Cash or Comfort?

Cash or Comfort?

A common theme running through most personal finance and early retirement advice is the concept of Delayed Gratification. This is where we actively choose to make a sacrifice today in order to obtain the same or greater returns later on. Saving money for a rainy day is the most obvious example of this; choosing to purchase a few less pairs of shoes each month so that you have enough money to fix the boiler when it blows up on a cold winter morning.

Small sacrifices early on can also compound into much greater returns over time. Standard pension accounts are a good example of this as small savings are invested and compound over a huge period of time to provide a livable income much later in life. Unfortunately many still refuse to begin their retirement savings early and so miss out on this compounding effect.

A couple of week ago I was contact by a recruiter who had seen my profile online and wanted to know whether I’d be interested in a different role within another company. I decided to find out more about it and went along for a couple of interviews. Speaking to the managers at this new company; it was obvious they had a completely different company culture to that of my current one. Whereas I currently enjoy flexible hours and relaxed dress code.. This new company required very strict timekeeping and formal business ware.

Current Job

The truth is; I love my current job. I’ve been there almost 5 years and know the role inside-out. I feel totally in control there and am totally comfortable. The problem is, if I’m honest with myself, I’ve become bored and perhaps lazy within the role. The work no longer challenges me and as such I’m able to coast along each week fulfilling what is required of me without too much thought or effort. On-top of that, there is no obvious chance of progression within the current company. My manager is still fairly young and I’ve already reached the top level of ‘Technical Non-Management’ within IT. I earn an above-average salary and have a reasonable pension scheme which would certainly lead to Early Retirement eventually.

New Opportunity

This new opportunity would see me moving from IT support into IT Consultancy. It would give an immediate 10% pay rise, plus a fully funded company car and all travel expenses paid for.  The biggest reward however would be the opportunity to progress within the company. I’d be joining at the most junior consultant level which gives plenty of levels to progress onto, each with a much greater reward scheme. There’s no doubt that this new opportunity would lead to much greater cash returns over the years. However, as I’ve already pointed out: This isnt the same safe comfortable job I’m already it. It’s likely to be much higher pressure, stress and time commitments. Ultimately it would be the same as delayed gratification.. I’d be giving up comfort for cash.

 

It’s a tough decision, and one which could have a huge impact on my plans for Early Retirement. Working 10 years in this new role is going to bring me alot closer to Financial independence than if I stay at my current job.. But at the risk of burning out and hating my work. Or I might end up loving the new role as much as my current one, enjoying the new challenges and opportunity to learn new technologies. Ultimately I know that I’m still relatively young with no children and still have the energy and enthusiasm to take on new things. If I don’t take the risk now, would I end up regretting it later on in life?

 

What do you think? Would you take the risk and jump into this new opportunity.. potentially giving up comfort for the extra cash return? Or would you just play it safe and cruise along for the next 20 years instead? Please let me know in the comments below.

16 thoughts on “Cash or Comfort?

  1. Does your boss know that your job no longer challenges you? Are there any extra responsibilities that you can take on (perhaps for increased pay) or another, more challenging internal role that you could move to?

    I’m sure your company would try to accommodate you and help you progress your career with them, as you have been with them for 5 years. Perhaps it’s worth speaking to them before you jump ship. You could potentially still get your ‘comfort’ for a bit more cash than you’re getting now.

    1. Hi Weenie,

      Unfortunately there are no extra responsibilities I could take in my current role. I’m already the lead technical guy for my area so am already doing the advanced stuff. The company itself isnt doing too well and has recently made some people on the team redundant so I can’t image they would be able to accommodate requests for a higher salary.

      1. Oh, that’s a shame – sounds like you’ve looked at options available (or not) and that perhaps looking elsewhere is the way to go. I wish you the best of luck!

  2. Hi

    Greetings from singapore.

    I just exactly had the same experience as you and I jumped ship for a 10% pay increase as well as a higher title. 2 months there and I just resigned to come back to my ex company.

    I think its because we ultimately aim for a financial independence and hence we are aiming for comfort more than cash. If you can eventually find comfort in your new area then great but it appears it is going to be more challenging and your ultimate goal isnt going to be that.

    1. Hello B,

      I hear what you’re saying. However the ultimate goal isnt for comfort in any job.. its comfort whilst having no job. Perhaps sacrificing a few years of job comfort in order to bring non-job comfort closer is worth it?

  3. I think this is a very common dilemma. At some point you will also have to choose between staying an “individual contributor” or becoming a “manager”. My latest post is somewhat related. How do you maximize your income without shredding your health and integrity? I am not a fan of having to dress up. There can be a large cost to “dressing the part”. It could eat up your 10% raise by itself. Dry cleaning, buying ties and shirts and suits. It is expensive. The company car is an interesting perk. Do you have a place to park it or would you have to pay to park each month? If it is a high stress/high turnover job, I would likely pass. But I think you are on the right track. Now that you have thought about a different job, start really looking. Find THE job that fits all the requirements. Take your time as you seem to have a good job with some flexibility.

    1. Hi Wade,

      As always; thank you for the excellent feedback. I have plenty of parking both at home and the office so that’s not a problem, and all travel is fully expensed so that’s covered. I don’t think it’s likely to be amazingly stressful.. just more than my current (totally non-existant stress) job. Really, I’d be moving to this new role for the progression opportunities it offers rather than the small pay rise at the moment. I’ve been looking to move for a couple of years now and don’t think a better opportunity is going to come along soon. Will wait until they send through the formal offer and have a good think.

  4. I’ve taken a slower path myself: downshifted to a more junior part time role nearly 4 years ago after over a decade of senior management. I have a longer path to true FI as a result, but i now only work a 3 day (24hr) working week.

    Work is now the minority part of my life, which is a massive change in work-life balance.

    Sounds like you are thinking the pay-rise/new job is worth a punt…. just be sure you don’t succumb to a single % of lifestyle inflation to bank your future FI.

    1. It’s awesome that you were able to do that, and gives a great early taste of retirement without the risks involved. I am thinking it is worthwhile taking the leap whilst I’m still young, A decade ago I was still in secondary school after all ;)

      Currently a large percentage of my salary goes into investments and mortgage-overpayments so I don’t image an increase in income would lead to any lifestyle inflation.. just chucking more into clearing the house debt.

  5. What a dilemma Guy!

    I’m always thinking the grass is greener with my job but when I think about it properly it is fairly low stress and pays fairly well. I could definitely be worse off that’s for sure. Saying that I’ve been here 10 years and as you allude to, keeping things fresh is key.

    I think if you can have more money and a fresh challenge, with more career progression opportunities, you should go for it! I think it already sounds like you’ve made that decision though? :)

    A good strategy is to maximise earning when you are young as wage rises tend to compound as well. Then when you are older if you scale back hours and responsibilities, you will still be earning a decent wage. If I asked, and my employer let me, to go part time and work half hours I do, and get paid pro rata, I’d still be earning more than I was when I was 25, and I used to have plenty of fun back then! Now that’s an interesting thought, eh ;)

  6. Bear in mind that – I think – the car is taxable as a benefit in kind – so you’ll likely see a lot less of that payrise than you might expect. On the other hand, whilst there’s a hell of a lot to be said for having an easy life, the progression and job satisfaction probably make a move worth it.

    Best of luck

    1. Yes, I’ve been running the BIK calculations and it’s likely to knock a good few hundred off. Ultimately this wouldnt be a move for immediate cash gain, but a longer term plan which should eventually result in much higher pay rises.

  7. I’d have to suggest working where you will be most content. I took a cut in pay to change jobs but it was the best decision I ever made. 8 hours a day is a long time to be unhappy! Love your blog

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