The "cost of working"
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| Thu, 03-15-2007 - 2:08pm |
I have been reading a lot of articles on this issue which claim that the cost of working is not worth your salary. One article claimed that it isn't worth it for a mom to work unless she is making at least 70K a year.
I don't see it at all. They cite things like work clothing, lunches out (instead of making your own at home), and gas.
The way I see it, gas money is always something you are going to need. When I wasn't working, I always went out and did things to combat boredom. Not only that, but there were errands to run. And if I did stay home with my children, I don't think I'd just want them at home with me all day just so I can save on gas (or just taking them along on errands). I'd want to take them fun places and do fun things. I would need gas to do that.
Work clothing is a null issue for me. We have to wear polo shirts with our logo and black or khaki pants. Pants I have always gotten at thrift stores. The company gives us the shirts, and if we want more than they give us, the shirts are $18. (Big deal).
As far as lunches go, I bring my lunch not to save money, but because our cafe is horrid and there isn't anywhere to really drive to on our lunch breaks. I only eat in the cafe on break if it's an emergency. I don't even like walking past it because of the smell.
It just doesn't seem to me like the "cost of working is not worth my salary" thing will really fly in my own life. I already know that I make more than the cost of daycare, anyway. I would only be breaking even there if I had three or four kids.
Does anyone else just not know where people get these equations?

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That was said tongue in cheek. Since there seems to be a lot of exaggeration here, I thought I would just join in.
I agree someone with your salary might be out close to $1M if you contributed the max to your retirement accounts, invested wisely, and got significant raises every year - a hard thing to do when you are a gov. lawyer. But I disagree the average WOHM would be out $1M.
Thank you.
I have never said every mom who quits loses a million. I said it's easily possible. I posted an article that said it's easily possible.
I agree. What a spouse makes has nothing to do with what the SAHM loses. It may affect whether she can afford to lose it but there's no making up for it unless SAH somehow enables the working spouse to earn more. Even then, a SAHM can find herself in a world of hurt in a divorce if she faces a wage penalty for the rest of her life.
I think a lot of women think they can afford the loss because they can afford to live on their dh's salary. The problem with that is you never know what the future may bring. Marriages fail at an alarming rate. I know more than one former SAHM who didn't think she'd ever have to work again struggling to make ends meet at a lifestyle much lower than she was used to.
Yes, it's the whole package not just the wages for those years.
It's the wages for those years, PLUS the difference in income due to having a higher income for life because she stayed in the work force, plus the investment income on monies saved during those years FOR LIFE.
I happen to have maxed out my 401K during the years my kids were preschoolers. What that adds up to over the next 25 years is impressive. What that added up to going through the great markets we had a few years ago is impressive (can we do that again???? lol)!! I think about that when I whine about the last few years. While my year over year numbers are not that impressive, I'm actually ahead of schedule for retirement savings so I can afford some slow time and still be on track.
I don't want to think where I'd be if I had SAH those years. I'd probably have, shudder,....charge....cards....YIKES (well ones I don't pay off every month)
Yes, it can. I posted an article talking about that.
" would like you to acknowledge the fact that having a sahp does not imply losing out in any way, and many families with sahp are better off finacially and in many other more important way's than dual working parent's. AND VISA (sic) VERSA!"
I'm afraid you'll have to prove how having a SAHP involves not losing out in any way. Not losing income, not losing pension, not losing investment income on savings, not losing experience, not losing future earning potential....
How do you think SAHP's are immune to this?
You'll also have to show how SAHP's are better off financially. I'm sotty but I don't see how giving up one income improves ones finances on any kind of a regular basis. What percentage did your family's income go up when you quit your job?
I don't feel comfortable giving personal information about myself here. I appreciate your responding to my questions.
I ask about your desires simply because I do know from working with purely volunteer organizations which community members pay to join (not the charitable or not-for-profit ones) that the SAHM can really take on as much volunteer work as she desires. And it can be quite meaningful to the needy and underprivileged in the community. IOW, you don't need to head the charitable organization to contribute to others nor would you likely have the time if you were a SAHM without full-time help.
As far as the PTA, I'm sure you know SAHMs (and WOHMS) can also take an idea and really run with it to a large extent depending on their particular school district.
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