Opting to take a pay cut was considered foolish only a few decades ago. But there are also advantages of taking the risk. So be careful and wise when considering such an option.
Here are 5 reasons to go for it.
1. You want a new career; one that you are passionate about
Are you miserable in your current job? Have you always planned to change your career path to your passion? Want and need a change? Wish to go for that high-risk-high-reward road?
It may be time for you to take that risk of doing something you love and lowering your salary in the process. But what if it’s worth it? The majority of people in the world never get to work in their dream job or have a career they’re passionate about.
But life isn’t about money, is it? Why not go for that dream job if the opportunity presents itself?
Our article on The Best First Jobs discusses the importance of choosing something you love and/or something that leads to experience and a great career.
2. You want to keep your job
What’s better: getting paid something or getting paid nothing?
Companies are often faced with the difficult decision whether to lay off their employees or have pay cuts. Which then gives you the difficult decision whether to refuse by leaving or accept by keeping it with lower pay.
You may have to ride the storm until your company gets everything together. It may only be temporary.
3. You wish to start your own business
Starting your own business from scratch is always hard and you’re going to lose in the short term.
At first you might earn little to nothing – even negative money. But that’s okay if you know you have what it takes to be successful and you have an excellent plan and feel.
Make sure you have solid saving and preparation for the ups and downs. Becoming your own boss is definitely one of the best reasons to take a pay cut for a season.
4. You want to live closer to your job
Living closer to your workplace allows you to have more free time for yourself and your family.
I know from my own experience that living one hour away from the office leaves little personal time left since two hours of the day is wasted on travel time, not to mention the time it takes to get ready for work.
Going for that lower paying, but closer job might be worth it for a bunch of reasons.
You can spend extra time with your kids, your partner, you’ll be more refreshed for work and you can take your lunch breaks at home. The extra gas money might even make it a worthy investment.
5. You want to move
Similar to number 4, if you move into a more affordable area it may result in saving money especially if the reduction in living expenses pays off even with a smaller paycheck.
A change in lifestyle and area may be good for you and you may love leaving the big city in favour of a peaceful area. The ideal home and area for you and your family in the future is priceless compared to material riches.
Remember to carefully weigh the options when deciding whether to take that pay cut or not. You’re facing an important decision that impacts your future. I hope these pointers above can help you think about whether taking a pay cut is really worth it.