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A friend today told me I don't get money. I am not interested in money very much and I don't understand how important it is. She said that DH and I not very ambitious about making money. I understand that she is frustrated because I asked her to really reconsider taking on a new job. Background...this is her 3rd job since October 2010.
Mommy had a baby in Feb 2010. In October 2010 she started a new job that was "contract to hire" but got "laid off/fired" in 12-31-10. Then got another position in January 2011, and now is interviewing for another position yesterday. She hates her current position, felt they lied to her about the amount she had to drive, work in the office etc. They promised work from home but instead she has to commute 1 hour each way at least 3 days a week. They pay her $80k. She feels it's unfair, people lie, cheat, etc. She works a ton of overtime (unpaid) due to the nature of the job.
She grosses $80k right? $15/hr for a nanny so she is paying $31.5k/year net (cash under the table) for a nanny. $48.5k before taxes. Assuming 4.2% SS, 32% Federal and state tax, 1.5% Medicare = 37% taxes = $29.6k/year taxes. She is going to net $18.6k/year. That is before commuting costs, car costs, extra to nanny if they are running late (happens all the time), eating out, etc. Assume easily an extra $500/month = $6k/year = $12k/year net after taxes and nanny and extras. She is killing herself commuting 1 hour each way, working 50-60 hours a week for $12k/year or making $5.68/hour.
I said she should really reconsider working and figure out what she really wants to do, job and career wise. She said that I'm crazy, I don't understand working or money. I told she should slow down because job hopping looks bad and she should at least work on finding a job she likes and is happy doing. She said it doesn't work that way. She said she was taking the job back in October to save money to pay down their house so they would get out from underwater to move.
So I asked her, has she saved every penny from her job? Her answer? No. They need her salary to live, now because they have a lot of expenses, their lifestyle. They can't live on her husband's salary. She justified the non-savings by saying I've only been working a couple of months, how could I save anything? There hasn't been enough time. I don't have a clue about their bills and expenses. True, but let me say this.
She told me in the past her husband makes $120k/year, but she feels he needs to make $200k to afford their lifestyle. Okay possibly true.
But here's a clue as to differences in our lifestyles. $20k engagement ring versus $1k ring. $40k cars versus $20k cars. $300 haircut vs $40 haircut (me).
I'm not saying I'm right, but I am saying that she should consider what it means to work and what she's giving up. She should really think about what job she wants and then go after it. Don't just job hop and assume that it's worth the money. I think it's a good time after having a kid to reconsider if you love your career and find it worth spending hours doing it. I say this because she complains about not seeing her kid much
This is why I rarely say anything about money. Because people who are dumb with money never listen. I hate when people say to me "you are so lucky to stay at home with your kid. You have no idea what I would give to do that. Or I need the money, I can't just quit. Or how can you save money when you make so little? How do you ever afford to stay at home? You can't be saving money it's not possible on that income."
Truth - it doesn't matter what you make, what matters is what you spend. When we made $40k/year we still saved. We tripled that and still saved. It didn't matter what we made we always saved. And people don't get that.
And further more when you don't work there is no daycare as a side note.
Mommy had a baby in Feb 2010. In October 2010 she started a new job that was "contract to hire" but got "laid off/fired" in 12-31-10. Then got another position in January 2011, and now is interviewing for another position yesterday. She hates her current position, felt they lied to her about the amount she had to drive, work in the office etc. They promised work from home but instead she has to commute 1 hour each way at least 3 days a week. They pay her $80k. She feels it's unfair, people lie, cheat, etc. She works a ton of overtime (unpaid) due to the nature of the job.
She grosses $80k right? $15/hr for a nanny so she is paying $31.5k/year net (cash under the table) for a nanny. $48.5k before taxes. Assuming 4.2% SS, 32% Federal and state tax, 1.5% Medicare = 37% taxes = $29.6k/year taxes. She is going to net $18.6k/year. That is before commuting costs, car costs, extra to nanny if they are running late (happens all the time), eating out, etc. Assume easily an extra $500/month = $6k/year = $12k/year net after taxes and nanny and extras. She is killing herself commuting 1 hour each way, working 50-60 hours a week for $12k/year or making $5.68/hour.
I said she should really reconsider working and figure out what she really wants to do, job and career wise. She said that I'm crazy, I don't understand working or money. I told she should slow down because job hopping looks bad and she should at least work on finding a job she likes and is happy doing. She said it doesn't work that way. She said she was taking the job back in October to save money to pay down their house so they would get out from underwater to move.
So I asked her, has she saved every penny from her job? Her answer? No. They need her salary to live, now because they have a lot of expenses, their lifestyle. They can't live on her husband's salary. She justified the non-savings by saying I've only been working a couple of months, how could I save anything? There hasn't been enough time. I don't have a clue about their bills and expenses. True, but let me say this.
She told me in the past her husband makes $120k/year, but she feels he needs to make $200k to afford their lifestyle. Okay possibly true.
But here's a clue as to differences in our lifestyles. $20k engagement ring versus $1k ring. $40k cars versus $20k cars. $300 haircut vs $40 haircut (me).
I'm not saying I'm right, but I am saying that she should consider what it means to work and what she's giving up. She should really think about what job she wants and then go after it. Don't just job hop and assume that it's worth the money. I think it's a good time after having a kid to reconsider if you love your career and find it worth spending hours doing it. I say this because she complains about not seeing her kid much
This is why I rarely say anything about money. Because people who are dumb with money never listen. I hate when people say to me "you are so lucky to stay at home with your kid. You have no idea what I would give to do that. Or I need the money, I can't just quit. Or how can you save money when you make so little? How do you ever afford to stay at home? You can't be saving money it's not possible on that income."
Truth - it doesn't matter what you make, what matters is what you spend. When we made $40k/year we still saved. We tripled that and still saved. It didn't matter what we made we always saved. And people don't get that.
And further more when you don't work there is no daycare as a side note.
. I have always said that is about lifestyle choices and living within your means.
They do realize that my spouse was not working??? That I Was not paid when I took leave? My job wasn't even legally required to be held for me, during leave. But we did the best we could. Luck is not the word that comes to mind.
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