If you are considering entering or re-entering the work force, it’s important to determine not only what kind of work you want to do, but also your salary requirements. You don’t want to pursue or accept a job you can’t afford. To figure out whether or not you can afford the job, you need to make a budget.
          Because a budget shows how much money is going out as well as what is coming in, it can help you determine how much money you must earn to make your job financially worthwhile. Knowing what your additional expenses might be if you return to work will help you determine the minimum pay you must earn. Some of these additional expenses are listed below.

Household Help
          What tasks do you do now that you will have to hire someone else to do when you’re at work? Some examples could be childcare, housecleaning, and yard work.

Transportation
          If you would take a car to work, figure the cost of gas, extra car maintenance, and parking. If you’d have to buy a car, add that cost as well as additional insurance. If you take public transportation, how much is a monthly bus pass or commuter transportation?

Wardrobe
          Would you have to buy new clothes for your job or do you already have suitable clothing? If you have been wearing jeans and t-shirts or sweats and are going to be working in a professional office environment, you might need a new wardrobe, right down to the shoes and accessories. If the job requires a uniform or certain kinds of clothing, is that furnished, or do you need to pay for it yourself? Remember cleaning costs when estimating the cost of clothing.

Tools and Equipment
          Consider every tool you might need, from a laptop to a hard hat. If you don’t already own these, will the employer provide them if they are required for the job or will you have to purchase them?

Education
          Are there special courses you need to take for the job? Does the employer pay for this education or do you have to pay for it? What about testing and licensing fees? Who pays for them?

Socializing
       Do you perceive that you will be expected to go out to lunch with the gang every Friday? Have drinks after work? Do the employees celebrate birthdays, wedding showers, and baby showers? Are you expected to participate on a sports team and will that require certain equipment or regular expenses? What about solicitations from co-workers to buy products their children are selling for school fundraisers or other organizations?

Taxes and Any Other Required Payroll Deductions
       Estimate the amount that will be withheld per month for state and federal income taxes, FICA and Medicare contributions, any insurance, and mandatory retirement contributions.

1.   Add all the totals from the categories for a total amount per month. That is what the estimated cost of your new job could be (see sidebar below).
2.   Subtract the cost of the job per month from the expected salary or amount offered per month. Be sure to evaluate any changes in both the cost and benefit of insurance coverage, especially if your new employer will pay part of the cost.
3.   The amount should be positive. This figure is the amount of your actual increase in earnings. Is that number high enough to make this change in your life? Can you contribute significantly to your household’s income by returning to work?
       If you are the only income provider, you have no choice. If this is the case, be sure your income will be sufficient to cover all your regularly monthly expenses, which include fixed expenses such as mortgage or rent and things like car payments. Don’t forget variable expenses such as utilities, food, and entertainment, which differ every month.
       It’s important to know what you have to earn before you seek employment so you don’t waste your time with employment that doesn’t pay enough. A budget is a useful tool to help you make wise, informed decisions about any job offer.

Pamela Kleibrink Thompson is a recruiter and career coach. As a career coach, she helps clients with job search strategies and career transitions. She can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it