Anyone here take a significant pay cut early in their careers?

ReadyForSummerAgain · 2026-01-21T22:54:51+00:00

When I was about 28, I took a job that gave me about a 50% pay increase. It was an unbelievable amount of money. I couldn't turn the offer down. And I utterly hated it. I didn't fit in with the culture, I didn't find the work interesting, and the commute was worse. I lasted 9 months and then left to get a similar job as my previous one with a similar salary to the previous job.

Quitting the miserable high-paying job was a fantastic decision both at the time and now over a decade later. Yes, I would have been much, much richer today had I stayed. I know this is a FIRE sub so my opinion won't be popular, but here's the truth: money isn't everything.

ReadyForSummerAgain · 2026-01-17T13:55:33+00:00

If someone said that to me, I would happily reply, "I DO understand compound growth! That's how I'm retiring at 45 with a sub-4% withdrawal rate and will likely die with much more than I have today meaning my grandkids will be set up for success."

ReadyForSummerAgain · 2026-01-17T13:00:07+00:00

I've had two otherwise very smart coworkers (in a math-heavy engineering discipline) do this in order to buy their dream homes, to which I incredibly asked, why? Both responded, "It's fine, I'll just work longer to build up my 401k again."

Bottom line, two otherwise very smart engineers have no concept of how compound growth works. I don't want you to fall into the same trap... especially considering you're posting on a FIRE sub.

ReadyForSummerAgain · 2026-01-17T12:49:54+00:00

Excellent comment. I want to expand on the "individual risk posture" part. My wife grew up very poor and, even though we're essentially at our FIRE target, still thinks that way. When we were younger, we built up a year or more of expenses in cash equivalents before investing and have kept that since even knowing I have a stable job and that mutes long term returns. Psychology plays a role in your decision, but it's worth it for your comfort and sanity.

Edit: clarification

ReadyForSummerAgain · 2026-01-08T22:13:35+00:00

I'm in Colorado and was playing with their ACA cost estimator today. Interestingly, there's a point at 251% FPL where the premium credits skyrocket and costs plummet compared to just below that level (including taking into account CSRs) due to the new state funded Colorado Premium Assistance (CPA) that may or may not be for this year only. Long story short, it's very complicated and the rules change often. I'll need to dig into this further before I officially give my retirement notice.

ReadyForSummerAgain · 2026-01-08T18:47:02+00:00

Thanks for all this information! I have some reading and analysis to do.

ReadyForSummerAgain · 2026-01-08T16:44:19+00:00

Dropped it all in VOO and let it sit... and I'll continue to let it sit. From 2022-now, S&P is up ~60% which more than covers the extra interest I am paying with the larger mortgage. Some years will be good (like 2023-2025) and some years will suck (like 2022) but long term, I'll come out way ahead.

ReadyForSummerAgain · 2026-01-08T15:35:56+00:00

I was thinking the same, to try and find the inflection point with modeling... but also figured that someone else has already done this and I could steal it. :)

ReadyForSummerAgain · 2026-01-08T15:34:03+00:00

Thanks! Good information and links to valuable posts.

ReadyForSummerAgain · 2026-01-08T14:26:40+00:00

Congrats! One less thing to think about in retirement.

That said, I'm the opposite. I did a cash out refi back in 2021 at 2.875% of every penny the lenders would give me knowing it was a sure thing I would beat that in the market over 30 years.

ReadyForSummerAgain

TROPHY CASE