You work and you get paid. If you don’t work, you don’t get paid. Do you love your work or do you just collect a paycheck? In today’s world of high performance and long hours it is important to match your passions and skills with your work.
The type of work you do may have more expenses associated with it than other types of work. It is important to recognize the hidden costs of your job. So, how much do you really bring home.
You should know your gross pay and your net pay are two totally different numbers. The gross pay is the number at the top of your paycheck and the net pay is the number at the bottom of your paycheck after taxes and other deductions are removed. Your net pay is the amount you actually take home come payday. What other expenses do you incur because of your work that aren’t reflected in your net pay? Are these expenses worked into your budget and reflected in your bottom line? Here is a list of possible work related expenses:
- Professional Clothing
- Daycare
- Transportation, including gas, parking and tolls.
- Lunch (do you eat out or bring your lunch?)
- Company Credit cards (you personally responsible if the company doesn’t pay)
- Leased Company Cars (again there may be a liability here)
All of these things can add up and have a substantial impact on your bottom line. Years ago, before we had our children, I worked as a travel agent. I worked for a fairly low wage but used the travel benefits as a perk. When my son was born it would have cost me more to put him in daycare than I was making at my job.
I am not advocating quitting your job. I just want you to be aware of your expenses related to the job. It may be that you need a higher paying position or that you need to cut some of your expenses. Either way, being aware of your hidden costs for any income earning opportunity will put you in a position of strength on your path to financial wellness.
What kind of additional expenses are associated with your job?
Tim and Kathryn Gerken are Financial Coaches in Newcastle, WA. They serve their community in the greater Seattle area.
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