Episode Overview
Episode: 3415 – "What Are The Costs Of Working? (Part 1)"
Host: Diania Merriam
Guest Blogger: Marjolein Dilven (article from Radical FIRE)
Release Date: January 8, 2026
This episode of Optimal Finance Daily explores the often-overlooked costs associated with having a traditional job, beyond what you see on your pay stub. By narrating Marjolein Dilven's insightful article, Diania Merriam shines a light on the hidden and indirect expenses of employment—like commuting, wardrobe, and taxes—and sparks a discussion about how much you truly take home. The episode prompts listeners to rethink the true price of working and consider how these costs might shift if you retire, work remotely, or change your lifestyle.
Key Discussion Points & Insights
1. The Hidden Costs of Working (02:00)
- Premise: People typically focus on work as a source of income, overlooking the money they spend simply to maintain their jobs.
- Perspective Shift: When planning for retirement, individuals fear higher expenses due to increased free time, but seldom consider how many costs vanish when work disappears.
Notable Quote:
“You're probably spending more money on work than you realize. When you think about it, you're spending plenty of money to go to work.”
— Marjolein Dilven (02:10)
2. Commuting and Transportation (02:30–04:40)
- Direct Expenses:
- Car: Gas, depreciation, taxes, and lease payments.
- Public Transport: Monthly passes, occasional tickets.
- Bicycle: Cost amortized over time.
- Personal Example: Marjolein describes driving a leased car to work, with gasoline reimbursed but monthly car-related taxes (~€180 vs. €33 for a weekend train card).
- Alternative Savings: Working remotely removes the need for a car; switching to public transportation or a more fuel-efficient (or electric) car can yield savings.
- Flexibility: Personal preferences and conveniences—like comfort with a car—can influence whether and when to make these changes.
Notable Quote:
“I wouldn't drive a car if it weren't for my work, meaning that I would take public transport instead to visit my friends.”
— Marjolein Dilven (03:19)
“That's the money I pay for having the convenience of the car. I can lower this… One way would be to work remotely...”
— Marjolein Dilven (03:40)
3. Professional Wardrobe Expenses (04:45–05:50)
- Dress Code Costs: Upkeep of a "professional" wardrobe often adds hundreds or thousands per year to work-related expenses.
- Variation by Job: Some people can wear casual clothes, reducing cost; office workers often spend more.
- Personal Habit: Marjolein attempts a "clothing ban," minimizing new purchases and relying on existing clothes, but still cites occasional necessary purchases for work.
- Temptation: Despite the stereotype of successful people wearing the same outfit daily, the urge to refresh your attire remains strong under workplace norms.
Notable Quote:
“We all know that successful people wear the same clothes every day, it's still tempting to update your professional wardrobe regularly.”
— Marjolein Dilven (05:15)
4. Taxes: The Most Direct Cost of Working (05:58–06:50)
- Tax Structure (Netherlands): Higher income means higher tax rates, with each additional euro taxed more steeply.
- Strategies to Reduce Tax Burden: Invest in retirement accounts, optimize deductions, or adjust declarations for minor annual savings.
- Retirement Impact: Taxes diminish significantly when you stop working, increasing your actual spendable income.
- Personal Attitude: Despite the expense, Marjolein values the benefits that taxes fund, taking a positive view of their trade-offs.
Notable Quote:
“To be honest, I enjoy paying taxes as we have many benefits in return.”
— Marjolein Dilven (06:46)
Host Reflection & Contemporary Context (09:08)
- Modern Shifts: Diania Merriam cites the example of someone saving $6,000 in six months due to pandemic-era work-from-home arrangements, avoiding commute, lunches, business attire, and post-work socializing—a vivid reminder of hidden work costs.
- Work Paradigm Shift: Increased awareness, paired with inflation pressures, is leading people to reconsider the real economics of employment.
- Teaser: Part two will continue unpacking these themes.
Notable Quote:
“Working isn't just about making money. In many ways, it also costs you money.”
— Diania Merriam (09:25)
Memorable Moments & Timestamps
- 02:10 – Marjolein frames the central question: What are you really earning after subtracting “costs of working”?
- 03:19 – Her personal commuting breakdown (car taxes vs. public transport costs).
- 04:45 – Discussion of “dressing for success” and the temptation of new work clothes.
- 06:46 – Her uncommonly positive attitude on taxes.
- 09:08 – Host’s anecdote about remote work savings, summarizing the episode’s message.
Tone and Style
- Practical and Reflective: The tone is relatable, conversational, and pragmatic. Both Diania and Marjolein use personal anecdotes and simple language to connect abstract financial concepts to real-life decisions.
- Encouraging and Informative: The episode encourages listeners to reassess their current work-related spending without judgment, fostering a habit of financial mindfulness.
Conclusion & Next Steps
This episode challenges listeners to look beyond the paycheck and see the real “net” cost of working, using both numbers and lived experiences to illustrate the case. Listeners are invited to tune in to Part 2 for further exploration of indirect and lifestyle-related work expenses, gaining more tools for intentional money management and perhaps, steps closer to financial independence.
Stay tuned for Part 2, where your optimal life awaits!