This post is by our regular contributor, Erin.
Is there a job you’ve always dreamed about having? One where it would feel like you’re actually not working, because you love it so much?
Have you thought about what you might have to sacrifice to get that job?
How about taking a pay cut if it meant being in a role you loved and found fulfilling?
While some of you might be jumping and saying, “Yes,” the answer might be a little more complicated than you think.
While I want to hear your thoughts in the comments, here are some things you should think about when it comes to taking a pay cut for your dream job.
The Grass is Always Greener
When contemplating looking for another job, we need to be aware that the grass is often greener. I know I’ve been guilty of falling for this trap, which is why I bring it up.
One of the biggest things I see from my friends who complain about their jobs is that they enjoy complaining, but they don’t like taking action.
Complaining sadly won’t get you anywhere.
If you’re unhappy, you should try having a talk with your boss before you quit. Besides, letting your feelings boil up will only lead to resentment.
If you can’t talk to your boss, or if they have a bad track record when it comes to these things, then that could be a sign it’s time to move on.
I’d argue we need to be extra careful when it comes to thinking the grass is greener with our dream jobs. It’s a dangerous mindset to get into, as we might start idealizing these jobs, distorting reality.
Is There Such a Thing as a “Dream” Job?
This leads us to our next point. Is there even such a thing as a true “dream” job? How can we be sure?
Back when I had graduated college and was looking for a job, I came across many resources on how to find the right job for your personality.
One of the best articles I read addressed the question of how we truly know if our dream job is actually the right one for us.
We all have our ideas of what the ideal job looks like to us, but there’s more that goes into a job than what meets the eye.
We might think a certain job sounds really cool, but the reality of that position could be vastly different.
This applies to “dream” companies to work for, too. There are several out there that sound like they’re amazing to work for (any big tech company, for example), but in reality, they might require you to work 50+ hours a week. They might require a lot of travel. Their culture might be completely different than what you expected.
Should Your Passions Become Your Job?
There are a few people that have warned against turning your passion into a job. Hobbies are meant to be hobbies for a reason: they should be enjoyment on the side, as they provide an escape from your 9-5.
When you transition to earning money from your hobbies, they can turn into feeling like chores. This isn’t always the case, but it can happen.
There are also people out there who are content with the job they have, and maybe you’re one of them! Maybe you’re fine with how your career has progressed, happy with your boss and coworkers, and think you earn a decent amount.
Or maybe you have a side hustle that serves as your creative outlet. There are quite a few people who take this route, and there’s nothing wrong with that.
There’s also nothing wrong with having a “traditional” job you absolutely love. If you can see yourself working for the same company, or in the same field, for many years to come, good for you! There’s no reason to make a change if you’re happy.
Can You Afford a Pay Cut?
This is the number one factor you need to consider in the equation. You might be tempted to say you’d take a pay cut for a more fulfilling job, but you need to make sure you can do so beforehand!
If you’ve gotten used to earning a certain amount, and your budget or lifestyle reflects that, it might be difficult to transition to a lower-paying job.
That’s why it’s beneficial to keep your fixed living costs as low as possible – you have more flexibility that way.
While no one likes to earn less, many of us would rather not dread Monday morning.
Also, higher earning jobs sometimes correlate with more work hours. Your priorities could change later on in life if you want to spend more time with family or dedicate months to traveling.
Do You Want to Retire Early?
Many of us have early retirement on our minds, mainly because we want to dedicate more time to what’s important in life before it’s too late.
That might mean being okay with spending 10-20 years in the workforce, earning a decent income, in a job that’s less than ideal. A higher income can help you meet your financial independence goal sooner.
This is a personal decision, though. There are some people who think life is too short to be miserable in a job they hate, no matter how much they’re getting paid. It’s up to you to decide whether the increased income is worth it.
The One Time I Took a Pay Cut
I wasn’t sure what my dream job was after college. I changed my mind about what I wanted to do with my degree throughout my last semester, and ended up in a string of boring jobs that didn’t challenge me.
That meant dealing with a lot of paperwork and administrative work. It didn’t pay very well, and it wasn’t very fulfilling. I mean, what difference was I making in the world standing at a scanner all day?
I also saw my parents struggle to be happy throughout their careers. Neither were satisfied with how things turned out for them. When we gathered around the dinner table, all I heard were complaints. That made me realize I didn’t want to spend the next 40 years being miserable, stuck in a dead-end job I didn’t like.
Life is too short for that.
While I didn’t quit one of my jobs for a “dream” job, I did take a pay cut to transition to a job where I could work less hours and have a slightly less crazy workload.
I did it again when I transitioned to self-employment last year. I went from having a steady paycheck to absolutely nothing besides my savings.
That was the right decision for me, even if I didn’t identify with the typical entrepreneurial dream of being my own boss. Nothing beats not having to deal with office drama (or the public) and indecisive bosses. =)
_________________
I used to think the answer to this question was an easy “yes,” but the more I thought about it, the more I realized it’s not that simple. No job transition ever is. Should we ever be offered our dream job, we still need to do our research to make sure we know what the reality of the situation will be.
Have you ever taken a pay cut for a dream job? Would you? Why or why not?
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I did take a cut once for my dream job but I knew it was temporary. My dream job was a Daley job and I took a nearly 10k cut for it. But I knew the overtime, shift differential, and certification pay I would get would make up for all that. I eventually also negotiated a higher base pay. When I left, I was pulling in nearly $30k more than when I started 5 years earlier. No promotions.
I really don’t know my own answer to this question. I’ve found that every job I’ve had, has had some downsides to it that I didn’t expect or that I did expect and thus they grew on me even more.
The more time I spend working, the more I can’t think of a dream job for me!
I’m not certain what I’d say given the situation. I don’t know that I really have a “dream job” per se, as I’ve wanted to run my own business for some time and really didn’t matter what it was as long as I was able to help people. All that being said, I don’t know that it’s a simple answer when you start to look at the things involved. If it makes you happy and you enjoy it then there is something to be said for that – though you need to be able to go into it eyes wide open.
I took a pay cut so to speak when I started my own company which is my dream job. It’s a scary thing to do, but if it’s something you are passionate about, then it will be worth it. If you are not passionate about the job, though, I don’t recommend taking a pay cut. Sometimes it’s hard to go back to a higher paying job after the lower paying one because the future employer will look at your current income and want to base your pay off of that instead of what you made before.
It’s a tough question because a “dream job” is somewhat elusive. Like you said, the grass is always greener and sometimes what you may think is a dream job turns out to be anything but that. However, if truly believe it is your dream job, it’s probably worth it to give it a shot, because you don’t want to have regrets. The decision is a lot easier if you hate your current job. I have taken a pay cut, but it wasn’t for a dream job, it was for a job I thought would help me get a job in my field.
I am leaving the military two years early and forgoing a pay raise to pursue my dreams. Money is important, but there is more to life than just making money. If you can get by doing what you love why not? For a lot of successful people in the world they are actually doing what they are passionate about, and I really believe thats why they are making the dough. I really believe that anyone can make a living by doing what they love.
That is definitely a tough decision! I think I would say yes if I was financially prepared or knew I could make it work. But happiness is really important, so if I hated my job, I would make the switch.
indebtedmom Nice job, Kirsten! You clearly rock at getting what you want when it comes to your career. =) Great thoughts on taking overtime, shift differential, and certification pay/educational credits into consideration.
moneypropeller I completely agree with you, Anne. I have no clue what my dream job looks like, as I also believe that just about every job is going to have its downsides. Being able to leave work at work and to look forward to the workweek is important, though.
FrugalRules “As long as I was able to help people.” <– That’s pretty much my requirement for any job now. =) I totally agree that it’s a really difficult question to answer until we’re in the situation. There are a lot of things to consider!
blonde_finance I think it’s important for the passion to be there when taking a pay cut. You definitely need to make up for the decrease in pay with an increase in happiness or potential future opportunities. Good point about the ramifications it can have, too!
Andrew LivingRichCheaply Ha, yes, I imagine it’s much easier to bail when you truly hate your job and have been looking for an out. But it can be tricky if you’re a higher earner. I agree that sometimes, it’s worth it just so you’re not left thinking “what if.” And taking a pay cut to get into your preferred field sounds like a smart move!
Petrish @ Debt Free Martini Yes, Petrish! There is more to life than money, and if you can take the pay cut and end up happier, it seems worth it. Good for you for being so firm in your decision!
believeinabudget Happiness is definitely important, especially when you consider the fact that we’re often spending more time at our jobs than at home.
For me, it all depends on timing and goals. Since we’re planning to retire to the homestead in a few years, a pay cut isn’t worth it to me right now. But, if I was planning on working a traditional job for many more years, then I would certainly consider it. I don’t think there’s a right or wrong answer–I think it just depends on where you’re at in life.
Mrs. Frugalwoods Agreed – when you’re closer to retirement, it likely isn’t worth taking a pay cut! It’s important to take stock of your current situation and evaluate whether or not it makes sense.
Yes, yes, and yes again!
Trading money for lifestyle can be worthwhile in the short term (if it can turbo charged savings/investments when you are young), but there comes a point in life when you need to pursue what you want to do with your life rather than simply chase money.
I’d rather be at the bottom of a ladder that I want to climb than half way up one I don’t :)
I’m the only one with a job in the household, so a pay cut wouldn’t be an option. But like you, I think it can be dangerous to change your hobby/passion into an actual job.
I think work is work, and you should use your free time to explore the stuff you enjoy.
I would take a pay cut for a new lifestyle career (entrepreneurship, non profit work or full time ministry come to mind), but I know what my skills are worth, and I will not take a pay cut for another office job. A dream job that can’t beat my current salary is hardly a dream job for me (even if they promise I can do cool stuff with data all day long).
As you said, I think the right answer likely differs person to person, depending on their current circumstances and goals. I have not really had to take a pay cut for my dream job. When I returned to my private practice, I did lose some of the security my Corporate position provided but the risk was worth it and ultimately paid off. I don’t think it should be an automatic yes, because a dream job can quickly lose it “dreaminess” if you can’t afford to pay your bills or even do some of things you enjoy. You need to be sure that before you take any type of pay cut that you can still not only pay bills but also create the long-term life you want too.
LongTermMindset
AbigailP I hear you on that. When my dad lost his job, my mom was under immense pressure to make ends meet. She took any overtime she could get, even though she was fairly stressed at her job. Taking a pay cut isn’t an option for many.
Hannah UnplannedFinance I like that you mention “lifestyle careers.” It seems like everyone is being encouraged to go in that direction these days, and the tradeoff is worth it to many! Knowing what your skills are worth is so critical, too.
ShannonRyan So right! While many people would be happy doing what they love, sometimes, that doesn’t pay the bills. You can’t exactly remain happy when you have to worry about keeping the lights on. I like to think that’s where keeping hobbies as hobbies (or side hustles) comes into play.
I’ve never taken a pay cut for a dream job. As of right now I probably wouldn’t. I’m so focused on eliminating my debt that losing money isn’t an option right now.
I actually recently changed careers and took a pay cut for my dream job. I waited until I was in the right financial position to do so. Even since the pay cut, I’ve paid off my car loan, with my mortgage being my only remaining debt. I’m still able to save aggressively for retirement. Life is too short not to get out of my comfort zone and go for it. I’m very happy with it so far and still feel great about my financial goals.
This is a great question and I like that you took the time to explore both sides. Honestly, I have done both: the dream job and the joe schmo job. Like you mention, following your passion usually means commodifying something that you love doing. When that happens, it turns into something that you do for other people and that can definitely warp things a little bit.. However, if you’re careful with how you sell your passion, it can be extraordinarily rewarding even with all the ups and downs.
I’ll probably always follow my “passions” because those are pretty much the things I’m good at. So while there are some downsides, I’m content to try and find that balance.
I took a couple pay cuts to pursue my dream job of teaching. For a year, I went down to half time to finish my student teaching positions. Then, I left an organization I’d been with for 8 years to actually, finally teach. It took about three months to realize my dream job was an illusion: I hated it and it was killing me. In the end, I went back to the higher paying job that I originally had been using to fund my college education and teaching credential.
In general, I think the idea of finding passionate employment is a worthwhile goal, but one that unfortunately a small minority of the population is ultimately going to achieve. That probably sounds cynical, but it’s not meant to be. I only mean that work is a small part of one’s life, and it does not have to be (and often is not) a great source of personal fulfillment.
It should be enjoyable at times, but you’re doing one activity for 40+ hours a week, and over half your waking hours when you add in commutes. There are very few things in this world I want to do for half my waking hours. Work ain’t one of them.
I wouldn’t take a pay cut until I had a solid foundation in place. My dream job would be working for myself with no one breathing down my neck. But yes, I would definitely take a pay cut to land my dream gig since life is too short to be doing something you don’t like all your life.
Jason @ The Butler Journal That was probably the worst part about taking a pay cut for me. I was used to working so much overtime at my old job, and not having that option was a big loss!
SimplySave I’m so happy to hear that! I love hearing success stories. =) Glad everything worked out for you – sounds like you got the best of both worlds there.
Lindsey at Sense That is really true. The easiest example that comes to mind is art. Drawing based on commissions might get tiring, but drawing what you want and having people love what you make, regardless of what it is, has to feel more rewarding. You need to have freedom to do your work in a way you enjoy!
DonebyForty I’m glad you were able to go back to your old job. It pays to keep those doors open! I can be a cynic and I’m inclined to agree. Most of the people I know aren’t working in their dream jobs, and you don’t necessarily have to do so in order to have an amazing life. It seems like our job titles have become something we tie our identity to more than we have in the past.
FI_Fighter Having a solid foundation in place is definitely necessary in order to take a pay cut. Saving and having a backup plan in place was what made it possible for me.
I did take a pay cut to become a stay-at-home-dad. I left my whole salary on the table. But we had planned for it for over four years and had all the important financial matters covered. It was our dream to make this move and I was more than happy to do it.
I don’t believe there is a job anywhere that is awesome and that people want to show up for every day. I think you can have jobs that are rewarding or stimulating, or that aren’t that bad, but I think it’s very rare to find a person who can’t wait to get to work. I think it’s very common to hate your job and feel that another one would be much better, but your are so right that the grass always seems greener elsewhere. The only pay cut I’d probably take would be to quit my job altogether, and I hope to do that in a few years!
I’d say probably yes however learning that life isn’t really as black or white as I used to think it was :O, probably for the better haha!
As for if a dream job exists, probably not, however it’s then about the perspective you place upon it and then realising, in my humble opinion, that there’s more to life than a job or a career :)
On the point of smashing it out in a job for 15 – 20 years to reach retirement, what are your thoughts on taking a “career break”, where say every 7 years instead of waiting until your in your 40’s to enjoy, you’re able to take between say 3 – 12 months off and enjoy some time away from the office? Of course there are a lot of factors such as saving an emergency fund and if you have kids however this is something I’m definitely considering.. Then there’s the freelance option as well!
Very thought provoking here :)
I would not take a pay cut for another job, but I would for self-employment.
As long as I could sustain a certain lifestyle and save money I would.
Brian @ Luke1428 Planning definitely makes taking a pay cut more possible! I know it wasn’t easy getting to this point, but I’m glad it all worked out!
Eyesonthedollar I always wonder about that. There are certainly a few people who claim they love their jobs and look forward to going to work, but I think you’re right that most people aren’t as happy with their jobs as they wish they were. Haha, love the last part!
mycareercrusade Glad to know I’m not alone in realizing the matter isn’t as simple as it might seem! It’s interesting to see the opinions here, because I think a lot of people let their career define them, when that may not be for the best.
I think the career break is a fascinating idea and I like to read the success stories of people who have done it. Personally, I’m not sure if I’ll ever want to retire completely, and this actually does seem a bit more appealing to me. You don’t have to wait as long and can still enjoy life when you’re “younger.”
houseoftre Interesting! Seems like quite a few people would go this route.
Beachbudget That was pretty much my reasoning in the past!
I used to think I would take a pay cut for a ‘dream job’ but not these days. I’m too focused on achieving bigger financial goals while I’m (relatively!) young, as well as creating the lifestyle that my family really want. Fortunately, I’ve generally enjoyed my work, but there’s always times I wish I could do something else – but I expect I’d feel that way with anything I spent 40+ hours doing every week! And even more fortunately, after 10 years with the same firm I’ve just accepted a new job which pays better, doing similar work, and sounds like it should be an even better work environment! Will be interesting to see whether the grass really is greener there…