The income we consistently get dictates the lifestyle that is possible for us. It affects the cars we drive, the house we can drive, and the activities we can participate in.
Money may not be the root of happiness, but it positively affects the things that make us happy. With the consistent inflow, if you had a choice, will you take a significant pay cut?
It may seem a stupid question. But seriously, quite a lot of people are in this crossroads. Heck, you might be stuck in this dilemma.
And it’s perfectly normal. There are instances where taking a lower pay might be your best career move yet. Here are 4 reasons when.
When It Evens Out Financially
That large pay cut might make sense if the expenses associated with working in your job will lessen anyway. For example, you are earning 50,000 PHP a month.
But because of the commute and the food you need to spend in, that 50,000 PHP goes down to 25,000 PHP net after everything.
Now, you are deciding to work from home with a freelancing setup. The base pay is just 30,000 PHP.
But you don’t need to commute. You don’t need expensive fast food. At the end of the month, you still have 25,000 PHP (Plus more time!).
Should you accept the pay cut? Well! That may be a yes since the incidental expenses will be lower anyway.
When You Are Making a Career Change
You are fed up with your job. It seems that you can’t get more growth in your career unless you get promoted. But then, you tried out a freelancing gig in your free time. It’s booming, and you think you can get more clients by making a career change.
The problem is, you are new, and the rates combined is relatively lower than your current job. Taking a hefty pay cut will make sense here.
At first, you will just be compensated by the value you put in. But as you get more clients, you will have the option to charge more for your services. The pay cut will just be temporary for your future growth.
You Feel It’s the Right Fit
We only live once. And arguably, our hours are spent most of the time at work. In the Philippines, it’s estimated to be 9 to 15 years just in traffic.
You don’t want to do the things you hate the most until your dying breath. To put even further, you don’t want to stay in a toxic workplace in your most productive years.
That’s why the “right fit” is essential in looking for a job. What are the goals of the company? Is the vision aligned with your values? Think about this. If you don’t care about the money, what else are you looking for in a company to make it your ideal one?
If you found a company with possible a “right fit,” it may be logical to start with lower pay. After all, what will the higher pay give you when you are just miserable every single day?
Work-life balance might be the reason for your career shift.
You want a less stressful life. You don’t get to meet your kids. Or you don’t even have the time to meet your friends or new people because you are buried in work.
Quantify the crazy schedules and deadlines with the money you’re getting.
Again, try to be selfish and check your future. Are all these hours of work worth it? For example, that freelancing job might be the answer to get the work-life balance you clamor for.
If you have the option to change careers, the lower pay might be just a starting point anyway. Ultimately, it might even be beneficial for your mental health.
But Do Not Quit Just Yet
Remember, you have to be prepared with the lower pay cut. Set a “transition fund” just in case the money you earn is not enough yet. Revisit your budget and plan accordingly.
A pay cut is not necessarily a bad thing. There are benefits that you can get it from it. You need to prepare just in case. Good luck!