#Overtime #FinancialDecisions #WorkLifeBalance
Hey there! So, I’ve got a bit of a conundrum that I think many of you might relate to. My job offers straight-pay overtime, meaning there’s a real chance to bring home extra cash. While a lot of my coworkers are diving headfirst into those long hours—working around 60 to 70 hours a week—I’ve decided that 50 hours is my sweet spot. And honestly, I’m okay with it! Of course, that doesn’t stop my colleagues from giving me an earful about “leaving money on the table.” 😅
They argue that since I’m still in my 30s, now’s the prime time to stack up that cash to boost my 401(k), max out my Roth IRA, and pay off my mortgage faster. But here’s the thing: I value my time, and I usually use my extra income for vacations and making that extra mortgage payment each year. I’m putting in a solid 7% for my 401(k) match, but let’s be real—it’s nowhere near the maximum. Aside from my mortgage, I don’t have any other debts.
So, are my coworkers onto something? 🤔 Should I be hustling for those additional hours to ramp up my wealth-building efforts? Or will I look back and feel satisfied knowing I prioritized my time instead of a fatter paycheck? Here are a few considerations:
- Quality of Life: Working extra hours may boost your savings, but it can also lead to burnout and stress. Is that really worth it?
- Work-Life Balance: Finding the right balance is key. You don’t want to look back in 10 years and realize you missed out on life experiences.
- Financial Goals: Consider what you’re saving for. Is the current approach aligned with your future goals, or do you need to adjust your strategy?
At the end of the day, the financial landscape can be overwhelming, and it’s easy to feel pressured by those around you. 💸 It’s important to remember that everyone’s journey is different!
What do you think? Have you faced a similar situation? How do you decide when to work hard for that extra dollar or step back to enjoy your life? I’d love to hear your tips and experiences! 😊
> Are they right
Technically. Sure. But all work and no play make Homer go something something.
I mean you could work 70 weeks and then also get a job for weekends.
But as someone who worked 80-90 hours in a week? It’s soul crushing.
What’s all that wealth good for if you’ve spent your whole life working and have nothing else?
You can always get more money. You can’t buy time though. You only get so much.
Are you saying that you get the same pay rate for over time as you do up to 40 hours? If so I wouldn’t be busting my ass working overtime for straight time pay like your coworkers. Time and a half on the other hand would make me consider it. But you still have to think about a work/life balance. 70 hour weeks consistently is rough, but every now and then it’s not too bad.
The utility of money is not I identical or linear. If I was you I would design a future I want and work towards that goal. Is a super new truck worth working 8 hours more a month? Who knows that is your call. Is working 8 hours more a month worth being able to retire 2 years early? who knows that is your call.
There is so much more to life than work. They are so, so wrong. Don’t get lured in, it’s such a trap. Work to live, don’t live to work. Once you make a certain amount in overtime, you’ll get used to making that much and won’t be able to let yourself go back to a reasonable amount of hours. 50 is already a lot. 40 is already a lot! Let yourself have a life outside of work and just do what you can savings/retirement wise.
Work life balance my friend, you understand this concept. Your colleagues are probably going to get burnt out and are probably miserable.
Good on you for setting a boundary for yourself. Maybe every once in a while you can work a 60 hour week if you wanted, but don’t let them pressure you.
Many years ago I worked as a software engineer for hourly pay with straight overtime. I worked 80 hour weeks, learned a lot and saved up to go on a 3 month long round the world trip. The savings from those 9 months paid for the down payment on my first home.
it’s completely up to you.
Do you want more money?
Do you want more work?
Does your projected financial picture make you happy?
I will say, you should probably work enough to fully capture any matching funds offered!
I’ll say it this way, as you get older the desire to work more gets less and the want to retire gets more. I wish I had same more for retirement but it’s definitely a balance between everything.
You can’t take that money with you to the afterlife.
If you’re satisfied with your income, and your needs and goals are being met, then keep doing what you’re doing.
Sure, these folks might be able to retire a bit earlier. If they make it. 70 hour weeks sounds awful and the added stress can’t be healthy.
I’d rather leave money on the table than leave my life on the table.
Life is a quite an interesting thing. We could leave this earth in 40 years or we could leave it tomorrow. Nothing is guaranteed. Money is necessary but isn’t everything. Your mental state, well-being, and health are much more important. My first first job when I moved to Dallas was working in a department store. One of my top clients was a doctor that had several practices. He was absolutely loaded but spent most of his career working crazy hours. He prioritized that over his marriage, his children, and health. In the end, he lost the first two and on the third was diagnosed with ALS. He told me if he could go back, he would have made more time for himself and his family. If you really want to make more money, there is always the option of switching to another employer for better pay/benefits and keeping the same amount of hours. You can’t stay at the same job forever these days anyway with the way companies/employers work.
There is more to life than work. I think you are smart to work no more than 50 hours (already a lot), but it’s nice to know you could do extra if you need money for something. I’ve had friends who were workaholics and it can lead to very little personal life, also stress, burnout and health issues. Also, if you start working more your boss and colleagues might start to expect it. You could do some projections to see how much you can save with your current retirement amounts to see if you are on track. I also think that when you work more, it can lead to spending more on things like meals out, paying someone to mow the lawn or clean the house, etc.
Are you happy? Do you have money for the things you want in life while also making good financial decisions for the future?
If so, then who needs to extra stress and hassle. To work 60 hour work weeks you’re either working 12 hour days or working 6 days a week or more. For me, that’s not worth it. I need a life outside of work or I’d be burned out. I work in a profession where 55-65 hour weeks are the norm for 2.5 months of the year and I’m willing to deal with it for the perks of the job, but I’d never be able to do it year round.
If you’re comfortable, then be comfortable. Now, if you’re living paycheck to paycheck and not funding any sort of retirement/401k program, then maybe you might need to reconsider.
That extra 10 hours per week isn’t life changing money. Maybe you retire a year or two earlier, maybe you drive a slightly nicer car or live in a slightly nicer house or go on an extra vacation per year, but it’s not like you’re giving up generational wealth and retiring at 50 by not working a little extra now.
Research the FLSA and your state labor laws. It is rare that overtime hours are paid at an employee’s regular hourly rate. There are various schemes but straight pay for overtime is not one of them. Worth time to research.
You do what you want with your time and ignore them. Are they stacking faster than you? Maybe, if they are responsible like you are. But who cares? Enjoy your life the way you want to.
If you are worried, you can compromise and up your 401k a little bit maybe but still enjoy your vacations.
What’s the interest rate on your mortgage? I’d be maxing my 401k before anything else, that has made the biggest difference in our wealth building journey. Take advantage of every tax sheltered opportunity you have!
Work life balance is much more important than selling your soul to a company for 60+ hours a week.
I think you got great answers here boiling down to: it’s your life.
However, I do want to point one thing out, what is your mortgage rate? Making an extra mortgage payment each year but not maxing 401k is a bit of an alarm bell in your 30s. Unless you got your mortgage last year…
Are they right? There’s no right or wrong answer. It’s an opinion.
My opinion is that I’m not decreasing my quality of life and putting myself in an early grave by working more than 35 hours a week at regular pay. I’d rather invest that time into something else.
In a way they are right, you are leaving money on the table, but at what cost to them being able to enjoy their life. In your case you are choosing to enjoy your life with better work life balance. Although it is always nice to have more money, it sounds like you don’t “need” it so continue what you are doing and if you have a week here and there you can pick up a few extra hours on occasion when it makes sense for you.
I had a job where I didn’t work a lot of extra hours because I wanted to have a life and enjoy time with my family and friends. I still earned enough to pay all my bills and save for retirement.
Be thankful you can choose how much OT to work. I have a friend that is in a job that requires mandatory OT certain times throughout the year. It’s better for her ability to pay bills but she complains about how little time she has for herself. Plus it’s a physical job and the OT is physically taxing.
My suggestion is to sit down with a pen and paper and figure put how much you’ll make with how much overtime and what you would do with the extra money. Do you need/ want something? Are you having trouble with bills? Want to pay something to off early? Want an extra thousand or two in the 401k this year? A little extra into the mortgage? Think about it and sit on it, make a plan so if/when you do make the money it’s not blown on extra spending. I work 40 hours a week, a little bit extra because I get there early and stay a little late but Im salary so overtime means nothing to me. I have a wife and kids that need my time. I have a paid off house and two paid off cars I fund a 401k, two savings accounts and two investment accounts. I go on 3-4 vacations and sometimes 1-2 week vacations a few times a year. My next big financial focuses are house renovations and retirement. I have a 20 year old excel spreadsheet for my finances that I update virtually every day that I use to plan and strategize my money.
I’d say it depends on how long you’ve been there.
For a young individual willing to learn: stay there for at least a year. Gain some experience. Apply for other jobs.
For late 20’s, early 30’s: maybe cut down to what pays the bills but fish for a different job or even a higher paying one that will get the same money for less time.
Don’t work yourself into the grave.
I’d like to ask you about your hobbies, what you enjoy doing with your free time, and at what point you start becoming unhappy with life after X amount of your time is consumed by work. Do you take care of yourself by going to the gym, jogging, or engage in other exercise activities like mountain biking, hiking or surfing? At your current work level can you afford your hobbies, both monetarily and time wise, and do you get to get out and engage in them? You have….what 25-30 years before retirement. That means you got that amount of time to pay off your house and squirrel away money into your retirement accounts. Or you could become one of those balding 50 year old dudes with a fat rounding stomach, an enlarged prostate and is pre diabetic who has no hobbies or life outside of bullshitting with the colleagues during break times all because he spends all his time working…..just gotta crank out those 70-80 hour work weeks and get that overtime.
You decide what works best for you.
If I were you, I would be doing 60-70 hours a week. I don’t have kids yet. I might as well be building my wealth while I can.
However, I would also take vacation and my weekends off.