Switching Jobs - Pay Cut

[weezy00]

Thanks to all of those who have given feedback. Removed the info for privacy reasons and people PM'ing me.

[lasimmon]

You’re going to take a massive cut when you come home. So decide when you are ready and take it. If you like the sounds of the new job then do it.

I’d reevaluate my investments if they cost so much that you cant save anything on $150k a year. Also the wife can likely work with you home too.

[weezy00]

The job sounds good, and looks like there is room for advancement with upcoming retirements. But my current job is great as well.

Yes I agree with the investment reevaluation. Currently tied up in them and would take a financial loss if I sold it.

We are not ruling out having my wife go back to work. I could save on the $150k a year, just it would be minor ie. <$1000/month.

Thanks for your input.

[Jlude]

Is the door closed on your current position if you leave it? If the answer is no, then why don't you give the Calgary position a go for a year or two. If you don't like it, transition back into the 2 weeks on/off role. You will never truly know until you try.

[Boosted131]

What kind of job is this?? I'd happily fly in and out for half that pay haha.

[ExtraSlow]

Taking a 50%pay cut can be tough, because it'll mean a big change to your lifestyle. That being said, a family can get by on the $125k no problem particularly if you've been saving and not racking up debt the past few years.

Have a look at your cash flow, mortgage, utilities, car payments and see how much is left over.

[weezy00]

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Is the door closed on your current position if you leave it? If the answer is no, then why don't you give the Calgary position a go for a year or two. If you don't like it, transition back into the 2 weeks on/off role. You will never truly know until you try.

The door might not be closed... People have returned in the past. But I am sure my position would be filled by someone else, and I would have to take a "lower" role.

[weezy00]

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Taking a 50%pay cut can be tough, because it'll mean a big change to your lifestyle. That being said, a family can get by on the $125k no problem particularly if you've been saving and not racking up debt the past few years.

Have a look at your cash flow, mortgage, utilities, car payments and see how much is left over.

Yes I agree, we have done this before when I worked in Calgary.

We actually got rid of all of our debts and only have mortgages on a couple properties.

We looked at our cash flow and we noticed we have been spending a lot on unnecessary items/food. The numbers I quoted for savings if I moved back would be if we did not change any of our spending habits.

[ExtraSlow]

Everyone's situation is different but it's my opinion that if your work life is messing up your family life then it's a situation that can't last long. We work to provide a good life for our families, so if work interferes with that, it's not working out.

Have a good buddy of mine coming back from the middle east because it's hurting his family too much. The cash sounds awesome, but the money can't replace time with your kids.

Some folks make the rotation lifestyle work great with family life too. Everyone has thier unique situation.

[nzwasp]

Are you an operator for one of the big oil companies, if so it could be a smart move given that in the future more of them will be setting up remote operations centres in Calgary requiring less onsite operators, that being said if I was in your position I would milk it while I could.

[redblack]

I wouldn’t give up 250k.

[Buster]

Sounds like the oil and gas companies have discovered the market price of such a disruptive lifestyle.

[macman64]

Check out the topic of Financial independence. Reddit has some good resources on that. Maybe try live like you make 125k a year and save the rest. It will give you a feel for what that may look like and save a ton of money in the process.

[A790]

I once left a job and took a 60% pay cut because I hated what I did. It sucked at first but wound up being one of the best decisions I'd made.

You only get to live once, and when you're old and reflecting on life, you won't be thinking "oh boy, I'm sure glad I made all that money to never see my family..."

[taemo]

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but we have investments that cost us money every month.

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We actually got rid of all of our debts and only have mortgages on a couple properties.

was wondering about this, IMO not a really good investment if it's generating negative cash flow, when do you expect it turning positive?

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I once left a job and took a 60% pay cut because I hated what I did. It sucked at first but wound up being one of the best decisions I'd made.

You only get to live once, and when you're old and reflecting on life, you won't be thinking "oh boy, I'm sure glad I made all that money to never see my family..."

This, more money ≠ happy life when you're not enjoying it with your closed ones.
Only you can decide whether more money or family is more important to you.
Seems like you are investing quite a bit already, hopefully they will start bearing some fruit for you soon so that you can spend time with your loved ones.

[ercchry]

If you need your income to qualify for the mortgages you are carrying, I would make any changes to those that you might be thinking about (and check on when renewals are up) before taking the pay cut, especially with the new rules that came out this year.

[msommers]

I remember conversations with guys at the rig sites about working over Christmas, their kid's birthdays, school events etc. Every single one wished they could be home but at the same time really enjoyed being able to provide -- I mean that is what basically every man wants to do. It's not an easy decision because you're doing a good thing either way and it's not common to have it all. But it's the moments that you could have and wanted to be there and instead working that one might regret later.

I have no kids now and I still say take the cut and be with your family. I remember one guy telling me he had to Skype in to watch his kids open Christmas presents. Another working and missing his son's hockey championship game. You can tell when it really bothers someone and personally I made the choice of finding something in town because I could never do it. Families make it work in that lifestyle, I just know I never could.

[lasimmon]

As bad as it sounds I would be afraid of the home life with a switch like that.

Heard too many times from people when the change of >30% less pay and home all the time and how it’s ruined marriages.

[HiTempguy1]

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As bad as it sounds I would be afraid of the home life with a switch like that.

Heard too many times from people when the change of >30% less pay and home all the time and how it’s ruined marriages.

This is important to consider, especially if your relationship has always been like that. Personally, I feel it is a bit of a copout excuse because most people see their spouse everyday, but it is what it is. Some people like two weeks of time with their spouse and then two weeks away.

As people have mentioned, you really need to set yourself up to try living with that paycut. Unfortunately, it doesn't sound like you have the time.

Another thing is that I get that most people "spend what they make", but $125k gross does not go very far nowadays on a single income 4 person household. Your post doesn't make it sound like you have a lot of assets/established finances.

If you said "we have two brand new/one year old vehicles that we paid cash with, have sizeable resps setup for our kids already, and no debt except mortgages" then its a no brainer. You'll be fine if you manage your normal household expenses and the big purchases are taken care of prior to quitting.

But if you dont have these things setup BEFORE taking the paycut, you are going to have a difficult time. I'm always surprised when people approach working up north as a permanent salary guideline, as in you'll always earn $250k the rest of your life. Its an unrealistic idea due to layoffs or in your exact case, wanting a life with your family.

Just to be clear, I'm not saying any of these things are true about you. But I've seen a lot of people try. Giving up $250k per year is NOT something to be taken likely. You've been given a staggering gift in life. Did you work for it? Absolutely, but I've worked months straight and didn't make that much cash up north. Don't take it for granted.

If the opportunity is available in a year, I'd try living on the equivalent of $10.4k per month the next 4-6 months and then put aside the other half.

Edit-
And no matter what, you aren't going to be able to save for retirement like you previously have from the sound of things. We have no idea of your retirement plans/goals, so its tough to tell.

[ExtraSlow]

That was a better explanation for what I was trying to say.