Low pay less stress, higher pay, higher stress
I am stuck. Mid- 30s. I have a chance to work for a corporate company making the same salary I’ve been at for the last 3 years, with the chance to earn commissions and increase exponentially (in theory). OR I can take on a job paying $15k/ year less with no commission at all, but with (I highly suspect) less stress. Same job, but one is in the for profit sector, and one is nonprofit. I cannot stay where I’m at as the company has closed. This is the difference between $52k and $65k, so we’re not talking 100s of thousands, but rather a few hundred dollars will make a significant impact. HELP and advice appreciated. I do want to acknowledge that this is a good problem to have.
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I would echo the previous comment; what's the total comp package? HSA? Vacation time? Which job allows you to be more of yourself? Would you have a side hustle or be more apt to save money, cook at home, etc?
In the olden days (i.e., 5 or 10 years ago), the advice would have unequivocally been: "take the higher paying job, since you will be grinding it out for less time to reach FI with a higher income."
The other responses you've received related to total compensation and other benefits/requirements of each job you are considering are good advice. I would say, however, to take it one step further. You mention that the lower paying job would likely also have lower stress. But, is the lower stress level going to take things from "I work in a career I dislike" to "I now work in a career that I dislike a little less"? Or will it take it from "I work in a job function I like but in a place/company/sector that I don't care for" to "I work in a job function I like at a place/company/sector that I also like"?
What I'm getting it is to assess how much the lower stress level is "worth". And that determination of worth needs to account for how much more quickly it will allow you to reach your financial goals, whether this job/career is one that you eventually want to leave for certain, and whether you want to prioritize a better balance now (at the potential cost of working longer) or reaching your "FI number" sooner (at the potential cost of higher stress now).
And there are lots of other things to account for, so I would encourage you to brainstorm all the pros and cons that you can think of, put them on a piece of paper or a whiteboard, and then start sorting out what serves you best.
I like all this advice.
Also OP should give themselves some grace. Plan but realize everything will change. Some things they will just have to find out by trial and error.
I wouldn't assume nonprofit means lower stress. It does, however, guarantee lower pay.
Just my experience.
Yes. That’s actually mine as well so good point.
Hi Sam, I consider myself a stressed person so will touch on that angle . Less pay can also lead to money stress even if the job itself is easy going ... but I personally despise all stress so will choose the job I love more! Imo nothing beats a cause to wake up happy in the morning, not even early retirement. If they are essentially the same, and in the higher paying job you are not expected to work over time and can leave work at work, then go for it. Best of luck in your new role!
Thank you! Right low stress in all areas. I’ll get there eventually. 😂
A philosophical take says that trying to look at the problem as if you can find "the right" or "the better" option is actually just a fallacy:
TL;DR - by definition these situations are NOT actually comparable, and it's in this space you get to define who you are.
I'm in a similar age range to you this is just my 2 cents:
A year and half ago I moved from a much more stressful job to to a "lower stress" job. I have since "found" some stresses in but I enjoy it a bit more. I really think you gota look in the mirror.
If you are driven enough to hit a FIRE target there is a chance you are your hardest critic and you might push so much you'll find that "stress" anywhere you go. Personally I struggle with this and have to make time to relax.
My advice don't give up the money if you are going to "find" the stress regardless, that is a mental issue lots of folks myself included have to work on.
Any other differences between the jobs:
A 25% increase plus additional commissions could significantly reduce your time to FI/coastFI/travel budget. But even a few of these could decrease that 25% significantly.
Excellent point, thank you!