About · Press · Contact · Write For Us · Top Personal Finance Blogs
Featured In:

Quit Your Job To Save Money

By Erik Folgate

This might sound silly, but hear me out. There are two different scenarios that would cause you to consider quitting your job to save money. The first scenario is if you are a man or woman who just works to make extra money, and the other spouse earns the majority of your income. This scenario also requires that you have young children that need to be cared for. The second scenario is if your commute is longer than 45 minutes each way to work. Given the rising gas prices, food costs, and a stock market that has been stagnant, we really need to start looking at the value of our jobs. Here is the reason why you may want to consider quitting your job if your situation falls into one of these two scenarios.

Spouse working for extra money.
If you’re making less than 25% of your household income for an extra job and you are paying for child care because of the extra job, it might not be worth it. Take your net income after taxes for the month, and then subtract all of the extra costs for having the job such as gas, child care, and extra costs for eating out more during the week. You’ll start to see that it isn’t worth it to keep that job. Now, this scenario doesn’t work if you both have full-time careers that make similar salaries.

The long commuter.
Gas is at $4.00 a gallon, but it will probably rise to $5.00 a gallon. Paying $100 a for a gallon of gas on a Honda Accord is becoming more of a reality. So, if you have to fill up twice a week, because of your commute to work, you better be making some serious coin. There’s no rule of thumb, but if you end up spending $200 a week on gas, then you probably live too far away from your job. Start looking for opportunities closer to home. If there are none, consider doing a car pool with someone who might live near you. Websites such as eRideShare can help you find carpool companions.

Home-Based Businesses

I foresee an even larger boom for people starting businesses out of their home. We’re going to see more lawyers and CPA’s do business out of their house as well. Is this is viable option for you? Do you have a service idea that you can perform out of your house? Do you have a product you can sell out of your house? Think about all of the money you can save each month with NO commute to work. I bet some people are spending $400 a month on gas for EACH car. An extra $400 a month invested in a growth stock mutual fund for the next 30 years will make you a millionaire. Working from home is becoming a sexier option more and more nowadays. You can make it happen if you truly work hard to do it.

So, is your job worth it? It might not be if you’re commuting a long distance, paying for child care, and spending more on car maintenance and eating out at night.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

Related Articles

Comments

  • Mitchell

    Home Based Business is the best source where we can earn money with out working outside,more over the internet is providing plenty of jobs ,so we can do the things on the internet only.

  • http://www.liferules.org liferules.org

    Finding a legitimate homebased business is hard. Do you (mitchell) have any ones you know about that are good?

  • reym

    I’m in a really bad situation, I just got offered a really good opportunity closer to home and I need to quit. Two other ladies have quit in the last month 1/2, what do you suggest I can say? It’s a painful situation, but then I’m very excited to move on. Help…suggestions on what to say or how to quit?

Links monetized by VigLink
Close