Leaving six figure job for 60k to start?? (apply, companies, taxes)
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I say IF you're going to leave where you are, just plan for it. Have as much money saved as you can. You just have to do a Column "A" verses Column "B" -- pros versus cons -- analysis.
Two years ago at age 56 I left a job that was just at 6 figures, and now make about 40K.
I left behind an "impressive" high-education profession, five weeks of vacation and 21 years' seniority....and now get just two weeks vacation a year, and only have now 1 year of seniority. I'm actually still on probation at my new job -- which has a TWO year probation period. It's a blue collar, mostly non-highly educated workforce. That transition has been "interesting."
I will eventually get a pension from my previous employer. AND this new one also. And I will (Lord willing) also have Soc. Sec, investments and savings, when I retire. Because my salary is so low -- while I do have some discretionary income -- I certainly do not anticipate building savings and investments at the rate and amount I once did. I had wanted to leave my job. And unexpectedly was offered a voluntary severance package. I could have stayed. I didn't want to. And jumped at the chance to get paid to leave. I also sold a house and had proceeds from that.
Part of my plan all along -- even if I had stayed at that job until retirement -- was to move back to my late parents' paid off home. Which I did. So I have no mortgage. I'm also single, no kids. My real estate taxes and expenses are minimal. As for buying "stuff" -- I'm just not in the accumulation phase anymore. So sort of by default my expenses are low. But I still eat out -- a lot. I don't travel much right now, just don't have the desire really. But I'm hoping to get back into that. But I want to get a little closer to retirement to see how I'm set financially.
I HATE my current job. BUT I also hated what I had been doing before. Of course, one could argue that if you hate your job you might as well get paid 100K versus 40K. And that's true. BUT I LOVE being back home. I have more of a social life. I see friends and family more often. The ONLY thing I hate about how things have turned out is my job. (it's hard to get time off, only two weeks vaca, no seniority, etc) So I am still looking to leave where I am. I took this job ONLY because it was all I could find -- and I was paying 1K a month for COBRA health insurance. I am applying for other jobs to get out of it. BUT my schedule isn't that bad and I have a 1.5 mile commute. Not many commutes are shorter than that! I'm also never on call and can leave the job -- at the job.
OP, psychologically, I'd say having to work at a job I hate -- has been more of a mental challenge than adjusting to reduced financial means. Going to the job is a struggle every day. It would be easier to adjust to making less money IF I enjoyed what I was doing. But I hate the job -- AND the workers get no respect at all. Working in THAT environment is more challenging making less money.
IF you know for sure you will be changing careers to a profession or job you enjoy that's the reason you're thinking of making the change in the first place.
I don't know many people making 6 figures working in office environment who wouldn't get flak from management for working only 40 hrs. And you'd better not disconnect completely on days off.
I'm only in the office about 45 hours per week but you add time I'm answering e-mails and working at home I'm over 50 easy.
Agree with this. The one exception is physicians in some specialties (including dentistry) that don't have much call. Of course, at least with medicine, you more than make up for it on the front end with loooong hours during many years of training (residency/fellowship) and lots of stress.
Outside of health care, there is no "corporate" profession where you can make 6 figures on a basic 40 hour work week. I guess an exception would be higher level federal government positions and probably some engineering/tech; but the point is, there are not a lot of those opportunities out there.
Charlygal... It is fantastic that you live a comfortable life, working a comfortable career, with comfortable pay, at comfortable hours; but the fact is, you are the exception, not the rule. You and your thousands of six figure folks are in some kind of bubble, either the city you live in or the company you work for/manage/own/contract.
Another poster said only about 6% of people make over six figures at 40 hours. If you haven't noticed, you are the only one in this thread that is yelling about the easy to get six figure 40 hour job. Which makes you, ironically, the 6% of this group of posters that has that readily available.
This post isn't meant to insult you, but the op has a legitimate concern that applies to most people in this country.
By the way, I make six figures also, but i work 80 hour weeks to achieve that.
Yeah, I cracked six figures last year. I'm actually still struggling financially because I'm in a high COL area, but I don't work to hard to give stuff up, ya know?
I don't put in a ton of extra hours these days, but I paid some crazy dues with my current company before we got to this point. I worked nonstop for months at a time when we were in startup phase and my paycheck was laughable. Now I'm a valued employee and the company has matured, and my job has gotten so much easier. That said, I juggle 4 different buckets at work, two of which are very complex and time-consuming. My job remains stressful, but I've gotten better at it over the years and the perks have gotten better. It's always been work from home, I have a month's worth of vacation days and my bosses pretty much let me do what I want as long as I bring home the bacon, as it were.
Six figure jobs are NOT easy to find unless you are in some very specific fields. I have my dream job, and I'm grateful for it. But for many years, my job was a nightmare.
OP, I know what it's like to struggle in a high-stress job. The job I currently have was making me physically sick years ago. I just had to learn how to manage the stress. It was actually a good exercise because I have always had anxiety and depression, and this forced me to address it.
I would only consider this 50% pay cut in certain scenarios: 1) if you KNOW FOR SURE you can live comfortably on half of what you're currently make it; 2) there is no way to acquire extra coping skills or work out a better situation at your current job; 3) you know there is growth at this new position and 4) you are either just starting out in your career or you have a good amount of retirement savings put away.
But all of that said, if I were you, I would try my damnedest to find a way to make this current job work while ensuring I had a good quality of life.
OP is making 6 figures because he's getting paid OT after 40 hrs/wk. So it's not that he's coming down in salary, more probably is that since he's not working OT, the paycheck is lower.
Before making the move, try living on the 60K and saving the rest in your current job. If that's doable, then change jobs. If not, look for ways to either make your job easier or live on less.
I do think that killing yourself is not worth it, but neither is going into debt.
Is your base salary six figures, or are you making six figures with overtime? I always say that making six figures with overtime doesn't count as a six figure job. I knew bus drivers who made six figures, and their base wage was less than $14 per hour. They would brag, but what's the point of making so much money when you never have time to spend it? You'll likely die before 65 because of the decades of stress, so you can't enjoy your retirement either. There are also corrections officers all around the country making six figures from overtime when their base salaries are less than $50k.
I've come across a lot of aspiring police officers who say that Texas DPS state troopers get paid more than the Austin Police Department. No, they don't. Their pay is actually kind of low for a large police department. It's just that DPS advertises the salary that's made with mandatory overtime. You can usually get overtime at any police department, so why choose one with lower base pay? If that mandatory overtime ever goes away, they are really going to feel it in their pocketbooks. People shouldn't plan their lives around what they make with overtime because employers often cut it off when it becomes too expensive for them.
Is your base salary six figures, or are you making six figures with overtime? I always say that making six figures with overtime doesn't count as a six figure job. I knew bus drivers who made six figures, and their base wage was less than $14 per hour. They would brag, but what's the point of making so much money when you never have time to spend it? You'll likely die before 65 because of the decades of stress, so you can't enjoy your retirement either.
You knew bus drivers who lied. The math, based on $14/hour, requires somebody to work 15 hours/day, every day, 7 days/week, no vacation, no holidays, no weekends, no sick days. Make even a smidge less than $14/hour and you need to work even more. Recognizing that companies do not pay for lunch, so that adds 30 minutes per day (or more), and you have only 8.5 hours/day for sleeping, groceries, eating, laundry, commuting, brushing teeth, and showering.
It’s possible to do that for a week, maybe two, possibly a month. Nobody can do that for a year.
Pedantic issues aside, I agree with you. A job paying $100k on salary Is different from a $35/hour job with tones of OT
As others have rightly said, should you base your life on OT? No.
But every job I've ever had that paid OT -- always had plenty of OT available.
Sure toward the end of the year they say "no OT" -- and that lasts for 2 months. And what do you know? Right after the first of the year, for the rest of the year, it's all the OT you want. That game, er, cycle, happens every year.
You have to know your employer. If you've been with a company for 10 years, and for all ten years they've had all the OT you could want. I doubt -- barring a major shift -- that availability would change. And if it does, there ARE other ways to make up that money.
Has anyone left a six figure job for something that pays half? Regrets or worth it? Current job is 60+ hours a week of constant hell catching. Get paid OT over 40 hours. Basically unsupervised service job. New job would be in an office environment but still in my field. Cut in vacation but has retirement. Half heartedly considering it. Burnt out at current job and the thought of a fresh start is appealing.
No, I've never went backwards, as far as compensation was concerned. Nowadays, 60hrs/week would be a lot!! But in my prime and recent past, it was nothing. For most of my life, common was 70,80,90, and even a 100 (sometimes) hrs/week. 60 would have been average weeks, no big deal.
Like others have said, an office environment is completely different when compared to a unsupervised 'service' job. Burned out? Take some vacation time. You're doing well, take a break, then get back to it!! Set new goals, change your after-work routine! Spice it up a bit.
Yeah, I cracked six figures last year. I'm actually still struggling financially because I'm in a high COL area, but I don't work to hard to give stuff up, ya know?
I don't put in a ton of extra hours these days, but I paid some crazy dues with my current company before we got to this point. I worked nonstop for months at a time when we were in startup phase and my paycheck was laughable. Now I'm a valued employee and the company has matured, and my job has gotten so much easier. That said, I juggle 4 different buckets at work, two of which are very complex and time-consuming. My job remains stressful, but I've gotten better at it over the years and the perks have gotten better. It's always been work from home, I have a month's worth of vacation days and my bosses pretty much let me do what I want as long as I bring home the bacon, as it were.
Six figure jobs are NOT easy to find unless you are in some very specific fields. I have my dream job, and I'm grateful for it. But for many years, my job was a nightmare.
OP, I know what it's like to struggle in a high-stress job. The job I currently have was making me physically sick years ago. I just had to learn how to manage the stress. It was actually a good exercise because I have always had anxiety and depression, and this forced me to address it.
I would only consider this 50% pay cut in certain scenarios: 1) if you KNOW FOR SURE you can live comfortably on half of what you're currently make it; 2) there is no way to acquire extra coping skills or work out a better situation at your current job; 3) you know there is growth at this new position and 4) you are either just starting out in your career or you have a good amount of retirement savings put away.
But all of that said, if I were you, I would try my damnedest to find a way to make this current job work while ensuring I had a good quality of life.
I hear you JRZ, most six figure years are the result of ot. I am a Correctional Officer at a State Penitentiary who works mandatory overtime near nonstop due to staff shortages. That's how I make my bacon. My family is comfortable, but my kids don't really know me anymore. One of them is autistic and she takes my absence the hardest.
When I post here on C-D, I'm usually at work, on break, sitting in front of a computer screen. Oh well, this the funny life that we live.
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I'm also never on call and can leave the job -- at the job.
