Hello,
First time writing a case study, and this one might be a bit unconventional.
Earlier this week I interviewed for a new job and I was told that i can expect a formal job offer in the next couple days.
The easy way to look at this is "does this job pay more than my old job". But the MMM community has made me aware that there are many more factors.
For the purpose of this case study, lets assume both jobs are equally fulfilling and present equal opportunity for career growth (not necessarily true, but hard to quantify).
Life Situation
27, Married, 2 Kids under 5 years, Wife stays at home = one income family.
Annual
Salary $51,000
401k $2,040.00 (match 4% of employee 5%)
Health Insurance ($6,534.48)
PTO $0.00
Holidays $0.00
Commuting Cost $0
401K Fees (on about 17K) ($79.50)
Home Office Expenses ($360.00)
Total $46,066
Annual
Salary $55,000
401k $1,650.00 (match 3% of employee 6%)
Health Insurance ($3,762.48)
H.S.A Contribution $1,500
PTO $0.00
Holidays $0.00
Commuting Cost ($500)
401K Fees (on about 17K) ($9)
Home Office Expenses $0
Property Taxes ($1,000)
Total $52,879
Total Difference: $6,813 (in favor of new job)
Explanatory Notes:
401K - I would roll it over from my current provider into a Vanguard fund and go from .45% fees to .05%.
Property Taxes: We are looking to move in the near future. If we took this job we would move to next city over to be close to work, but property taxes are about 1k higher. Housing prices in general are the same, and I didn't factor in moving expenses because we are looking to move either way.
Commuting Costs: I would most likely bike (if we live under 5 miles away), in which case $500 might be a bit high. If I commute over 5 miles, I would likely buy a scooter for $500-$1000.
Health Insurance: I am primarily looking at premiums because calculating actual medical expenses throughout a year is tough. New job would contribute $1500 annual into my HSA.
PTO: Essentially a wash between the two jobs. One has 22 days of PTO and 7 Holidays. The other has 18 days of PTO and 11 Holidays.
Am I forgetting any important financial factors in deciding between these two jobs?
Anything else i need to include?