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Potential savings at the new job

May 16th, 2013 at 06:00 pm

So my monthly gross at the new job will be $5893. The net should be around $4,225, based on an online net pay calculator I used.

My monthly gas, car insurance and CT car tax will all work to increase my monthly expenses, but I figure my minimum monthly expenses should stick to around $2,000, give or take. That means my potential monthly savings could range from between $1500 and $2,225 a month, or between $18,000 and $26,700 a year.

I donít know if the recruiter agency offers a tax-deferred 401k-type plan. If they do, Iíll contribute, but only if itís tax-deferred. Otherwise, I could contribute a bit more to my SEP-IRA, which I havenít always funded these past few years cus I had no money to spare. Any additional savings will have to be taxable savings.

Disciplined as I am, I know Iíll feel a strong urge to loosen the purse strings after my long, self-enforced penny pincher ways. I mean, look at me, Iím already talking about buying a new car! Well, that was needed anyway, and all I did was push up the purchase by 5 months or so since I was planning on buying late in the year. I also need to get a bunch of new clothes. Itís business casual, thank goodness, but Iíve been working in my jammies for too long. And then thereís a long list of deferred maintenance around this place to think of.

I want to try to keep doing my freelance writing. I really have only one steady client who gives me the bulk of my work on a regular basis; they are pretty flexible with their deadlines and so if I can do their work on the occasional weekend,that would probably work.

Recruiter did say they offer a health plan to contract workers, but thereís a waiting period. Depending on how long the wait period and how much it costs, I might switch to it. Right now, Iím paying $562 a month for Cobra, but that ends June 30. Then Iíll have to go on the state plan, the plan of last resort for low income unemployed people or people who canít otherwise get health insurance. That plan costs $589 a month although the copays and deductible are a bit lower than what I pay now. If the recruiter plan is significantly better, Iíll switch, but if not, I only need to stay on SOME plan til the end of the year, because in 2014 I can buy health insurance on the open market regardless of where I work and God willing, itís more affordable than any of my choices now.

Just as I was writing my last post I was able to finalize an agreement to meet with recruiter Monday night at 8 pm in a town thatís about an half hour drive from home. Heís coming from work in NYC to meet me with all the paperwork and forms I have to fill out. Once I do that and have everything in writing, then I will give notice to my p/t employer, probably via email to 2 people late Monday night. While I will give them ONE weekís notice, Iím really hoping not to have to do that at all since theyíre rather slow right now and I need the extra time to buy the new car, buy new clothes and get ready. But I would feel like a cad if I didnít give them some notice, even if it is a p/t job that pays $12/hr.

In hindsight, it was really helpful and fortuitous that I happened to know the recruiter for this job very well. This was the guy who I worked side by side with for nearly 2 years when we were both writers at the same company in 2008-2009. We were about as close as 2 co-workers could be, and even sat right next to each other. I wasnít consciously thinking of this when I was negotiating the pay rate, but I know him to be the kind of guy who doesnít enjoy negotiating things and I sensed his strong desire and maybe some anxiety to wrap up the whole job deal today/tonight. My hunch was right, becus after I accepted verbally, he told me he was flying out of state to do something with his daughter and I guess will be gone over the weekend. So he probably really wanted to close this deal to secure his commission, especially as heíd also mentioned he had gotten this employer in the door, and it was the first time heíd done that. So this would be a coup for him, I would think. Iím glad I stuck to my guns and didnít just accept the lowered pay rate without fighting for what I wanted. Thatís something I would have done years ago but I learned the hard wayÖ.and I repeat, the very hard way, that you need to be your own best advocate at times like these, and vague assurances of other benefits down the road, which is what he was giving me, really mean nothing if you donít have it in hand.

7 Responses to “Potential savings at the new job”

  1. CB in the City Says:

    How is a plan that costs $589 for low-income people? I certainly couldn't afford that.

  2. Thrifty Ray Says:

    So happy to read that you have a new job!! yay!

  3. snafu Says:

    Congratulations on being the successful candidate. Having a history with the recruiter as a colleague reconfirms what HR Managers say about the importance of personal networks. It's that tiny bit extra. Do you feel your current auto is incapable of the daily commute for a few weeks? You have expressed concern about the pithy writing style needed and therefore I advocate caution for big ticket items. Is there any option for public transportation or ride-share? New cars are at their highest price just now and make, model need significant research and new owner opinions.

    This is the time of year when consignment and Goodwill type shops have their highest inventory. Could you be persuaded to have a quick check of these outlet for your 1st office casual replenishment? What do your colleagues in that particular setting wear? I've worked in environments where brand names were a pigeonhole factor in the upward/preferred track just as ethnicity was used in my grandmother's day.

    Just some thought in an effort to be helpful...

  4. MonkeyMama Says:

    I Was also thinking some Goodwill shopping on the clothes... Good point snafu.

    I also think a brand new car is a money drain, BUT, I also think PS can easily afford it, so feel kind of "meh" about it. I think the used car considerations are worth thinking over though, as savings can be quite substantial if you just pick up a year-old car. A tip: Ask if there are any last year's models on the lot that are brand new. I have a couple of friends who picked up those deals during spring - so this might be the time of year to ask. We bought both our current cars in April/May and they were steals (1-year-old vehicles). But if you are set on a new car then last year's model will be your best deal. I haven't car shopped in 7 years, but 7 years ago most people were too good for "last year's model." Fair enough that people might be less picky in this economy. But is still worth asking.

  5. CB in the City Says:

    If you have to buy a bunch of clothes, I'd recommend a resale shop run first -- pick up the "gems" and then complete the outfits at regular retail stores. I'll bet you have some good resale shops in your tony area. I have found that Goodwill is a great place for scarves and jewelry, which can help dress up and expand the wardrobe.

    I also second the year-old car idea. The depreciation in just one year is amazing.

  6. cheapiepoo Says:

    Thrilled to see that you landed the job! Congratulations! I've been following you for a long time now - lurking. I feel your pain on the commute. I used to drive over an hour each way to work for 10 years. My husband has had to do the same thing. It does take its toll on you after a while. However, getting back to full time work is huge. Once you get your foot in the door, you may be able to negotiate some work from home time or staggered work hours to avoid the traffic. And good for you for negotiating a higher salary. You should negotiate. Never, ever under-sell yourself. So, happy for you...

  7. My English Castle Says:

    Ha! You need to go to the Goodwill with CB!

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