Author Topic: Chance a new job, not sure what to do.  (Read 3590 times)

MVal

  • Pencil Stache
  • ****
  • Posts: 844
  • Age: 41
  • Location: Missouri
Chance a new job, not sure what to do.
« on: October 25, 2015, 12:12:00 AM »
I have a shot at job closer to what I really want to do, but the pay is lower than my current job. I've written about it in my journal here: http://forum.mrmoneymustache.com/journals/lefty's-bustin'-out/msg847137/#msg847137.

What should I do? I'm not sure what is more important to me right now, saving money or enjoying my work more. :/

Retired To Win

  • Handlebar Stache
  • *****
  • Posts: 1493
  • Age: 76
  • Location: Virginia
  • making the most of my time and my money
    • Retired To Win
Re: Chance a new job, not sure what to do.
« Reply #1 on: October 25, 2015, 08:36:03 AM »
I have a shot at job closer to what I really want to do, but the pay is lower than my current job. I've written about it in my journal here: http://forum.mrmoneymustache.com/journals/lefty's-bustin'-out/msg847137/#msg847137.

What should I do? I'm not sure what is more important to me right now, saving money or enjoying my work more. :/

If you don't know which is more important to you, there's no way I could give you feedback.  I would be basing my response on what would be more important to ME.  That being said, there would be a big difference in my mind between moving from an OK job to a "more OK" one and moving from a "not OK" job.

MVal

  • Pencil Stache
  • ****
  • Posts: 844
  • Age: 41
  • Location: Missouri
Re: Chance a new job, not sure what to do.
« Reply #2 on: October 25, 2015, 05:24:27 PM »
Thanks. Yes, if I were truly unhappy in my current job, this would be a no-brainer. It's only in the last couple years I've become more driven by saving money and as such, I've let some of the ideas regarding what I'd really like to do for work fall by the wayside. Now that I have a chance to do something closer to those ideas, I'm questioning whether that's now going to make me as happy as saving money right now.

One potential outcome of taking this job might be an increase in motivation to develop my skills and confidence to find better work. The unstimulating nature of my current job makes finding that motivation hard currently, so I've depended on doing volunteer work outside of work to stay connected to what I enjoy. I have no idea if this new job will be worth a nearly $10,000/yr drop in pay, but I'm hoping the interview will give me that information.

Axecleaver

  • Magnum Stache
  • ******
  • Posts: 4155
  • Location: Columbia, SC
Re: Chance a new job, not sure what to do.
« Reply #3 on: October 25, 2015, 05:30:17 PM »
State jobs typically make up for lower pay with guaranteed low hour work weeks and fantastic benefits and retirement. Many come with pensions. Make sure you've fully evaluated the value of the benefit package and you're comparing apples to apples. From your description, it sounds like the state job would be more fun, lower pay, but better (potentially much better) benefits.

I'm also a big fan of the "do what you love and you'll never work a day in your life" camp, but that is not shared by everyone.

MVal

  • Pencil Stache
  • ****
  • Posts: 844
  • Age: 41
  • Location: Missouri
Re: Chance a new job, not sure what to do.
« Reply #4 on: October 26, 2015, 09:10:47 AM »
State jobs typically make up for lower pay with guaranteed low hour work weeks and fantastic benefits and retirement. Many come with pensions. Make sure you've fully evaluated the value of the benefit package and you're comparing apples to apples. From your description, it sounds like the state job would be more fun, lower pay, but better (potentially much better) benefits.

I'm also a big fan of the "do what you love and you'll never work a day in your life" camp, but that is not shared by everyone.

Yes, the benefits are pretty good, but in my state they've reduced pensions and other benefits in recent years. They no longer match on the retirement contributions, either. I'm going to call the state HR department today and find out more information about retirement benefits so I can make a good comparison between what I'm getting now and what I might get there. I'm also pretty sure the position will be salaried but may include nights or weekends, so I'll need to clarify that as well and make sure this is not going to be more than a 40 hr work week. 

Boy, I'd sure be disappointed if I didn't get to carry out my plan of front loading $10,000 in the first quarter next year to my tax advantaged accounts at my current job. I'd be really bummed if I didn't get my $2000 bonus in January, too. I will have a lot to think about if I seriously consider taking this new job.

mandy_2002

  • Bristles
  • ***
  • Posts: 291
Re: Chance a new job, not sure what to do.
« Reply #5 on: October 26, 2015, 10:58:31 AM »
I think the big deciding factor would be can you continue to save on the smaller salary.  Also, is there upward mobility possible, or will you always be lower than you were.  Based on the change in savings, are you comfortable working X more years to do something that fits better?

Full disclosure:  I'm an engineer making low 6 figures and will be quitting to volunteer for the Peace Corps in a developing country in the coming year.  (Volunteers do get a stipend and allowances, but it works out to about a 95% pay cut.  This is something I can comfortably live on for 2 years in country with small supplemental savings for travel, while my decent next egg grows slightly.)

MVal

  • Pencil Stache
  • ****
  • Posts: 844
  • Age: 41
  • Location: Missouri
Re: Chance a new job, not sure what to do.
« Reply #6 on: October 26, 2015, 11:15:30 AM »
I think the big deciding factor would be can you continue to save on the smaller salary.  Also, is there upward mobility possible, or will you always be lower than you were.  Based on the change in savings, are you comfortable working X more years to do something that fits better?

Full disclosure:  I'm an engineer making low 6 figures and will be quitting to volunteer for the Peace Corps in a developing country in the coming year.  (Volunteers do get a stipend and allowances, but it works out to about a 95% pay cut.  This is something I can comfortably live on for 2 years in country with small supplemental savings for travel, while my decent next egg grows slightly.)

I know I could continue to save on that smaller salary, but my rate would be greatly reduced. Right now, I'm socking away about $1200/mo on average, and that's not counting my 401K or HSA. I figure if I took that job, I'd only be able to save $200-600 a month. I'm really not well informed on what better paying positions might open up for me once I got in that job, but I know there is some chance I could. The new job also had the potential of tuition reimbursement, which would add value to me as I'd like to continue my education in that field. Another element to this is I suspect I'm almost at the top of the salary bracket in my current job and may continue to get 3% raises each year, but nothing monumental like before. Since I have no interest in advancing in my current field, this is a consideration also.

Kudos to you on making such a huge leap in salary to do something you'd enjoy! I'm sure with that 6 figure salary, your nest egg is quite large! My 401K is only $20K and my Roth will be $13,000 by year's end, so I'd really be more comfortable if I could take another year to beef it up more, but if I have to cut my losses to take a better opportunity, I will. I really had my heart set on getting my net worth up to $70K next year, but if this job works out, I can kiss that goodbye. Choices, choices!

MVal

  • Pencil Stache
  • ****
  • Posts: 844
  • Age: 41
  • Location: Missouri
Re: Chance a new job, not sure what to do.
« Reply #7 on: October 26, 2015, 03:29:00 PM »
Wow, they DO still have the pension program, it was just modified after the crash of 2008. Looks like I was fortunate to have previously worked for the state right before they changed the rules, so that means if I returned, I'm grandfathered in at the more favorable situation of getting pension benefits with no contribution required (new employees now have to contribute 4%). I spoke with the Deferred Compensation department and I am now glad I left my old plan in place there (even though it's only a few hundred dollars). They said the plan is made up of a 457b to which employee contributions go, and a 401a to which employer contributions go. Unfortunately, the state is no longer matching and they said you cannot contribute personally to the 401a unless you are rolling over an old pre-tax account like a 401k. But the 457b is definitely good news! I discovered I have my little pittance there sitting in a Target Date 2045 fund, which is fine.


I also found out my short time of 1.5 years with them previously will be added to my vestment requirement of 5 years after 1 full year of renewed service. So if I work for them again, I'll just have to wait a little over 3 years to become vested.

Now that my faith is bolstered in their retirement benefits being competitive with what I'm currently receiving, this will make the decision easier should I receive a job offer.
« Last Edit: October 26, 2015, 04:04:24 PM by MVal »