I have recently been offered a job at a company I greatly admire, but I am having a difficult time deciding whether I can accept the position. The main sticking point is that, although the overall salary is slightly better, the monthly pay is considerably less than what I earn now. (The difference is made up in bonuses, which I don’t get at my current job, but are pretty generous at the prospective one.) This sharp difference in monthly pay, however, would probably create a significant cash-flow problem.
The situation reminds me of my college years, when I couldn’t afford to take unpaid internships because I had to support myself and pay my way through school while working for the experience I would need to land a job in my field. Ultimately, my financial needs forced me to turn away some very good opportunities in favor of paid internships in areas not directly related to my career goals. Those were tough decisions to make, but in the end my financial needs left me with no choice, which is precisely what I am worried about in this situation: Can I afford to accept a job that pays “less” (even though the estimated annual pay is somewhat better) in light of my current financial needs?
To shed some light on the question, I have made a list of the pros and cons of accepting this position, along with some circumstantial information that has a large bearing on my considerations.
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Pros
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\t\t- Desirable position
\t\t- Good career move
\t\t- Nice benefits
\t\t- Saner working environment (presumably)
\t\t- Longer contract, more stability
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Cons
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\t\t- Lower monthly pay!
\t\t- Longer commute
\t\t- Could destabilize short-term financial planning
\t\t- Would require much more financial discipline
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Considerations
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\t\t- New child coming soon
\t\t- Student loan repayment plans leave no financial cushion
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Go for it!
The position itself excites me, I know I can do the job well, and the company offering it is a major player in its market, so I’m strongly motivated to go for it. If nothing else, the work environment will be significantly better (that much I can tell just from the interview, which was far better organized than the interview that landed me my current job).
On the other hand...
As much as I want to accept this job, I can’t help but feel that it could lead to a financial train wreck—at least in the short term. One of the reasons is that I have recently made arrangements to pay off all of my remaining student loans in one large payment. Although this will free me of the burden of making monthly loan payments (which is very good), it will completely wipe out my savings, leaving me with no financial cushion to rely on when switching jobs (which is not so good). When you combine the absence of a comfortable cushion with the fact that my wife and I are expecting our second child to be born in November, it creates a very strong sense of trepidation.
At this point, I’m still undecided about whether to accept the position. My heart and my ambition are urging me to grab this job and make the best of it, but my head and my sense of family obligations are advising caution.
Suggestions and advice are most welcome.