Author Topic: Part-time vs. full time (late fire vs early stressful fire)  (Read 2624 times)

toucansurfer

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Part-time vs. full time (late fire vs early stressful fire)
« on: February 17, 2017, 03:21:21 AM »
Hi all,

Just a quick question for those that have switched from full-time to part-time work.  I'm contemplating taking a job at another firm that is part time (3-4 days/week) that will offer ~90-120k vs. my current full-time work which pays $145k.  Main reason is the current job is fairly stressful (averages 60 hours a week with consistent late nights/weekends).  I wouldn't have any trouble covering my expenses and saving rate would go down a bit (~15% less with full-time since SO works as well).

Has anyone had experience with this? Did you find the lower income caused more stress or did you end up having more time to focus on optimising spending? Just wanted to get a few takes on people that have done this sort of transition before.

Cheers

Morning Glory

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Re: Part-time vs. full time (late fire vs early stressful fire)
« Reply #1 on: February 17, 2017, 04:16:11 AM »
I am joining this thread just to follow along. I am considering cutting down work hours as well, but it will affect my savings rate. I have not done the math yet to know how much.

Linea_Norway

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Re: Part-time vs. full time (late fire vs early stressful fire)
« Reply #2 on: February 17, 2017, 04:43:01 AM »
I have done this to smaller degree. I used to work in the city where I had a long commute and was frustrated with the train company for good reasons. Also frustrated with my employer for selling me as a consultant and placing me on the opposite side of town, while that was not agreed on. I then accepted a job very close to home and accepted a 15% lower salary. From when I started there, a lot of weight was removed from my shoulders. I got A LOT more free time, as I had a much shorter commute and half an hour shorter working time. I still don't want to think of going back to work in the city for a higher salary with the long commute. But on the other side, my current job has a lot more job related stress than my previous job. This job has since last summer not been good for my health.

I have a friend who is a lawyer. When she was younger she worked at a lawyer company, working very long days and in a pusher (correct word?) culture. Her husband, also a lawyer, has always worked at either the tax institute or some other governmental institute. He always worked normal work hours and has lots of time for training. My friend also trains a lot, but needs to do that on her way from and to work (running or cycling instead of driving) or at other inconvenient times. She also worked at a ministry for some years, but mentioned to me that it only paid like half the salary that she could earn otherwise. Now she is back, working for an accountant company, with colleagues that try to steal her ideas to get promoted. I don't understand that she wants to do it. But some people like to make a carrier, I think, and want to work there where the action is. While others think that having a life is more important than having a carrier. 
« Last Edit: February 17, 2017, 04:46:52 AM by Linda_Norway »

Freedomin5

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Re: Part-time vs. full time (late fire vs early stressful fire)
« Reply #3 on: February 17, 2017, 06:13:26 AM »
It helps to calculate your hourly rate. For example, if you're earning $145k but working 60 hrs per week (times 50 weeks), your hourly rate is $48.33. If you go down to 4 days (e.g., 32 hours) @ 90k, your hourly rate is $56.25.

Note that this is just a quick and dirty calculation. I haven't factored in any potential tax savings (does this lower pay bump you into a lower tax bracket?) Also, I haven't factored in commute tim, which should go into the horulay rate calculation.

We reduced our household income last year by approximately $15000 for the year. It didn't make much of a difference in our savings rate, but that's because we ate out less and saved on childcare.

toucansurfer

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Re: Part-time vs. full time (late fire vs early stressful fire)
« Reply #4 on: February 17, 2017, 07:07:24 AM »
Hi freedomin,

Yeah generally I'll get a better return due to lower taxes off the high end bracket.  Commute will be identical.  Will save ~$100-150 a month on Childcare and probably a few other things I can pay more attention to with the extra time.

I guess I'm more hoping it's enough freedom to cut the steam off the stress nossel and enjoy my job a bit more instead of dreading another long week.  I generally enjoy my job just not how much of it I have in terms of work load.  Nights away from the kid also generally add that annoying Jab to round the week out.

If the offer ends up being good on an hourly rate.  I'll be quite happy.  Little worried they'll pull a bait and switch and expect work on the days off they aren't paying for:p


Spruit

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Re: Part-time vs. full time (late fire vs early stressful fire)
« Reply #5 on: February 17, 2017, 12:50:50 PM »
What would you expect to get stressed about in a part-time job? Is is financial insecurity you are fearing or missing out on FIRE very soon?

I figure you can pay the bills + still save on the reduced income you mention. If this is correct, then why do you think you'd get stressed?

At one point, I got to choose between a full time job that I thought wasn't an exact fit for me vs. a part-time job that paid much less (think 60% less), but was closer to home and much more fitting for me. Went for the part-time job without a doubt, because I could pay all necessities + some extra and still save a bit. So, so glad that I did! What good is additional money if you have enough? Is the difference in payment worth the certain stress you are already noticing in your current job? Only you can answer that.

It's a trade-off; lower (work-related) stress + more free time now vs. complete FIRE sooner

toucansurfer

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Re: Part-time vs. full time (late fire vs early stressful fire)
« Reply #6 on: February 17, 2017, 05:34:20 PM »
Hi Spruit,

Yeah mostly worried that they will be asking me to work on my days off since they have a culture of that in my business sector, therefore defeating the purpose of getting the part-time role and would be better off financially in my current position.

If they do what they promise then it should all be good, but i generally don't believe HR managers even if they have good intentions.  Will probably need to ask to have it written as some sort of clause in the contract.  Either way will probably take the leap next month and if all else fails go back to the original job if it's still there.

Will update you guys then :)

Linea_Norway

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Re: Part-time vs. full time (late fire vs early stressful fire)
« Reply #7 on: February 18, 2017, 08:05:33 AM »
Hi Spruit,

Yeah mostly worried that they will be asking me to work on my days off since they have a culture of that in my business sector, therefore defeating the purpose of getting the part-time role and would be better off financially in my current position.

If they do what they promise then it should all be good, but i generally don't believe HR managers even if they have good intentions.  Will probably need to ask to have it written as some sort of clause in the contract.  Either way will probably take the leap next month and if all else fails go back to the original job if it's still there.

Will update you guys then :)

Yes, getting it written in your contract is definitively a must. You can also negotiate an overtime rate, in case you have to work on your off-day.

 

Wow, a phone plan for fifteen bucks!