At what salary is it not worth it to work?

[Anonymous]

Been unemployed a few months. But I realized working has costs, can’t get to home repairs on my own, commuting costs, can’t really manage investments, shop around insurance, negotiate with college on tuition. Stuff like that. Then commuting costs, lunch, childcare, take out etc.

I got a call for a 45 bucks an hour contracting gig. I kinda realized is it even worth it. Is this why folks over 55 forced out retire early? Maybe if off the books. But a taxable low income job with zero benefits is the worst.

[Anonymous]

I work from home and cant relate at all. How much time do you actually spend "managing investments" or "shopping insurance" all day?

I spend like an hour a quarter on investments (they're managed). I need a car for other things so its a fixed expense whether I work or not. Insurance is generally a once a year decision, no? I eat lunch whether I work or not......

So? I guess I'm not much help, but if you find those things so overwhelming it makes sense why you might be un/underemployed.

[Anonymous]

Anonymous wrote:I work from home and cant relate at all. How much time do you actually spend "managing investments" or "shopping insurance" all day?

I spend like an hour a quarter on investments (they're managed). I need a car for other things so its a fixed expense whether I work or not. Insurance is generally a once a year decision, no? I eat lunch whether I work or not......

So? I guess I'm not much help, but if you find those things so overwhelming it makes sense why you might be un/underemployed.

NP but you can save A LOT of money by keeping on top of expenses and constantly renegotiating or looking for better deals. I know smart successful people who easily spend an hour or two a day making sure they’re maximizing rewards from their credit cards. It’s an upgraded form of coupon clipping and could be saving (thereby earning) PP significant money. So don’t knock it so quickly.

[Anonymous]

Anonymous wrote:Been unemployed a few months. But I realized working has costs, can’t get to home repairs on my own, commuting costs, can’t really manage investments, shop around insurance, negotiate with college on tuition. Stuff like that. Then commuting costs, lunch, childcare, take out etc.

I got a call for a 45 bucks an hour contracting gig. I kinda realized is it even worth it. Is this why folks over 55 forced out retire early? Maybe if off the books. But a taxable low income job with zero benefits is the worst.

Wait, you saying that $45/hour is a "low income job" and not "even worth it"? This might be the most out of touch post I've seen all year.

[Anonymous]

1. Health insurance.

2. Rest depends on individual lifestyle. I would jump at a chance of a $45/hr job. You’re lucky.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I work from home and cant relate at all. How much time do you actually spend "managing investments" or "shopping insurance" all day?

I spend like an hour a quarter on investments (they're managed). I need a car for other things so its a fixed expense whether I work or not. Insurance is generally a once a year decision, no? I eat lunch whether I work or not......

So? I guess I'm not much help, but if you find those things so overwhelming it makes sense why you might be un/underemployed.

NP but you can save A LOT of money by keeping on top of expenses and constantly renegotiating or looking for better deals. I know smart successful people who easily spend an hour or two a day making sure they’re maximizing rewards from their credit cards. It’s an upgraded form of coupon clipping and could be saving (thereby earning) PP significant money. So don’t knock it so quickly.

I'm only knocking it if one isn't smart and successful enough to know that you need money coming in in order to do that. I am a high earner who likes to maximize credit card points, cut cable, use my money to make money etc...but I could never save (every day) what I make (every day). That is a valuable skill set in addition to work, not in replacement of work.

[Anonymous]

Too many factors to consider. The head of my last nonprofit worked for no salary - donated it all back pro bono (well over $100k).

[Anonymous]

Who is negotiating college tuition costs AND paying for childcare?

45/hr is $7200/mo before taxes. Assuming capacity to work, I would of course call that “worth it”. That’s a couple mortgage payments for me, or a quarter of the cost of a new car, or an annual Roth IRA contribution, or a nice family vacation. All things I value. So yes, worth it.

But what I’m guessing is that OP has someone else whose income pays for living expenses, cars, investment contributions, and vacations. Which is why they are sniffing at 45/hr. But in that case, is there any amount that would be worth it? If all your wants and needs are taken care of, then is there any amount of money worth working for? At that point, I’d look for a job (or more likely, a project or volunteer position) that had value to me outside of any compensation.

But most people need money.

[Anonymous]

Anonymous wrote:Who is negotiating college tuition costs AND paying for childcare?

45/hr is $7200/mo before taxes. Assuming capacity to work, I would of course call that “worth it”. That’s a couple mortgage payments for me, or a quarter of the cost of a new car, or an annual Roth IRA contribution, or a nice family vacation. All things I value. So yes, worth it.

But what I’m guessing is that OP has someone else whose income pays for living expenses, cars, investment contributions, and vacations. Which is why they are sniffing at 45/hr. But in that case, is there any amount that would be worth it? If all your wants and needs are taken care of, then is there any amount of money worth working for? At that point, I’d look for a job (or more likely, a project or volunteer position) that had value to me outside of any compensation.

But most people need money.

Right. If you need a job, $45/hour is definitely worth it. If you don't, then no amount of money might be worth it.

I don't spend hours and hours a day "saving" money. I actually do not believe that there are smart and successful people who spend an hour or two *a day* maximizing their credit card points. Maybe a few, if they have a trust fund or they live off of investments, but otherwise, they are successful because they are good at some kind of paid work.

Saving money isn't earning money. Earning money is bringing money in the door. Saving money is minimizing how much money is going out the door, but you still need money coming in. If someone else in your household is doing that for you, sure, maybe you can "save" $86K a year on the phone with the credit card and insurance companies.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Been unemployed a few months. But I realized working has costs, can’t get to home repairs on my own, commuting costs, can’t really manage investments, shop around insurance, negotiate with college on tuition. Stuff like that. Then commuting costs, lunch, childcare, take out etc.

I got a call for a 45 bucks an hour contracting gig. I kinda realized is it even worth it. Is this why folks over 55 forced out retire early? Maybe if off the books. But a taxable low income job with zero benefits is the worst.

Wait, you saying that $45/hour is a "low income job" and not "even worth it"? This might be the most out of touch post I've seen all year.

OP's mother thinks OP is worth $2,500 per hour. So, yes, $45 per hour is low income.

[Anonymous]

OP - right now $45 works out like this. I am getting $20 an hour unemployment. So actually $25 an hour. I am all in since live in MoCo so almost 30 percent tax bracket so like another $7 off. Plus payroll taxes. SS etc another buck off.

So making $17 an hour.

If job had medical would do it. Cobra and mortgage are my biggest expenses. If unemployment ran out would do it.

My bills are at point $17 does nothing. In fact if I wanted Obama care might also be an issue.

I need around $145k to pay the bills. Remember that is taxable. But even at $145 can’t contribute much to 401k as need the income.

I think I can land a job soon. But to be honest it may be my last one.

[Anonymous]

I compare it against how I would otherwise spend that time (and be honest with yourself - if I am honest I spend ~2 hours per evening doing silly things like scrolling through social, watching Real Housewives and puttering around), how it would fit into my portfolio of work and/or the connections I want to build or maintain, and how interesting the work is. I work full time now but have previously done a fair amount of contract consulting. I have consistent rates that I charge that are in line with my experience (you can google how to price this out), including a minimum, but for a longer term contract or special circumstances would consider adjusting.

If I were unemployed, I would be taking almost any reasonable contract. It could even turn into a job.

[Anonymous]

Anonymous wrote:OP - right now $45 works out like this. I am getting $20 an hour unemployment. So actually $25 an hour. I am all in since live in MoCo so almost 30 percent tax bracket so like another $7 off. Plus payroll taxes. SS etc another buck off.

So making $17 an hour.

If job had medical would do it. Cobra and mortgage are my biggest expenses. If unemployment ran out would do it.

My bills are at point $17 does nothing. In fact if I wanted Obama care might also be an issue.

I need around $145k to pay the bills. Remember that is taxable. But even at $145 can’t contribute much to 401k as need the income.

I think I can land a job soon. But to be honest it may be my last one.

Why? This seems insanely high. Are you the primary breadwinner?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I work from home and cant relate at all. How much time do you actually spend "managing investments" or "shopping insurance" all day?

I spend like an hour a quarter on investments (they're managed). I need a car for other things so its a fixed expense whether I work or not. Insurance is generally a once a year decision, no? I eat lunch whether I work or not......

So? I guess I'm not much help, but if you find those things so overwhelming it makes sense why you might be un/underemployed.

NP but you can save A LOT of money by keeping on top of expenses and constantly renegotiating or looking for better deals. I know smart successful people who easily spend an hour or two a day making sure they’re maximizing rewards from their credit cards. It’s an upgraded form of coupon clipping and could be saving (thereby earning) PP significant money. So don’t knock it so quickly.

Are you saving enough to justify not working, though? You need money to pay for these things, in any case. I assume the question is at what point is my partner's salary enough that I'd rather spend my day shopping for bargains than working? That's not really a question we can answer without more info.

And no this isn't why people don't work when they get older. They don't work because they get forced out of the workplace. Then they HAVE to take jobs that pay less for work they used to do, if they can find those jobs, because most of us aren't looking at this in the way OP is framing things, I don't think.

[Anonymous]

OP while unemployed I had a short gig last years $140 an hour for five months. But with zero benefits and no job security was ok. But still not great as I was unemployed before and after.

Plus the $45 takes away me looking forward better gigs. I also don’t live to work for Nickles when I am losing dollars.

And yes I would with for $45 an hour if benefits. 401k match. Stock options and bonus. A real job. But contracting almost pointless.

I could go buy some cheap run down condos in foreclosure, fix up and rent and make more.