are alternatives. When I started this blog, I had no idea it would let me quit my job as a financial analyst and travel full-time. Side hustles can become full-time jobs with little to no start-up costs, offering flexibility and financial freedom.
Not everyone needs to start a business, but evaluating your options and finding ways to save money is important. Consider what you’re spending to work and look for ways to save.
How much is your job costing you? Is it worth it? Have you ever thought about doing something else?