Need help with a decision

[Reggie]

So I have another potential job opportunity and I'm asking for your input.

This new job is a $24K a year increase in salary. It is also 33 miles away from my home. The commute time would be 40-45 minutes each way. The hours are flexible as long as I bill 40 hours per week. The new job would not require any management responsibilities. I would be responsible for doing my job only. All other benefits are equal, 4 weeks vacation, insurance and dental very similar, etc.

My current job is 10 miles from my home. In addition to my job, I am the site lead and manage 62people, this is often daunting but I manage to get all of my work done in 40 hours. My hours here are also flexible and I tend to leave early on Fridays every week.

Is the commute worth the money? I haven't had a real commute in over 2 years. Before that, I had a 55 mile commute and I hated it. This commute is significantly less than that one, thank goodness.

[TheKayla]

Can you move closer eventually? Financially, it should be worth it, by far. I had a 45min commute before I moved to the city I work in, but I didn't mind it all that much. Some mornings were bad, but most I enjoyed the peace by myself for that time. Everyone's different though. If it's something you really hate, then that's a personal decision you'll have to make to not take it for that reason.

[Reggie]

I have zero intention of moving closer. It's not a favorable area to live in.

I also haven't really taken into consideration the taxes. A lot of the increase is going to be eaten up in taxes. I don't have a lot more tax deductions to claim.

[bjl584]

It most likely is worth the commute as far as finances are concerned. I highly doubt that you will spend $24K in gas or wear and tear on your car in a year unless you drive a tank. You will have to decide if it's worth your time. Figure adding an hour and a half to your work day compared to what you do now. Can you handle that? If so, then go for it. Also, consider weather. I don't know where you live, but if it is in area that gets bad winters, then a 30 mile drive in a snow storm doesn't sound too fun.

I used to live 25 miles from work. I made that commute for 6 years before I finally got sick of it. I put 100K on my car in 5 years, got tired of getting up so early, and grew tired of the grueling winter commutes in the snow. If none of that bothers you as it did me, then you should be ok.

[Reggie]

I tried to put some numbers on for comparison purposes.

I used $0.55 a mile for cost of commute. It's an additional 50 miles per day. If I work 235 days per year, I would drive an additional 11,750 miles. That brings my additional commute expense $6462.

If I pay 42% taxes (I won't have to pay social security on this amount), my NET overall increase is $7458

That seems like pennies for a $24K increase. Is the 55 cents too high? My car gets 38 mpg. The commute is all interstate. I drive a Toyota Corolla so it is not an expensive car either to maintain or to depreciate.

What am I missing?

[bigdaddybus]

Sounds like you are in a similar situation that I would be in if faced with that decision. Its a choice, not a need. $24,000 increase to some might be a need (increase retirement, save for kids college, etc).

I would look at it more as a work/life decision. I have 4 kids age 3/4/11/13, and my commute is currently 8 miles. If I had to increase my commute as much as your talking I would miss events (cross country after school) and be home alot later for dinner (sitting around the table together is a priority for us) So I would likely turn it down. What are you giving up?

What is the potential growth/opportunity with each job? similar or very different? This would also be a major driver for my decision....say the potential for better earnings are with the move.

[feh]

Is the 55 cents too high?

IMO, yes. My cars also get mid-30s for mileage, which comes out to 10-11 cents per mile, at today's gas prices.

[bjl584]

You can safely cut that number of .55 cents in half and still be over estimating.

[siggy_freud]

Based on $4.00 per gallon at 38mpg you're looking at an additional $1,236 in gas. Not sure what your maintenance or depreciation will look like on the car, but from a purely financial standpoint I can't image you not coming out ahead by 10-11k net.

Now, whether the lost time is worth it or not is hard to decide. My previous client was 1h 15 mins away, but paid mileage. So it was worth an extra 1k a month net. But eventually I got tired of losing 2.5 hours per day to driving. My new client is still 40 mins each way, but I get an hour back. The flip side is I lose the mileage and actually pay $130 more per month in parking downtown.

I know eventually I'd like to trade it all in for a 10 min commute. Just don't want to take a salary hit to do so.

[rennigade]

If your hours are flexible then you do not have to drive during rush hour which may save some time on the commute, not to mention the headache of it.

I would ask myself if I were in your shoes if the new job would be just as secure if not more than the current? Also, since you will not be managing people Im guessing the stress of the work would go down?

My current commute is 45 minutes and I dont drive a car. I walk 1 mile to a metro which takes approx 20 min. And the metro ride takes 20 min. Walk to my building is 5 min. I dont mind it one bit.

I used to drive 9 miles to the same place...also took 45 min to 1 hour (I have to work 8:30am to 5:00pm.) Tons of traffic, crazy drivers. It would be really hard for me to take a job that pays 20k more per year if Id have to drive that again. I dont think the stress would be worth it personally. A lot of people dont mind sitting in traffic...I wasnt one of those people unfortunately.

[annibe11e]

I agree that the per mile should be less. Your tax rate seems a bit high as well, but I don't know your situation.

I think this really comes down to whether or not it's worth it to you. Personal finance is about a lot more than just numbers.

[BMEPhDinCO]

Look at it from a retirement aspect - that is an extra $10-11k per year. (I agree mileage is estimated too high, I spend around $150 a month in gas and commute 56 miles daily... even if you up to $200 a month, that's still only $1,200 a year.)

So if you put that into a Roth (if eligible), a 401k (if offered), or an IRA or some combination, and then kept doing it for 15 years, you'd have $226,000 at 5% (very conservative) - would that help you meet other goals sooner? (I gave you an extra $1k per year for fun spending too, that was $10k into retirement).

I also agree it's about the conditions of the commute - roads, traffic, other drivers, weather... if they are all ok for you, then I'd probably do it if I were you.

[Reggie]

I max out my 401k so I can't shelter anymore in that regard. I do not qualify for a ROTH but I can backdoor it.

The road conditions should be fine. It's interstate driving. We get about 1-3 days a year that you just stay home due to snow, but seldom more than that.

[jIM_Ohio]

Live where you play and drive to work. Job are temporary.

[Reggie]

I'm thinking of taking the job and just saving all of the extra cash. Maybe I will be able to retire at 50.

What I need are some good tax shelters. Taxes are KILLING me.