Author Topic: New Job  (Read 3719 times)

Corider

  • 5 O'Clock Shadow
  • *
  • Posts: 3
New Job
« on: September 17, 2013, 11:13:23 AM »
I would like to get some feedback on a possible job change.  My wife and I moved t a new state last year and bought a condo (with the idea of turning it into a rental in a couple of years).  We both work she earns 58k I earn 60k and 3% bonus, we do not have children and have 30k in debt to pay off between student loans and dumb decisions.  Our mortgage is $710.00 a month with HOA and utilities totaling about $200 a month.  When we moved I took a 9k pay cut but we also live in a lot cheaper state and have a better quality of life.  My current job is 2 miles from home so i enjoy walking or riding my bike as often as possible.  I have the opportunity to take a job for 75K and 10% bonus that is a half hour drive each way.  The other factor is i I will be working more hours, currently 40-47 future 50-55.  I think that the job is a great choice as it really fits in with my skills but I just want to get other points of view.  thanks   

ioseftavi

  • Bristles
  • ***
  • Posts: 401
  • Location: NYC
Re: New Job
« Reply #1 on: September 17, 2013, 11:50:21 AM »
If you'd like some simple math reflective of the figures you've put down:

"40-47 hours per week current job"
= Average of 43.5 hours per week.
x 50 weeks per year
= 2,175 hours worked per year.
$60,000 / 2,175 = $27.59 in gross wages per hour

"50-55 hours per week" potential job
= Average of 52.5 hours per week
x 50 weeks per year
= 2,625 hours worked per year
$75,000 + 10% bonus = $82,500
$82,500 / 2,625 = $31.43 in gross wages per hour

Gross increase in wages = $22,500 (+37.5%)
Increase in hours worked = 450 hours (+20.1%)

This sounds great until you add in the hour (per day) commute.  Even if it's just a half hour increase in your commute time per day (1 hr per day instead of 30 mins), that's a decrease of another 2.5 hours of your time per week.  So tack on another 125 hours to the increase in hours worked to come up with 575 more hours spent working/commuting.  Now you're at a gross increase of 37.5% increase in wages, and an "hours worked" increase of 26.4%.

That's still not bad, but you'll also have things like gas costs to factor in, etc.  I have no clue what your vehicle costs are currently, but it's not a bad idea to figure out how much they'll change (gas, insurance, etc) and factor that in. 

If you think that this job will lead to a better quality of life (you'll like the job a lot more) or better resume (you can get even higher paying jobs later), then weight the numbers above less.  If the reverse is true, then lean on the numbers heavily and let them help you decide.

catccc

  • Handlebar Stache
  • *****
  • Posts: 1677
  • Location: SE PA
Re: New Job
« Reply #2 on: September 17, 2013, 12:39:32 PM »
Also consider those additional hours and how you will feel about them if/when you have a kid (or kids), if that is something you want do...

Mega

  • Stubble
  • **
  • Posts: 176
  • Location: Burlington, Ontario
Re: New Job
« Reply #3 on: September 17, 2013, 01:09:32 PM »
Don't remember who posted it, but use mustachecalc.com

Based on my calculation

Current job - effective rate is $28.24 @ 8.5 hrs per day (your commute doesn't count because you are getting exercise)

New job. (Without bonus) - effective rate is $24.78 @ 10.5 hrs per day of work (plus round trip commute of 1 hour), daily $15 commute cost.

Even with the 10% bonus, you are still only getting $27.39.

So from a financial point of view the new job  is either a terrible choice, or merely a poor choice.

I know I sure as hell wouldn't go from working 8.5 hours per day to 11.5 hours per day without a MASSIVE raise. You are actually taking a paycut.

Not sure if you consider this a benefit or drawback, but you will never see your wife during the week either.
« Last Edit: September 17, 2013, 01:14:11 PM by Mega »

jly224

  • 5 O'Clock Shadow
  • *
  • Posts: 20
  • Age: 33
  • Location: Seattle, WA
    • jlyblog
Re: New Job
« Reply #4 on: September 17, 2013, 01:58:17 PM »
30 minutes each way isn't too bad. Eventually if it becomes too burdensome you can keep your current condo as a rental, like you mentioned, and find a place closer to your work. Also, how far is the new gig from your wife's work? That could be a factor in eventually moving closer to your new job. Or, another way to look at this is, how much quicker will it allow you to reach your financial goals, an extra bump in salary and added bonus can make a huge impact in paying off your debt and saving your F-You money.
« Last Edit: September 17, 2013, 03:38:29 PM by jly224 »

Corider

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Re: New Job
« Reply #5 on: September 17, 2013, 03:02:45 PM »
Thank you all for the great information to think about.  We will have all of our debt paid off mid next year and then start saving for our next house.  Ultimately we could move out that way a little more and be closer and or after a could of more years experience i could find another position closer to our current condo.  Either way we want to own another house in two years and start renting this one out.  The new job will be closer to my wife's job in 2016 when her company moves in that area.  i have a lot to think about and really want to thank you all for the feedback. 

Corider

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Re: New Job
« Reply #6 on: September 17, 2013, 10:10:14 PM »
One thing I forgot to post originally is that sooner or later I will have to leave my current job if I want to move up any time soon as there really is not any upward mobility for the next 5 years or so. 

lhamo

  • Walrus Stache
  • *******
  • Posts: 9288
  • Location: Seattle
Re: New Job
« Reply #7 on: September 18, 2013, 06:24:10 AM »
Side question:  If you are making 118k, only have around $900/month in house payments and 30k in debt, where the heck is all your money going -- why is it going to take you until the middle of next year to pay it off? 

55 hours a week on a regular basis, plus a commute, can be really draining.  I have weeks when I work hours like that, but everything else in life pretty much comes to a standstill when it happens.  And thankfully those busy times are usually interspersed with slower periods so it is survivable. 

If you think the new opportunity will really propel you forward career-wise, it might be worth considering.  For me the increased commute and expected overtime would be a red flag.

chasesfish

  • Magnum Stache
  • ******
  • Posts: 2942
  • Age: 37
  • Location: Texas
    • Years in the making, I created a journal!
Re: New Job
« Reply #8 on: September 18, 2013, 06:41:48 AM »
You would have to really like the new job, or really believe that this one gives you career upside.

I'm in an industry where it seems we're really good at promising future rewards (promotions) for real work today, even though those future rewards are really rare and far between.

Be careful changing jobs for a minimal raise based on the promise of future rewards.

MakingSenseofCents

  • Bristles
  • ***
  • Posts: 264
  • Age: 30
  • Location: RVer
    • Making Sense of Cents
Re: New Job
« Reply #9 on: September 18, 2013, 01:50:49 PM »
I would like to get some feedback on a possible job change.  My wife and I moved t a new state last year and bought a condo (with the idea of turning it into a rental in a couple of years).  We both work she earns 58k I earn 60k and 3% bonus, we do not have children and have 30k in debt to pay off between student loans and dumb decisions.  Our mortgage is $710.00 a month with HOA and utilities totaling about $200 a month.  When we moved I took a 9k pay cut but we also live in a lot cheaper state and have a better quality of life.  My current job is 2 miles from home so i enjoy walking or riding my bike as often as possible.  I have the opportunity to take a job for 75K and 10% bonus that is a half hour drive each way.  The other factor is i I will be working more hours, currently 40-47 future 50-55.  I think that the job is a great choice as it really fits in with my skills but I just want to get other points of view.  thanks   

Are you working on attacking the debt? To me, it sounds like you should have a good amount of surplus savings after your budgeted expenses each month.

If it were me, I would take the more enjoyable job. What type of increase in expenses will there be once you have the longer commute?

sleepyguy

  • Pencil Stache
  • ****
  • Posts: 671
  • Location: Oakville, Ontario
Re: New Job
« Reply #10 on: September 18, 2013, 06:55:31 PM »
Depends... how much more room for mobility is the new job?  30mins isn't too bad unless it's horrific traffic.  Getting a corolla/civic won't be too bad on gas, and if parking is free that's cool.  I would take the new role if it fits your lifestyle. 

BTW, my commute is over 50mins one way :(  Good thing job is pretty flexible and I'm able to work home 2-3x/wk :)