ever willingly taken a paycut >25% of your salary?

SunAndRain

DO tell.

Why?

How much, percentage wise?  Though if you want to share the dollar details that's fine too

What did you give up lifestyle-wise?

What did you gain happiness-wise?

How else did it impact you and/or your family?

jlaOK

I did.  I went to 24 hrs/week when I had DS which was a 40% pay cut.  My DH had just gotten a raise that made up for a good chunk of the difference in salary and we spent my pregnancy paying off his truck which was our highest bill besides our mortgage. 

I've bumped up my hours (and therefore pay) over the years.  32 hrs when I got pregnant with DD to help make up for the extra daycare expense and now I work 35 hours per week.

We started Dave Ramsey's plan when I went PT.  We were able to pay off 50k in debt, are now debt free, and have been saving for the down payment for our forever home (which we are building now).  I have no regrets in taking the pay cut to go PT.  I was able to spend amazing time with my kids when they were young.  I used to drive myself crazy thinking of how much "extra" I could be making, but ultimately we were VERY comfortable and I couldn't put a price on that time at home.

I am fortunate that DH and I make good money and live in a LCOL area.  Sure, we could have done more with our money if I worked FT the whole time, but like I said, no regrets.

Katelobster

I gave up 40% of my salary and probably 50% of my total compensation (bc I lost my benefits) when I went from FT to 24 hrs/week.

Since it's only 3 days/week, my mom stepped up to be our daycare instead of paying $300/week for a center, so in the short term, it's actually pretty close to a wash financially. I know I'm losing money in the long run in terms of career growth, but I don't care. I (and my family) are so much happier and less stressed because of it. I always assumed I'd be a career mom, but after having my child, discovered I would be happier as a SAHM, so this is a good compromise. I just love being home with my daughter, doing activities with her, not dealing with daycare, getting things done during the day so we have weekends for family time and relaxing.

We are not high-earners, but thanks to a variety of factors (LCOL area, no debt other than our mortgage, grandma daycare, and generally being satisfied living below our means) we are fine financially and still have plenty left over to save for retirement, emergency fund, and college.

Beevol

I took a 15% pay cut to switch jobs a while back ago. At the time, I worked for a Catholic Hospital whose health insurance only covered their services and they did not provide any coverage for BC and would have made me switch all of my doctors/etc and their maternity coverage was laughable, so I chose to pay more for MH's insurance. So, just having my insurance covered adequately by the new job made up quite a bit of that pay difference (since I wasn't making *that* much and DH's insurance was pricey). I also got a much shorter commute (so saving on time, gas, and wear/tear on my car) and a job that offered advancement and growth opportunities that I like a whole lot more. It was more than worth it for me. 

groovygrl

I'm considering it next year when my twins go off to public school. I'd like to see if I can go p/t but once you take into account the savings on daycare costs x2 it won't be as much of a hit. though I am not sure how my retirement will be affected and healthcare premium might be higher, I haven't explored it w/ HR yet to know details.

2chatter

I took a 45% cut to move from consulting to full time.  I got a divorce at the same time and took all of the marital debt.  For one year I spent nothing and paid off bills (Dave Ramsey method where you pay off one and roll that payment into the next and keep going).  In 18 months I was debt free (except mortgage and student loan).  So for me, it's not what you make but what goals you set, how aggressive you want to be and your timeline.  For me I wanted one year of lifestyle impact (DD was a tiny infant, and went to her first ever restaurant at 18 months) and then for things to go back to "normal".  It totally worked for me. 

owlet3

Went from 40 hrs/5days to 30hrs/3days for about 2 years. This was a 25% cut but maintained all benefits. I gained two days off with the kids while they were young and kept my foot in the door. And I look back fondly at that time. I still remember the first day of my schedule change and the instant relief I felt as I was enjoying the day with the kids. No lifestyle changes-- we bought time. I could have kept the schedule but I applied for my managers job and got it which in turn allowed my DH to switch careers and work from home on his own work schedule. So he is home when the kids get home, or are sick, or when I have a crazy long day. I am vicariously happy that my children have more of DH in their lives, that with my current role at work my home life is flexible, and although I do work 5 days now we are close to having all the kids in primary school so the impact is less on all of us.

beachdweller1

I took a 45% paycut when my DD was 6 months old (now 3.5 years old).  I went from biglaw to in-house at a non-profit.  We could afford it, but it was a shock when I saw my first paycheck.  I made the move because I was working 60-65 hours a week and traveling a lot and just couldn't manage to parent the way I wanted to with those hours.  I will say I took the move knowing I would likely have an opportunity to move up.  3 years later, I am making more money than when I originally jumped ship and my hours are much better.  Don't be afraid of a paycut if you can afford it!

justjinny

Why? I think 4 days/wk (32hrs) is my ideal.  I get 1 full day off to catch up on cleaning, grocery shopping, appointments etc. and don't have to cram it all in after work or on the weekends.  It's nice to just sometimes have a day off with LO too. I do get sucked into working extra hours on occasion, but that's no different from when I worked full time. DH just recently negotiated to go to a 4 day/wk schedule too and it has been a huge relief for him to have extra time to get house projects done without using up each weekend.

% cut - a full 20% in wages, but I kept all my benefits including family health insurance through work.

What did you give up lifestyle-wise? We didn't give up anything lifestyle wise with my reduction, but we have definitely noticed we save much less each month now that DH is also earning 20% less.  We can always make more money later, but we'll never get our time back to spend with our LO's at this age.

What did you gain happiness-wise? I feel like the work week is much less stressful.  I can let things slide knowing I'll get to them on my day off.  I also get a few hours to myself every so often when I can take DS to daycare on my day off.

exhibitv

I took a 20% pay cut to cut down my hours during my busy season (I'm an accountant, so January - April) from a minimum  of 55 hours down to 44 hours (so a 20% reduction in hours, but still full time). I didn't have any lifestyle changes as a result (money wise), but it does allow me to see my kids everyday and also have normal childcare.  We would not have been able to uphold that schedule without a live in nanny. I started when I went back to work with my DD (she's now almost 2.5).  I can ramp up the hours at any time in the future if I want. I work full time (40 hours) the rest of the year and get my full pay for those months.