Wednesday, January 19, 2011

How Much Do You Pay To Work?

It may sound like a strange question but we all accept some expenses in order to stay employable & employed. Perhaps it's a trip to the hairdresser so that our bosses can see our eyes while we're talking to them, or a new pair of chinos which aren't frayed around the heel. They're often grudge expenses because we're spending money just so that we can earn some, in order to live. I guess that an extreme example would be someone who spends everything he/she earns (or more) on stuff which helps him keep his job. It's easy to imagine a minimum-wage cleaner who almost spends a day's wage on a day's transportation. It's a sad picture, but one which you'll spot in the middle and upper class of our society too. You would expect that people, generally, would do everything possible to reduce the costs of work so that the nett benefits of work are more obvious.

So, let's focus on one aspect. What do you pay to get to your job? If you live somewhere with a comprehensive public transport infrastructure, your cost of remaining employed will be your bus fare or your underground access. It's money you pay in order to work. If you own a car in such a city it may be because your car was more than a pragmatic decision. If you live in a big city without a comprehensive public transport system, your car is a necessity. You own it because you need to get to work. It's also handy for getting to Sunday lunch at the folks, but let's focus on work because that's presumably why you live in the city.

Almost daily, because I live in a city without a comprehensive public transport system and own a car as a result, I find myself in some level of gridlock. Sitting dead still. Sometimes it's alongside a purring sports car. I obviously appreciate it, usually switching off my radio and winding down my window just so that I can hear it. And then my brain kicks in, and I want to ask the driver "How much are you paying to be sitting dead still, right now?" The truth is that it's a fair question. There is a significant block of time, daily, where the sports car driver and myself are in near-identical situations. Imagine yourself & a small group of middle class professionals on that bus to work, just trying to get to work. And imagine one guy choosing an expensive, exclusive & slightly more comfortable seat at the back of the bus. Imagine he's paying ten times what you're paying as you both make your way to the office, on the same bus. I have no doubt that his ride is more comfortable and he is enjoying being alive more than you for that period, but he's basically working in order to finance his quiet yet conspicuous mirth.

We've all seen the young guy who gets the new job followed by the new car. You could almost feel sorry for the young guy because his trip to work just got more expensive, and he's hardly bringing home any more cash than he was when he drove a reliable rattle-trap, but then you realise he did it to himself. We're all just trying to get to the place which pays us, and as economically as possible, aren't we?

No, of course we're not. We've been talking about pragmatic purchase decisions and not emotional ones. We all value different stuff and are willing to throw money at that stuff. When I make a pragmatic transport decision, it just needs to get me there safely & efficiently. It's a means to an end. When I make an emotional transport decision, the fact that it gets me there is almost secondary. I am investing in my status and supporting an affinity of mine. We all make both kinds of decisions all the time. I may make pragmatic decisions when it comes to cars (or umbrellas), but may make affinity-based decisions on cameras or computers. All decisions sit on this continuum.

I guess the point is that we need to be aware of & comfortable with what we're throwing money at. There's something for everyone here. If you're a pragmatic A-to-Ber then you probably drive something sensible. Try to avoid coveting that which you see on your trip in everyday, and tell yourself that you've made financial calls which will benefit you more in the long term. Your time will come to splash out a bit. If you're driving a flash ride then don't get grumpy about what it's costing you, because it's probably not the fault of your job or employer.

At the end of the day we're all just trying to get to work, and back again.