Drop in £480 income to pursue new direction

[fluffybunny2001]

Hi

Thanks in advance for reading this and to anyone who offers their thoughts. I am so stuck with what to do and could use some objective opinions to help me decide what to do.

12 months ago I was offered a new job. I was so excited as it was something I have wanted to do for a very long time. Unfortunately the job had been advertised at the wrong salary and I couldn't take it.

The job has come around again and they have invited me to apply a second time. If I am successful it will represent a drop in £480 for us a month. We used to spend this monthly on DPs travel to London however in the last 12 months have had it in the kitty as he hasn't been travelling.

I am not happy in my current role and it has made me feel really down in the last 12+ months. But this amount of money feels a lot to 'take away' from the family unit. It also feels like an uncertain time to be rocking the boat with any changes - but this role is quite unique and niche so it is rare it will come up again. DP has suggested maybe borrowing a bit more on the mortgage to sub what we will lose each month. But that feels a bit extreme...

Thanks so much for listening and I would appreciate any objective thoughts on this.

I wouldn't do it. £480 is quite a big reduction in your income then you are proposing to offset the reduction by borrowing against your home?

It doesn't seem like you can afford to take it, sorry.

Keep looking, I know it's hard being in a job you dislike but the right job and opportunity will come eventually.

Well I think it depends a lot on (a) what % of your household income that represents and (b) whether there is any prospect of increasing your salary up again in the new role and if so on what timescale. £480 sounds like quite a lot, but some people would easily have that kind of 'slack' in their budget and it would barely make an impact, whereas others would be hard pushed to find £48 a month never mind £480 so it really depends.

You say it's 'been in the kitty' since lockdown as that was your DP's previous travel costs so presumably it isn't money you currently need to feed your family or pay the bills - is he going to need to start to travel to London again soon and if so where will that money come from if you take this job?

Borrowing more on the mortgage doesn't sound like a long term solution to me as it will end up costing you more in interest long-term at the same time as you take a cut in income - it would be better to cut down your expenses first. Personally I (and I think most reasonable people) would be prepared to give up things like holidays, takeaways, newer car, (cosmetic) home improvements, gym memberships, that kind of thing in order for my partner/spouse to have a more fulfilling career, particularly if it wasn't forever and there was a reasonable prospect of them getting a promotion or a pay increase within a few years once they'd gained experience. But I wouldn't be prepared to compromise our longer term financial security by borrowing more or living beyond our means, so if it was the case we were already living as cheaply as possible and the pay drop couldn't be accommodated, a serious discussion would have to be had about selling the house and living somewhere cheaper to fund the job move if it was really something the person desperately wanted to do...

I would be worried about why the position is available again in such a short space of time.

It really does depend on your income, your lifestyle etc.

I second being concerned about why the same position is available after only one year. I would also consider talking to them about the pay cut you would be taking. I’m assuming you’re an excellent candidate and so perhaps if they can at least meet you halfway with the salary?

I couldn’t afford that drop in income so would have to pass.

is there an opportunity to negotiate a higher salary, so the drop isn’t so much?
What’s the potential for pay reviews?
Would this be a stepping stone to something else so salary will recover in a couple of years?

What is your long term goal? Does it open doors so it would be a temporary dip but broaden your skill set to be able to apply for better paying roles? If it was temporary and helped me in the long run I'd consider it, if it's a permanent change with no set direction for the future I wouldn't be happen lose that much.

Thanks so much everyone. Really good points. There is definitely no movement on the salary - I know that for sure. This isn't the same exact role - they are expanding the team so adding on an extra position. After a year, and with the new experience, I would look to apply for a better paid role and that would be the plan.

It is a significant chunk of our income but I think the thing that sticks in my mind is that 'we didn't have it 12 months ago'. Thanks again for your messages. It really helps in considering it all.

Hi OP, one of the most miserable things in life is to be unhappy in your job and you say that you are in your current role so in a way this is a second opportunity and the chance for something different that you never expected to have.

Perhaps I am misreading it but I don't get the impression that you have definitely been offered the job; in your situation I would go for it again provided, as Maxelly says, that the drop in salary wouldn't be completely detrimental to your economic health, and make a decision if and when I was offered the role. If it's a niche job they are as rare as hen's teeth and in my experience they often lead to further doors and opportunities opening.

Will your DP be able to WFH on a couple of days once normal business resumes and thus save some of the weekly commuting costs? My own employer who has always had a long hours in the office culture has radically changed its approach over the last year and have assured us all that a mix office/WFH will be the absolute norm with the exception of a very few posts that for security reasons have to be office-based.

A minor point, and one which you have probably considered in your calculations already is that a reduced salary means a reduced tax and NI bill. Finally, do think about how you will feel in six months time when you still hate your job and know that something you have really wanted to do in your words 'for a very long time' had potentially been open to you but you decided not to go for it. You may be perfectly comfortable with that but I think that life is way too short to be miserable in a job. Let us know what you decide!

You say DP not DH: if you’re not married you personally can’t afford to take that kind of drop in income.

Would also assume that DP’s travel will resume (and part time commuting cost often isn’t much cost difference to full time) unless his employer has indicated otherwise.

Also, if that’s the net drop, the gross drop is much larger.

‘ After a year, and with the new experience, I would look to apply for a better paid role’. What’s your basis for assuming the pay drop role would make this likely, more so than your current role?

Is that 480 net or gross?

Do it. Life's too short and not all about the money.

We've both taken big drops at various points and always worked out for the better.

We've recently made two career decisions that have both resulted in income drops but potentially less stress and more time with the children. We redid our budget before making the decisions and decided it was doable. We won't be saving but do have savings already. We also won't have as much money for holidays but did save a fair bit in that pot last year. I would recommend deciding what you would sacrifice and whether it's worth it. Also if there's some leeway e.g. if your mortgage/rent payment increased or DH had to return to the office.