I once took my income off after completing Turbo Tax. You have to do this afterwards (just don't save it the 2nd version). I wanted to see how much I would need to bring in to make up the difference if I quit my job (not thinking I would quit but just to have a plan B if something happened). Granted, you have to also consider the loss in retirement and social security contributions but still, if push come to shove, what you are living on currently is what will matter at the second. It really was not that much that I was actually bringing in cash wise, only 24K out of my pretty nice salary. We lose so many credits because we both work. We also hit a larger tax bracket since we both work and the additional tax brackets are over both salaries. Out of that 24K, if I had to pay daycare, that would pretty much wipe that out. Since I am a stay at home federal employee I don't have to have additional clothes, food or transportation.
Many people do not do that math of what additional income does to your overall. Also, I really wish our system did not penalize for working more. That is my #3 biggest issue for current times. My husband is going back to drilling with the Army next month and that additional income will be something I need to do the math on.
YES, YES, YES!
i agree so much! people need to look at the EXPENSE of their job/a potential job and weigh the cost/benefits.
i retired from government and at one point my agency was trying to cut back costs so they offered voluntary furlough but you would keep your full employee benefits, their contributions (so no impact to pension or healthcare costs) and full vacation/sick/floating time accrual amounts. i had my cpa run the numbers-we were paying for 3 tiered childcare for 2 kids (before school care/actual school tuition/after school care b/c it was easier/cheaper than having them go to 2 different places for school and care). by reducing from 8 1/2 hours per day to 6 (at 6 hours my state didn't require an employee to take a lunch break) dh could change his hours so that before school care was eliminated, and i could pick up the kids before after school care kicked in. that was a HUGE savings. add in the difference in taxes and we were ahead each month.
the same goes for dd. she was looking for a job/any job out of college (not going into her major field at this point). she was trying to decide between some that differed a few dollars an hour. granted-a few dollars an hour around minimum wage is HUGE in that income bracket but i had her look at the job differences-in particular commute and benefits. the one that paid a few dollars more had a reasonable commute but it was twice what the other one had and offered minimal benefits. the lower paying job cut the commute in half (gas/car wear and tear savings) but the kicker was-an employee cafeteria w/ free meals during your work shifts (HUGE SAVINGS) and full medical/dental/vision in a no/low deductible and copay plan for less than $50 a month the value of that alone is incredible.
so few people consider this stuff. i saw it slam many in the face during the recession. one parent would lose their job and they thought all was lost until they saw how much was still in their budget after the eliminated daycare, commute, work lunches, the work coffees, work clothing....many ended up ahead such it changed their lifestyles to having a sahp until their kids aged up enough to eliminate the big childcare expense.