Taking a pay cut
Discussion
My job is becoming more and more impossible to deal with. We have been bought out by a much larger company and not being told anything, I am not sure exactly what future I have. Putting that aside the day to day stuff is really grinding me down. I run a small team of developers, my predecessor left under a cloud and we are still discovering and fixing his cockups. It now feels like people have forgotten he was ever there and now we (me and my team) are being blamed for the mistakes.
Anyway, naturally I have been looking for another job. I live in MK and have been working in south bucks. The salaries in MK seem a bit lower than my current area. I would like to be close to home if I am going to change jobs.
The pay cut would be about £10K. Offsetting my travel costs it would be more like a £5K cut in the end. Trouble is my wife seems really against the idea of me doing this. I don't think we are short of money and could get by with a couple of hundred quid less a month.
Anyone taken a pay cut like that? I just think if I could find something local that would be less stressful would be worth it.
Anyway, naturally I have been looking for another job. I live in MK and have been working in south bucks. The salaries in MK seem a bit lower than my current area. I would like to be close to home if I am going to change jobs.
The pay cut would be about £10K. Offsetting my travel costs it would be more like a £5K cut in the end. Trouble is my wife seems really against the idea of me doing this. I don't think we are short of money and could get by with a couple of hundred quid less a month.
Anyone taken a pay cut like that? I just think if I could find something local that would be less stressful would be worth it.
I was made redundant last year, and my new job was a pretty significant paycut (£12k) - and that was in addition to the fact that the company that took us over shortly before the redundancies had changed our contracts so that most of our benefits disappeared and we were compensated in direct salary, or via shares (most of which never matured due to the redundancy). So in reality I'd say that my current salary is about £15k less than it was 18 months ago.
For me, the new job was convenient - it is very local to home (although the old one was too), and although it's in the same industry I was previously in there is a fundamental difference which is good for the CV (Windows software, when my experience is all embedded). I had a threshold below which I would not drop - because it would have meant fundamental lifestyle changes (primarily car changes!) and this salary was above that, so I was happy. Plus I got it immediately and didn't touch 15+ years worth of redundancy.
A large percentage of my salary is disposable income (no kids, no mortgage etc.) - but month on month I do notice it. My savings are going up a lot slower, and I need to make a conscious effort not to be too frivolous with purchases during a month.
However - in your case, the drop seems smaller and you gain some time in your life which is worth money. If you decide you're not earning enough, there are jobs out there and you can travel further afield again. I know I could earn more - in fact I had an interview recently for a job that would pay more, but it wasn't a role I wanted.
Quality of life counts just as much as salary to me, so for now this job suits even though I feel underpaid. Sounds like you may have the same view.
For me, the new job was convenient - it is very local to home (although the old one was too), and although it's in the same industry I was previously in there is a fundamental difference which is good for the CV (Windows software, when my experience is all embedded). I had a threshold below which I would not drop - because it would have meant fundamental lifestyle changes (primarily car changes!) and this salary was above that, so I was happy. Plus I got it immediately and didn't touch 15+ years worth of redundancy.
A large percentage of my salary is disposable income (no kids, no mortgage etc.) - but month on month I do notice it. My savings are going up a lot slower, and I need to make a conscious effort not to be too frivolous with purchases during a month.
However - in your case, the drop seems smaller and you gain some time in your life which is worth money. If you decide you're not earning enough, there are jobs out there and you can travel further afield again. I know I could earn more - in fact I had an interview recently for a job that would pay more, but it wasn't a role I wanted.
Quality of life counts just as much as salary to me, so for now this job suits even though I feel underpaid. Sounds like you may have the same view.
My current commute is basically an hour each way. Can be more in the mornings if I leave at the wrong time. I would gain 2 hours each day. But also it would make it much easier to pop out for things like sports days, and having to pick the kids up from school if they are sick.
My wife hasn't been working for a few years since the kids were born. Now she is going back to work it would be beneficial for me to be closer to home.
My job is impacting on my home life. It makes me grumpy. I don't enjoy the work and the politics and other s
t going on stresses me out and depresses me.
Obviously I could do to a new job, be paid less and hate that also but that's a risk you have to take.
I'll keep looking and will apply for the lower paid jobs. Can make the decision when I actually get offered something.
My industry (IT development) has a big skills shortage so companies maybe be willing to up the salary a bit anyway.
My wife hasn't been working for a few years since the kids were born. Now she is going back to work it would be beneficial for me to be closer to home.
My job is impacting on my home life. It makes me grumpy. I don't enjoy the work and the politics and other s
t going on stresses me out and depresses me.Obviously I could do to a new job, be paid less and hate that also but that's a risk you have to take.
I'll keep looking and will apply for the lower paid jobs. Can make the decision when I actually get offered something.
My industry (IT development) has a big skills shortage so companies maybe be willing to up the salary a bit anyway.
Yeah. I think the real issue is we need to be better at controlling our money rather than needing to earn more. We've fallen in to a trap of having a bit of disposable income and so we just spend without thinking.
I think she is coming round to the idea. Its just I have had a few years of salary growth and to then take a £10K plunge sounds a bit odd. I think the improvement in my mood would be enough to offset the cost.
I think she is coming round to the idea. Its just I have had a few years of salary growth and to then take a £10K plunge sounds a bit odd. I think the improvement in my mood would be enough to offset the cost.
Until the start of this year, I worked for a huge global corporation, earning a very good salary but I hated the job, the company, and some of my colleagues to the extent that it was impacting my mental health. I was also based permanently at home, which whilst it has distinct advantages, can leave you quite isolated, particularly when your manager only wants a 1 to 1 about once a year or when HR demand that he holds one. You get the picture...
I took several months out then accepted an offer from a very small, very focused company, where the overall package is around 40% lower. This company is a happy, collaborative, supportive place to work and it's night & day from the last place.
Would I like more money? Of course. Would I go back to a role like the last one for more money? Not a chance. Can I live on what I'm making now? Yes.
On top of that, MrsC's job started to go a similar way, to the extent that she has resigned and walked. So, the household income has dropped by 50% or more! She'll look for something else in due course but in the meantime, I can already see how much calmer and happier she is, and that's worth any amount of cash. We can still live on what's coming in, we'll have to watch the pennies more but life's more than just counting your money.
I'm not meaning to delve into your personal relationship, I don't know you or your wife, but surely she should be more concerned about your wellbeing than a couple of hundred quid a month? Unless you're on minimum wage, you ought to be able to absorb that, it's little more than a fiver a day. How many grande frappe mocha chocha lattes does she get through?
I took several months out then accepted an offer from a very small, very focused company, where the overall package is around 40% lower. This company is a happy, collaborative, supportive place to work and it's night & day from the last place.
Would I like more money? Of course. Would I go back to a role like the last one for more money? Not a chance. Can I live on what I'm making now? Yes.
On top of that, MrsC's job started to go a similar way, to the extent that she has resigned and walked. So, the household income has dropped by 50% or more! She'll look for something else in due course but in the meantime, I can already see how much calmer and happier she is, and that's worth any amount of cash. We can still live on what's coming in, we'll have to watch the pennies more but life's more than just counting your money.
I'm not meaning to delve into your personal relationship, I don't know you or your wife, but surely she should be more concerned about your wellbeing than a couple of hundred quid a month? Unless you're on minimum wage, you ought to be able to absorb that, it's little more than a fiver a day. How many grande frappe mocha chocha lattes does she get through?
I just secured a new job. Even though I will be earning a fair bit more, I currently work from home and after travel will be quite a bit worse off. I was also counter-offered to the point where I would be £700 a month better off staying where I am. But needs must, Im 3 years out of uni and the new job is something I need to go for in terms of experience so putting my head in the sand where money is concerned. There's a further rise in 6 months which puts me a little better off than I am now (extra £200 after travel i think).
Theres also many things that frustrate me at my current place, namely an office and datacentre out in India and they are absolutely terrible and because of them I spend most of my time arguing facts with a bunch of idiots who blame networks for everything (even when the problem is a customer server for example). I also dont dig working from home especially when I am moving in a couple of months to a new place where Ill have no mates (sad face
). If I had kids or dogs I would probably stay and take the offer.
But I am looking forward to the new one.
Theres also many things that frustrate me at my current place, namely an office and datacentre out in India and they are absolutely terrible and because of them I spend most of my time arguing facts with a bunch of idiots who blame networks for everything (even when the problem is a customer server for example). I also dont dig working from home especially when I am moving in a couple of months to a new place where Ill have no mates (sad face
). If I had kids or dogs I would probably stay and take the offer. But I am looking forward to the new one.
Jasandjules said:
2 hours a day you get back? Ask yourself how much you would pay to get that kind of time - which is a full working day each week...... Well worth a pay cut IMHO.
I'd second that (which is why I asked it!) That time will translate directly into less stress on you, as well as your savings on fuel.And as you say, the employer may be willing to meet somewhere a bit higher if you have the right skills, or set out graduated rises in advance to get you. If you don't ask though, you won't get it!
You don't say what ballpark your income currently is, but assuming you aren't on buttons then I'd do it. It's not a couple of hundred though, its £500... approx £125/week is something I'd pay for the reduced travel time and ultimately a little bit more happiness.
Why is your wife against the idea? Strikes me as a little odd. Would she prefer you to reach a point where you can't face work at all, melt down and leave her responsible for the bills for a month/6 months/year/whatever?
I'm a contractor (although I've had a couple of permanent roles over the years) and I don't worry solely about what the actual headline figure is as long as it is "enough". Beyond that I look at the pro's and con's of the role - the client, the project, the technologies, the enjoyment factor, the location, the commute, etc etc etc, and work out if they sway my opinion - if all the boxes are ticked I'll accept a lower rate if I need to, if they don't then I look to be compensated financially for the hassle and stress.
A daily commute is something I dislike intensely, so if I could still pay the bills I'd not think twice about reclaiming a couple of hours a day for £125/week.
Why is your wife against the idea? Strikes me as a little odd. Would she prefer you to reach a point where you can't face work at all, melt down and leave her responsible for the bills for a month/6 months/year/whatever?
I'm a contractor (although I've had a couple of permanent roles over the years) and I don't worry solely about what the actual headline figure is as long as it is "enough". Beyond that I look at the pro's and con's of the role - the client, the project, the technologies, the enjoyment factor, the location, the commute, etc etc etc, and work out if they sway my opinion - if all the boxes are ticked I'll accept a lower rate if I need to, if they don't then I look to be compensated financially for the hassle and stress.
A daily commute is something I dislike intensely, so if I could still pay the bills I'd not think twice about reclaiming a couple of hours a day for £125/week.
I've put in some applications for some roles which are paying lower. It just seems that the salaries are a little lower in this area.
I think my wife is against it because we never seem to have any money left at the end of the month, but that's because we spend what we want without giving it a second thought. We need to spend less, and not earn more.
Whilst the salary is about £484 net a month lower I calculate my commuting costs to be about £250 a month. That's including diesel and repairs (e.g. I go through a set of front tyres in less than a year). So the net deficit is only juts over hundred quid.
Fingers crossed for these roles. Next problem I have is I'm on a 3 month notice period.
I think my wife is against it because we never seem to have any money left at the end of the month, but that's because we spend what we want without giving it a second thought. We need to spend less, and not earn more.
Whilst the salary is about £484 net a month lower I calculate my commuting costs to be about £250 a month. That's including diesel and repairs (e.g. I go through a set of front tyres in less than a year). So the net deficit is only juts over hundred quid.
Fingers crossed for these roles. Next problem I have is I'm on a 3 month notice period.
UpTheIron said:
A daily commute is something I dislike intensely, so if I could still pay the bills I'd not think twice about reclaiming a couple of hours a day for £125/week.
I must be mad trading my work from home job for a 90 min commute each way and basically putting me financially worse off.MikeGoodwin said:
I must be mad trading my work from home job for a 90 min commute each way and basically putting me financially worse off.
That depends I think - some people find work from home soul crushing due to the lack of human interaction - in which case they may jump at the commute!I've described my position a few times on here 
I took a circa £20k pay cut earlier this year. My wife also gave up work to look after the kids. (I am still on a decentish wage though....)
Best move we have made in terms of work/ life balance, happiness, time with kids. Unfortunately my commute increased, but I now get a chance to listen to the radio, new music, comedy etc. which was something I was actually missing being at work for long hours.
We needed to change a few things and we have not missed any of them. The cleaner, Sky, foreign holidays, meals out at weekends are now gone - but you don't really need that! New mortgage, new energy supplier, camping holidays, cycling/ playing tennis/ going to the beach with kids at weekends instead of theme parks etc. all reduced costs and increased family time....
Somewhat satisfyingly, my old firm are really struggling - primarily because of poor budget decisions where my voice was not heard heeding warnings about the decisions being taken. (my smugness still firmly intact ) I just pity those left and hope the current owners get the sale they want so desperately!
Look after number one and if financially it can work (which it sounds like it can....) then I would not hesitate...
Mike
I took a circa £20k pay cut earlier this year. My wife also gave up work to look after the kids. (I am still on a decentish wage though....)
Best move we have made in terms of work/ life balance, happiness, time with kids. Unfortunately my commute increased, but I now get a chance to listen to the radio, new music, comedy etc. which was something I was actually missing being at work for long hours.
We needed to change a few things and we have not missed any of them. The cleaner, Sky, foreign holidays, meals out at weekends are now gone - but you don't really need that! New mortgage, new energy supplier, camping holidays, cycling/ playing tennis/ going to the beach with kids at weekends instead of theme parks etc. all reduced costs and increased family time....
Somewhat satisfyingly, my old firm are really struggling - primarily because of poor budget decisions where my voice was not heard heeding warnings about the decisions being taken. (my smugness still firmly intact
) I just pity those left and hope the current owners get the sale they want so desperately!Look after number one and if financially it can work (which it sounds like it can....) then I would not hesitate...
Mike
I left my last job almost 2 years ago as I was stressed beyond belief which was effecting my social and home life and to be honest was making me ill. I hated it, spent anytime away from work worrying about work and as such would decline going out.
I took a £3k pay drop and walked away from £3k share plan and a yearly bonus of between £6k to £10k. Best decision of my life. Love my new job, made up almost all of the financial loss to me with my first pay rise and am back to my normal healthy and happy self with better job prospects.
If you can afford the drop and the job is causing you issues then it is a no brainer.
I took a £3k pay drop and walked away from £3k share plan and a yearly bonus of between £6k to £10k. Best decision of my life. Love my new job, made up almost all of the financial loss to me with my first pay rise and am back to my normal healthy and happy self with better job prospects.
If you can afford the drop and the job is causing you issues then it is a no brainer.
Thanks for all the advice and stories. The wife and I spoke about it properly last night. I explained quite how awful the job is and how actually I feel like quitting now before I have found anything.
She thought that I was selling myself short by taking a cut and I should wait for a better salaried job. We went through the jobsites on line and I showed her that there were none. She is now happy for me to do it. It helps her me being local as well for her new job.
I hope I can get one of these jobs. I have applied for 5 so far so fingers crossed.
I'm not sure how much longer I can stand my current job
She thought that I was selling myself short by taking a cut and I should wait for a better salaried job. We went through the jobsites on line and I showed her that there were none. She is now happy for me to do it. It helps her me being local as well for her new job.
I hope I can get one of these jobs. I have applied for 5 so far so fingers crossed.
I'm not sure how much longer I can stand my current job
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