Have you ever or how would you react to taking a significant pay cut?

[zetta]

In some ways I have chosen to take a paycut by choosing to work part-time as a software consultant instead of full-time as an employee. I also took a 2-year "sabbatical" when our first child was born and am planning to take another one when the twins arrive.

The biggest thing that made this possible was choosing a house that we could afford on my DH's income alone. When I'm not working we have to watch our expenses more closely, and cannot put aside as much for investment. When I am working we can afford extras such as visiting my in-laws overseas.

If DH were to take a major paycut it would be much more difficult. We're in similar fields, and would have similar salaries if we were both working full time.

[MonkeyMama]

I had to add we ended up taking a "significant pay cut" when we moved to our current location.

The interesting thing was we moved here because expenses were FAR lower. Extremely lower cost of living.

We expected a 10% - 20% pay cut in the move. In the end I immediately found a job with BETTER compensation. Was not what we expected at all. My dh searched for work about 2 years here (off and on) and has never found anything. It ended up being a big pay cut in the end, as a total household income perspective. But it is interesting because it has felt more like a "big pay raise" with the lower cost of living. Our income was literally 50% for a long time. It's still about 75% of what it was before we moved.

It seems kind of obvious or not that relative. But I distinctly remember interviewing with my boss and him telling me, "Pay is lower here. I am tired of you Bay Area people expecting Bay Area paychecks." It seems a lot of people moved here not being prepared for a lower paycheck. We were prepared and find it was well worth the move, regardless of "low pay" for many years.

[Justice44]

RE: Pay Cut

Well, my husbands income is about half what it would have been if this recession hadn't hit so we have definitely taken the pay cut. But we never lived with high fixed expenses so despite that, we are doing just fine. I have still chosen to cut back on some things and am eyeing up cuts in the future but that is only because we still have some debt to pay off and I don't want to slow down the pay off.

Wow! I commend your husband.

[Caoineag]

Wow! I commend your husband.

Yeah he's not thrilled about me being the breadwinner again (we had been leapfrogging each other for a couple of years but he had recently blown past me) but its been for the best. In the long run, he will still out earn me, its just that my income tends to be steadier.

[wincrasher]

You have to constantly re-evaluate your career choice and adjust if necessary. You can either ride down on the pay cuts, layoffs and shutdowns or bite the bullet and make a change. Change is scary and risky - people generally don't like it.

Adapt or die is the general philosophy. The guys in sales usually get it. They ride high when times are good, and suffer the "cuts" when times get tough. Eventually they'll cut bait when they realize something isn't working.

It's tougher if you are in a specialized position in a dying industry. It's hard to face the facts that it won't turn around and you have to save yourself and start over.

[inneedofhelp]

A this point in my life, I am having a hard time with taking a pay cut.

I have thought that if I did not have the debt I have, then i would take a pay cut if it meant me being able to do more things in life that I enjoy.