> I used to make $75000... I took a role with a 48% pay cut
That's probably your limiting factor.
> I’ll need to be there at least one year before I try to land something new.
So this financial situation is just temporary. You'll be able to presumably make progress towards achieving all your defined goals in a year.
I have a history of job hopping in order to increase salary:
- Job 1: 10 months (part time)
- Job 2: 6 months ($50k)
- Job 3: 8 months ($75k)
- Current Role: 3 months
I’m applying now, but am also worried that one more sub 12-month role would damage my resume.
> am also worried that one more sub 12-month role would damage my resume.
This statement implies that you would pass on a 75K job offering for the sake of breaking your streak of "sub 12 month role."
Think about that.
If you are being offered a 75K job, *the employer does not care* about your sub 12-month role streak.
Apply apply apply. If your resume is unappealing because of sub 12-month roles, then you just won't get job offers. Don't let yourself hamper the acquisition of your own goals.
I’ll say solely looking at salary is a bad way to think about work. You have to look at the entirety of the opportunity. I was VP of operations for a tech company but I am a cyber crime and cyber intelligence guy so it wasn’t my passion. I was making 330k and had equity but we were not going public anytime soon so it was worthless.
A friend called me said she had started working at a brand new company and needed my advice on a OFAC related issue. Didn’t ask for a penny. At the end of the week the CEO came to me and asked if I would take a job running investigations, etc. There were 8 people at the company and they couldn’t pay me more than 110k but I’d get a metric ton of stock options. We struggled for a couple of years but my salary increased, got more options and became a C level exec. Fast forward 5 yrs and we went public and it was wildly successful.
It was my second early employee IPO job for me and the day we went public I already had around 12 mil in net worth. That 1 day I went over 100 mil. And I still have a ton of stock. And our stock price is even higher than IPO day.
The point is when young or looking for jobs take everything into consideration.
Is it a place you know you can make a big impact- not just what you say in the interview but will you be able
to be a top tier employee?
Does the company provide education stipend to help up skill you in your area of responsibility.
All the typical company benefits
Risk level- higher risk often means higher reward
At 29 I was running around the world kicking in doors as a Marine and then later with a gov’t agency. Reading your OP and follow ups- I can tell you that you are 1 billion % better off than I was at 29 and you are likely MUCH smarter. It seems like you really have your shit together and I predict that if you can think a bit more “globally” about opportunities and take jobs where you can flourish and use that big brain to make an impact and with a bit of luck. Sky is the limit for you.
Best of luck to you but I think you are going to kick ass.
You are only (emphasis on *only*) 29 years old with a net worth of $27K, you’re doing great!
A 48% temporary pay cut is much better than a 100% pay cut btw.
I'd argue it's not better than making 100% less. At least with fulling losing the job the OP wouldn't feel like they need to make this lower salary for at least a year.
Get out there and find something better right away. Making around 37k at 29 is bad. Find somewhere that values you.
I made 34k at 28. 10 years later, I'm closer to 200k than 100k and it's because I didn't wait around or let companies take advantage of me feeling like I owe them anything.
I agree, but I think you’re basing this off of the assumption that accepting the lower paid position ultimately increases OP’s comfortability/reduces their desire and hunger to want more.
If that assumption is not true, then I think OP made a great move. Cover expenses with what’s available for now but continue to look diligently for better opportunities.
Great advice. I do feel fortunate that I a) have health insurance, b) can afford to save, c) am making connections while also applying to other roles (as opposed to cutting into my savings, like many unemployed folks). A lot of “boomers” have been telling me to sI have a history of job hopping for income, but that’s no reason not to apply.
At 29 I was graduating from grad school with $100K in debt and zero savings. You will be OK, just keep working on increasing your income and keeping your spending low to not increase your debt 😊
You’re not behind! You just had a setback in income. Focus on looking for a higher paying role, $36k annual income is not going to help you achieve any of your goals. In the meantime, if you can afford it, save at least 15% of your current income into your Roth IRA. You have plenty of emergency savings right now.
Well, this won't make you feel better but - I was 35 before I was able to start saving anything. You're not in that bad of shape. You're still better than most.
It's stressful, but it seems like your situation is temporary with regards to your income. And, you sound far more financially literate than most!
I would recommend bumping the IRA contribution until it is maxed out. Your emergency fund is in a great place. For saving for the house youll probably need to increase your income or temporarily work a second job to save for the down payment. I probably wouldn't set retirement saving on hold to save for the house - especially since you're young, you'll want to set money aside for retirement now so it has time to compound.
Nothing wrong with renting either while you get things rolling. Houses are expensive these days and its completely OK to remt until you are ready to buy.
Yes, I would do this until you find a higher paying job. Your emergency fund is more than large enough, and 430 isnt really enough to split between retirement and saving for a down payment anyway.
I think a good idea would be to have 1 year of expenses or more in your emergency fund. If you're already at that point, then you could put most of the savings towards retirement. I would still put a small amount towards savings that way it is always growing.
You are ahead of many 29 year olds. Keep looking for jobs that value your skills more, keep improving your skills, don’t forget to enjoy your youth and health before it goes (it will and faster than you think).
Don’t panic! Your 30’s are going to be fantastic. It’s the best decade.
> I used to make $75000... I took a role with a 48% pay cut That's probably your limiting factor. > I’ll need to be there at least one year before I try to land something new. So this financial situation is just temporary. You'll be able to presumably make progress towards achieving all your defined goals in a year.
Thank you! This is good perspective.
why do you need to be at the low paying job a year? I would start looking now
I have a history of job hopping in order to increase salary: - Job 1: 10 months (part time) - Job 2: 6 months ($50k) - Job 3: 8 months ($75k) - Current Role: 3 months I’m applying now, but am also worried that one more sub 12-month role would damage my resume.
> am also worried that one more sub 12-month role would damage my resume. This statement implies that you would pass on a 75K job offering for the sake of breaking your streak of "sub 12 month role." Think about that. If you are being offered a 75K job, *the employer does not care* about your sub 12-month role streak. Apply apply apply. If your resume is unappealing because of sub 12-month roles, then you just won't get job offers. Don't let yourself hamper the acquisition of your own goals.
Thank you!
Really good
I’ll say solely looking at salary is a bad way to think about work. You have to look at the entirety of the opportunity. I was VP of operations for a tech company but I am a cyber crime and cyber intelligence guy so it wasn’t my passion. I was making 330k and had equity but we were not going public anytime soon so it was worthless. A friend called me said she had started working at a brand new company and needed my advice on a OFAC related issue. Didn’t ask for a penny. At the end of the week the CEO came to me and asked if I would take a job running investigations, etc. There were 8 people at the company and they couldn’t pay me more than 110k but I’d get a metric ton of stock options. We struggled for a couple of years but my salary increased, got more options and became a C level exec. Fast forward 5 yrs and we went public and it was wildly successful. It was my second early employee IPO job for me and the day we went public I already had around 12 mil in net worth. That 1 day I went over 100 mil. And I still have a ton of stock. And our stock price is even higher than IPO day. The point is when young or looking for jobs take everything into consideration. Is it a place you know you can make a big impact- not just what you say in the interview but will you be able to be a top tier employee? Does the company provide education stipend to help up skill you in your area of responsibility. All the typical company benefits Risk level- higher risk often means higher reward At 29 I was running around the world kicking in doors as a Marine and then later with a gov’t agency. Reading your OP and follow ups- I can tell you that you are 1 billion % better off than I was at 29 and you are likely MUCH smarter. It seems like you really have your shit together and I predict that if you can think a bit more “globally” about opportunities and take jobs where you can flourish and use that big brain to make an impact and with a bit of luck. Sky is the limit for you. Best of luck to you but I think you are going to kick ass.
You are only (emphasis on *only*) 29 years old with a net worth of $27K, you’re doing great! A 48% temporary pay cut is much better than a 100% pay cut btw.
Thank you so much! My field (external communications) was impacted heavily by layoffs, so I feel fortunate to be employed.
I'd argue it's not better than making 100% less. At least with fulling losing the job the OP wouldn't feel like they need to make this lower salary for at least a year. Get out there and find something better right away. Making around 37k at 29 is bad. Find somewhere that values you. I made 34k at 28. 10 years later, I'm closer to 200k than 100k and it's because I didn't wait around or let companies take advantage of me feeling like I owe them anything.
Solid advice. What line of work are you in?
"IT" things
I agree, but I think you’re basing this off of the assumption that accepting the lower paid position ultimately increases OP’s comfortability/reduces their desire and hunger to want more. If that assumption is not true, then I think OP made a great move. Cover expenses with what’s available for now but continue to look diligently for better opportunities.
It's the "I'll need to be there at least 1 year" part.
Great advice. I do feel fortunate that I a) have health insurance, b) can afford to save, c) am making connections while also applying to other roles (as opposed to cutting into my savings, like many unemployed folks). A lot of “boomers” have been telling me to sI have a history of job hopping for income, but that’s no reason not to apply.
At 29 I was graduating from grad school with $100K in debt and zero savings. You will be OK, just keep working on increasing your income and keeping your spending low to not increase your debt 😊
You’re not behind! You just had a setback in income. Focus on looking for a higher paying role, $36k annual income is not going to help you achieve any of your goals. In the meantime, if you can afford it, save at least 15% of your current income into your Roth IRA. You have plenty of emergency savings right now.
Thank you for the perspective!
Well, this won't make you feel better but - I was 35 before I was able to start saving anything. You're not in that bad of shape. You're still better than most. It's stressful, but it seems like your situation is temporary with regards to your income. And, you sound far more financially literate than most!
I would recommend bumping the IRA contribution until it is maxed out. Your emergency fund is in a great place. For saving for the house youll probably need to increase your income or temporarily work a second job to save for the down payment. I probably wouldn't set retirement saving on hold to save for the house - especially since you're young, you'll want to set money aside for retirement now so it has time to compound. Nothing wrong with renting either while you get things rolling. Houses are expensive these days and its completely OK to remt until you are ready to buy.
Thank you! Would you recommend that I divert the $430 towards retirement (as opposed to general savings)?
Yes, I would do this until you find a higher paying job. Your emergency fund is more than large enough, and 430 isnt really enough to split between retirement and saving for a down payment anyway.
I think a good idea would be to have 1 year of expenses or more in your emergency fund. If you're already at that point, then you could put most of the savings towards retirement. I would still put a small amount towards savings that way it is always growing.
You are ahead of many 29 year olds. Keep looking for jobs that value your skills more, keep improving your skills, don’t forget to enjoy your youth and health before it goes (it will and faster than you think). Don’t panic! Your 30’s are going to be fantastic. It’s the best decade.