Author Topic: Longer Commute for more money?  (Read 2769 times)

smisk

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Longer Commute for more money?
« on: March 08, 2018, 08:13:58 AM »
Definitely putting the cart ahead of the horse here as I haven't even gotten an offer yet (my interview is tomorrow) but based on early conversations it seems like I'm a good fit. Basically everything about about this new job seems better including the money (could probably make 10-15k more from my current 60k).
Except.. the commute. Currently it's about 10 miles against traffic, about 25 minutes. New job would be 17 and I'd have to take a $1 toll road each way, guessing it'd be 35-40 minutes usually. I know it's not a huge increase but driving is one of my least favorite things and I hate doing it more than necessary. Also really don't want to move, currently have a good roommate in a fairly affordable location, live within biking distance of the gym and some stores, plus my girlfriend is 3 miles away. Ideally I'd like to live in a dense city where I can bike/walk everywhere but I dunno if that'll be possible for a few years.
As far as FIRE, I'm not as serious as a lot of you guys. I try to be frugal but I know there are a lot of areas I could do better. Currently shooting for retiring by 40 (26 now) and it would definitely help to increase my salary. Anyway, I'm sure this question has been posted tons of times before, but if anyone has made a similar career move or has other advice I'd appreciate it!

Malaysia41

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Re: Longer Commute for more money?
« Reply #1 on: March 08, 2018, 08:23:08 AM »
Is there a public transport option?

I suggest trying out bus or train. Nice thing is that you can read. And your CO2 emissions would be minimal. Even if itís 10 min added vs car - reading a book, or doing some work during the part of the day you usually hate - it may make your day brighter.

smisk

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Re: Longer Commute for more money?
« Reply #2 on: March 08, 2018, 11:29:26 AM »
Is there a public transport option?

Theoretically yes, but I'd have to take a bus, two metro lines, and another bus. The whole trip would be over 2 hours so it's not really an option unfortunately.
For whatever reason there's no direct bus/train from my location.

Lady SA

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Re: Longer Commute for more money?
« Reply #3 on: March 08, 2018, 12:19:45 PM »
any possibility of forming a carpool? Same benefits as public transport but you can share the costs of commuting with coworkers.

Britan

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Re: Longer Commute for more money?
« Reply #4 on: March 09, 2018, 06:42:21 AM »
An oldie but a goodie:The Ture Cost If Car Commuting
 http://www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/

Rule of thumb: ďeach mile you live from work steals $795 per year from you in commuting costs.

$795 per year will pay the interest on $15,900 of house borrowed at a 5% interest rate.

In other words, a logical person should be willing to pay about $15,900 more for a house that is one mile closer to work, and $477,000 more for a house that is 30 miles closer to work. For a double-commuting couple, these numbers are $31,800 and $954,000.Ē


But... that being said Iím the worst poster child of this. And it doesnít directly address pay, only housing costs. How much would each mile of commuting be worth in pay?

Thats a question I havenít got an answer to yet myself. Iím in a similar, but opposite boat. Iím paid 80k now to work with super awesome coworkers and bosses for a great, family friendly, flex schedule allowing company who provides regular raises and bonuses and opportunities for training and advancement. 45 min-1.5 hours away, *each way* depending on traffic. Iíve gotten several offers 1-4 miles from home but the best Iíve been offered was 50-60k, worse benefits, no flex or work from home time, for a company Iíve been at before and know is a dead end and treats employees as expendable.

If anyone can figure out how to do the math on how much pay cut a mile commuting is worth, Iím dying to know too. That might be part of my procrastination time today. Iíll post if I figure anything out.

Though I donít know if you can put a dollar value on a good boss...lol

Linea_Norway

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Re: Longer Commute for more money?
« Reply #5 on: March 09, 2018, 06:51:22 AM »
<...>
Thats a question I havenít got an answer to yet myself. Iím in a similar, but opposite boat. Iím paid 80k now to work with super awesome coworkers and bosses for a great, family friendly, flex schedule allowing company who provides regular raises and bonuses and opportunities for training and advancement. 45 min-1.5 hours away, *each way* depending on traffic. Iíve gotten several offers 1-4 miles from home but the best Iíve been offered was 50-60k, worse benefits, no flex or work from home time, for a company Iíve been at before and know is a dead end and treats employees as expendable.

If anyone can figure out how to do the math on how much pay cut a mile commuting is worth, Iím dying to know too. That might be part of my procrastination time today. Iíll post if I figure anything out.

Though I donít know if you can put a dollar value on a good boss...lol

It sounds like you have a good job that is worth holding on to. What are your arguments for not moving closer to your current work?

Britan

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Re: Longer Commute for more money?
« Reply #6 on: March 09, 2018, 07:06:37 AM »
<...>
Thats a question I havenít got an answer to yet myself. Iím in a similar, but opposite boat. Iím paid 80k now to work with super awesome coworkers and bosses for a great, family friendly, flex schedule allowing company who provides regular raises and bonuses and opportunities for training and advancement. 45 min-1.5 hours away, *each way* depending on traffic. Iíve gotten several offers 1-4 miles from home but the best Iíve been offered was 50-60k, worse benefits, no flex or work from home time, for a company Iíve been at before and know is a dead end and treats employees as expendable.

If anyone can figure out how to do the math on how much pay cut a mile commuting is worth, Iím dying to know too. That might be part of my procrastination time today. Iíll post if I figure anything out.

Though I donít know if you can put a dollar value on a good boss...lol

It sounds like you have a good job that is worth holding on to. What are your arguments for not moving closer to your current work?
Hubby bikes to work from here, and the reverse commute is even worse plus he would have to pay ~$150/mo for parking at his location in addition to the tolls :s

The area where I work is suburbia. Hard to go anywhere from there without a car. Home now is walking distance to just about everything BUT my work. Groceries, friends, church, volunteer stuff, dogpark, even some halfway decent schools (no kids yet). Just my work. And if we want to pay off student loans this aggressively, Iíve got to keep the job. ):

In my perect world, my company opens an office in that empty office space a mile from my house but alas.

Britan

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Re: Longer Commute for more money?
« Reply #7 on: March 09, 2018, 07:24:40 AM »
Ok so my back of the napkin math with my own costs is:

80k, 26.5 miles away
óóóóóóóóóó-
53 miles round trip @ 30 mpg @ $2.30/gal = $4.06/day

Work from home 1 day/ week, with 8 holidays, 4 weeks (20 days) of vacation, and 5 sick days, 52 weeks in a year = 226 commuting trips per year
So $918.31 in fuel costs per year.
With each mile further from home costing $34.56/year in fuel.

My fixed(ish) costs (insurance, maintenance, license, registration, testing) come out to $2024 per year.
Those wouldnít get subtracted out with a shorter commute. They might go lower, but without going car free those costs are always there.

One thing I canít figure out how to account for is the ďlost timeĒ in commuting. MMM uses your wage * hourly rate to calculate this but 1) if you take a pay cut, you hourly rate changes and 2) Iím not finding a job that will pay my hourly rate for 8 hours per week those donít really exist. >_>

But without factoring that in, the cost of and additional 7 miles is ~$250 per year. Throw in a little more maintenance, higher insurance, maybe $300? But thatís so different I feel like Iím missing something.
« Last Edit: March 09, 2018, 07:32:05 AM by Britan »

marielle

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Re: Longer Commute for more money?
« Reply #8 on: March 09, 2018, 07:30:18 AM »
If you get the new offer, can you use that to leverage asking for a raise at the current job?

Britan

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Re: Longer Commute for more money?
« Reply #9 on: March 09, 2018, 07:34:40 AM »
If you get the new offer, can you use that to leverage asking for a raise at the current job?
This is probably your best bet, (Assuming the money is the only thing youíre unhappy with at current job.) to keep a shortish commute and get higher pay. Best of both worlds!
A lot of places wonít give real raises until you threaten to leave, when suddenly a 10-20% raise magically materializes.

FatFI2025

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Re: Longer Commute for more money?
« Reply #10 on: March 09, 2018, 07:50:02 AM »
Ok so my back of the napkin math with my own costs is:

80k, 26.5 miles away
óóóóóóóóóó-
53 miles round trip @ 30 mpg @ $2.30/gal = $4.06/day

Work from home 1 day/ week, with 8 holidays, 4 weeks (20 days) of vacation, and 5 sick days, 52 weeks in a year = 226 commuting trips per year
So $918.31 in fuel costs per year.
With each mile further from home costing $34.56/year in fuel.

My fixed(ish) costs (insurance, maintenance, license, registration, testing) come out to $2024 per year.
Those wouldnít get subtracted out with a shorter commute. They might go lower, but without going car free those costs are always there.

One thing I canít figure out how to account for is the ďlost timeĒ in commuting. MMM uses your wage * hourly rate to calculate this but 1) if you take a pay cut, you hourly rate changes and 2) Iím not finding a job that will pay my hourly rate for 8 hours per week those donít really exist. >_>

But without factoring that in, the cost of and additional 7 miles is ~$250 per year. Throw in a little more maintenance, higher insurance, maybe $300? But thatís so different I feel like Iím missing something.

This is a solid way to estimate the numbers. I encourage you to go for it and try to up your zen on the commute -- listen to audiobooks so that the time isn't wasted. It's not accurate to think of lost time as hourly equivalent x time UNLESS you would use that time to make money. I lived for free in SoCal (temporarily) and commuted 90 mins each way with a plug-in hybrid. It saved me tons of money and to avoid traffic I just went in early and gym after work. Boosting your salary by this much will be a positive strategic career move.

Malaysia41

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Re: Longer Commute for more money?
« Reply #11 on: March 09, 2018, 08:37:55 AM »
There’s $, free time, and CO2 emissions.

1000 miles in typical car ~ 1 ton CO2.

Congested car commute: 22kg (49lbs) CO2 every 5 miles.

Source: “How bad are bananas : the carbon footprint of everything” by Mike Berners-Lee

« Last Edit: March 12, 2018, 02:34:00 AM by Malaysia41 »