Time and benefits vs. money.

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anonforthis
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Time and benefits vs. money.

Post by anonforthis » Mon Mar 31, 2014 12:25 pm

Currently I work about 55 hours a week plus 1 hour commute each way (2 hours a day). I make 60K a year, 2 weeks’ vacation (max out at 4 weeks even if you work here more than 30 years), excellently health benefits, 401K match up to 6%. I get 4%-6% percent salary increase every year so far. My company also pays for lunch. There are a lot of opportunities to grow with this company.

There is an opportunity for the state government. My salary will reduce to 45K a year. In return, I will only work 40 hours a week, 30 minutes commute each way, 2 weeks’ vacation the first year then more after that, 16 to 18 holiday days off, 2 weeks of accrual sick leave per year and can roll over. Employee contributes 6.5% of salary to pension and the state will put in another 6%, vested after 20 years I think. I’m 34 year old. I figured since I will have pension I should be okay without contributing too much to my own retirement accounts.



Currently, I put in 23K a year between 401K and Roth. I have two young children so the government job seems perfect. However, 15K pay cut is a lot to swallow. At first, I thought the pay cut was only $500 a month but I was wrong. Should I take this government job?

Onyxmeth
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Re: Time and benefits vs. money.

Post by Onyxmeth » Mon Mar 31, 2014 12:32 pm

Are there opportunities and the chance for raises with the state job?

How important is the time for you? That's a big difference there between the two jobs; bigger than the difference in salary I'd say.

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Taylor Larimore
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Re: Time and benefits vs. money.

Post by Taylor Larimore » Mon Mar 31, 2014 12:41 pm

anonforthis:

We spend a large part of our lives working (and commuting). It is important to like what we are doing (we will probably advance faster too).

Factor the above into your decision.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

countofmc
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Re: Time and benefits vs. money.

Post by countofmc » Mon Mar 31, 2014 12:54 pm

What did Gordon Gekko say in the 2nd movie? "Money is not the prime asset in life, time is"? Or something like that? I'm a firm believer in that. You give me the choice between a higher paying job with less free time and a lower paying job with more free time that would still give me enough money to take care of basic needs, I'd probably take the latter every time.

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Zabar
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Re: Time and benefits vs. money.

Post by Zabar » Mon Mar 31, 2014 1:10 pm

I love the irony of 55 hours/week plus 10 hours/week commuting and "excellent health benefits."

The extra time and control over your life in the alternative job--assuming it's something you like--strike me as much more valuable than the pre-tax income difference of $15K/year.

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greg24
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Re: Time and benefits vs. money.

Post by greg24 » Mon Mar 31, 2014 1:23 pm

On your death bed, will you wish you made more money, or had more free time?

Your kids are only young once.

natureexplorer
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Re: Time and benefits vs. money.

Post by natureexplorer » Mon Mar 31, 2014 1:29 pm

anonforthis wrote:However, 15K pay cut is a lot to swallow.
Do you actually spend all your money currently?

FWIW, I've seen people take much bigger paycuts for less stressful jobs and they have no regrets - at least so they tell me.

Dandy
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Re: Time and benefits vs. money.

Post by Dandy » Mon Mar 31, 2014 2:02 pm

These are tough hours and add a relatively long commute. Depending on the nature of the job and how much you enjoy it that can be hard to keep up as you age. If you have a family you are often too tired to enjoy them much. If you enjoy your current job you may not enjoy the different environment at the state job and you might have more time but less money to enjoy it.

I would find out more about the state job to assess your enjoyment. If it seem ok and you can afford it - it might bring a much better life balance.
I had a streak of about almost 20 years where I left at 6:30 am and didn't return until 7:30pm (and for a few years 10pm!) Hardly got to see the kids during the week, chores etc seemed to take up the whole weekend since I was too tired or late to do much during the week. I probably would have welcomed a pay cut to have a more balanced life.

Tough decision -but at least there is a choice.

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JupiterJones
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Re: Time and benefits vs. money.

Post by JupiterJones » Mon Mar 31, 2014 2:02 pm

Let's see... I'm using guesstimates for some of this, but here's the basic way I'd look at it (adjust the numbers yourself accordingly):

Code: Select all

                           Current Job   Potential Job
------------------------------------------------------
Hours worked per week               55              40
Commuting per week                  10               5
Total hours per week                65              45
------------------------------------------------------
Total yearly hours of your life   3250            2250    (50 weeks per year for both jobs)

Code: Select all

Base Salary                    $60,000         $45,000
Plus lunches                    $2,000              $0
Plus retirement match           $3,600          $2,700
Minus est. commuting costs     -$5,000         -$2,500    (Gas, repairs, depreciation, etc.)
------------------------------------------------------
Total adjusted salary          $60,600         $45,200

Code: Select all

"True" hourly wage              $18.65          $20.09


Looked at merely in terms of what you're getting per hour of your own life that you give to the job, the job you're considering looks like hands-down the better deal.

This idea of figuring your "true hourly wage" comes from the book Your Money or Your Life, which you might want to borrow from your local library.
Stay on target...

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Go Blue 99
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Re: Time and benefits vs. money.

Post by Go Blue 99 » Mon Mar 31, 2014 2:11 pm

Have you contacted recruiters to see if there is an Option C out there- possibly a private sector job that is closer to 40 hours (or shorter commute), but not a $15k income cut?

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Re: Time and benefits vs. money.

Post by Confused » Mon Mar 31, 2014 2:43 pm

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Re: Time and benefits vs. money.

Post by placeholder » Mon Mar 31, 2014 4:38 pm

greg24 wrote:On your death bed, will you wish you made more money, or had more free time?

Might depend on where that death bed is.

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Re: Time and benefits vs. money.

Post by technovelist » Mon Mar 31, 2014 4:42 pm

If I had that choice it would be easy, assuming that the state job isn't something I find abhorrent: take the job that gives more time for oneself. The difference in money isn't worth it.
In theory, theory and practice are identical. In practice, they often differ.

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Wildebeest
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Re: Time and benefits vs. money.

Post by Wildebeest » Mon Mar 31, 2014 5:45 pm

Hi Anon,

What does your spouse think? A divorce would be emotional harrowing and very expensive.
Do your like your job now? What about job security?

Would you like the government job? Have you met the supervisor and collegues in that job?
Can you get further education benefits at the new government job and parlay it in a higher paying job?

Money wise the way JupiterJones lays it out, it is a toss up.

Without the above questions answered the Time and Benefit would be slam dunk.

Good luck and I would love to know what you decided and how it worked out.
The Golden Rule: One should treat others as one would like others to treat oneself.

am
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Re: Time and benefits vs. money.

Post by am » Mon Mar 31, 2014 6:03 pm

25% pay cut when you are making 60k is a big deal- at least if it was me. Perhaps will afford better quality of time off and more savings if you stick with the original job. Plus counting on a state pension without much other savings is risky in my opinion.

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jeffyscott
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Re: Time and benefits vs. money.

Post by jeffyscott » Mon Mar 31, 2014 6:45 pm

Go Blue 99 wrote:Have you contacted recruiters to see if there is an Option C out there- possibly a private sector job that is closer to 40 hours...


Is there such a thing anymore? Never been in the private sector, but my impression has become that the expectation is that you will be a workaholic in any private sector salaried job.
press on, regardless - John C. Bogle

dickenjb
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Re: Time and benefits vs. money.

Post by dickenjb » Mon Mar 31, 2014 7:06 pm

jeffyscott wrote:
Go Blue 99 wrote:Have you contacted recruiters to see if there is an Option C out there- possibly a private sector job that is closer to 40 hours...


Is there such a thing anymore? Never been in the private sector, but my impression has become that the expectation is that you will be a workaholic in any private sector salaried job.


That was my thought as well. Show me a good paying private sector job that is 9-5....

Jtf6
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Re: Time and benefits vs. money.

Post by Jtf6 » Mon Mar 31, 2014 7:47 pm

I work for the federal government, and while we do have more work flexibility, if you want to rise (at least at my agency), you will be putting in some extra hours.

With that said, I'm at work at 7 and out the door by 3:30. However, my door to door train commute is an hour...

My personal opinion on the matter is that he should keep grinding at his current job. $45k is not that much after retirement contributions with a family of 4 to support.

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anonforthis
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Re: Time and benefits vs. money.

Post by anonforthis » Tue Apr 01, 2014 8:49 am

Wildebeest wrote:Hi Anon,

What does your spouse think? A divorce would be emotional harrowing and very expensive.
Do your like your job now? What about job security?

Would you like the government job? Have you met the supervisor and collegues in that job?
Can you get further education benefits at the new government job and parlay it in a higher paying job?

Money wise the way JupiterJones lays it out, it is a toss up.

Without the above questions answered the Time and Benefit would be slam dunk.

Good luck and I would love to know what you decided and how it worked out.



Why a divorce? My husband supports whatever I want to do. I'm not a breadwinner yet but in 9 years I will. My husband is turning 62 in 9 years. I need a stable job and good health benefits. Thank you all for your comments.

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Re: Time and benefits vs. money.

Post by placeholder » Tue Apr 01, 2014 9:35 am

jeffyscott wrote:Is there such a thing anymore? Never been in the private sector, but my impression has become that the expectation is that you will be a workaholic in any private sector salaried job.

I work as a software engineer at a big industrial company and it's pretty much 40 hours around here with opportunities for flex time for those that want it.

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Re: Time and benefits vs. money.

Post by guitarguy » Tue Apr 01, 2014 11:31 am

dickenjb wrote:
jeffyscott wrote:
Go Blue 99 wrote:Have you contacted recruiters to see if there is an Option C out there- possibly a private sector job that is closer to 40 hours...


Is there such a thing anymore? Never been in the private sector, but my impression has become that the expectation is that you will be a workaholic in any private sector salaried job.


That was my thought as well. Show me a good paying private sector job that is 9-5....


I work 7-4 as an engineer. Haven't worked over 40 hrs in years. 1.5 hour lunch daily. I make $67k, soon to be ~$73k after my promotion goes through.

This thread is hitting close to home though. I have an interview tomorrow at another company where I bet any money I'll have to work some more hours here and there and I'll probably have more stress too. BUT, I'm very interested in the work, I'll get a $10k+ raise, and the career growth potential is much larger than where I'm currently at, and the commute is cut in half (40-45 to ~20-25 minutes). So we'll see.

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Re: Time and benefits vs. money.

Post by agent13x » Tue Apr 01, 2014 2:38 pm

JupiterJones wrote:
Looked at merely in terms of what you're getting per hour of your own life that you give to the job, the job you're considering looks like hands-down the better deal.



+1

I am slightly biased as a fed. I could easily leave my job and make another $40k+, but I have a kid on the way and the great benefits, time off, and 40 hour weeks really tip the scales on staying at this job. The pension is a big plus too. It doesn't hurt that I love my current position and coworkers. Definitely consider the the state job. You can always leave it if you end up not liking it.

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