It's Worth a $10k Pay Cut for a Job You Love

Lots of interesting comments to my post asking What is a Job You Love Worth? (with a lot of "surprise" responses -- at least they were surprises to me). Here's one from a woman who decided it was worth taking a big pay cut to have a job she loved:

I already made the jump -- in the opposite direction. Quit a job that wasn't making me happy that paid about $50K, moved to a job that is really fulfilling and makes me really happy just to be going to work each day, where I'm making about $40K. For me, it was worth $10K, or 20% of my salary...no question about it. I absolutely, 100% believe I made the right decision.

And I think in the long run, you have to consider whether your on-the-job happiness will affect your performance...which in turn will affect your ability to get promotions, raises, etc. Sometimes the lesser-paying, higher-happiness job can mean greater happiness in the long run.

"You have to consider whether your on-the-job happiness will affect your performance...which in turn will affect your ability to get promotions, raises, etc."

Good point. If you have a job you love, do well at it (as a result), and average 10% raises per year (through promotions, pay increases, etc.), you'll be much better off in the long run than a better-paying job that you hate and only get 3% annual raises. Want some proof of this? Then see Which is More Important -- A High Starting Salary or Higher Average Salary Increases?

I've been fortunate enough to be able to have both great jobs and good pay increases for most of my career. Yes, there were the occasional job nightmares and any good job also has bad times that pop up, but overall I've been blessed to have the positions I've had.

Comments

[Ron]

I currently find myself in the worst of all situations - a job I don't like with a company that never gives pay increases. Not even cost of living adjustments. Believe me, I'm looking for something else, but I don't just want to jump into another bad situation. I'm holding out for the elusive "do what you love" situation.

[FMF]

Hang in there! I've been in that situation before and there is light at the end of the tunnel.

[Binary Dollar]

My roommate work for the same company here in DC. He is moving back to MI in 2 weeks. All of our friends and family are there. He interviewed and got a job offer from a company in MI working on some pretty interesting things. Taking a job there definitely means taking a huge pay cut.

Here's the twist:

When he approached his manager to give her his 2 week notice, she said to him, "That's cute. What about we do this instead. You move to MI and be with your friends and family AND you get to work from home 100% of the time. Big city salary. Little city costs. We think you're a fine worker and we'd like to keep you."

Result?

After a week of thinking, he decided to choose the MI company. He wasn't happy with the projects he worked on, past or present. He summed up everything he was feeling when he said:

"We spend most of our lives humping jobs we hate because we need to 'pay our dues'. This is the one time I'm not going to give in. I'm going to do something I want to do for a change."

[Binary Dollar]

PS - Go Tigers.

[FMF]

Tell him to bring several heavy coats and a BIG snow blower. He'll need them here!!! ;-)

[Rob]

I've been approached to manage the sales organization that I'm 40 years old and currently work on a commission basis in NYC. My salary over the past 3 years here have been $120k, $225k and this year I should eclipse the $250k level. Certainly beyond my wildest dreams when I started here 3 years ago with a $75k draw.

As a sales person, there is no gurantee that I'll make even $75k next year as this is the nature of the business and the accounts I call on.

Along with VP stripes, the management position would pay $175k - guranteed and may extend my career in terms of years (Willie Loman syndrome).

While $175k is a lot of money to me, it feels like a pay cut right now. Any advice? Would you pass up this "promotion". May be tough to answer if you've never been in sales.

[FMF]

For me, I guess it would come down to the following:

1. How confident I was that I could make more than $175k in my current job (and how many years I could keep it up).

2. How much I liked my current job versus the new one (being a sales person is a whole lot different than being a sales manager.)

3. What sort of future there was for me with either of the options.

Ultimately, it's up to you, but hopefully this is some food for thought. Good luck.

[Rob]

Thanks FMF -