How much of a pay cut is too much? Personal opinion

klone, MSN, RN · Jan 6, 2017

I would definitely accept a pay cut if I were really unhappy in my current job. (I am not unhappy now.) I spend too much time at work to be miserable. I would rather live a more frugal lifestyle and be happy -- than make more money and be miserable.
As long as I could have a safe home and life's basic necessities -- and enough to save some money for retirement and emergencies -- I would take a pay cut.

I agree, as does my husband. A couple years ago he took a $25,000/year paycut, and it greatly improved his (and as a result, my) quality of life.

bear94, BSN, RN · Jan 6, 2017

I am in the process of leaving my job that requires me to drive an hour away for a job that is only 15 minutes away from my house. I took a pay cut. Sort of.

Current job: day shift has a starting wage of

$22.50/hr, and working nights earns you $24.75/hr.

Since starting, I've received a raise and make $25.50/hr working nights. If I were to work days I would make $23.19/hr

New job: day shift has a starting wage of $24.75/hr, and working nights earns you $27.22/hr. I will be working days making $24.75/hr.

So, I will be making .75 cents less than I am used to, which equates to $27 less dollars in my pocket per week before taxes. The way I see it, I will be breaking even because I won't have to fill up my gas tank twice a week like I do now. I'll probably be filling it up twice a month with my new job. I don't think I could ever take a paycut of more than $1 unless I was desperate. I have accustomed to the lifestyle that comes with the wages I receive, which is decent for where I live.

Horseshoe, BSN, RN · Jan 6, 2017

oh wow! Are you happier now where you are at?

raecudzy1, if you will use the "quote" feature right next to the reply button, the person whose post you are responding to will understand that you are addressing them.

raecudzy1, BSN · Jan 6, 2017

raecudzy1, if you will use the "quote" feature right next to the reply button, the person whose post you are responding to will understand that you are addressing them.

Thank you!!!!

quazar · Jan 6, 2017

I took a 10% base rate pay cut to leave my former job to go to the one I have now. It was a difficult decision, because I loved my coworkers, and had been at my former place of work a long time. I chose to leave because no amount of money was worth risking my license, which I felt I was doing by working there due to the fact that they cut staffing to the bare bones.

Money, to me anyway, isn't everything. If the basic necessity bills are paid, then great. Fluff isn't necessary, and I'd rather have a job I like for less pay than loathe going to work for more $$. No thank you.

Jules A, MSN · Jan 6, 2017

I am in the process of leaving my job that requires me to drive an hour away for a job that is only 15 minutes away from my house. I took a pay cut. Sort of.
Current job: day shift has a starting wage of
$22.50/hr, and working nights earns you $24.75/hr.
Since starting, I've received a raise and make $25.50/hr working nights. If I were to work days I would make $23.19/hr
New job: day shift has a starting wage of $24.75/hr, and working nights earns you $27.22/hr. I will be working days making $24.75/hr.
So, I will be making .75 cents less than I am used to, which equates to $27 less dollars in my pocket per week before taxes. The way I see it, I will be breaking even because I won't have to fill up my gas tank twice a week like I do now. I'll probably be filling it up twice a month with my new job. I don't think I could ever take a paycut of more than $1 unless I was desperate. I have accustomed to the lifestyle that comes with the wages I receive, which is decent for where I live.

Your new rate is actually higher, imo. My time isn't free so I add in my drive time into my hourly calculations when it exceeds a reasonable commute to another job. For example in your case I would divide your present shift salary by 9.5 hours or 13.5 hours (90 extra minutes as compared to your new 30 minute commute) so if you did an 8 hour day at previous job you were really only making $21.47 for night shift and if you did a 12 hour shift it would be $22.66 an hour-if my math is correct.

chacha82, ADN, BSN · Jan 6, 2017

With any pay cut, I would ask myself the following:

1) Is it still full-time with benefits? If not, what will it cost you to buy benefits? Do you have medical needs that wil make it difficult to get new health insurance?

2) Are you still able to put savings away each month with the pay cut? This is a must, even if it is only $100. You NEED savings you can access without penalty for emergencies.

3) Can you continue to pay housing, utilities, pet care etc with the new pay cut? Forecast six months of earnings and payments to see if it is feasible.

I took a paycut one year of over $13 K. It worked out OK, but it was a very stressful year and I did not put much (if anything) in savings that year. I also didn't have to pay for health insurance that year. I took another job a few months into that for extra money. It was a tough year of double meetings, double competencies to meet, etc.

What will the pay cut cost you besides money? If it gives you more family or pet time, less stress, better commute, etc, it can be worth it. If you are happier doing the work, it may be better. As my dad would say, "Crunch the numbers."

chacha82, ADN, BSN · Jan 6, 2017

I am in the process of leaving my job that requires me to drive an hour away for a job that is only 15 minutes away from my house. I took a pay cut. Sort of.
Current job: day shift has a starting wage of
$22.50/hr, and working nights earns you $24.75/hr.
Since starting, I've received a raise and make $25.50/hr working nights. If I were to work days I would make $23.19/hr
New job: day shift has a starting wage of $24.75/hr, and working nights earns you $27.22/hr. I will be working days making $24.75/hr.
So, I will be making .75 cents less than I am used to, which equates to $27 less dollars in my pocket per week before taxes. The way I see it, I will be breaking even because I won't have to fill up my gas tank twice a week like I do now. I'll probably be filling it up twice a month with my new job. I don't think I could ever take a paycut of more than $1 unless I was desperate. I have accustomed to the lifestyle that comes with the wages I receive, which is decent for where I live.

This is a perfect example to me where it makes sense to take a pay cut as long as it's not colossal. 15 minute commute is so much better after 12 hours than an hour! I've done both and for over two years my life was dominated by a 75 minute commute one way. Whatever extra money you make you have to spend on gas. I now have a 10 to 15 minute commute and sometimes only fill up once a month if I don't have any out-of-town trips.

DowntheRiver · Jan 7, 2017

I took a $5,000 pay cut when I took my current job. I went from working 3 12s and every third weekend to a Monday thru Friday 9 to 5 clinic public health job. Nobody ever goes into public health for the money :no: . My benefits were decent at my last job but I only received 5.7 combined PTO/sick days per year. Only five freakin' days a year - that's outrageous! The insurance was pretty good but no tuition reimbursement and hard to move up in the company. In my new job, I make my own schedule, get an hour for lunch and can leave the premises which is good for appointments, and I get to flex my time. I get two weeks paid vacation, 10 paid government holidays, and 7 paid sick days. They also pay for 18 credit hours of school per year, and I get loan assistance after working there a year. Loan assistance is $4,000/year for 4 years so that already will make up for it. My health insurance, which I have to use as a cancer survivor with health problems, has a deductible of $250 a year. Plus, I get to see my husband every weekend now.

So, to me, taking the pay cut was definitely worth it.

raecudzy1, BSN · Jan 7, 2017

With any pay cut, I would ask myself the following:
1) Is it still full-time with benefits? If not, what will it cost you to buy benefits? Do you have medical needs that wil make it difficult to get new health insurance?
2) Are you still able to put savings away each month with the pay cut? This is a must, even if it is only $100. You NEED savings you can access without penalty for emergencies.
3) Can you continue to pay housing, utilities, pet care etc with the new pay cut? Forecast six months of earnings and payments to see if it is feasible.
I took a paycut one year of over $13 K. It worked out OK, but it was a very stressful year and I did not put much (if anything) in savings that year. I also didn't have to pay for health insurance that year. I took another job a few months into that for extra money. It was a tough year of double meetings, double competencies to meet, etc.
What will the pay cut cost you besides money? If it gives you more family or pet time, less stress, better commute, etc, it can be worth it. If you are happier doing the work, it may be better. As my dad would say, "Crunch the numbers."

Oh i definitely crunch the numbers for sure! Thank you!

Ruby Vee, BSN · Jan 7, 2017

Hi all,
I am just wondering what you personal opinion is on how much of a pay cut is too much? Say you're unhappy in a job and you want to get into something else, or get back into something you used to do - if you knew there were a pay cut, how much lower would you go? Assuming you could afford it what would the limit be for a pay cut if you thought/knew you would be happier in a position?
Thoughts?

I love my weekend plan, permanent nights. But if I were truly miserable, I'd give up the extra 20% and go to days, every third weekend.

RNrhythm, BSN, RN · Jan 7, 2017

That is a tough question. I took a pay cut to change careers into nursing but I am catching up. I hated my old career and love what I am doing now. The important thing is to be able to support yourself and loved ones, and be able to put some money aside for a rainy day, and retirement. If you cannot do those things, you are operating in a deficit.