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Save Money 9 to 5

In the business world, analysts compare profit and cost to look for ways to improve the bottom line. For example, a retail store will know how much an item sells for, but they will also understand the cost of that sale – how much they purchased the item for, how much the sales person is being paid, how much running the store costs, and so on. They may never be able to sell a shirt for more, but they often lower the cost of the sale in order to make their profit margin larger.

Can you improve your profit margin? Absolutely, and it may be easier than you think.

Your profit is the amount that you are compensated for your work and just like a retail store, you have a cost associated with that profit. Here are some common costs of working, and ways that you can reduce the cost to improve your profit margin.

1. Eating.
When you work all day, you must find time to eat. For most people, there is a cost associated with eating at work. The easiest way to reduce this cost is to bring food from home rather than purchasing it each day. To analyze your cost of eating, think about a common week and write down all of the food and beverages that you buy. Be sure to include everything that you purchase to bring to work or that you purchase while at work. Now consider ways to reduce those costs. Purchase common items in bulk at the start of the week and find less expensive alternatives.

2. Dressing.
You must wear something to work. This associated cost will vary widely from job to job and you can analyze it by looking at your wardrobe and making a list of all work clothes. If you have some items that you wear both at work and outside of it, then put a percentage of the cost (for example, if you wear a skirt one day a month to work, and four days a month outside of work, then 20% of the skirts cost is a work-associated cost). You should also consider the care of those wardrobe items such as tailoring and cleaning. How can you reduce these costs? Reduce the number of work items that you purchase by buying more items that are neutral that can be mixed, favour items that don’t require costly care, and look for things that can be worn both at work and in your general life.

3. Transportation.
How much does it cost for you to go and back and forth from work? Consider the cost of your vehicle, including energy and maintenance. Could you save money by purchasing a different type of vehicle, by sharing a ride with someone else, or by taking a public form of transit?

4. Unpaid Hours.
Some people are able to leave their work at the door, while others tend to think about work well into the evening and may even bring work home with them. Consider how much time you spend thinking about work or performing work related tasks outside of your paid hours. Assigning a value to this can be difficult, but in general, you could consider each unpaid hour as costing you the same as what you average in hourly pay. This is a tricky work-cost to manage, especially in high stress fields. Some times, just being aware of the cost can help you reduce it.

What is your outcome? How much does working cost you each year? Were you surprised by the outcome? Most people are. Remember that your yearly profits are worth protecting so be smart about your work costs and increase the amount of money that you keep each year!