Today's post might come as a surprise to regular readers. Usually I like to write about finding ways to save money or earn more money. Today I'm breaking from that to discuss the idea of earning less money.
As much as we like to focus on our goals of paying off the mortgage and saving for retirement it's good to pause every now and then remember why we are working so hard. Personally, George and I are doing it for future enjoyment of life. We don't want to be 60 and still struggling to make a mortgage payment and dealing with all the stress of feeling like we can never retire. We also don't want to find ourselves in the dreaded circumstance of being in poor health and yet feeling forced to work a full time job just to make ends meet. It makes sense for us to put in the effort now, while we are younger so we can have a little more freedom in our latter years.
While it's a high priority for to us to plan for our future, we do not want to sacrifice today in order to do so.
Yesterday my husband's annual social security statement arrived. If you've never seen a social security statement before, it's a neat thing. The statement shows you how much you've earned so far in your working life, how much you are eligible to receive in social security benefits under various circumstances. You can even add up all the years' worth of income to find out how close you are to earning a million dollars (um, we have a way to go : )
As I was looking over my husband's statement, I paused to reflect upon the income he earned each year and what life was like for him at that stage of his life. In the mid 70's when he was a teenager, the nearly $300 he earned must have seemed like a fortune. George has recounted fond memories of buying a lot of records and going to a lot of concerts. Life didn't entail many grown up worries. Little money, but a lot of happiness.
You can cleary see the year he graduated high school and got a full time job. He said for the time, the pay was very good for just out of high school -- he said he would've made much less had he started working for General Motors. (Many young men his age went straight to work at the GM plants right after high school). They were not known as Generous Motors back then, so he went with the job that paid more. During his young adult years, my husband took on responsibilities of car ownership, rent, utilities, groceries, insurance, etc. Many more adult worries at that point, the income grew to catch up to this adult responsibilites.
And then we fast forward to more recent years. In particular, the years he worked for the railroad. George really enjoyed the work he did for the railroad. Those years were the best years he's ever had income-wise. But, the one big drawback was that his time was not his own. The railroad essentially controls your entire life -- you are on call 24hrs a days with short breaks to allow for sleep, which you also have to use to manage your life, so there's very little time left for sleeping. You can pretty much count on not getting a day off unless you die the first 10 years of employment. In return for your life the railroad pays you fabulously. What good is all that money when you don't have a life? George eventually quit this postion, because he found that there was just no way he could live on a schedule like that. Those years were filled with lot's of money, but lots of stress. So not worth it.
A few years later found George in postion of heading up the maintenace and facilites for an ever growing real estate concern. Eventually this postion got to the point where he was on call 24 hours a day and found that he was essentially working a whole other job after putting in a long hard day. This company paid fairly well, but when you figure it was 40 hour pay for 80 hour work -- it doesn't look so good. It was another case of George enjoying the work tremendously, he just didn't want to spend every waking hour doing it. Lesson learned -- money is not worth giving up your life.
All of this finally culminated in George starting his own business a few years ago. As an entreprenure, he is still "on call" 24 hours a day, but so far it hasn't developed into getting those middle of the night calls like he used to. It's been a great experience for him to have more control over his time and to cut his workload down to just full time. After various business tax deductions and the home office deduction, George ends the year with less reportable income than when he worked for someone else. But the major difference is that he now has the opportunity to have a little time to enjoy himself. What a blessing that is for us both.
Work is a good thing, and we should all do our fair share of it, but there comes a point where it's easy to cross the line and focus too much on work, at the expense of our physical and mental health and our families. For us it's better to earn less and enjoy our lives more.