Quitting: Is It Worth It?
Here’s a guide to help you consider the obvious financial effects of quitting a decent job or moving to part-time status, as well as some intangibles to think about. Naturally, these must be adjusted to each personal situation.
Lost income: To figure the total cash value of your job, add up the obvious lost income, generally your gross salary, company share of retirement savings and replacement cost of any needed benefits.
Intangible lost income: If you have a substantial expense account that often covers your meals, or your job includes lunch, social events or other freebies, figure out how much of those perks you will still want or need--and add that to your total.
New savings: Subtract the expenses you won’t have anymore: taxes, work-related clothing, dry-cleaning and transportation costs, child care and any household services you will assume once you are home. Charitable cash contributions you plan to replace with volunteerism should be subtracted as well.
Sources of savings of a more general kind are easier if you have more time than money: Having one less car for the household makes a big difference. Smaller items can add up: nurturing small plants instead of buying them in bloom, clipping coupons, making gifts and so on.
Intangible new savings: Subtract expenses that will be less important when you are not working: meals for your entire household at a restaurant because you were working late, gadgets or vacations you occasionally give yourself as a “reward” for working hard, extra toys given to the kids out of guilt, any routine therapeutic expenses you might be able to reduce or eliminate (massages or wine, for example).
New expenses: Finally, add expenses resulting from the fact that you have more free time. Activities for the kids might be more expensive if you are in charge. If your extra time is without children, you may find yourself spending more money on a variety of leisure activities--from movies to travel--that were kept to a minimum while you were working.
