The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: lavagirl on January 22, 2016, 07:46:36 AM
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Would you take a 30k pay cut for a work from home job with the possibility of future raises?
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Depends how much I'm making and how far my commute is. If I'm currently making 40k and the commute is 2 miles, I don't think so. If I'm currently making $250k and commute 80 miles, most likely yes.
What's the starting salary? What's the current commute?
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It depends on what my commute is now, how many other short commute/no commute options there are and what they pay.
For me, I would not take that big a pay cut JUST to work from home. I work from home now, and I love it compared to being in the office, however; I'd see if I can find a comparable work from home job with higher pay.
Now if I was downshifting to the lowest gear, I would be more likely to take the pay cut and ride the gravy train until it stops. Right now I'm still accumulating and investing despite FI, only because I want to get while the getting is good and build massive wealth before pulling the plug.
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Look at it this way:
Can you afford the paycut? What will the lost pay do to your life?
Can you use some more free time? What can you do with that time to improve your life?
Can not commuting make up for some/all of the lost pay?(selling a car, lowering insurance, etc...)?
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Need more information:
Current commute conditions?
Personality - would you like to work from home?
Possibility of arranging partial work from home with current position?
Current pay?
Job conditions - do you like your current job? Do you think you'd like the work from home job?
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Need more information:
Current commute conditions? Twice a week I wake up at 4:30 to drive an hour to work and over an hour the way back. I know this doesn't sound too terrible but I'm at the point I want to cry or hang myself those two mornings.
Personality - would you like to work from home? I work from home three days a week and I love it.
Possibility of arranging partial work from home with current position?
Current pay? Not going to change from what it is.
Job conditions - do you like your current job? Do you think you'd like the work from home job? I hate my job. I've been doing the same thing for 7 years and have been bored to tears for the past 6. I know overall going from ~100k to ~70k is stupid, but the idea of never commuting again makes me feel so happy. I would also be doing completely different work which is appealing too.
Also, working from home would let me move to a lower cost of living area.
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What is the probability of a future raise? Can you ask what percentage of their employees actually get that raise, and how long it takes them to get it?
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The pay would probably top out at 80-85k. This will take a few years to get to.
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I'd seriously consider it if I could work from any country I wanted to. If I had to stay in my current area, it wouldn't be worth it.
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I would do it. Working from home all the time makes life so much easier. You can get so much more done and never driving in rush hour traffic again is worth alot of money.
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With what you've said, I'd probably do it. But I'm not that motivated by money and don't plan on having a long career, etc.
Moving to lower cost of living area is great - maybe sell a car or something, too?
Good luck with whatever you decide. Regardless, it sounds like you should try to find a new job!
Edited to add: your commute does sound terrible. Over 2 hours a day twice a week? I would probably do it for $100k/yr, but not for a job I hate (I currently make $70k/yr, so it's pretty comparable to your switch)
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Time is money. I know a ton of people who are miserable because of their commute. I personally think it would be worth the pay cut to have a shorter commute.
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Thanks for your input everyone! I think not having a commute would make life so much better.
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Edited to add: your commute does sound terrible. Over 2 hours a day twice a week? I would probably do it for $100k/yr, but not for a job I hate (I currently make $70k/yr, so it's pretty comparable to your switch)
I appreciate the validation that my commute I'd terrible! Many people I work with have worse commutes, so compared to them I feel like I shouldn't complain.
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Congrats on the offer! The key here from my perspective is that you hate your job. Is it worth taking a pay cut for a position you don't hate? If you subscribe to the ideal that happiness is more valuable than money then, yes, absolutely make the choice that will make you happy. Seven years is a long time to tolerate a job you hate. How long would you mentally be able to continue working your current job? It's also worth noting that many people will soothe themselves with some form of spending when they're miserable.
Think about what changes in your life if you take the other position. Subtract the cost of commuting X miles 2/week. Add 5+ hours of free time to your week. Subtract parking, maintenance, clothing and food expenses associated with commuting. Does this change allow you to move somewhere that would be preferable to you? It definitely sounds like the lower paying position would be lower stress.
A few more notes: Have you compared benefits? Can you utilize the tax write-off from working from home? Is there any potential to negotiate the offer higher than 70k? Is there any incentive to stay with your current job (upcoming bonus or potential promotion)? Which job fits better into your long term plans?