Taking a pay cut is a financial risk attached to a job or career change. Fewer commissions or bonuses might impact take-home pay along with reduced hours or furloughs. The pay cut may have short or long-term financial risks, a consideration to make when deciding to take the cut.

Should you accept a job that pays less?

Once you’ve agreed to work for a lower salary, issues will arise. If you have to do the same job for less, your first challenge may be emotional. Accepting a lower salary can be difficult if you hang your self-worth on the size of your paycheck. And remember that time heals at least some paycheck wounds.

When to take a pay cut for a new job?

If you’re starting out on the ground floor of a new industry, or your new position requires retraining or additional credentials, you may need to accept lower pay for the time being. However, this setback will be a temporary one, and the move could be a net positive for your career prospects.

Why do you take a lower salary at a new job?

Of all the reasons for taking a lower salary, this is the one that will raise a red flag. Interviewers may worry that you’ll only be at the job for a brief period of time. Maybe the on-paper salary for a new job is lower, but the company will pay you to take classes or earn a degree.

Is it worth it to take a 12, 000 pay cut?

No amount of benefits — even the disappearance of commuting costs — can change that. But here’s what can: If your new job puts you on a better trajectory to earn more over time. My $12,000 pay cut, for example, could be lessened by climbing the ladder more quickly.

Is it better to take a pay cut or move?

Moving to an area with a lower cost of living will most certainly mean a smaller paycheck, but the good news is your living expenses will be cut. In the end, there may be more opportunity to save, especially if the decreased cost of living offsets the pay cut.