I guess the real question would be can you afford to work. Seriously.
I worked at the same company for 15 years. It was a small company, no 401k but we did have health benefits. When the economy tanked first we lost our bonuses, they our salaries got downsized. But at least we still had jobs, and the same thing happened to my husband, no more bonus, salary slashed, but he does have a 401k.
So we started slashing costs where we could. Changing some of the things we did. But we still had two kids to get thru HS & college. We had bills to pay that we had racked up during the “good times” ect. We managed to do it. It was hard, but we were doing it. Then out of the blue, the owner sold the company, we got nothing, not even a thank you for you many years of loyalty :(.
I was one of the lucky few who got a job with the company that bought us, but the writing was on the wall, so almost all the money I could was but towards paying off bills. We were able to clear out 1 CC and refi before I last my job this January.
Now I have been working since I was 14, #@$^ years, so I am taking my time finding a new job. I am lucky, I have this option, but as I checked my budget I realized I may be better off not working in the long run. This may be especially true for young couples with children in DayCare…do you want to be working for Daycare and Taxes??? Is that really the life you want?
I ran the tax numbers for last year with my job and again if I hadn’t been working. We owed $2402 last year in taxes, if I hadn’t worked we get ready for this… we would have got a refund of $9210.. HUH, that is a $13612 difference. (my children are older now and one is out of the house so not that many dependants any more)
WTF….basically by not working I am saving $1134 a month in taxes. That got me thinking, I now only go thru 1 tank of gas a month instead of 4, $150 savings. I called my insurance agent and let him know I longer drove a large amount of miles saved $10 a month on insurance. I no longer get a Diet Coke every morning before work, but I still get a few, so at $2 x 8 = 16x 4 = $64 savings. I did take my lunch at least 3 times a week but I no longer eat out so that is $80 savings a month. Plus I used the toll road about 1/2 the time so $100 savings. Lets see $1438 a month in Savings so far.
This doesn’t include the wear and tear on the car (1 set of tires a year). This doesn’t include the fact that I am no longer stressed and haven’t been sick since I lost my job. I used to be at the doctors almost every month because people would come to work sick and spread it around. I don’t have to worry about getting new clothes all the time or shoes. I don’t have worry about being late or dealing with assholes at work.
If you have young kids you have more dependants, you also have high daycare costs and the stress of getting them there and you to work…can you really afford to work?
Will you have to give up things, most likely, or just find alternative. We still go to the movies, only we do matinees on the weekends, not nights they are cheaper. We still do out to eat, we do quick serves in stead of fancy and always use coupons. We still go on vacation, eat out and enjoy life. We have just adjusted a bit. And I have to say we are in better shape finance and physical wise then we have been in a long time.
So I am looking for a job that will engage me and make we excited to go to work. But if I don’t find it quickly or at all I am not to worried as so far nothing has really changed.
So sit down and really crunch those numbers and make sure you can afford to work.