The big salary drop
By Matt - Monday, December 4th, 2006
If you ask most people they’ll tell you that you’ve gone crazy if you tell them you’re about to take a very serious cut in salary to take on a new job. But I’m doing just that. I’ve got a job lined up that I’m going to be starting in January and for this privilege I will be taking close to a 33% cut in my salary. I know it sounds absolutely crazy even to me. But there is a bonus associated with this that could seriously reduce the impact of this move about this time next year.
So why do it you ask? Well the choice is pretty simple I walk into a position that is significantly more senior that the one I’m in and I’ll be challenged on a daily basis. The challenges are going to make me use my brain rather than try to defend something I was asked to do. I do not like my job, I do not like the idea of spending 2 hours in the car every day getting to and from my job, and I don’t like the fact that it’s costing me close to $10K per year for the privilege of driving to a job I don’t like.
The car by itself doesn’t make it worth it but the mental anguish of doing a job I don’t like, that’s virtually priceless. So the decision was simple. Now to plan for it! I’ve arranged that I start in January which will give me a couple more pays at the higher value which will let me get ready for the big drop of money coming in. Over the next month or so I have to save as much as humanly possible in an effort to ensure nothing gets lost in the cracks so to say. Its time to drop the consumerism bit and start the saver bit. Alas Christmas won’t be a generous time for me!
Technorati Tags: Salary cut, saving, planning, new job
This entry is filed under Budgeting and Planning, Commentary.
5 Responses to “The big salary drop”
1 Blogging Away Debt » Blog Archive » BAM! Your Income is Decreasing by 33%…and You Want it to? says:
December 4th, 2006
at 2:25 pm
[…] Matt over at One Million and Beyond is taking a big hit to his income. And, he’s happy with that. […]
2 One Million and Beyond - to one million and beyond » Wedding Planning - Budgeting says:
December 7th, 2006
at 9:12 am
[…] The biggest issue that we’re facing right now is the fact that I’m taking a pretty big pay cut and it’ll be harder to actually save money. I’ve got a few things in mind to actually save up more money: first off it’s time to sell some of the junk I’ve accumulated over the years on eBay. All proceeds will go towards the wedding. Secondly I’m starting to look around for side jobs, small things that won’t kill me or stress me out and that will pay a bit (every little bit helps). Finally we’ve got family that has openly said they’re willing to help out which is great (hopefully we won’t be relying on them very much but time will tell). […]
3 One Million and Beyond - to one million and beyond » Resigned! says:
December 18th, 2006
at 11:35 am
[…] Resigned! By Matt A little while ago I posed that I’ll be taking a 33% pay cut and today, shaking a little, I handed in my two weeks notice. I haven’t resigned my position many times in the past and I have to say that it’s a little unnerving. Two weeks from now I’ll be sleeping in and taking a week off to just relax before starting my new job. […]
4 One Million and Beyond - My journey to a million dollars and beyond. » Reality Shift – There goes the Job! says:
February 6th, 2008
at 7:52 am
[…] A little over a year ago I took a substantial pay cut to work for a small company that was growing; recently as part of their growth they decided to go down a certain direction that I was not really happy about. I learnt a great deal over the year that I was there and I have been infected with the entrepreneurial spirit. I was already looking for a replacement job when I was let go. There are no hard feelings and I am grateful for the experience. […]
5 Frustration with my Finances | One Million and Beyond says:
May 13th, 2008
at 9:38 am
[…] When I first started writing this blog I was in a pretty rough financial situation but things didn’t look all that bad because I was making a pretty good salary at $75K per year. A few months after that I took a 33% pay cut to take a great opportunity which meant I was down to making $50K per year. I have to say that as a result of this the year was a difficult one but I was able to cut down on my expenses and slowly, very slowly, cut down my debt. Since I was let go from that job in February I started my own business and I took a full time contract where I’m responsible for a greater aspect of my money (such as taxes). The good thing in this setup is that I have more flexibility and the potential to pay less in taxes. The unfortunate item is that I’m making less still (Now I’m at $30K plus a great commission structure). […]
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