Should you take a pay cut?

When switching careers a question that often comes up is - should you take a pay cut?

The quick answer- maybe.

So, should you take a pay cut or not when switching jobs depends on a number of factors. Here’s my biggest thing though- 

The only time the answer is definitely no is when the pay cut is below what you need to live. If you can’t live off of it, you can’t take the job.

So first things first, find out what your minimum viable income is- what is the bare minimum you need to make to live off of? And don’t forget to add tax!

The good news though is right now, there is VERY little reason to take a pay cut. So many companies have so many openings and to be enticing they are upping those salaries! So hopefully no matter what move you are making a raise will be involved. 

But here’s the thing- I don’t want you to say no automatically if you can live off the lower number.

Some say that the only way to go is up in pay year after year. 

People often talk about the career ladder- like we just go up, up, up, but maybe you too have seen this meme of what success really looks like: 

But if you want to make a career change, if you want more opportunity in the future, a pay cut may, for a time, be part of that journey. 

If we want to get to where we feel fulfilled that means it’s going to get a bit messy and jumbled, and may include a cut (again, for a time) to jump ahead to bigger raises in the future. 

I’ve taken cuts- one time to work contract for a tech company because it was an experience I wanted and wouldn’t have had any other way, plus, I knew the name would pay off later ( and it has). 

I also took a pay cut to move into a job that had more options. I had been in a role that was good but had no upward movement. I took the pay cut because the new role was a slightly lesser salary but with the promise of promotion after a year- plus the chance to explore other types of positions I hadn’t been able to explore. 

The other reason I think you may want to explore a pay cut is quality of life. Do you make less but get more of your time back? Less stress? Freedom? It may be worth the cut. 

And if you are changing careers you may take a bridge job- doing something similar to what you do now, but in a company with more options to get into a different department you’d like to explore. It might not mean a pay cut but similar to your current pay with better options down the road. 

So, should you take a pay cut? I really hope you don’t have to, but if it’s part of getting to a career that fulfills you, it might be a stop along the way. 

Really evaluate if they pay cut is worth it in the long run- what are you trading with that cut? What’s the non-monetary benefit you will receive. 

And let me know in the comments, have you ever taken a pay cut to move ahead?