Author Topic: Commute for more money?  (Read 4038 times)

DK

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Commute for more money?
« on: November 11, 2013, 07:13:18 PM »
It appears looking at my current location, compared to about a half hour added to my current commute, would result in a 15-25K gross increase in pay. Worth it?

(Yes I know commuting is frowned upon)
(Yes I know I should have planned my recent house purchase better)

Argyle

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Re: Commute for more money?
« Reply #1 on: November 11, 2013, 07:41:04 PM »
How long is your current commute?  Would you be commuting by car or by train/public transport?  How much are you making now?  How far off is FI, and how much would an extra 15-25K accelerate it?  Are the jobs otherwise comparable?  Does the higher-paying one put you on the road to earning even more money?  Will any higher-paying jobs come up nearer to where you live now?

Khan

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Re: Commute for more money?
« Reply #2 on: November 11, 2013, 11:20:33 PM »
1/2 hour each way, or half hour per day? I'm going to assume the former. And I'm going to assume you have a car getting ~30mpg and not an SUV. I'll also assume that you're going to burn an extra gallon and a half per day. I'll also assume 3.50 average price per gallon

5 workdays per week, 50 weeks per year, 1.5 gallons per day extra -> 1312$/year extra cost in gas alone[Assuming an extra 20miles each way, that adds up to 10,000 miles per year. For a better estimate let's say best case a small sedan a cost per mile of .46cents(insurance, depreciation, maintenance, gas), that turns into 4700$]. Now, tweak that however you want, factor in the extra hour you're "working"(if you make 20k more by switching, each extra hour of commuting is worth ~74$[ (20k-1.3k)/(5*50) ], or 61$[20k-4700/5*50]. Factor in whatever happiness factor you want into that, and the added miles of car risk.

At least, that's the mustachian calculation(there's a MMM article on the subject). Me, I'd go for it.

http://newsroom.aaa.com/tag/driving-cost-per-mile/

dcheesi

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Re: Commute for more money?
« Reply #3 on: November 12, 2013, 04:07:00 AM »
Using the assumptions from www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/ :

$0.34/mi (halfway between MMM's cost/mi and the IRS reimbursement rate)
$25/hr (value of free time, based on a salary average)

So if it's 30 minutes each way, and we guess 20 for the miles:
20*2*$0.34 = $13.6/day, *5*50= $3400/yr
0.5hr*2*$25 = $25/day, *5*50 = $625/yr

Total: $4000/yr

So yes, it sounds like it would be worth it for ~$20k. But that ignores psychological factors, as well as convenience expenses (are you going to eat out more, or buy more pre-cooked/packaged foods to save time? Do you have other places you want/need to be that would also incur a longer travel time? Etc.).

Exflyboy

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Re: Commute for more money?
« Reply #4 on: November 12, 2013, 11:49:42 AM »
I been commuting 80 miles each way, 3 days a week for 18 months for about a 20% increase in pay.

Right now I'm ready to gouge my eyes out...:)

Frank

DK

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Re: Commute for more money?
« Reply #5 on: November 12, 2013, 04:08:03 PM »
roughly 1/2 hr commute right now, this would be adding to it, so a little over an hour each way.

yes, driving a car. not quite 30mpg, but pretty close.

it's doubtful anything would come up closer than this, at least at that pay rate. it also looks to be more interesting than my current position and at a company that has some neat perks and atmosphere.

@frankh - that's the exact thing i'm hoping i won't come to. gouging out my eyes....i'm not a fan of driving, but other than that piece, it seems a great fit. this would also be about a 30-40% increase rather than your 20, so maybe that will help keep my eyes inside my head. :-)

thanks for the replies. looks like i should plan on the cost increase at least 4-5K in my figures.

JessieImproved

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Re: Commute for more money?
« Reply #6 on: November 12, 2013, 07:02:20 PM »
Take your normal workday, add your commute time, and divide by your daily pay.  There's your hourly rate.  Now do this with the new job and the new commute.  Be sure to consider actual expected work days, because there are a lot of people that work more than 8 hours a day.  See if it makes sense then.