How to Navigate a Pay Cut and Career Change

How to Navigate a Pay Cut and Career Change

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

[massimo_x]

After 15 years of addiction, prisons, and rehabs, I finally have a career I'm proud of, a credit score, bought my first car at 35 years old, and bought my first home at 40. Today i am giving back to my old neighbourhood, it is possible to climb out of the hole!!

[michaelmurphy]

I did this a few years ago. I went from an hourly position making about $45/hr, over $130k/year with OT, in an industry I had 25 years experience in (20 military, 5 in private sector) to a federal position that paid $65k/year in a completely different industry, but I knew it was a position that would get my pay back up to the previous pay in about 3 years, so we sold our house to move to the new location knowing my pension would cover the rent and some bills, and took "the leap". Money was tight for the first year, then after the first promotion and retention bonus came in, things became a little easier, after the second promotion things became a lot easier as that coincided with paying off almost all our debt (one TSP loan remaining from taking a loss on the house). While it's not easy, it definitely requires a plan to make the transition more likely to succeed.

[christopherkim]

Thank you, Bo and Brian. I’m making a career change right now so this advice is very timely.

[daysofcoffee]

This is helpful. I’ve been asking this question for about a year now while saving what I can to get flexibility. Most of the advice I saw, especially when I started looking last year when the job market was a little better, was that I need to be finding the highest paying job I can find, not taking a pay cut. It’s stressful to just get deeper into a field I’m ready to leave which grows the income gap for starting over when it’s time to move on.

[JakeSpradlin]

You have to plan so this change doesn’t destroy your financial life!

[chrisharris]

Good advice from Bo, get set up with a new job first and plan well. And you never know, I changed direction about 12 years ago and it was the best thing ever, if a bit scary at the time. Good luck

[snowgoer]

Can you guys do a show on when you should stop saving for retirement or when you should stop working unless you love what you do. For instance, you have 5 Mill and you are happy at 60K a year or the fact that minimum withdrawals later will be massive. What are some things to be careful of when you have to much or is there such a thing? Is there a tipping point?

[mitchthornton]

Yes the reference from Bo was from Jerry McGuire but if you do this it can also be Risky Business .. See what I did there ? 😂😂😂😂

[albertoguerrero]

Tom Cruise didn’t say it. The character he was playing did. How immature not to properly reference the movie: Jerry McGuire.

[chrisharris]

Good advice from Bo, get set up with a new job first and plan well. And you never know, I changed direction about 12 years ago and it was the best thing ever, if a bit scary at the time. Good luck