5 ways taking a pay cut can make you richer

Money shouldn't be the only motivator when deciding on a career. If you're considering a career change, here are five instances in which taking a pay cut could actually be to your advantage.

You want a career change

You might want to switch to a new field in which you hold little experience. In this case, a lower salary will be appropriate until you have acquired a certain skill level, so estimate the time you need to reach that level and what you need to do to get there.

Make a lateral move

A lateral move that does not involve a higher salary immediately can provide one in the near future. Assuming different responsibilities can open up opportunities. A wise lateral move can expose you to someone from whom you can learn, and the value of that knowledge might more than compensate for a temporary drop in pay.

You're not progressing in your current job

A job that offers no growth is frustrating and can be financially disastrous. Your company might be too small and unable to offer career progression. In this case, it is time to part ways. Otherwise, you are likely to become resentful and unproductive.

This is a no-brainer, but it is surprising how many people suffer through miserable jobs not realizing the damage they do to their health and the people around them. Having to do a job that you dislike is stressful and, over time, that stress can compound.

You relocate for your spouse's career

A relocation because of a spouse's career can be an opportunity for the other spouse to pursue a dream or a career change. If you must leave a good-paying job, consider what you would like to do instead and how you can achieve it.