Leaving a job for one that is lower paid does not come across as the best option for most people. We are conditioned to follow the money, such that the bigger the pay check the ‘better’ the job. However, this is not always the case, and there are many occasions when accepting a lower paid job makes sense. For instance, perhaps you have reviewed the benefits of your current job and concluded that they are not sufficient for the salary you are receiving. Or maybe you are dissatisfied with your area of work and want to move into another in which you have less experience, where a drop in salary is not unexpected.
As mentioned, one of the consequences of a career change into another field is that the salary will often be lower. How much lower is variable, and how much of a salary reduction you are willing to accept is subjective, but there are some good reasons to take the lower salary. It might be worth it to gain new experiences and broaden your skills. It is also advantageous in the sense that you will benefit in the long run. With hard work you should be able to make a significant increase in pay after 18 to 24 months.
In a survey by talent acquisition firm Mom Corps, it was discovered that a majority of working adults were willing to give up a portion of their salary in return for more flexibility at work, on average by almost 10%. It is evident that, to many people, salary is not everything. Maybe you prefer to keep your weekends free, or you would like to be closer to your work to avoid a stressful commute every morning. Whatever the reason, a healthy work life balance is important to most people, and taking a lower salary is worth it to accomplish this.
On the other hand, the decision to take a lower salary should not be taken lightly. For instance, it might lower your motivation and passion for work. This is particularly true if you hang your self-worth on the size of your salary. In addition, you need to check your finances to see if you can afford it. If your budget will suffer due to the career change, then it might not be in your best interests.
There are pros and cons of taking a salary cut with a career change. Although it is largely subjective as to how you will respond, there are some concrete reasons to consider before making such a decision. If you can afford it, and if you think your work/life balance needs to be healthier, then that career change might be just what you need. If the only thing preventing you from making the leap is a concern over your budget, a financial planner can help you determine how you can adjust your spending to accommodate a lower salary. If you have considered all the angles, and are sure that you are taking a pay cut for the right reasons, then you will not regret it later.
Adam Watson
Sources:
http://www.businessinsider.com/most-workers-willing-to-trade-pay-for-flexibility-2014-8?international=true&r=US&IR=T
https://www.learnvest.com/certified-financial-planners/