This weekend I was talking to one of my friends and he had a very interesting predicament. Was he winning or losing working at his current employer at his current salary? He has a bachelor’s degree in administration, he’s been working for over one year now as an administrative agent for a large accounting firm.
All prices includes taxes and are rounded up
Insurance 150$ per month
Gas per month : 240$ per month (and going up!)
Monthly parking downtown: 160$ per month
Snacks/food downtown (company suppers, happy hour, etc.) : 200$ per month
Clothes for work (suits, shoes, etc..): 100$ per month
After these quick numbers I told him let’s look at this on a different perspective. If you were to work in the suburb close to your home, even if it’s a job in a Home Depot or any large retail chain (that pays more than minimum wage) that opened beside your home and get rid of your car how much money would you have to spend after all recurring expenses ?
0$ for the car
0$ for insurance
0$ for petrol
0$ for parking
Can go eat lunches at home, again 0$
No need to spend money on special type of clothe you probably have a uniform.
Considering Home Depot or any large retailers don’t pay much, let’s say he has a 12$ per hour salary. That’s 800$ per pay period after taxes, take out his housing payment and he is left with 1000$ per month for his other purchases, compared with only $350 with his job downtown.
What we need to learn from this:
If my friend would have moved close to a metro or suburb train station he could save a lot of money. His parking and the gas price does add up, and the cost is insanely high.
2- Live close to work
Going to work is something you do on a daily basis, I don’t get it when people move AWAY from their work. Just doesn’t make sense to me. Live as close to work as possible and you will save a bundle!
3- Keep expenses at the minimum
Just like a business you always need to keep your monthly expensive as low as possible.
4- Our choices affects our life therefore we must think and plan before we act
We need to be smart about the decisions we take, each decision will affect us and it’s crucial to think about every possible outcome.
I hope this helps to put your life and work in perspective. I hope you will make the right choices in your life & not to live the same situation as my friend. Seriously, when you could technically save more money and have less stress and more time on your hands by working a general job in your neighborhood than by working in a prestigious firm downtown, we need to assess our situation with a lot more scrutiny.