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Taking a Pay Cut Sometimes Pays Off

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At the moment I’m writing this entry, 85% of respondents to an informal CNN Money survey say they’d be willing to take a pay cut if the situation was right, while the other 15% would not consider such a move.

According to Jeanne Sahadi, who speaks from personal experience, there are situations where taking a pay cut pays off in the long run, financially or otherwise.

It might make sense to take a job offering less money than you’re making now in one of the following situations:

* The new job is in an area where the cost of living is lower and your money will “go farther.”
* The new job offers non-cash benefits of value, such as health insurance, matches on a 401(k), etc.
* The new job offers growth and training opportunities.
* The new job could save you from being stuck in a mid-career rut.
* The new job might fulfill some of your long-held desies.
* The new job provides you with less stress.

I would consider taking a pay cut at some point in my life if I believed there were other benefits to taking the position being offered. I’m hoping that I won’t take a salary reduction any time soon, however.

Are there any other situations in which a person might be willing to take a pay cut?

Published or updated November 29, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

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