February 28th 2019 Should You Take a Pay Cut

Josh and Joshettes, today’s post sounds weird but I promise you this is a good read. This post is inspired by my friends who changed industries and by a book that was given to me. So let’s dive into today’s post.

In the book there’s a quote that basically sums up this entire post; “It is sometimes wise to accept a reduction in salary or position if it leads to greater opportunity.” So who said this profound quote? Former chairman and CEO of Bergdorf Goodman, Ira Neimark. I know what you’re thinking, who gave me a book by business icon Ira Neimark? I received the book from the author himself. This quote has no hidden meanings, it means exactly what it says. You should take up a lower paying job or position if it will pay off in the long run. So like always, I have a story that relates to this topic.

A couple of years ago I was working as a security officer, making $10.50 an hour. It’s a little bit of money, but there was a reason why I worked there. I was working over 60 hours every week and after six months I could transfer to a higher paying company. I did nothing but essentially watch videos all day and got paid for it. At one time I was working 80 hours a week and making over $800 a week after tax. In less than one month I was going to leave the company to join my aunt’s company and get paid $18 an hour to watch videos and relax. But I decided to leave the security industry and take a sales job. I went from making $800 a week (after taxes and overtime) to $800 every two weeks. That’s a big pay cut, why would I do something so dumb? It was because there was an opportunity to grow, which I did. I doubled my income in less than two years plus I received tips and free food every day from customers. This new job allowed me to network and meet people such as Ira Neimark.

That new job worked out for me because I knew the industry and worked my butt off. Not everyone has that luxury but don’t worry you can take a pay cut for another reason. Many of my friends took massive pay cuts because they hated their jobs. One of my friends took a fifteen thousand dollar pay cut yearly because of stress and a horrible schedule. Now they work a set 9-5 schedule with weekends off. Some may look at this scenario and think that it’s a horrible trade-off but as most of us know, time is more valuable than money. Another one of my friends took a pay cut because they were getting up there in years. They worked as a door to door salesman with nearly unlimited income position but decided to become a supervisor. Instead of walking through buildings from sunset to sundown to make a living they now have a desk job. Sure the income potential is capped but they now have to do less physical labor. Then there is another friend who took a pay cut because they hated their industry. This friend originally joined the industry because their parents told them to. If you make you let someone else dictate your life, you probably won’t enjoy their decisions. They took a massive pay cut but they now work in an industry that they love.

These are all true stories and everyone was happy taking the pay cuts because it made them happier in the long run. I’m not telling you to do the same because your results will vary. The purpose of this post is to change the way you view pay cuts. There are many different reasons why a person changes jobs or industries but there is no shame in it. Even a demotion can be considered a blessing. When I received my first demotion, I decided to look for work and ended up finding a job that I held for five years.

Remember to be successful it's your right, duty, and responsibility.