You work to get paid, but you end up paying more! Discover the hidden costs of working and tips to keep your job expenses down.
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Ever feel like your job is like a sneaky pickpocket, quietly draining your hard-earned cash? Sure, we all need to work to pay the bills, but sometimes, it seems like our jobs come with hidden costs that make us wonder if we’re actually getting ahead.
Working less but paying out more
Over the past 150 years, the average number of working hours per week has dropped. In the late 19th century, people worked over 60 hours a week, but today, the average is much lower, especially in developed countries.
Although we’re working fewer hours, many people still struggle to meet basic needs due to regional cost differences and other hidden expenses. According to the Joseph Rowntree Foundation, a single person needs at least £29,500 annually to achieve a decent standard of living, while a couple with two children needs around £50,000.
Your job is costing you more
- Using the wrong job title on insurance: Mislabeling your job can make you pay higher premiums. For instance, a “fast food delivery driver” might pay £200 more annually than a “courier” due to risk differences.
- High commuting costs: Fuel, train tickets, or bus fares can drain your finances. Commuting by train in London can cost around £118.48 per month. Over a year, that’s over £7,000 just to get to work! Even in Leeds, where it’s cheaper, you’ll be paying out over £2,000 a year.
- Buying your own stationery: Teachers and other professionals often spend their own money on supplies. These costs can add up to £1,000 annually, eating into your salary.
- Workplace social costs: Contributing to coffee funds, birthday gifts, and holiday parties might seem small, but they can quietly drain your wallet by a few hundred over the year. Those office whip-rounds add up!
- Unnecessary memberships: Membership fees for professional bodies can cost £250 annually. While they promise networking and career growth, not all memberships provide enough value to justify the costs.
- Looking good: Jobs expecting a polished look can come with hefty (although potentially optional) expenses. Regular haircuts, manicures, and professional clothing can cost around £500 annually. Looking sharp isn’t cheap!
What can you do?
To manage these hidden costs, start by looking at all job-related expenses. This will give you a clear picture of how much your job is costing you.
Can you get money back for any travel, office supplies, or professional development?
Your employer might help with some of the costs. Some employers offer to buy season tickets in advance, and you pay the back money over a year to reduce the commute’s cost. If you need certain things for work, like having to wash your uniforms or needing to be a member of a professional body, you can claim tax relief. Hey, it’s not a lot, but it’s some free money.
By being aware of these hidden costs, you can ensure your job supports your financial well-being rather than quietly draining it.
Naomi knows the burden of living on very little and became debt free by following her own money saving tips and tricks. She is an expert on saving money at the supermarket and side hustles.
