3049: Changing Jobs for More Money - Is it Worth It by Philip Taylor of PT Money

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[00:00:30] This is Optimal Finance Daily. Changing Jobs for More Money – Is It Worth It? by Philip Taylor of PTMoney.com Does changing your job always equal more money? With the way the economy is, it's probably a moot question anyway. Would you change jobs if it meant you're going to be earning more money? But it is a question that needs to be answered because if the situation does present itself, you need to know how to act.

[00:00:57] In my book, it's not wise to change jobs when it's a matter of just more money. Because money comes and goes. What's more important is job satisfaction and the extent to which you enjoy your job. Consider a job change if… Although the economy shows a few signs of picking up, jobs, especially the ones that offer the combination of stability and a good pay packet, are still scarce and few and far between.

[00:01:26] This means that it's wise to hold on to the job that you do have rather than go looking for something that pays better. Unless… Number one, you absolutely hate what you do. The most important aspect of a job is that you love what you do. If you don't, you're likely to be miserable and just go about the motions because you need the money. This in turn leads to mistakes and possible termination. So if you don't love what you do, do what you love or learn to love what you do.

[00:01:56] Number two, you really need the money. If you must make extra money to take care of debts that must be paid back, it's okay to take up a new job that pays more if you're sure about the reputation of the company and if you don't have to make too many sacrifices in the process. Number three, you don't have to relocate or make any other significant changes in your life that affect its quality.

[00:02:21] When you have to make too many changes in your life, you end up resenting it and take it out on your job. When you change jobs just for the money, there's no end to it. You tend to keep job hopping all your life, flitting like a bee from flower to flower without really gathering anything of substance. In short, you're a rolling stone that gathers no moss. When you're in a position in life that requires stability, it's best to act with more responsibility and stick to something that you know and trust,

[00:02:51] rather than tread into the unknown where your salary may not be steady or your job secure. Are you getting the salary you deserve? Every year, a local recruiting firm freely offers up the results of their salary survey. I love checking out these surveys and seeing how I measure up. Looks like I'm currently where I should be considering my category and compensation factors. Prior to my current job, I hadn't been getting paid what I should have been according to these surveys.

[00:03:21] I was pretty naive when taking job offers early in my career and didn't counter offer once. That's because I didn't really know what I should be making. I just took what they were giving. To get me up to the appropriate level, I eventually had to switch jobs because my employer at the time wasn't willing to bump me up quick enough. Luckily, it didn't mean a big change for Mrs. PT and I. Of course, in your career, salary isn't the only factor. You have to factor in the obvious.

[00:03:50] Location, job satisfaction, benefits, growth potential, company strength, etc. However, all things being equal, you need to get the best salary that the market will pay. These salary surveys can give you an idea of what that is. Find out what you should be making at payscale.com or salary.com. Should you move for a better job? Would you ever consider relocating to a city with more job opportunities?

[00:04:19] Money.com recently released their best places to live list. This year's rankings was, for obvious reasons, heavily slanted towards cities that provided the most job opportunities. The top five cities were Evans, Georgia, Parker, Colorado, Meridian, Idaho, Rockwall, Texas, and Columbia, Maryland. Early in my career, I made a move to a city with more opportunities.

[00:04:44] At the time, I didn't have any responsibilities or ties that could hold me back from moving. I didn't have a wife or kids in school. I was free to find the best place for me at the time. Looking back, I definitely consider it a good move from a career perspective. I've changed jobs three times within this city since first moving. And at each change, I had multiple job opportunities made available to me. I wouldn't have had those, I don't think, if I had stayed put.

[00:05:11] Now that I do have a wife and kid, as well as a community that I'm involved in, it would be a tough decision to make the move to a new city just for a job opportunity. You just listened to the post titled, Changing Jobs for More Money. Is It Worth It? By Philip Taylor of ptmoney.com. And now a word from our sponsors at Betterment. When investing your money starts to feel like a second job,

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[00:07:31] Go to rocketmoney.com slash OFD today. That's rocketmoney.com slash OFD. Rocketmoney.com slash OFD. Changing jobs is such a big decision. And while hopping around might be an effective strategy for increasing your salary, I totally agree with PT here that you shouldn't change jobs solely for more money, especially if you like your job and you're comfortable with your savings rate.

[00:08:00] I spent nine years with my last employer. And while I did see my salary double in the time I was there, I was definitely underpaid. But for a long time, I really enjoyed my work and I worked up to a 60% savings rate. So it wasn't like I really needed to increase my income. When times were good, I saw my relationship with my employer as a huge asset on my path to financial independence.

[00:08:25] The longer I was there, the more flexibility and autonomy I had over my work. After about five years, I was granted a two-month leave of absence to go walk the Camino in Spain, and I was permitted to work remotely before this was the norm. I don't think I would have been able to negotiate these kinds of perks without a long-term history of strong work performance. When it comes to full-time employment, I felt that I hit the jackpot because I didn't feel

[00:08:54] the kind of restriction on my time and energy that pushes many people to pursue financial independence and quit their jobs. However, when that dynamic changed, I was in the financial position to walk away and explore a new way of working with self-employment. Cal Newport wrote a great book called So Good They Can't Ignore You, where he talks about building up career capital.

[00:09:18] Become so good at what you do that you can then trade in career capital for autonomy. And when you have a good level of autonomy over your work and time, consider not trading that in for more money. More money at that point will have very little effect over your quality of life. That should do it for another edition of Optimal Finance Daily. I'll be back tomorrow as usual, where optimal life awaits. A visa company has gone and run in short-term history. But as soon as possible, there are three options per se, more people can win. The other one goes on, if you need a lot of time, if you need a lot of time to take care of So that's why I'm good at the same time.