Many workers face the dilemma of choosing between a shorter commute and a higher salary. The age-old question is: would you take a job with an 18% pay cut if it meant you could live 3 minutes away from home? For some, the answer may be an unequivocal yes. A shorter commute can mean more time for family, hobbies, or simply relaxation. However, for others, the financial impact of a pay cut may outweigh the convenience of living closer to work.
Living just a stone’s throw away from your workplace can have numerous benefits. Not only does it save time and money on commuting, but it can also lead to a better work-life balance. Imagine being able to pop home for lunch, or easily run errands after work without battling rush hour traffic. The convenience of living close to work can significantly reduce stress and improve overall well-being.
On the other hand, a pay cut of 18% can have a significant impact on one’s finances. It may mean cutting back on expenses, foregoing luxuries, or even delaying important financial goals. While the convenience of a short commute is appealing, it is essential to consider the long-term financial implications of accepting a lower salary.
Overall, 43% of U.S. adults now say that they or someone in their household has lost a job or taken a cut in pay due to the outbreak, up from 33% in the latter half of March. Among lower-income adults, an even higher share (52%) say they or someone in their household has experienced this type of job upheaval. Depending on your situation, a job with lower take-home pay may actually be to your financial advantage if the benefits are right. When my wife was considering a relatively low-paying position for her specialty, one of its biggest draws was a fantastic set of benefits, including employer-paid health insurance and a generous public pension plan (a rarity these days). When you add in a valuable benefits package, you may find you have extra breathing room in your budget even if your paychecks shrink.
You’ve probably heard the phrase “time is money” before, and it’s true. So, if the new job you are considering has a shorter commute, it might be worth considering. “Perhaps you would take a pay cut by $10k, but your commuting time is no longer 90 minutes each day and instead, it’s only 45 minutes three times a week. Closely related to the previous point, jobs can sometimes be quite stressful, and avoiding that stress can be reason enough to leave a job.
Ultimately, the decision to take a job with a pay cut in exchange for a shorter commute is a personal one. It is essential to weigh the pros and cons carefully and consider what is most important to you. While living closer to work can offer convenience and improved quality of life, it is crucial to ensure that the financial trade-off is manageable in the long run.
“Companies are saying [being in the office is] great for new employees to get inculcated with the company’s mission, to build collaboration with colleagues and peers and to be visible,” McDonald said. For many workers, this career chapter is one where it’s no longer about ego and climbing your way to the top. It’s one where you’re genuinely ready to lose the pressure of managing others. You simply want to get back to basics and focus on work that you enjoy and honing your own skills.
While some employees choose to seek greener pastures elsewhere, plenty of others choose to stay put. Those who ultimately stick it out often do so because the prospect of searching for a new job can be daunting and the outcome is uncertain. In dynamic industries, workers commonly sacrifice take-home pay for the promise of growth and advancement. There were some things I enjoyed about working at a restaurant, including learning more about myself and how to navigate the workplace.
And until then, there’s always the option to turn a hobby into a side hustle and bring home some extra cash. The key, either way, is to recognize the value of being happy at work, and put yourself in a position where you genuinely get to enjoy what you do. Given the amount of time some of us spend on the job, finding a role that brings you joy is a good way to keep yourself motivated and lower your risk of burning out.
My new “business” – basically a one-man consulting shop – required virtually no startup capital, but it substantially lowered my income in the year or two after I switched. I already had a few clients on the side, so I could rely on meaningful revenue as I ramped up to a full-time operation. With three or six months’ income socked away for lean times, you can avoid costly consequences like having to take on credit card debt or file personal bankruptcy.
Women, black and Hispanic adults, those younger than 65, and those without bachelor’s degrees are the most likely to report regularly worrying about most of these financial issues. These personal experiences bring into sharp relief the public’s overall assessment of the U.S. economy. Only 23% of adults now rate national economic conditions as excellent or good, down dramatically from 57% at the beginning of 2020. “After making the switch, I felt doors opening up to me, and I learned so much from the new position,” she says.
