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We are in a situation that we may have the opportunity to move to an area where we want to be but I would have to take a new job with a potential $20-$50k pay cut to start( until I build the territory) . We currently live in Portlandia and are not in love with it by any means. We have met some great people here and I have a great sales job but we have a lot of things we do not enjoy( WEATHER, culture/politics, COL,etc...) . I'm making on average $200k/year and could get a very similar sales job in the area we would like to move. I would be ok with making a bit less to have a happy lifestyle but the risk is there and its flat out scary.
We are in our early 30s and I feel we could afford to take the risk but the thought of losing everything and starting over sounds awful!
Has anyone done this or know anyone who has done this and is it worth the risk?
We did something fairly similar a few years ago in our early 40's with two kids. We moved from an area where we were doing extremely well financially (but in a less than desirable location) to a highly desirable area with a great QOL, but with a significant cut in income. It was a calculated and completely voluntary decision. Ultimately, the better QOL could not keep pace with our cut in income, and we chose to move back to our hometown after 3 years to be close to family and with an increased income potential.
My takeaways from our experience:
1. Quality of Life is very important. Even though we made less money in our last location (Denver), we loved living there and found that with even less money, we were still happier overall. Recognize that a happy home is where you make it, and there is no perfect location.
2. However, if the amount of money you give up for #1 is so much that you feel unfairly compensated relative to peers and/or like you are "leaving money on the table", then this decrease in income will ultimately be a negative.
3. If you have a skill set that is very much in demand, there is less risk, because you can always relocate again quite easily. That's what happened in our case and it's the main reason we are willing to take these risks to begin with.
You are taking a risk on the fact that you will be able to build up your territory. How much, if any, of that risk is your employer willing to bear if that turns out to not be the case?
We did something fairly similar a few years ago in our early 40's with two kids. We moved from an area where we were doing extremely well financially (but in a less than desirable location) to a highly desirable area with a great QOL, but with a significant cut in income. It was a calculated and completely voluntary decision. Ultimately, the better QOL could not keep pace with our cut in income, and we chose to move back to our hometown after 3 years to be close to family and with an increased income potential.
My takeaways from our experience:
1. Quality of Life is very important. Even though we made less money in our last location (Denver), we loved living there and found that with even less money, we were still happier overall. Recognize that a happy home is where you make it, and there is no perfect location.
2. However, if the amount of money you give up for #1 is so much that you feel unfairly compensated relative to peers and/or like you are "leaving money on the table", then this decrease in income will ultimately be a negative.
3. If you have a skill set that is very much in demand, there is less risk, because you can always relocate again quite easily. That's what happened in our case and it's the main reason we are willing to take these risks to begin with.
You are taking a risk on the fact that you will be able to build up your territory. How much, if any, of that risk is your employer willing to bear if that turns out to not be the case?
Thanks for the insight. We live in Portland, Oregon and would love to move to the Charlotte area. The pay cut could be permanent but not likely. In my line of work I haven't made under $150k per year in quite a while. The nice thing about this particular change is that it would be about a 20% decrease in COL so the potential lost income may not missed all that much. ( although I have not experienced this)
I feel like we are both ready to take the steps because we love the South and being close to the beach, as we are sunny hot weather type people. I honestly think our QOL would be increased because immediately based off of that.
As for developing the territory, its a gamble but the same goes for my job here. If I stop producing, I am sure they will help coach me out. After all it is sales in Corp. America.
Do you feel any pressure, real or perceived, to like Portland more than you do? It's one of those "hot" cities right now, and one that we briefly considered before landing in Denver, but honestly, the almost double digit state income tax we would have been paying scared us away. I actually had some difficulty moving away from Denver because I felt like I was giving up something so highly coveted. I was surprised I felt that way.
Do you feel any pressure, real or perceived, to like Portland more than you do? It's one of those "hot" cities right now, and one that we briefly considered before landing in Denver, but honestly, the almost double digit state income tax we would have been paying scared us away. I actually had some difficulty moving away from Denver because I felt like I was giving up something so highly coveted. I was surprised I felt that way.
Not really. We actually have a great circle of friends and really like our church but at the end of the day we both really desire to be in the South. We feel that what we have in Portland can be duplicated elsewhere and we can always visit those friends that would be left behind.
I feel personally we would gain much more after the initial change adjustment period than what Portland can offer. Unfortunately, the Portland weather is a huge factor for us. WE HATE the long dark wet winter here but love the summer and early fall. To me Portland just doesn't feel like where I am supposed to be.
I honestly think if my job situation would change we would just take the plunge.
I say do it as soon as you can.
I ventured out to the Phoenix area and loved it.
But instead of taking the transfer right then and there, it took me too long to think about how to handle the potential drop in pay and then I was ultimately booted from the company in the current area I'm stuck in.
So yeah, just jump onto it right now and the negatives should be easy for someone in your position to balance out.
I did it in order to get from Alabama to New Mexico. I took about a 23% pay cut, and my husband's (federal) pension also got hit with 5% state income tax (it was exempt in AL). But I knew I'd be able to move up once I got a foothold, and I have now done so. I'm back to where I was in AL, plus a little bit. I also have the potential to earn a good bit more if some changes occur at a prospective employer who wants to find a place for me. I have to say it helps tremendously to have skills in a field where the target location is underserved.
For us, the quality of life is much improved. The climate is much more agreeable to us, as is the general attitude of the people. This was a retirement move for us . . . 10-15 years before I will actually retire. It has worked out great for us.
I have a friend who made the move shortly before I did -- from CT to NM. She took a bigger pay cut than I did and has never really accepted the fact that pay here is just on the low side, especially in the public sector where we both work. Because she hasn't made peace with it, she has hopped from position to position over the last three years, Sometimes it's because of a difficult boss, but there is always the underlying theme of "I can't believe I'm only making $xx,xxx." All that to say: you need to be able to make peace with the pay cut and not always wonder "what if . . ."
Do your research on the place you plan on moving to and visit at least two times before you make the move.
I made a similar move to Texas while ago and absolutely hated it. Biggest mistake was not visiting the city before making the move.
Sounds like you and your husband will be ok just about anywhere in the south on a similar salary. Even a 50% cut will allow you to live pretty comfortable just about anywhere in the southern states.
Where you live plays a huge role in your happiness.
I'm taking an 8k paycut to move from Florida to New York. I know, it's crazy since NYC is more expensive, but it's worth it to be able to move with a job. My boyfriend and I have been saving for a year, and he's transferring with his company (so he'll be making the same salary) so it should all work out. Why would you think you're starting over? You might have to readjust your spending habits a bit, but if you're already making that kind of money, hopefully you have some savings should you need it.
I'm taking an 8k paycut to move from Florida to New York. I know, it's crazy since NYC is more expensive, but it's worth it to be able to move with a job. My boyfriend and I have been saving for a year, and he's transferring with his company (so he'll be making the same salary) so it should all work out. Why would you think you're starting over? You might have to readjust your spending habits a bit, but if you're already making that kind of money, hopefully you have some savings should you need it.
Though NYC is more expensive in many ways (especially in taxes and housing)-- if you both get rid of your cars that will save on car payment (if you have one), insurance, gas, registration fees, tires, oil changes, etc and an unlimited MetroCard is about $120/month (and some companies cover the cost); additionally, there are tons of great and inexpensive restaurants (heck, there's $1 slices of pizza on virtually every corner in midtown!)
And, frankly, there's nowhere else I'd rather live than NYC if I were if I were kid-free (with a husband, 3 school aged kids and 2 huge dogs, NYC isn't an option for me without $8K+ to spend a month on rent or $2MM+ on a condo)-- but we have discussed moving back there once the kids are out of the house and/or when we retire-- it's my favorite place in the world; it's absolutely worth the paycut (as long as you can still afford to live, of course!) for the experience, IMO.
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