Starting a new job or returning to the workforce can be an exciting opportunity. Whether you’ve been out of work for a while, changing careers, or reentering after raising a family, going to work often comes with real costs. These costs may catch you off guard if you don’t plan ahead. From daily commuting to wardrobe upgrades and childcare, the transition can take a toll on your finances.
In this guide, we’ll break down the top five expenses you should plan for when returning to work and highlight other hidden costs that may affect your financial well-being.
When you re-enter the workforce, you’ll likely earn more money, but that doesn’t mean you’ll instantly save money. In fact, your monthly expenses may rise. That’s why it’s important to consider both hard costs and soft costs associated with becoming a new employee again. Hard costs are direct, like buying a monthly transit pass, while soft costs include your time, energy, and adjustments to your household routine.
Most people think recruitment costs only apply to businesses hiring workers, but jobseekers often face expenses too. When preparing to land a new job, you may need to:
You might also invest in upskilling or professional development courses to stay competitive. While these out-of-pocket costs are usually short-term, they can add up quickly, especially for smaller companies that require candidates to front more of the hiring expenses.
If you’re unsure whether you’re financially ready to rejoin the workforce, download our free booklet, “Surviving a Job Loss or Reduced Income”, for helpful budgeting strategies and planning tools.
These costs are one of the biggest changes in your expenses when you return to an in-person job. Even a short commute can include:
Be sure to calculate these work-related expenses ahead of time. If you’re using your car more frequently, your car expenses could grow. For those considering relocation, add moving costs to your overall job-related spending plan.
Using a budgeting worksheet can help you calculate your monthly commuting expenses and decide whether public transportation, carpooling, or driving solo is the most cost-effective choice.
One of the biggest barriers to returning to work is finding affordable and reliable childcare. If your previous routine involved staying at home, going to work will likely require paid care, after-school programs, or coordination with a partner or relative.
Here are some typical childcare-related costs:
Even if your children are older, you may need to plan for eldercare, dog walking, or other responsibilities you can no longer manage during work hours. These indirect costs may not seem obvious at first, but they’re very real and often impact your schedule and take-home pay.
For tips on managing essential expenses, check out our guide to prioritizing your monthly bills.
Depending on your job title or industry, you may need to invest in professional clothing, safety gear, or home office supplies. Even if you’re working remotely, being a new hire could require purchases like:
If your employer does not offer reimbursement for these job related expenses, it becomes your responsibility. These real costs can sneak up on you in the first month of work. Always ask about benefits like clothing stipends or tech allowances before starting a new position.
When you work outside the home, you’re more likely to spend money on convenience. Eating out during lunch breaks, grabbing coffee on the way in, or ordering takeout after a long day can chip away at your finances. While these don’t seem like big expenses day-to-day, they add up over time.
Here’s how to rein in these expenses:
Rebuilding healthy spending habits as part of your transition can reduce these hidden costs. Learn more tips from our article on how to meal prep on a budget.
The total cost of returning to work includes more than just commuting or clothes. It’s the combination of direct and indirect costs that affects your monthly spending plan. These can include:
Each of these costs affects your take-home pay and financial health. Consider building a savings plan before returning to the workforce, even if it’s just a small emergency fund to absorb initial costs.
It’s tempting to celebrate your first paycheck with a splurge, but that can derail your financial momentum. Instead, create a clear plan to manage your monthly after-tax income. Start by dividing your paycheck into basic categories:
Set up direct deposit into both checking and savings accounts, and automate transfers toward your emergency fund. This strategy helps you live on less than you earn and prepares you for any surprise expenses.
A common mistake new workers make is assuming their full salary will be available to spend. Your employer will deduct federal and state taxes, Social Security, Medicare, and possibly retirement or health benefits from your gross pay. You may also face local tax obligations depending on where you live and work.
If you’re unsure what your take-home pay will look like, use a paycheck calculator to estimate deductions. Planning based on your net income, not gross, is the key to staying ahead of your finances.
Not all jobs come with the same financial impact. Some roles offer flexible work-from-home options that reduce commuting and meal expenses. Others may have higher recruitment costs, required professional development, or involve frequent travel.
Here are a few comparisons:
Evaluating the real costs of employment helps you choose roles that fit your financial goals. Be honest about your needs and limitations, especially when considering long-term roles.
Many organizations offer support programs to help workers transition back into the workforce, especially if they’re facing financial hardship. You might be eligible for:
To explore more support options, visit USA.gov’s employment programs or check with your local workforce development board.
Employers also face significant costs when bringing on a new hire. According to the Society for Human Resource Management (SHRM), the average recruitment cost per employee is over $4,000. These expenses can include:
Some smaller businesses may pass some of these costs to employees in the form of unpaid training or reduced first paychecks. Ask about onboarding timelines and compensation structure when applying.
If your new job requires a move, factor in moving costs and relocation-related expenses like:
Some employers offer relocation assistance, but it’s not guaranteed. Always ask upfront and document your real costs so you can plan accordingly. You can also deduct some job-related expenses if you’re self-employed, though the rules vary by location.
When returning to work, it’s important to track not only what you spend but how the transition impacts your life. These fall into two broad categories:
Hard Costs:
Soft Costs:
While soft costs may not show up on a receipt, they still affect your quality of life. Consider them when evaluating new opportunities and negotiating for flexibility or support.
Every new role comes with an adjustment period. Be prepared to update your financial plan frequently during the first few months. Track:
Tools like apps or printable trackers can help. If you prefer something hands-on, consider using an envelope budgeting system to stay organized.
Starting a job is only the beginning. Over time, you’ll face other job-related expenses like:
The best strategy is to build a savings plan for career-related needs. Just like you save for retirement or a new home, planning ahead for job costs will reduce financial stress and keep you focused on professional growth.
As you prepare to head back to the workforce, take time to think through every part of the hiring process. That includes the total costs of transportation, meals, job-related expenses, and even the soft skills needed to adjust to a new role. Whether you’re filling a new job title or returning to a familiar position, both hard costs and indirect costs will affect your finances.
Ask yourself what your employers will cover and what you’ll need to handle yourself. For example, will your company pay for recruitment costs, training programs, or moving expenses? Are there hidden fees, like equipment purchases or licensing renewals? These real costs can pile up quickly if you’re not prepared.
If you’re rejoining the workforce after a break, or starting your first job, it helps to calculate the total cost of employment beyond your paycheck. That includes the time, energy, and resources it takes to succeed, not just the dollars spent. Creating a solid spending plan now will help you move forward with confidence.
Starting a new job or returning to the workforce can create both excitement and uncertainty. If you’re feeling overwhelmed by the costs or unsure how to add it all up, we’re here to help.
At Credit.org, we offer free, one-on-one credit counseling and debt relief services to help you manage your money and stay on track. Our nonprofit experts can walk you through your expenses, identify savings opportunities, and create a personalized budget that fits your new routine.
We also provide housing support and financial education to help you plan for long-term goals like homeownership, saving for emergencies, and building credit.
Take the first step today; connect with a certified counselor and start building a plan that works for you.
