Do you regret taking a pay cut for quality of life?

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Spin
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Do you regret taking a pay cut for quality of life?

Post by Spin » Sat Jun 01, 2019 11:02 pm

What kinds of pay cuts have some of you taken for quality of life? How'd it go? Did you have to change your spending habits much? Are you happier and healthier?

Sometime in the next 5 years I'm looking at possibly changing jobs. There would be an initial pay cut of roughly 50%, then back to current pay within 2 years. 5 years post job change, I'd be at about 150% of "former pay".

The main motivators are income potential and quality of life. We'd have a decent amount of savings to carry us through the pay cut, but we don't spend it all as it stands now, so I think we would be alright.

Teague
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Re: Do you regret taking a pay cut for quality of life?

Post by Teague » Sat Jun 01, 2019 11:12 pm

1.5 years ago I intentionally went to zero income. Yes, I am both healthier and happier, and I have not had to change my spending habits at all. But I suppose you are not asking about my retirement.

A couple of times before that I quit my job and went back to school for a few years. Sold all my possessions, moved, worked part time, and my income was significantly higher afterward. It was always worth it, no regrets at all.
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bubbadog
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Re: Do you regret taking a pay cut for quality of life?

Post by bubbadog » Sat Jun 01, 2019 11:15 pm

I quit full time emergency medicine about 10 years ago and switched to half time occupation health. My pay was cut in half but still much higher than most Americans. I have never regretted it. It was the right decision for me.

Quickfoot
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Re: Do you regret taking a pay cut for quality of life?

Post by Quickfoot » Sat Jun 01, 2019 11:15 pm

Quality of life is important, money won’t make you happy. You cannot be miserable at work and happy at home. Ten years ago I took a 20% pay cut going from a very large megacorp that could best be described as dysfunctional and borderline abusive to employees to a non profit that truly valued its employees. I don’t work for the non profit anymore but it changed what I look for in a company. Now I make significantly more money than I did at the megacorp and work for an amazing company.
Last edited by Quickfoot on Sat Jun 01, 2019 11:17 pm, edited 1 time in total.

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TxAg
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Re: Do you regret taking a pay cut for quality of life?

Post by TxAg » Sat Jun 01, 2019 11:16 pm

Quickfoot wrote:
Sat Jun 01, 2019 11:15 pm
Quality of life is important, money won’t make you happy. You cannot be miserable at work and happy at home. Ten years ago I took a 20% pay cut going from a very large megacorp who could bear be described as dysfunctional and borderline abusive to employees to a non profit that truly valued its employees. I don’t work for the non profit anymore but it changed what I look for in a company. Now I make significantly more money than I did at the megacorp and work for an amazing company.

I like that line

runner3081
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Re: Do you regret taking a pay cut for quality of life?

Post by runner3081 » Sat Jun 01, 2019 11:38 pm

Quickfoot wrote:
Sat Jun 01, 2019 11:15 pm
Quality of life is important, money won’t make you happy. You cannot be miserable at work and happy at home.
Maybe, maybe not.

Work is trading time for money. I am okay with that. Doesn't impact home/family life.

goldendad
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Re: Do you regret taking a pay cut for quality of life?

Post by goldendad » Sat Jun 01, 2019 11:43 pm

I have always put quality of life over pay. I have been Blessed to be in a profession (airline pilot) where I could do that. Never regretted it. Your kids are only young once.

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beyou
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Re: Do you regret taking a pay cut for quality of life?

Post by beyou » Sun Jun 02, 2019 12:28 am

Tuned away higher paying jobs to maintain existing quality of life. Does that count ?

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unclescrooge
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Re: Do you regret taking a pay cut for quality of life?

Post by unclescrooge » Sun Jun 02, 2019 12:47 am

I turned down a higher paying job for better quality of life.

I also realized I would end up buying a very expensive car just to make my commute tolerable, Wich would negate any immediate benefits.

Plus I would never see my kids during the week, and my wife would be mad at me.

Thegame14
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Re: Do you regret taking a pay cut for quality of life?

Post by Thegame14 » Sun Jun 02, 2019 1:05 am

this last time I was unemployed, I had three offers, one was a company that couldnt explain their business, so that was a pass, but literally 3 miles from home offer 100K, second offer 45 minute commute to undesireable area, pay $140K but HR talked about how people and family were most important but last interview with big boss he talked about work life balance being a myth that cant be defined, and I said sure it can 8 hours sleep 8 hours work and 8 hours family that is balance, he told me expecations were 9-9 M-F, I shook his hand and walked out, he thought it was a negotiation ploy and offered another $20K, offer was $140K plus bonus, not even considered. Took job where promise was work life balance exists and work is 34 hours a week never a weekend and no long nihgts, $100K, took that job and the hours havent been as promised, have to check emais twice a night/day on off days and expected to literally wrok like a dog no breaks no lunch etc to reach that work life balance, plus a few hours from home, but 6 weeks vacation and in non profit so work life is ok, even with the lies....no regrets.

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Wiggums
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Re: Do you regret taking a pay cut for quality of life?

Post by Wiggums » Sun Jun 02, 2019 6:45 am

I had my pay cut by my employer after an acquisition and I walked off the job. They missed me but I didn’t miss them.

pennylane
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Re: Do you regret taking a pay cut for quality of life?

Post by pennylane » Sun Jun 02, 2019 7:46 am

2 years ago I took a 50% pay cut to work a less stressful job at a very easy going company with great vacation package and flexibility to work from home (3-5 days a week from home)

I was miserable because I wasn’t making the money I was used to, I’m a different breed than most so this may not be what you experience. Needless to say, I went back to my old company to more pay and more responsibility and more hours, I couldn’t be happier. I would not purposely take a pay cut like that again.

My life didn’t change with less or more money as I save/invest about 80% of my take home pay. Any extra money is just gravy on top that gets put away.

Quickfoot
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Re: Do you regret taking a pay cut for quality of life?

Post by Quickfoot » Sun Jun 02, 2019 8:42 am

runner3081 wrote:
Sat Jun 01, 2019 11:38 pm
Quickfoot wrote:
Sat Jun 01, 2019 11:15 pm
Quality of life is important, money won’t make you happy. You cannot be miserable at work and happy at home.
Maybe, maybe not.

Work is trading time for money. I am okay with that. Doesn't impact home/family life.
Yes working is necessary, but being unhappy or miserable at work has a profound effect on human life, from quality of relationships to lifespan.

The idea that work doesn't impact family life and that family life doesn't impact work has been firmly disproven, this is why employers offer Employee Assistance Plans. It simply isn't possible to be unhappy in one major area of your life and be happy in others.

Improving quality of life at work has a corresponding effect on both longevity and life happiness.

EthanAllen
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Re: Do you regret taking a pay cut for quality of life?

Post by EthanAllen » Sun Jun 02, 2019 8:46 am

Took a 75% pay cut when I entered public service. Would make the same decision again (and as a practical matter, make the same decision again every year when I decide not to go back to the private sector).

JoeRetire
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Re: Do you regret taking a pay cut for quality of life?

Post by JoeRetire » Sun Jun 02, 2019 8:48 am

Spin wrote:
Sat Jun 01, 2019 11:02 pm
What kinds of pay cuts have some of you taken for quality of life? How'd it go? Did you have to change your spending habits much? Are you happier and healthier?
- I went from 100% of my salary to 0% - I retired.
- It's worked out great so far.
- We haven't changed our spending habits at all. Of course we had planned for retirement for a long time.
- We were always happy. Health is good except for the cancer diagnosis a few years back.

truenorth418
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Re: Do you regret taking a pay cut for quality of life?

Post by truenorth418 » Sun Jun 02, 2019 8:57 am

Yes I do regret taking a pay cut for quality of life.

Years ago, early in my career, I was a marketing executive in the pharmaceutical industry. I always struggled to get my head around the science aspects, and I thought I would prefer working in the consumer products industry. So I took a pay cut to move over to a major food company.

Guess what? I never caught up to the money I could have made had I stayed in pharma, and I ended up working way more hours with much worse quality of life. Recognizing that my real life’s objective was to make as much money as possible and retire as early as possible, I should have stayed pat and learned to appreciate what I had.

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Re: Do you regret taking a pay cut for quality of life?

Post by MDfan » Sun Jun 02, 2019 9:07 am

Left private practice to take a federal government attorney position when my kids were grade school age. Took a $20k pay cut at the time (but made up the difference within a couple of years). I was able to be around for all my kids' activities, and coached them in various sports all the way through high school. 21 years later I haven't regretted it a bit. Although those years without pay raises suck (we get bonuses to make up for some of that). Certainly gave up some $, but I haven't worked one weekend or late night since 1998. Plenty of vacation, good benefits and retirement, and ready to hopefully hang it up at 60 in a couple of years. Would do it again in a heartbeat.

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Re: Do you regret taking a pay cut for quality of life?

Post by Sandtrap » Sun Jun 02, 2019 9:10 am

Pre Retirement: = 100% R/E Income Property = Substantial income = "No Life". :moneybag :moneybag :( :( :(

Post Retirement = <10% R/E Income Property + "Boglehead Portfolio" = "Life". :D :D :D

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ER2023
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Re: Do you regret taking a pay cut for quality of life?

Post by ER2023 » Sun Jun 02, 2019 10:26 am

I do not regret it at all, as it was the best thing for my health. Was an officer (at the lowest level) at megacorp with large base pay and huge bonuses. But quality of life was awful. Way too stressful and put in way too many hours. Spouse was supportive, but it took a toll. I am so glad I was able to walk out that door, mainly because we lived way below our means. My salary is not even equal to one of the bonuses I used to receive. But I don't care - I make just enough and I now focus on my health and spending quality time with loved ones. I would never go back to the rat race.

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Re: Do you regret taking a pay cut for quality of life?

Post by Minty » Sun Jun 02, 2019 10:35 am

I took a 70% pay cut at one point from a miserable job to an interesting one. It was a great move.
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dh
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Re: Do you regret taking a pay cut for quality of life?

Post by dh » Sun Jun 02, 2019 10:36 am

Quickfoot wrote:
Sat Jun 01, 2019 11:15 pm
Quality of life is important, money won’t make you happy. You cannot be miserable at work and happy at home. Ten years ago I took a 20% pay cut going from a very large megacorp that could best be described as dysfunctional and borderline abusive to employees to a non profit that truly valued its employees. I don’t work for the non profit anymore but it changed what I look for in a company. Now I make significantly more money than I did at the megacorp and work for an amazing company.
Well said, Quickfoot. I agree 100%.

EnjoyIt
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Re: Do you regret taking a pay cut for quality of life?

Post by EnjoyIt » Sun Jun 02, 2019 10:44 am

I recently took a 50% pay cut to g part time. Interestingly after looking at taxes and the cost necessary to keep a full time job, my pay only decreased by 25-30%.

My life and my family life couldn’t be better. Our spending increased a little mostly due to life changing event. New child, but we are still on track for early retirement.
Last edited by EnjoyIt on Sun Jun 02, 2019 10:48 am, edited 1 time in total.

THY4373
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Re: Do you regret taking a pay cut for quality of life?

Post by THY4373 » Sun Jun 02, 2019 10:46 am

I took a pay cut to move to a lower cost of living area (no more brutal commute), possibility of living on one income (which we did not do but my now ex did go half time for a number of years when my son was younger) and overall more laid back life. I made up the salary difference in a few years and don't regret it at all. With the benefits at my current employer and the changes at my prior employer (my ex still works for them so I know what is going on) it was a great move. As much as I watch my dollars and cents there is more to life than money.

Quickfoot
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Re: Do you regret taking a pay cut for quality of life?

Post by Quickfoot » Sun Jun 02, 2019 11:12 am

One thing to consider is if you move to a lower cost of living area you can take a pay cut on paper and maintain effectively the same quality of life or sometimes even increase it. Many people that live in HCOL areas like the bay area, LA or NY believe they can't leave those areas but they can. Decreasing commute is also important, people with > 40 minute commute have significantly higher divorce rates and mental health problems.

The unfortunate thing is the lack of money can make you unhappy but once basic needs are met increasing money doesn't significantly increase happiness. Below ~ 50K a year increasing money does have a direct effect on increasing happiness because stress is reduced, after around 50K the effect rapidly decreases and relatively quickly disappears. Because compensation is often tied to increased stress the more you make can actually decrease happiness as the result of stress.

Our society places an unfortunate emphasis on monetary accumulation and subscribes to the false belief that if you make a lot of money you will be happy and even worse that you NEED to make a lot of money to be happy. Happiness doesn't come from monetary resources, it comes from fulfilling relationships, activities and the feeling of making an impact and leaving a legacy. Some of my happiest memories come from times my family was FAR below the poverty line and the majority of my most miserable occurred while being in the top 5%.

The emphasis on money is a big part of why SO many Americans that make good money are completely miserable (most don't even realize it). Antidepressant use has increased 65% over 15 years and is still climbing. People are doing what they are told will make them happy except it doesn't. Being on an antidepressant is quickly becoming the norm and people don't realize it isn't normal at all.

If you can make a little less money and be happier do it.

Nummerkins
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Re: Do you regret taking a pay cut for quality of life?

Post by Nummerkins » Sun Jun 02, 2019 11:35 am

I don't regret it for a second! Worth every penny. In a few years my pay increased to more than what I was making before and I'm 100% happier.

I know the grass isn't always greener but in this case it worked out alright.

wootwoot
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Re: Do you regret taking a pay cut for quality of life?

Post by wootwoot » Sun Jun 02, 2019 11:59 am

No regrets but now that I've been in the lower paying/lower stress role for a couple of years I plan on being very selective in my next job search. You do miss being able to invest as much and being so cash flush. I'll be much more picky in my next role to get salary back up while minimizing the encroachment on quality of life.
Last edited by wootwoot on Sun Jun 02, 2019 2:32 pm, edited 1 time in total.

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Re: Do you regret taking a pay cut for quality of life?

Post by Presintense » Sun Jun 02, 2019 12:19 pm

I took a several hundred thousand dollar pay cut. Voluntarily. Haven’t regretted it one bit. In three years without employment income our assets have increased and we stopped throwing money away on things we found to have very little meaning to us.
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quantAndHold
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Re: Do you regret taking a pay cut for quality of life?

Post by quantAndHold » Sun Jun 02, 2019 12:25 pm

Yes. And no.

I took one pay cut that I totally regretted. I was sold a bill of goods. The new job turned out to be much more stressful than the one it replaced. It just paid a lot less.

So I took another, that turned out to be a great job with a great company. Moved down a level, then eventually moved up again in a different, better for me direction. Within five years I made up for and surpassed the lost income.

Then I went the other way, and took a job purely for the income. Which was a complete disaster. Super stressful, sometimes I wonder how I survived it. But I made enough money to retire at 52. Which I enjoy, a lot. So it wasn’t all bad, I suppose.

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Re: Do you regret taking a pay cut for quality of life?

Post by Doom&Gloom » Sun Jun 02, 2019 12:26 pm

I have twice moved to a lower paying job for an improvement in my quality of life. Never had a moment's regret. There are numerous ways to make money. There are fewer ways to be happy and content.

Life is far too short to spend it toiling for money while being miserable. Especially if you are socking away a lot of that cash for a future that you may not live to see.

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Re: Do you regret taking a pay cut for quality of life?

Post by k3vb0t » Sun Jun 02, 2019 12:30 pm

I took a pay cut of about 33% due to burn out and having a child, and waiting stability in my income (base/bonus vs low base/commission). But I traveled a lot. Loved it, but once my kid was old enough to realize I was gone switched to a different role at same income but 100% remote.

In the midst of that my wife quit her job to become a SAHM and to homeschool. So our income dropped again but we think it is worth it.

My stress is a lot lower, I get to have as many meals as I want with my family (usually skip lunch, but I have the option to come downstairs and eat with them), no commute, no suit and tie, absolutely love it. I have turned down options to move across country which would have helped my career, because we live 6 minutes from my inlaws and 2 hours from my parents and value spending time with family very highly.

I do tend to worry, illogically I think, too much about our income/expenses. We're saving 30-36% of our income, but it feels like we have less flexibility because we're saving a bigger percentage of a smaller number. My wife tends to point out that when we had a higher income I felt the same way, so it's mostly just mental issues on my part :oops:

minimalistmarc
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Re: Do you regret taking a pay cut for quality of life?

Post by minimalistmarc » Sun Jun 02, 2019 12:50 pm

U.K. based doctor. There are currently lots of tax traps that are hitting NHS doctors causing tax rates of 80% upwards. I haven’t done any additional work for over a year now, and no longer work Fridays. Actually I’m pretty happy about it, although find it sad to see the government eroding the NHS.

tim1999
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Re: Do you regret taking a pay cut for quality of life?

Post by tim1999 » Sun Jun 02, 2019 2:08 pm

I took a 10-15% pay cut in salary and bonus. Old job was 40 hours/week in the office with 40 hours/week of actual work to do, another 10 hours/week of dealing with frustrating work stuff during nights and weekends at home, plus 2-3 day out of state trips every other week to glamorous places like Flint, MI. Could not take more than 3 days of PTO in a row without some crisis arising that required me to drop whatever I was doing to deal with it. Had to cancel a couple of vacations at the last minute due to work issues. The job was really stressing me out in ways I won't describe.

New job is 40 hours/week in the office with about 20 hours of actual work to do. No calls/emails whatsoever nights/weekends or while on PTO. Zero overnight travel at all. The company has a very 1950s mentality towards taking care of its workers, openly wants people to leave work at work, take your PTO all in one shot if that's what you want, etc.

It's one of the best decisions I feel I've made in my working career. I don't miss the extra money one bit.

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TxAg
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Re: Do you regret taking a pay cut for quality of life?

Post by TxAg » Sun Jun 02, 2019 2:34 pm

My supervisors travel 80-100% of the time. I travel 20% of the time. I don't put my name in the hat for promotions.

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Re: Do you regret taking a pay cut for quality of life?

Post by catlady » Sun Jun 02, 2019 3:23 pm

TxAg wrote:
Sun Jun 02, 2019 2:34 pm
My supervisors travel 80-100% of the time. I travel 20% of the time. I don't put my name in the hat for promotions.
This is a great point. I'm not currently willing to change roles/companies and take a pay cut but I am refusing to move into management (with potential additional variable compensation) because of the quality of life hit I believe I would take.

Beensabu
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Re: Do you regret taking a pay cut for quality of life?

Post by Beensabu » Sun Jun 02, 2019 3:31 pm

-61%. Zero regrets so far.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next."

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Re: Do you regret taking a pay cut for quality of life?

Post by stoptothink » Sun Jun 02, 2019 3:35 pm

catlady wrote:
Sun Jun 02, 2019 3:23 pm
TxAg wrote:
Sun Jun 02, 2019 2:34 pm
My supervisors travel 80-100% of the time. I travel 20% of the time. I don't put my name in the hat for promotions.
This is a great point. I'm not currently willing to change roles/companies and take a pay cut but I am refusing to move into management (with potential additional variable compensation) because of the quality of life hit I believe I would take.
My boss has been away from home for at least 270 days a year since he hired me (4yrs ago). He is constantly paranoid that others are shooting for his job. There are 3 of us who would be immediate considerations if he retired and we've had countless conversations where we agree none of us have any interest whatsoever. I travel a total of 5-6 weeks a year, that is plenty for me. Our biggest competitor offered me a 40% base raise 2yrs ago, but I would have had to travel more; I didn't even consider it for a second.

scrabbler1
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Re: Do you regret taking a pay cut for quality of life?

Post by scrabbler1 » Sun Jun 02, 2019 4:00 pm

Three times I took a pay cut to improve my quality o life. The first two times I simply reduced my weekly hours worked, from full-time to half-time and 6 years later from half-time to one-third time. Eighteen months after that, I retired at 45, eliminating the remainder of my work hours. I have been retired for nearly 11 years.

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Re: Do you regret taking a pay cut for quality of life?

Post by Jack FFR1846 » Sun Jun 02, 2019 4:10 pm

Went from $200k including stock options cashed and bonuses to $110k to get out of the sales world and back into design as a principal engineer in charge of a particular technology for the company. Expected it would be a huge reduction in stress. Boy, was I wrong. Turned out to be the most stressful job I ever had. I should have stayed in the sales group and continued making the money. I ended up going back into sales after the high stress job and back up to the previous pay level after a couple years building up options.
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Re: Do you regret taking a pay cut for quality of life?

Post by Impromptu » Sun Jun 02, 2019 4:26 pm

I left a higher paying medical job in a low cost of living area to a lower paying job (40% pay cut) in a mid cost of living area. In the first job I had stabilized our company to be making a good, steady, high salary. My plan was to work another 5 years to become financially independent, at which point I could work wherever I wanted. The job was very stressful with many busy 24 hour shifts. I could feel that my health was deteriorating.

Then my father had a stroke and I really wanted my children to know their grandparents. So we found a less stressful job near them, packed up, and moved across country. Starting on the bottom rung a private medical group when I was previously the president of my group is a difficult thing. Stress in this new job is moderate, better than high. I think it still has a negative impact on my health, but not as severely as the other job had. My current predictions show me financially independent in 10 years instead of 5. I do not yet know if 10 years of moderate health stresses will be better or worse than 5 years of high health stresses.

I do miss having more money. My old group recently called me up to see if I had any interest in coming back. I am seriously considering it. So I guess there is some regret. But I do not think I will ever regret having weekly Sunday dinners with my parents, especially if one of them dies in the next year. The funny thing is, I think having my children near by has raised my father's health so much, that he might liver another 10 years.
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Re: Do you regret taking a pay cut for quality of life?

Post by SGM » Sun Jun 02, 2019 4:43 pm

During my working years I quit two different jobs to go back to school and work part time for a few years. Each time I ended up with much higher income and new and interesting challenges. Recently I discovered that my rather obscure 38 year old master's research thesis has been chosen to be available on line so that other scientists can access it. Apparently the research was part of a series of connected experiments that eventually led to a successful industrial separation of significant value. That and $3.00 can get me a metro ride into town. :wink:

A few years before retirement, I cut back to 3 half days a week to explore hobbies and increase exercise. I could have retired immediately instead, but I still enjoyed what I was doing.

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Re: Do you regret taking a pay cut for quality of life?

Post by cherijoh » Sun Jun 02, 2019 4:59 pm

Spin wrote:
Sat Jun 01, 2019 11:02 pm
What kinds of pay cuts have some of you taken for quality of life? How'd it go? Did you have to change your spending habits much? Are you happier and healthier?

Sometime in the next 5 years I'm looking at possibly changing jobs. There would be an initial pay cut of roughly 50%, then back to current pay within 2 years. 5 years post job change, I'd be at about 150% of "former pay".

The main motivators are income potential and quality of life. We'd have a decent amount of savings to carry us through the pay cut, but we don't spend it all as it stands now, so I think we would be alright.
I was happily working for a megacorp when they decided to sell the R&D HQ site (not unexpected due to prior sale of one of the divisions) and relocate R&D in an out of state manufacturing site (big surprise). I had about 10 years to retirement when that decision was announced. I knew from coworkers already at that location that site management had created a pretty toxic work environment, plus I had no interest in relocating to a mostly rural area. So I took a separation package and went back to school for a MS in a different field (but closely related to what I was actually doing in my R&D job).

I ended up transitioning to a different industry and taking over a 20% paycut from what my salary had been several years before. (The industry is notorious for big titles but not great salaries). But after a few years, I was able to transition into a role where I could mostly work from home and usually went into the office 3 - 6 days per month. I'm pretty sure, having established my industry credentials, that I could have gotten a higher salary at one of the competitors. But I considered the better worklife balance (from being able to work from home) well worth the trade off of less salary.

I didn't have to make any significant life style changes although I did work a few more years to make up for the loss in additional pension benefits from leaving the first job prior to retirement.

I never regretted the decisions I made not to relocate or not to switch jobs in pursuit of more money.

cherijoh
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Re: Do you regret taking a pay cut for quality of life?

Post by cherijoh » Sun Jun 02, 2019 5:08 pm

stoptothink wrote:
Sun Jun 02, 2019 3:35 pm
catlady wrote:
Sun Jun 02, 2019 3:23 pm
TxAg wrote:
Sun Jun 02, 2019 2:34 pm
My supervisors travel 80-100% of the time. I travel 20% of the time. I don't put my name in the hat for promotions.
This is a great point. I'm not currently willing to change roles/companies and take a pay cut but I am refusing to move into management (with potential additional variable compensation) because of the quality of life hit I believe I would take.
My boss has been away from home for at least 270 days a year since he hired me (4yrs ago). He is constantly paranoid that others are shooting for his job. There are 3 of us who would be immediate considerations if he retired and we've had countless conversations where we agree none of us have any interest whatsoever. I travel a total of 5-6 weeks a year, that is plenty for me. Our biggest competitor offered me a 40% base raise 2yrs ago, but I would have had to travel more; I didn't even consider it for a second.
One year at performance review time, my boss asked me if I had any interest in moving from individual contributor to manager. I told her no I wasn't interested in doing less of the technical stuff I really liked and more of the stuff she did that I didn't like (meetings, politics, etc). A few months later she got promoted and one of my peers took her job becoming my boss. I still think i made the right choice.

jcar
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Re: Do you regret taking a pay cut for quality of life?

Post by jcar » Sun Jun 02, 2019 5:22 pm

In 1990 I took an 11% pay cut to relocate from Morristown, NJ to NC with a full relocation package from my employer. I bought a nicer home for 50% less, cut property tax about 70%, reduced auto and homeowners about 40% and had a reduction in pretty much every other category that exists. Eighteen months later a competitor offered me a job remaining in NC with a 35% raise so it worked out. I retired from this company two years ago. Best relocation I've ever done.

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leeks
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Re: Do you regret taking a pay cut for quality of life?

Post by leeks » Sun Jun 02, 2019 5:28 pm

Spin wrote:
Sat Jun 01, 2019 11:02 pm
What kinds of pay cuts have some of you taken for quality of life? How'd it go? Did you have to change your spending habits much? Are you happier and healthier?

Sometime in the next 5 years I'm looking at possibly changing jobs. There would be an initial pay cut of roughly 50%, then back to current pay within 2 years. 5 years post job change, I'd be at about 150% of "former pay".

The main motivators are income potential and quality of life. We'd have a decent amount of savings to carry us through the pay cut, but we don't spend it all as it stands now, so I think we would be alright.
What you are planning doesn't even really sound like a pay cut. A temporary pay cut followed by significantly-higher-than-current pay could be a strategic move even if you were just looking to max income over time.

Of course I fall firmly in the max quality of life camp and money is simply a tool to facilitate that, and no need to pursue max money.

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devdude
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Re: Do you regret taking a pay cut for quality of life?

Post by devdude » Sun Jun 02, 2019 6:40 pm

I stopped working as much 3 years ago to focus on practicing music and to perform more. Initially it was difficult because I loved how much I was saving, but it doesn't bother me now. I'm trying to accumulate 10,000 hours of practice on my instrument and should break 5,000 this year. Taking a pay cut to pursue something meaningful to me was a smart move.
The Dude Abides by Simplicity

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TxAg
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Re: Do you regret taking a pay cut for quality of life?

Post by TxAg » Sun Jun 02, 2019 6:43 pm

jcar wrote:
Sun Jun 02, 2019 5:22 pm
In 1990 I took an 11% pay cut to relocate from Morristown, NJ to NC with a full relocation package from my employer. I bought a nicer home for 50% less, cut property tax about 70%, reduced auto and homeowners about 40% and had a reduction in pretty much every other category that exists. Eighteen months later a competitor offered me a job remaining in NC with a 35% raise so it worked out. I retired from this company two years ago. Best relocation I've ever done.
All that and you got out of New Jersey!! Great move.

FourWallsofFIRE
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Re: Do you regret taking a pay cut for quality of life?

Post by FourWallsofFIRE » Sun Jun 02, 2019 7:47 pm

Seven years ago I joined the Marine Corps as an E-2 when I was making around $40k/year with bonuses.

I hated every minute at my job and I've enjoyed almost all of my time in the military. My pay cut was drastic at first, but I've since then overcame the pay cut and I make more money. Part of the reason for my success is added motivation due to enjoying my job now.

Additionally, when you enjoy your job you may look to learn more and improve yourself in order to get the most "enjoyment" out of your work experience. This could launch your success and earnings.

My point is, pay cuts are temporary if you're extremely successful due to loving your job.
Matt | | | -It doesn't matter how much money you make, it matters how much you save.

mariezzz
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Re: Do you regret taking a pay cut for quality of life?

Post by mariezzz » Mon Jun 03, 2019 1:46 pm

minimalistmarc wrote:
Sun Jun 02, 2019 12:50 pm
U.K. based doctor. There are currently lots of tax traps that are hitting NHS doctors causing tax rates of 80% upwards. I haven’t done any additional work for over a year now, and no longer work Fridays. Actually I’m pretty happy about it, although find it sad to see the government eroding the NHS.
I respect you for hanging in there - I'm glad you've found a situation that works with you. I'm not in the UK but think what's happening with the NHS (and various other areas) is immoral. (Of course, the US medical system has long been worse in many ways.)

stm
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Re: Do you regret taking a pay cut for quality of life?

Post by stm » Tue Jun 04, 2019 3:02 am

I had a mid life crisis and quit my job to do a Ph.D. 4 years of zero income, had 2 kids and wife was a SAHM. Finished but came out in 2010 to that job market. 9 years later I think we're back to revenue neutral, but I've had the opportunity to be at everything for the kids plus summers off. I think to a point money has it's uses, but time is something we all fight a losing battle to.

Nowizard
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Re: Do you regret taking a pay cut for quality of life?

Post by Nowizard » Tue Jun 04, 2019 7:53 am

Never took a pay cut but early on considered pay as just one of several aspects of a balanced life and turned down promotions or "opportunities" on several occasions. Moderate income by spouse and myself, combined with consistent savings and investments worked out just fine, so no regrets at all for those decisions.

Tim

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