Friday Jul 22

Recent studies have found that most would accept less money if it meant doing something they enjoy.

Congratulations on finding your dream job! But be prepared to live on a whole lot less as a sacrifice for a lower wage. Times have changed and today, salary rises and cuts are part of the process. Given the current economic situation post-Brexit, the salary rulebook has been thrown out of the window. In a society that has been led to chase salary increases, taking a pay cut could be a wise move. New figures from CV-library show that 81.9% of Brits would take a pay cut if it meant they got that dream job. Woodland has six scenarios where taking a pay cut would be a good career move.

1)     Change in career

You’re definitely in the wrong vocation if you are stressed out at work due to factors such as a demanding workload or long hours. A lot us make our career choices in our early years of working life, often influenced by the opinions of our families, and of course if the pay is good. Recent studies conducted by Towers Perrin found that around 55% of workers think that they are in the wrong job.

Should you find a job that matches your passions and your skills, don’t dismiss it because of the dip in wage. Our best advice to you is to have a chat with your nearest and dearest, work out if your expenses can still be manageable, what have you got to lose?

 

2)     Better Career Progression

In certain situations, taking a step back on the salary path can be two steps forward in the right direction. Again Woodland encourages to go with your gut if a cut can yield greater opportunities. Sometimes, it makes sense to take a step backward if you are moving from, say a start-up company to a larger one with career advancement opportunities. Making less money may be hard at the beginning but with a little patience and hard work, you could be earning even more than you did in your previous job in a short space of time.

 

3)     Starting up Your Own Business

In the event of you making the bold decision to launch a new business, expect a decrease in salary at least for the short term. Recent studies have found that it takes an average of around five years to attain a consistent flow of profit. Should you decide to take a plunge into a new business ensure that you have plenty of savings in the bank to fall back on, in the event of unforeseen expenditures. You may make significantly more than what you put in the not so distant future.

 

4)     Relocation

You might be earning a tidy sum in the city, but you may not like living near it. If you prefer a change of scenery and move to a location that suits your lifestyle, you may be earning less, but bear in mind that your living expense will be reduced also. This means, despite a pay cut, you still could be able to save money.

 

5)     Improving your Work/Life Balance

Would you be happy to take a slight pay cut if you could skip your commute and work from home on Fridays? If you can make it work financially, reducing your working hours to allow to spend more time with your family or on your personal hobbies would be recommended.

 

6)     Cut your Commute

You may have reached an impasse in your current career where the cost of commuting to your workplace both financially and mentally makes you question staying at your current job, perhaps it is time to move on. Even if a new job pays less, if it is closer to home you could realize big savings in you bank balance, and your sanity.

 

 

Make sure you are sufficiently prepared for the change. Whilst taking a pay cut is the way forward towards pursuing your dream position, you will definitely need to overhaul and rethink your budget. Unlike when you are out of work for a couple of months or if you are temporarily short on cash, the financial changes you make to adjust to a lower salary will need to be sustainable over the long haul, and you will still need to plan for the long term. You will need to identify your unnecessary expenditures, renegotiate necessities and ensure you pay your bills on time. Woodland’s advice is to be self-aware and ensure you are taking a pay cut for the right reasons, so that you won’t regret it later.

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