by Taylor J Kovar, CEO, Kovar Capital
Hi Taylor – I’ve got two job offers on the table after the police checks in NSW were completed, and I’m leaning toward taking the one that pays about $10,000 less. I’ll save money on commuting and I have more PTO with the smaller salaried position, but I’m worried I’ll regret not taking the extra money. Thoughts and advice? – Kerry
Hey Kerry – I don’t have all the details, but I appreciate you weighing your opportunities and leaning toward the job that might make you happiest. At the end of the day, you need to consider all the variables and settle on the position that will have you feeling good when you wake up in the morning.
If you’re saving money on mileage, that could make a bigger difference than you realize.
Let’s say you drive 10 miles less each day for the lower-paying position. Using the $.53/mile deduction rate from 2017, that’s over $5 a day in savings. That ends up being over $1,000 at the end of the year, and that’s just for 10 round-trip miles. It doesn’t equal the full $10,000, but it’s still a significant amount.
You mentioned paid time off, which is a very big deal. Not only do extra paid days equate to a bigger salary, but that directly impacts your quality of life. You should be able to enjoy personal and family time no matter where you work, so I wouldn’t fault you at all if you decided vacation days were more important than dollars earned.
What you haven’t mentioned is your own expenses. I want to make sure you’re thinking about short- and long-term goals before you pick your next employer. As much as you need to be happy with your position, you should think about what’s going to make you happiest in 5-10 years, and how that might influence your daily peace of mind.
If you have a mortgage or student loan or credit card debt, does it make more sense to increase your earnings so you can become financially free more quickly? If the work you’ll be doing is relatively similar at either company, which one will provide stronger opportunity for upward mobility while meeting your spending and saving needs?
Picking the job you’ll enjoy most is the top priority, but sometimes a higher salary can be the deciding factor. There are plenty of things more important than money, but when it comes to your day job, there’s no shame in letting earnings dictate which job you accept.
As long as your bills are covered and your retirement is getting funded, I see nothing wrong with taking a job that pays less but meets other needs of yours. As long as you’re being realistic about how much money you need, go with the job that will make you happiest. Best of luck in the new position, Kerry!
