Saving money while working???

**Cecilia** · 08-22-2006, 05:18 AM

I have just started working again after 16 months maternity leave (have three kids...). Some people keep telling me I could save lots leaving my job, but I think it is quite on the contrary. When I work I plan my economy better and save on computer use, snacks and meals for the kids etc. Not to mention that I now have a proper pay...

(Sorry if my english is not OK, It is not my native language)

**Nada.Leona** · 08-22-2006, 06:35 AM

Your English is just fine.

Are you a single parent, or do you have a spouse/partner who is also in the workforce? Amy D. did an article on two income families in "The Tightwad Gazette". I'll look around and see if I can find it.

**Cecilia** · 08-22-2006, 07:02 AM

I am married, with three kids. I work part time right now 30 hours per week while my husband i a stay at home dad for six months. In february he will return to work 35 hours per week.
I have read what Amy D writes about one income living but many things does not apply to my country.

**sunshine** · 08-22-2006, 10:32 AM

It's possible to save money, AND work. . but it's difficult.

I do OAMC- it eliminates much of the fast food, eat out because I don't want to cook scenerios.

I pack my lunch and drinks EVERY DAY.

I do the grocery shopping and errands on my way home from work, so I don't have to drive into town again on my days off. (I live over an hour from work)

**Cecilia** · 08-23-2006, 03:16 AM

I was merely thinking about things like:
I do not need to cook lunch as I only eat bread or yoghurt at lunch at work.
I do not pay for my internet use at home since it is free at work
I make my phonecalls from work
I travel for free since my employer pays my monthly traincard, reducing my use of a car to almost nothing.
My employer also pays my anual entry fees to the local pool/swimming club.

If this is not savings - what is it then?

I can also add that we have no formal dress code so I can wear the same as I wear at home.

So, I think I can save more working than staying at home (but I might be fooling myself...)

**Buckeye5** · 08-23-2006, 09:41 AM

It is all up to the individual. I recently quit working to be a SAHM, but my paycheck just really put us in another tax bracket. I have saved more money by staying home, (I think so) but it is a challening adjustment. My life is more calm and simple. Right now I love it.

**SewCrafty** · 08-23-2006, 11:00 AM

Cecilia, I think that each individual/family does what works for them. Kudos to your dh for being a stay at home dad!

I think that is wonderful, not only for you two, but for the children!

You are right, all those things are great savings. You also have to think of what is going on at home while you are at work. Your hubby and children are eating lunch, doing things etc... so that has to count into your budget also, not just what you save by working. Is your hubby also frugal? Who does the shopping, paying of the bills etc...? If you are on the same page, you are doing just fine. Is hubby on paid maternity leave? That really helps if he is. Now you just have to look ahead to Febuary and figure out if your working will be worth it. You will probably have some child care expenses if you continue to work when he goes back.

Like I said, each family is different, so crunch the numbers and see what works for you!

BTW your english is great!

**AmyBoz** · 08-23-2006, 01:22 PM

I'm with you, Cecelia. My dh and I both work, and I find that we do better when we are both working, even with the daycare payments, because we plan better and are less likely to go out and spend because we are working. Plus, all of the benefits you added, and it works for us!

**inneedofhope** · 08-23-2006, 04:14 PM

Working is the only oprion for me being a single mom, but there are some costs to my particular job.
Commute= $160/month
Daycare= $450/month
Plus the extra $$ i spend on program supplies here and there because our grant $$ doesn't cover it. unfortunately I haven't found a way to dedeuct them from my taxes either.
Most days I do pack my lunch, but there are always those occassional meetings or trainings when you are expected to order. I live for the conferences that provide lunch!
I'm always on the lookout for a better opportunity closer to home to reduce my commute expense.

**Daisygirl** · 08-23-2006, 06:09 PM

Your English is great Cecilia, No worries there at all. I think the budgetary decision of working vs. staying home is different for every family. It depends on ability to earn income, childcare expense, perks offered by your employer as well as the desire to do one over the other.

I am a single mom. I recently lost my job and decided to work from home. One deciding factor for me was the fact that childcare for the job I was offered would have cost me $1100 a month. I also wanted to spend more time with my children. I find a lot of frugal benefit to staying home.

1: No childcare expenses
2: Always home-cooked food at my disposal - never have to wrry about forgetting my lunch, lol
3: No expensive wardrobe requirements
4: Plenty of time to cook and do money-saving activities from home
5: Very little driving, no commute

Now, this is working well for me at this time, but I know this lifestyle is not for everyone.

**Telephus44** · 08-23-2006, 09:03 PM

I agree that it depends on your situation. Everytime I read an article that says working moms are just paying for daycare and might be better off financially staying home, I just kind of chuckle to myself and think how one-sided they tend to be. I have run the numbers before for my situation and even with daycare it makes more sense for me to work. Some considerations:

1. A lot of articles claim that you will spend more on food if you work because you will buy lunch out or not want to cook when you get home. Nonsense. I take my lunch to work everyday and plan ahead of time what's for dinner, so we avoid a fair amount of take-out.
2. A lot of articles claim that your clothing expenses go up if you work - maybe for some professions, but not mine. I can wear jeans to work, so I don't need a separate work wardrobe, and I don't have extra dry-cleaning costs.
3. Some of the articles actually say that you'll save money by not paying a cleaning service to clean your house. I don't know any working women that have a cleaning service! I certainly don't.
4. Commuting costs - this seems more valid to me, but since I work 6 miles from my house, I don't drive many more miles than I would if I stayed home. Again, it is specific to my situation
5. The tax thing - I have run the calculators. We would owe about $4500 less in taxes if I didn't work. People don't seem to grasp that we have a graduated tax system (here in the US anyways!). So anything you make that "bumps you into the next bracket" - only the amount that is over gets taxed at the higher rate, not your entire income. So you will never lose all your income to income taxes.

Plus, these articles never actually consider the benefits of working. Again, this varies by individual situation, but for me:

1. My health insurance costs $100/month - to get it through DH's employer would be $250/month
2. My employer offers Vision Insurance - it costs us $10/month, and this year has saved us about $700 on glasses
3. My employer has 401K matching (I get about $160 per month)
4. My employer offers a healthcare FSA with a $500 match (figure about $125 in tax savings, plus the free $500)
5. My employer offers a pension (tough to put a dollar value on)

And like Cecilia mentioned, the little perks like internet access or free transportation - they all add up! In the past I have worked for a company that printed t-shirts and gotten free t-shirts. Some places offer tuition reimbursement. My company will match donations to high education.

**Lylac** · 08-23-2006, 10:35 PM

The big difference comes into play whether you are salaried or entry level. The less you would be able to make, the more beneficial it would be to remain home (by the time you would pay out for childcare and other costs). Of course there are many other really good reasons to stay home other than financial, but that's a whole different discussion.

**Cecilia** · 08-24-2006, 03:30 AM

Thanks everybody for your answers!!!
SewCrafty -- my hubby is on a payed "paternityleave" for six months and YES he is as frugal as I am though he tends to focus more on electricity and water bills than on everyday costs

Child care in our country is not a big deal it costs about 100 US dollars per child per month. For us that means 300 dollars per month for three kids. NOT your prices at all!