The Straight Scoop On Taking A Pay Cut
Most people view taking a cut in pay as a personal insult, a form of psychological and financial humiliation. But there’s more to any job than dollars and cents. For example, if you follow sports, you know that NFL quarterbacks Colin Kaepernick and Ryan Fitzgerald are confronting this very predicament. And in both cases, the pay cuts involve millions of dollars.
So when should you consider taking a pay cut?
When starting your own business. Many people dream of running their own business. Doing so is not only risky, but almost certainly entails taking an initial pay cut while the business becomes established.
Is it worth it? Yes, because being your own boss provides a type of freedom most people long for. You make your own hours and, if the business is successful, can make more than you ever dreamed of making in a regular job.
When you’re miserable where you are. Previously mentioned NFL quarterback Colin Kaepernick, according to reports, is unhappy in San Francisco. He is looking for a new team where he can rejuvenate his career. Often, a new job is just what the doctor ordered, providing a sense of freedom and the opportunity to utilize your natural talents. If you find yourself scoffing, pick up a copy of Who Moved My Cheese?, which describes just how great change can be. When you want a life. Your present job may require constant traveling, which means you’re never home. Or it involves an hour commute each way. You’re making great money but never have time to spend it and your family thinks you’re an aunt or uncle that comes to visit occasionally. In effect, you’re a stranger to your own family. You want a life! Taking pay cut may pay off in a healthier lifestyle.
When going from one career to another. Right now, you’re at the top of your profession, making lots of money. But something’s missing. You always wanted to be a writer, churning out thriller novels. Years ago Joseph Wambaugh was a policeman. Eventually, he became a bestselling novelist. Self-fulfillment, self-satisfaction and attaining your dream can be more important than a paycheck. What’s your dream?
Now ask yourself if it’s worth taking a pay cut to achieve your dream?
When searching for less stress and more happiness. The old adage states, “Money can’t buy happiness.”
The statement glistens with truth. Perhaps stress is ruining your health; you don’t exercise enough and don’t sleep well because of worrying about work-related items. A different job, even with a cut in pay,
may result in less stress and a longer, healthier life. Margaret Steen says, “In the long run, you’ll do better at a job you enjoy — and this will make you more attractive to other employers.”
When you change locations. You live in Los Angeles and can’t stand it. Too much traffic, too much pollution and too much crime. You’re offered a job for less pay in South Carolina, where life is slower,
less hectic and you can walk to work. A pay cut may be partially equalized by the lower cost of housing, gas and groceries. The real question is what price do you put on tranquility?
When you have no other option. Frankly, taking a cut in pay trumps no pay, when necessary. If the company you work for cuts pay across the board instead of laying-off people, you may have no option.
Under such conditions, just be thankful you still have a job and view it as an opportunity to either find a new job or pursue another avenue: go back to college, or follow your dream.
In the end, a cut in pay isn’t as traumatic as it seems. It may open up a whole new adventure, along with undreamed of opportunities. In her article on salary.com, Dawn Dugan sums it up like this: “In a society that has been taught to pursue ever-increasing paychecks, we are learning that sometimes taking a pay cut can actually be the more prudent career move.”
And hey, you might even revive your zest for life!
