Changing jobs for a 65% higher pay vs staying and coasting is a decision that many individuals face at some point during their careers. It is a complex decision that requires careful consideration of various factors such as financial stability, job satisfaction, long-term career growth, and personal goals. In this article, we will explore the pros and cons of changing jobs for a higher pay, the potential impact on one’s career trajectory and overall well-being, and provide some guidance on how to make an informed decision.
One of the most significant factors influencing the decision to change jobs for a higher pay is financial stability. It is natural for individuals to seek ways to improve their financial situation, especially if they are facing financial difficulties or are unable to meet their financial obligations. A job switch that offers a 65% higher pay can provide a substantial boost to one’s income, potentially helping them pay off debt, save for retirement, or achieve other financial goals. However, it is important to carefully evaluate the long-term financial implications of such a decision, considering factors such as the cost of living, potential taxation changes, and the overall stability of the new job.
Job satisfaction is another crucial aspect to consider when contemplating a job change. While a higher salary can undoubtedly contribute to one’s overall job satisfaction, it is not the sole determinant. Factors such as the nature of the work, organizational culture, work-life balance, and the relationships with colleagues and superiors play a vital role in determining job satisfaction. It is essential to assess whether the potential new job aligns with one’s values, skills, and career aspirations. Changing jobs solely for the sake of a higher pay without considering these aspects can lead to dissatisfaction and potentially more frequent job changes in the future.
Long-term career growth is a critical consideration when deciding whether to change jobs for a higher pay. While the immediate financial gain of a 65% higher pay is enticing, it is essential to evaluate the long-term implications on one’s career trajectory. Will the new job provide opportunities for advancement, skill development, and increased responsibilities? Does it align with one’s long-term career goals and aspirations? These questions are crucial in determining whether the job change will contribute positively to one’s professional growth or hinder it. Additionally, the potential impact on future job prospects and employability should also be considered. Moving to a new job for a higher pay can add value to one’s resume and make them a more desirable candidate for future opportunities, but it is essential to assess whether the new role offers the necessary skills and experiences that enhance one’s employability in the long run.
Making a decision surrounding a potential job change is not solely about financial stability, job satisfaction, and career growth. Personal goals and priorities also factor significantly. Some individuals prioritize work-life balance and well-being over financial gain. They may be content with their current job and appreciate the stability it provides, even if the pay is not as high as in a new opportunity. Others may have personal goals such as starting a family, pursuing further education, or starting a business, which may require a temporary reduction in income. It is vital to evaluate one’s personal goals and values to determine whether a job change is the right path to follow.
Once all these factors have been thoroughly analyzed, it may be helpful to seek advice from trusted mentors, career coaches, or individuals who have gone through a similar situation. They can provide valuable insights and guidance based on their experiences and help shed light on aspects that may have been overlooked. It is important to remember that everyone’s situation is unique, and what works for one person may not work for another. Therefore, it is essential to make a decision that aligns with one’s own circumstances, values, and goals.
If the decision is ultimately made to change jobs for a 65% higher pay, it is crucial to approach the situation with careful planning and consideration. It is advisable to thoroughly research the potential employer, understand the job responsibilities and expectations, assess the company’s financial stability and growth prospects, and evaluate the potential impact on work-life balance. Negotiating a well-rounded compensation package that includes not only a higher salary but also benefits, such as health insurance, retirement plans, and other incentives, is vital to ensure a well-rounded decision.
In conclusion, deciding whether to change jobs for a 65% higher pay versus staying and coasting is an intricate decision that must take into account a multitude of factors. While financial stability is undoubtedly important, job satisfaction, long-term career growth, and personal goals must also be considered. It is vital to evaluate one’s unique circumstances, seek advice from trusted sources, and make a decision that aligns with one’s values, aspirations, and overall well-being. A thoughtful and informed decision can lead to a more fulfilling and prosperous professional journey.
You mention looking to FIRE. A 65% raise will work wonders to make that happen. If you are currently saving 30% of take home pay, now you’d be saving 55%. That’s huge.
I would take the money.
But that’s because I’m someone who has drive, determination, and a hunger for more. More money. More activity. More mental stimulation.
If you’re meeting your financial goals and the “coasting” path is enough for you, then that’s fine. Just be sure you’re actually achieving your goals.
The opportunity cost question:
At the new job, how many workable years are you saving versus staying at the old job?
Surely an extra 85k a year gets you to retirement 4 years sooner… no?
Take it. 100% take it. Even if it’s just a stepping stone it’s a major step towards your goals.
Tough choice. I’ll say that this doesn’t really seem like a finance question more so than a life question, because the finance answer to this is “Take it”. It would be crazy to turn down a 65% raise. However, personally I’m leaning towards coasting, here are my thoughts.
* What kind of life do you want to live? Do you want to FIRE ASAP and are willing to sacrifice a part of your youth and current happiness to achieve it? Or would you rather eventually reach FIRE, while enjoying the journey more?
* Consider your HOURLY wage. Having a 110k salary @25 hours a week is ~$90/hour. Having 195k salary @40 hours a week is ~$100.hour. I know you’re on salary so this obviously doesn’t translate to actual money you will receive, but it’s worth considering
* Your job currently allows the flexibility for you to spend time AND ENERGY towards things that need to be done or you want to do. I emphasize energy because time and energy are not the same things. Just know that you may be more physically and mentally exhausted due to the demanding job, which can deeply affect your day to day life. Need to go shopping? Damn, I’m tired don’t want to. Want to meet up with friends after work? Dang, all those meetings exhausted my social battery. Not to mention, this can actually eat into your weekends too as you push back errands you couldn’t finish to the end. Is this a sacrifice you’re willing to make for your financial goals?
* How badly do you want to progress up the corporate ladder for your field? Do you think it’s going to make you happy? Or is it a purely monetary motivation? Something to consider
Take the money, do it for a few years, use the massive salary increase to leapfrog to another higher paying job. It’s a simple answer for me.
Worst case scenario is you don’t like it and you may have to take a slight pay cut to go to another company. Hell you might even be able to go back to your old company at a higher salary as well and get back to coasting.
Realistically: if your new job is “higher” on the totem pole, it’s likely to be as cushy.
Could you provide more clarity on the side ventures? I think the trajectory of those make a real difference.
If I was in your shoes, I value the extra capital and I downplay the importance of free time. There are plenty of people who find the balance of working 40-60+ hours in their primary job and build their side ventures too – and I believe I can become one of those people as well. At 36 years old, I would also value the lump sum of money coming in the door.
If you’re looking for a FIRE lifestyle – then the idea of mentorship and etc is very much secondary IMO. I’d recommend being completely tunneled on putting yourself in a position to execute on the strategy to go FIRE. To me, that means more money in the bank today, more investment on side ventures growing to decent revenue streams, less focus on my time and career trajectory.
Overall though, it does seem pretty difficult to maintain both coasting now and reaching FIRE. Not an easy thing to manage!
Take the money then figure out how to coast at new job OR take the money then join another company to coast
Staying is truly doing yourself a disservice
If you care about your career, take the job. Re-setting your market that much higher and with a more senior job is almost always good, and it’s a massive pay increase.
Your tone about learning/growing in your field stands out to me. A new large company will also boost your career by expanding your network immensely. People you work with will bounce to other companies and in 5 or 10 years will be hiring for their companies.
Take the money. Not sure how much you spend but that salary change you talked about ($110k to $190k) is a big big switch. Your savings rate will increase a ton.
I would personally keep your current position. You know you enjoy it, it’s reliable. You can focus more time on your side ventures (I’d always opt for ways to grow my own ventures rather than work on someone elses).
If you switch jobs, sure you could invest the raise into hiring someone for your side ventures, but are your ventures set up that you can hire people to run them?
If the new job requires higher hours or more stress, you may not have the energy to do your side ventures.
My view is focusing on the side ventures, as I’m very supportive of entrepreneurship, especially if you see it getting traction. Sure you could move up the corporate latter, but you can also run your own ventures, make more than you would in the corporate world and work way less once it’s successful if you want. New businesses fail frequently though, so it depends on your ability to make those successful, but from the sounds of it you may be onto something given what you shared. If you keep going with it, good luck!
Only you can answer it. I was at my dream job up until a few months ago. I’d been there for Almost a decade. I was able to “coast” and I loved all the people. It went out of business a few months ago and I’m doing the same thing for more money somewhere else now. EXCEPT, there’s no coasting. I work my ass off and I hate it here. I’d happily take the pay cut to go back to the other place.
If you are wanting to FIRE for the lifestyle that RE gives, then it sounds like you kinda have it now
If you are in FIRE for FI, then it’s about numbers and taking the new job
Personally I would stay
Leave on good terms with the door open at the last gig. Take the new job. Do it for a year and then reevaluate.
Quick question, post tax you will make 45K more. Would you be able to make that with your side hustle and more? I think so, otherwise you have a better offer for average work life balance. Then I say go for it.
Take the money, I had 2 similar opportunities in my career where I was afraid to leave the comfort zone for the unknown. Every time I thought the new job would be a worse WLB and it turned out to not be true. Looking back I would be kicking myself for not making those jumps into the unknown. From 180k to 260k to 700k.
Inflation is a b***. 85k won’t be nearly as much in 3 years with the way things are going. Your FIRE number may change in the next 5 years. I would jump on this. The economy could change. Headwinds may appear. As the famous song says, “Take the money and run, son”
Assuming you are working none stop for 40 hours, which is rarely true, it’s a 65% raise for 60% more hours.
Plus I’m expecting you have to be at least available during work hours for your current job so are you really losing that much time?
In my career, the more more money I’ve made the less I’ve been stressed. I can buy back time. I know my future is more secure. I know I’ll be harder to replace. I would take the money. Most people don’t love their jobs anyway. And they grow accustomed to then. May as well make bank while there.
I personally would keep current position to maintain a good work life balance. It’s hard to appreciate the freedom untill you don’t have it. If you have low stress job you enjoy than it’s a solid win.
The flipside is that raise is big and could help you retire sooner or reach your financial goals sooner.
I’ll leave you with this. If you have your health…you have everything. Stress kills and money will never get it back once lost.
-2 cents
Keep your job. If you want more money, put more work in your side venture. Time is more precious than money.
I might be nuts but I would keep the current job. You make good money and have great work life balance it sounds, that is everyone’s goal. Working 40-45 hours a weeks kinda sucks
Take the money.
The problem with jobs where you coast? Eventually, especially when things get tight, someone figures out that you’re coasting.
Always stretch yourself in your career. It creates more opportunities down the road.
If where you are is stable, stay.
I always say look at the step after the next job, and see if it gets you to where you want to go. Make life choices on that. Sounds like this is a more time now (given) vs later (expected) decision.
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[https://www.youtube.com/watch?v=HbR7axof1wk](https://www.youtube.com/watch?v=HbR7axof1wk)
I would take the money if things are as simple as they sound. That amount of extra money in your pocket each year can do some pretty incredible things. However, if I had a dollar for each time someone’s new “high-paying job” wasn’t what they expected, I’d have enough to cover your new raise.
I question that 40+. I doubt that means 42. I’d bet it would be more like 50+. You mention you work at home now. I’m assuming you may not with this new role. Is it possible you could be spending twice as much time away from home now? That could be a big consideration if you want to spend more time focusing on your personal life.
And then there’s the matter that hopefully you like this new work.
It’s a good bump but probably because the location is HCOL. Aside from taxes you need to do a comparison of livings costs, it may be worse relative to where you’re at now.
If you are working towards FIRE, that salary boost will do wonders for your FIRE goals and can get you there quicker.
I would go for it.
Don’t be short sighted. Take the new job. It will be what you make it. Once you get in you can always look to pivot at the current company. Or even go try to go back to the original company at a higher comp.
Take it – but also give your current employer an opportunity to match it (or come close to).
I would wait until I was bored at my current job.
how could you leave out it’s only a 1 year thing in the OP? That’s such a massive piece of information lol.
I don’t think anyone here is really going to be able to tell you what to do. If I were you I’d stay in your current position. Seems you are doing fine financially and there’s no stress and lots of free time and you enjoy the work. Why risk it on a one year fling making more money and then you have to start looking for a new job?