What if I told you I now make a fraction of my previous executive compensation, but I’ve been happy to take that financial hit?
Yeah, I wouldn't have believed it either, as I was clawing my way up the career ladder about 15 years ago.
However, I was the most unhappy and unhealthy when I was making the most money in my life. I had the fancy job title, and I was making great money. But I never had the time to enjoy it, be with my family, or take care of my health and wellness.
I was burning out and on the fast track to an early death. So, I finally came to my senses and walked away from that “great career.”
Now, I earn less, but I can:
Spend more time with my wife and children.
Exercise every day.
Eat healthier.
Take time off for recreation every week.
Take vacations when I want.
Invest in my emotional and physical wellbeing.
Of course, it wasn’t easy to reduce our income and still make ends meet. So, we had to make some lifestyle changes and downsize a bit. But, surprisingly, those ended up being more enjoyable than the way we used to live anyway (e.g., now we live near the mountains, away from the city, and away from crowded freeways). Controlling your expenses is a great way to bank your income for the future AND give yourself more options and freedom later.
Don’t get me wrong. You should absolutely be compensated as much as possible for the work you do. I'm not advocating that you should accept less money in a hard, stressful job.
However, no amount of money can buy back your health and happiness. I’ve watched enough wealthy friends die early (e.g., heart attacks, cancer). I have way too many unhappy rich friends (e.g., they’re working themselves to death). I’ve also witnessed relationships torn apart when one spouse pursued success and wealth at all costs.
Yes, you do need enough money to feel safe and secure. The key word in that sentence is “enough.”
However, it’s sometimes a good move to accept a pay cut for a job you will love, will give you unique work experience, or will connect you with the right people to set up a future move. It’s sometimes smart to take a job that pays less if it improves your personal life, too.
I have clients who are willing to make less money to shed stress in their professional lives. They are tired of working 12 hours days, reporting to tyrannical bosses, and having too much responsibility on their plates. They want their personal lives back! They want boundaries between work and home, so they aren’t working on their phones and laptops every waking moment.
Accepting a role that pays you less only makes sense in certain situations (like the ones I mentioned), and it only makes sense if you can make it work financially. Not everyone has the luxury of making that decision.
I certainly didn’t when I owned a home in Silicon Valley!
So, do what it is right for you and your situation, of course. But, my overall point is that sometimes a role change or career move that pays less might be the right move, so you shouldn’t overlook opportunities like that simply because of the compensation.
I’m Larry Cornett, a Freedom Coach who works with you to optimize your career, business, and life. My mission is to help you take complete control of your work and life so you can become a more “Invincible You.” I live in Northern California near Lake Tahoe with my wife and our Great Dane.