Crossroads: Should I change to a lower pay job?
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Crossroads: Should I change to a lower pay job?
Hello everybody,
I am at a crossroads in my life and I would like to know what you think.
Background: My girlfriend and I have being in ERE mode for a full year now. In fact, we were pretty frugal before and it hasn't had a big impact in our lifestyle except that now we have a clear objetive: early retirement. We both have well-paid and stable jobs, house is paid, etc... We are 33 and we think that we could safely retire in ~5 years, if nothing exceptional happens.
Problem: I have the opportunity to change jobs. I will pass from my well-paid job (I currently save ~70%) to much more confortable job teaching in the university but with a lower pay (I think I would save around 55-60%). This would mean postponing retirement a couple of years. However, this new job would mean:
i) MUCH MORE FREE TIME (much more)
ii) At the time of retiring, instead of quitting, I could just ask for an unpaid leave (4-5 years easy), and see how things work out with an bomb-proof safety net.
iii) If they tell me right now that I cant ERE, this new potential job, as it is, would be the first my the list.
What's your advice?
Best regards,
John
I am at a crossroads in my life and I would like to know what you think.
Background: My girlfriend and I have being in ERE mode for a full year now. In fact, we were pretty frugal before and it hasn't had a big impact in our lifestyle except that now we have a clear objetive: early retirement. We both have well-paid and stable jobs, house is paid, etc... We are 33 and we think that we could safely retire in ~5 years, if nothing exceptional happens.
Problem: I have the opportunity to change jobs. I will pass from my well-paid job (I currently save ~70%) to much more confortable job teaching in the university but with a lower pay (I think I would save around 55-60%). This would mean postponing retirement a couple of years. However, this new job would mean:
i) MUCH MORE FREE TIME (much more)
ii) At the time of retiring, instead of quitting, I could just ask for an unpaid leave (4-5 years easy), and see how things work out with an bomb-proof safety net.
iii) If they tell me right now that I cant ERE, this new potential job, as it is, would be the first my the list.
What's your advice?
Best regards,
John
Re: Crossroads: Should I change to a lower pay job?
This is an interesting situation, as it really allows you a chance to define what your goals are in life. If early retirement was the only goal, then the answer would be no. However, I am guessing that early retirement is not your only goal in life, so this becomes an exercise in comparing 5 years of work with much less free time or 7 years of work with much more free time in what sounds like a relatively enjoyable position.
With just that in mind, I would be inclined to take the new position if you are certain that this job would be relatively enjoyable compared to your current job. To me, the extent to which you (think you will) enjoy the new job determines the decision. You say if ERE were not an option, this new job would be the first on the list. Do you think that after 7 years of working it there is a chance you would enjoy it enough to stay? If there is a decent chance, this further strengthens the argument to go for it. If you think it's likely that you are going to leave in 7 years, it is a little more gray because now you are weighing 2 extra years of work for 5 more enjoyable years of work. Personally, I would not put much value in your 2nd point about unpaid leave, as there are always options for coming back to work in some way.
Good luck with your decision.
With just that in mind, I would be inclined to take the new position if you are certain that this job would be relatively enjoyable compared to your current job. To me, the extent to which you (think you will) enjoy the new job determines the decision. You say if ERE were not an option, this new job would be the first on the list. Do you think that after 7 years of working it there is a chance you would enjoy it enough to stay? If there is a decent chance, this further strengthens the argument to go for it. If you think it's likely that you are going to leave in 7 years, it is a little more gray because now you are weighing 2 extra years of work for 5 more enjoyable years of work. Personally, I would not put much value in your 2nd point about unpaid leave, as there are always options for coming back to work in some way.
Good luck with your decision.
Re: Crossroads: Should I change to a lower pay job?
I) Personally, I would opt for a better work life balance if I enjoyed the lower paying work more than the better paid job. I like my time in the evenings to read, learn and mess about with various hobbies. That said, it's harder to reverse the decision and earn more if you change your mind, so go with your gut when deciding if more free time is better than the money. 5 years is a long time, but 6 years isn't much longer. I'd prefer to have a happier life than be miserable in a well paid job.
II) I don't think that having a job to fall back on if you 'retire' is THAT important. Most people can find work within a year or so in worst case scenarios, if you are already FI, there's no real pressure to get back into work in a hurry. If you can wrangle a option to return in the event you don't want to be retired any more, that's a bonus, but it wouldn't be a factor for me. I don't know what I will do when I'm FI, but I have no intention in working in the same job for the rest of my life.
III) Why would you let your employer dictate when you hand in your notice? Are there terms in the contract that would make quitting impossible? Also, see point II)
II) I don't think that having a job to fall back on if you 'retire' is THAT important. Most people can find work within a year or so in worst case scenarios, if you are already FI, there's no real pressure to get back into work in a hurry. If you can wrangle a option to return in the event you don't want to be retired any more, that's a bonus, but it wouldn't be a factor for me. I don't know what I will do when I'm FI, but I have no intention in working in the same job for the rest of my life.
III) Why would you let your employer dictate when you hand in your notice? Are there terms in the contract that would make quitting impossible? Also, see point II)
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Re: Crossroads: Should I change to a lower pay job?
That unpaid leave duration is pretty generous. It's a good fall back position, and taking the job might make you reconsider retiring early, plus it only adds a couple years to your ERE date, so as long as that is accurate, I'd say go for it.
I too have debated switching to a lower paying job, but have a good thing going right now. I'll try to tough it out for another 6.5 years even though FI now, and save more money. At that point, I might keep going, retire outright, or change careers to a lower paying job albeit, at 70K a year adjusted for wage increases, being FI, frugal, and living in a paid off house with investment income that's still a huge savings rate even though a huge pay cut from what I'm doing now. Could do that for 10 years until 50 and call it good, costing into social security a few years down the road.
I too have debated switching to a lower paying job, but have a good thing going right now. I'll try to tough it out for another 6.5 years even though FI now, and save more money. At that point, I might keep going, retire outright, or change careers to a lower paying job albeit, at 70K a year adjusted for wage increases, being FI, frugal, and living in a paid off house with investment income that's still a huge savings rate even though a huge pay cut from what I'm doing now. Could do that for 10 years until 50 and call it good, costing into social security a few years down the road.
Re: Crossroads: Should I change to a lower pay job?
Given the pros and cons that you've outlined, I would change jobs. Having the free time and the ability to take leave are huge benefits. This is about your WHOLE life, not just your post-ERE life. Since your savings rate would still be high and the decision would add only another couple of years of work, if it would be a rewarding job, I would make the change.
Re: Crossroads: Should I change to a lower pay job?
If its only a couple years difference and you are gaining almost as much in free time now, I think I would take the U-job.
I'd also compare overall benefits plans before I made the switch, though, especially if you get health insurance through your employer.
I'd also compare overall benefits plans before I made the switch, though, especially if you get health insurance through your employer.
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Re: Crossroads: Should I change to a lower pay job?
OP is in Spain, so employer based health insurance is not an issue, I believe.Dragline wrote:I'd also compare overall benefits plans before I made the switch, though, especially if you get health insurance through your employer.
I agree that the U job looks far more appealing. The job-work balance and ability to test drive ERE for several years are such big pluses that I think this is a no-brainer.
Re: Crossroads: Should I change to a lower pay job?
I recently changed from a crappy stressful job to a cushy one.
It has completely changed my life,my personality and my outlook for the better.
I would go for the University one,work/life balance and time to "smell the roses"as you journey through are priceless.
I have absolutely no regrets and only kick myself for not doing it sooner.
It has completely changed my life,my personality and my outlook for the better.
I would go for the University one,work/life balance and time to "smell the roses"as you journey through are priceless.
I have absolutely no regrets and only kick myself for not doing it sooner.
Re: Crossroads: Should I change to a lower pay job?
Congrats on the new job!
Re: Crossroads: Should I change to a lower pay job?
+1.1taskaday wrote:I recently changed from a crappy stressful job to a cushy one.
It has completely changed my life,my personality and my outlook for the better.
I would go for the University one,work/life balance and time to "smell the roses"as you journey through are priceless.
I did that too and have no regrets whatsoever. I didn't like my old job much though, so even 2 more years of it seemed like an eternity.
Re: Crossroads: Should I change to a lower pay job?
The new job sounds fantastic and it does not sound like it will pay too much less looking at the difference in your estimated savings ratio.
This year I took a much less stressful job where I have more available time. Life is seriously SO much better. I have more time to focus on ERE planning. I am also looking at taking up contracting work on the side because I have much more free time, so more money.
I say absolutely take it. Life is now you have to enjoy the journey and not suffer for the next 5 years.
I also really like the idea of the job being open to sabbaticals. Here is an idea. How about trying a little mini ERE sabbatical say for 6 months from the new job. How awesome would that be. Sounds like you would have such options too.
This year I took a much less stressful job where I have more available time. Life is seriously SO much better. I have more time to focus on ERE planning. I am also looking at taking up contracting work on the side because I have much more free time, so more money.
I say absolutely take it. Life is now you have to enjoy the journey and not suffer for the next 5 years.
I also really like the idea of the job being open to sabbaticals. Here is an idea. How about trying a little mini ERE sabbatical say for 6 months from the new job. How awesome would that be. Sounds like you would have such options too.
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Re: Crossroads: Should I change to a lower pay job?
Thank you everybody for you thoughtful answers. I will go for this new job and will try to tell you how it works out for me.
Best regards from Spain,
Best regards from Spain,
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Re: Crossroads: Should I change to a lower pay job?
(almost a year later a small update just for reference)
I went for it and I can assure you that I do not regret. Now I dont even remember what was holding me back and I do not see a part of my life that hasnt benefited from the change.
Thanks all of you for the euncoragement and reflections.
I went for it and I can assure you that I do not regret. Now I dont even remember what was holding me back and I do not see a part of my life that hasnt benefited from the change.
Thanks all of you for the euncoragement and reflections.
Re: Crossroads: Should I change to a lower pay job?
Great to hear it's working out. Nice example for others struggling with the same decision.