I just got offered a job I’d love to accept – is a $250k pay cut too much even if I hate my job?

When I left my high-pressured finance job in my 20s to pursue work that was more creative, I knew I’d be looking at a pretty big pay cut. But I was willing to earn a lot less for the better quality of life.

The reality is that my job was making me miserable. I hated going to work every day, and by the time I got done working, I was so stressed and wound up that I could barely enjoy my evenings and weekends.

This Reddit poster is in a similar situation. They don’t like their job but are compensated very well. They earn $750,000 a year in total comp, and they’ve been offered a new job that would give them a $500,000 salary in total.

Now because these are really big numbers, I think it’s hard for a lot of us to have sympathy for the poster, who’s probably worried about taking a large pay cut. Most of us would gladly take a $500,000 salary.

But the poster’s situation isn’t all that uncommon. What’s uncommon is their high salary — not the underlying conundrum. And if you end up in a similar boat, it’s important to know how to navigate it.

When you give up money for better mental health

It’s not an easy thing to give up a large chunk of money, whether it’s a $5,000 pay cut, a $20,000 pay cut, or an enormous $250,000 pay cut like the poster above is facing. But ultimately, you’re going to be faced with the same question no matter what the numbers look like: Is higher pay worth sacrificing your mental (and possibly physical) health?

It’s one thing to have a job you aren’t excited about. It’s another thing to actively hate going into work every day and being constantly stressed about your job even when you aren’t in the midst of doing it.

If you feel that your job is hurting your health, and you can afford a pay cut, then I’d encourage you to do it. That said, before I left my finance job, I made sure to bank a pile of savings, knowing that I wasn’t going to be making nearly as much at whatever job I took next.

Before accepting a pay cut, assess your savings to see what they look like. And also, run through your monthly expenses and make sure you can still cover them on a lower income.

And it may be that you can’t cover them. But in that case, make sure you’re willing to give certain things up before taking a lower salary.

Work with a financial advisor to navigate a change in pay

A pay cut can constitute a pretty big adjustment to your financial picture. And it may also change your approach to things like retirement savings. So if you’re looking at a big pay cut, or even a more modest one, I’d suggest sitting down with a financial advisor to get some guidance.

A financial advisor can help you figure out what minimum salary you need to cover your essential expenses while also working toward your long-term goals. And they can also help you navigate the nuances of leaving a job.

For example, you might have a 401(k0 to roll over, or equity to cash out. So it’s a good idea to have a financial advisor in your corner to get through that period of change.

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