65% paycut

[FreeTime]

Would you voluntarily take a huge paycut? I have had a "grand plan" to pay off all of our bills (only thing that will be left is our house) and small student loan and then to find a work at home or part time job where I can assist with online school for our kids. So in May we will have met this goal. Now I am waffling and thinking if I keep my good job we will always have extra money. What would you do? Have you taken such a huge paycut? What was the impact to your family (I am thinking that in the long run my kids will love that I don't have to work 60 hours a week and work while on vacation, but would they rather have the extras? Why should I work for more junk)? Should I take this live change?

 

[MickeySP]

It would depend - how old are the kids? How long will the belt be tightened? How does your SO feel about it? How attached are you to any luxuries that you would give up?

I would if doing so would still leave enough for any emergency that might happen. If it tightened us up where we had no wiggle room in the budget I would think twice.

 

[HM]

I'd keep going with the current job until you have saved up a really good nest egg and then make the change.

 

[DisneyBamaFan]

Would I take that pay cut and stay in my current job - NO. Would I take a pay cut eventually when my current income is no longer required? Yes. I will call it "retirement", and it will come with a 100% pay cut.

 

[SC Minnie]

I'd keep going with the current job until you have saved up a really good nest egg and then make the change.

This.

 

[LuvOrlando]

Well since I took a 100% pay cut to be a SAHM I think you can guess my answer. However, I made my decision because we were in a position to continue to live comfortable lives. Of course, if I were still working by now my income would have been really nice but I try not to think on that too much... every decision has a consequence both good & bad. You just need to decide for yourselves what the consequences of each decision would be and then decide how you feel about each consequence.

As an aside, a 60 hour a week absent parent will take it's toll on a family. I'm not knocking it if it's what you have to do to get by but that schedule doesn't seem to leave any room and patience for anything else. Work - life balance is important. Overall the extras don't mean very much if everyone is unhappy.

If it were me I'd probably put aside a nice savings cushion then scale it back but ONLY if it didn't put my family at risk.

Good luck with whatever you decide

 

[sparklynails23]

It's a personal decision. No one else can make it for you.

 

[Mickey'snewestfan]

How much of your Household Income are we talking about? I'm assuming that there is a second earner in your home.

 

[Northstar]

If you've really been putting all of your income towards paying off debt, and taking your family's living expenses from your partner's income, I think it will be easier than you think to adjust to the reduction!

You might want to do some fine-tuning of your budget to see how it will work. Maybe your expenses will also go down... gas money for commuting, parking fees at work? Maybe you will be able to take over some of the things you currently pay others to do for you and reduce expenses that way ... laundry/drycleaning, yard work and home repairs, food preparation?

But in answer to your question... yes, I'd do it if I wasn't looking to build a career in the job I would be leaving.

 

[stinkerbelle's mom]

First of all Congrats on reworking your budget! Awesome.

I think I would continue working atleast til the end of the year 2011 to save some money for any emergencies. However while paying down I'd try to finish paying off the school loan first and then pay down the house some more first--maybe refinance to cut your payment down.

After that I would consider the move to another job.

 

[C.Ann]

Is this something that you can "try on for size" and if it doesn't work out, return to the work force with relative ease? If so, yes - I would do it - and especially if I had young children at home..

I was mostly a SAHM when my kids were still home.. Once in awhile I would take a job for awhile (usually seasonal), but only during the hours that my DH was home to watch the kids.. When I wasn't working (outside of the home), I made a fairly good go of it by making all sorts of handcrafted items and selling them at craft shows every weekend (both days) from Sept. thru mid-December - and refunding (back when it was much easier and you got a decent check from almost every product you purchased).. We did just fine - what I made from those two situations was spent on vacations and such - and my kids were happier having the extra time with me - as opposed to material goods..

Good luck with your decision..