Hi Money Minder,
I’ve been through a rough patch lately. Left a bad relationship, lost my job, blew through my savings, and racked up $5,000 in credit card debt. Yikes! But hey, now I’ve landed a new gig making $2,700 less than before. It’s not perfect, but at least it’s flexible and remote most of the time.
Now, I have this opportunity to switch to a state job that pays $6,500 more than what I’m making now. The catch? I’d have to chip in 4.5% of each paycheck for retirement (I’ve got zero saved up so far). The pension would only be about $400 a month after 6 years of service, plus health insurance would come out of my check (currently it’s covered). The downside? A 1.5-hour bus ride to work in the snow every day – no more easy driving like my current job.
The real kicker with the state job is that they don’t pay for 4-6 weeks. Hello, waiting game! And once you leave, you have to wait another 4-6 weeks for your final paycheck. That’s a lot of waiting and a lot of debt piling up on my credit card.
I’m juggling job applications to snag a part-time gig and trying to pay down this credit card nightmare. Before all this chaos, I was debt-free and socking away savings like a champ. Now, the idea of having no savings terrifies me.
But here’s the thing: sticking around for 10 years with the state means lifetime health insurance and a pension building up after just 5 years. Pretty darn tempting, right? But I also want to move out of this snowy state in 6 years. Staying for the full 10 just for health insurance seems like a stretch for my poor snow-hating self.
So, Money Minder, what do you think? What’s the best move for my short-term survival and long-term future? I’m all ears!
Take care,
Winter-Weary Wanderer
Response from THE MONEY MINDER:
Hello There,
I’m truly sorry to hear about the challenges you’ve faced recently. It sounds like you’ve been through a lot, but it’s commendable that you’re looking ahead and seeking advice on how to move forward. In this situation, it’s essential to take a realistic and practical approach to ensure your short and long-term survival.
Considering your current financial strain and the additional debt you’d incur during the transition to a state job, it might be wise to carefully evaluate the potential risks and benefits. While the prospect of lifetime health insurance and a pension after 5 years at the state job is appealing, it’s important to weigh these benefits against the immediate financial strain you’d experience without pay for 4-6 weeks and the added credit card debt.
Your mental and physical health should also be a top priority. If the daily 1.5-hour bus commute in the snow would significantly impact your well-being, it’s crucial to factor this into your decision-making process. Furthermore, your plans to leave the state in 6 years may influence your decision, as committing to 10 years solely for the lifetime health insurance might not align with your long-term goals.
Exploring other job opportunities within or outside the state government sector could provide more options that better align with your current situation and future plans. Additionally, considering part-time work to supplement your income and gradually pay off your credit card debt could help alleviate some financial pressure.
It’s clear that you’re navigating a challenging time, but by carefully assessing your options, prioritizing your health and well-being, and making strategic decisions to address your financial situation, you can work towards a more stable and secure future.
THE MONEY MINDER
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