We all want to spend our lives growing our career and salaries. However, in the last five years, more than 45% of the US workforce took a pay cut. Whether it was for layoffs, going into business for oneself, or changing careers, the decrease in pay made sense.
We live in a time where goods and services are made affordable through technology. Taking a job for less money is not the end of the world, especially if it leads to a person having a fulfilling career.
Yes, money provides certain freedoms, but by no means is it the status symbol that it used to be. It is no longer the key to happiness. If you are thinking of taking a pay cut, see if any of the reasons below make sense to you.
When a decrease in pay is required to keep a job you love
This happens mostly with startups, small businesses, or companies run by serial entrepreneurs. You love your job and you make the company profitable. But the economy is changing, people are paying, or the boss wants to start a new company.
In order to stay afloat, and keep a job you love, you agree to a decrease in pay. It may be only temporary, but because you are happy you have the energy to stay productive at work. You have the ability to seek out new work, if necessary.
More so, given today’s transient workforce, you can work remotely from a cheaper city. Taking a pay cut for a job is betting on long-term results, but your commitment will be admired by other companies if it does not work out.
When going into business for yourself
There are more than 50 million freelancers in the US workforce. What all of these workers and entrepreneurs have discovered is that being your own boss is its own reward.
Taking a pay cut may be hard for the family. But the fact is you now answer to yourself, and no one else. In the past, our ability to grow a career depended largely on what you had time to learn while fitting the job in your schedule.
When all you have for a boss is “YOU”, and you can spend all day running your own business the way you wish, the potential for learning and career growth increases. If you discover you were not meant to be your own boss, that’s fine because you learned what it means to run a business on your own. This makes you leadership material.
You also have the chance to look into careers you once thought impossible. Yes, it is starting over, but if you want to do it, taking a pay cut is required. Some industries just do not pay as well as others.
When moving to a cheaper city or new country
The cost of living in the US, and around the world, changes drastically from city to state to country. Even if you took a small decrease in pay from your New York City salary (a very expensive city), it still will not impact you as much when moving to a city with a lower cost of living.
If you are looking to leave big city life, and work remotely with a nice salary, that is even better. The benefit of working remotely is that your company will not adjust your salary for operating costs. You can move anywhere you want to, and be flexible with your salary, because you have a lower cost of living.
Are you looking to change cities and possibly take a pay cut? Check out this cost of living salary converter to see how it will affect your lifestyle.
Ideally, you will be able to move to your favorite place, take a decrease in pay, and not be affected at all!