We are almost determined to strive for ever higher wages. Every job should ideally give us a raise. Annual appraisals should result in higher wages. In the seek for ever higher wages, we sometimes miss opportunities in life that require a pay cut or a brief foregoing of cash altogether. But looking for anything aside from higher pay goes against what we have been taught. But is a pay cut at all times a nasty thing? Not necessarily. Even involuntary wage cuts can turn into blessings.
Reasons to think about taking a pay cut
Taking a pay cut is rarely easy, but when you’ve got sound reasons for it, your life could change for the higher. Well, whenever you need every penny you are making, the considered a pay cut could cause panic. But for a lot of us, the choice is to do things that pay lower than our current jobs, or forego a raise if we will get something much more beneficial. Here are some reasons to think about taking a pay cut:
- Take a job you like: When you’ve got the possibility to do a job you like, with people you like, or in a spot you like but take a pay cut, you’ve got to ask yourself what’s more vital: general happiness or money .
- To start your personal business: If you should exit alone, you will likely need to work for lower than you are used to, a minimum of initially. The advantage is that chances are you’ll earn way more later and do work which means something to you.
- To recover hours: If a pay cut means you may now not work nights, weekends, unpaid additional time, or holidays, it might be value it if free time and normal work hours are more vital to you than money.
- To exchange salary for more vacation or other advantages: Sometimes a job offer comes with a lower salary but higher advantages like more vacation, higher insurance, an excellent employer 401k match, or stock options. In this case, chances are you’ll find that while your actual salary has decreased, your total compensation has increased. If these advantages are value it to you, taking a pay cut is an excellent idea.
- To take a sabbatical: You may come to the purpose where you choose to maneuver the family to Europe for six months or to make a long-held dream come true. You may not need to quit your job, but you’ll probably need to comply with a major pay cut or no pay in any respect. If the explanation for the sabbatical is essential to you, foregoing your salary could be the only option.
- Moving to an area with lower housing costs: If you should move to an area with a lower cost of living, you will likely need to take a pay cut. The excellent news is that you simply won’t need as much money as your cost of living in the brand new area will go down. This can lead to significantly greater savings opportunities in the long run.
- Take on a “learning job”.: If you are trying to make a profession change, you will likely have to take a pay cut to start with an entry-level job. However, you may learn the ropes of your latest profession, so there could also be more opportunities down the road.
- Getting a job in difficult times: During tough economic times, you could have to take a pay cut simply to get a job. If it’s difficult to seek out a job, you could have to simply accept the offer, whatever the pay. Some wages could also be higher than none.
- To keep a job in difficult times: In difficult economic times, many employers reduce or freeze their wages. If your only option is to quit without one other job lined up, chances are you’ll just need to take the cut until things change.
- To achieve a shorter commute: A shorter commute can prevent loads on gas. If you may take a shorter commute, your lower wages could also be offset by your gas savings. You can even have more free time and should find a way to sleep a bit of longer within the morning. This is value greater than money.
- To get a greater probability of advancement: If your current job doesn’t offer many opportunities for advancement, chances are you’ll have to look for an additional employer. This may lead to a pay cut, but when there are more opportunities for advancement, chances are you’ll be higher off in the long term.
- To protect your health (physical or mental).: If you hate your job or your boss is a toxic guy, it could be higher to take a pay cut and go someplace else. Your mental health is value greater than money. If your workplace is just not protected or you’re employed with toxic materials, it might be higher to go away the job to do something else. They cannot replace your physical health.
Not the whole lot needs to be about money. Yes, it’s nice to get a raise. Extra money can provide you with more flexibility or the flexibility to afford some things you want to. However, there are cases unique to every individual or family where a pay cut will not be the disaster we’ve been taught.
Photo: José Carlos Cortizo Perez
