When it makes sense to take a pay cut

it may seem counterintuitive but there

could be times in your life and career

when choosing to earn less could help

you in the long run our question this

week when is it a good idea to take a

pay cut crystally is a personal finance

blogger and co-author of the beginner's

guide to saving and investing great to

have you with us hi thanks for having me

so obviously crystal nobody wants to

take a pay cut no I wouldn't when does

it make sense to when you're evaluating

a move to actually take a step back and

pay well I think one of the main reasons

people decide to take pay cuts is

because they're changing their careers

completely it's pretty unreasonable to

ask for you know a large salary when

you're starting at the bottom and you

have little to no experience another

reason people would consider taking a

pay cut is if they decide to go

freelance it's a big dream of a lot of

people to become self-employed but you

know it's a lot of hard work and hustle

and sometimes taking a pay cut at the

very beginning will help in the future

is there obviously an upward trajectory

might make a difference you might take a

step back if you're moving to a

situation where the opportunities for

pay gains in the future are high yeah

that's right I mean sometimes if you're

at a job in your stall and there's no

growth potential

it may take it may be reasonable to you

know choose another company where you

know you get lower pay at the beginning

but in the long term it's gonna benefit

you for the growth and opportunity do

you think the people value kind of the

perks that beyond the salary that can

add up to benefits in other words maybe

more vacation time our long-term

benefits like retirement packages do we

value those properly when we're

evaluating our pay I think a lot of the

times people get caught up in the actual

number of your salary but you know a lot

of the things are really beneficial when

when it comes to full compensation

packages for example if you get a

pension or your work closer to home

or you get to be able to work from home

there's a lot of things that can add up

to and you know take into consideration

one thing we know about younger workers

is that they will tend to change jobs

more often and in fact judge's jobs but

maybe even change course more often does

that add up to more steps like this do

you think that people will have

to kind of reevaluate what they can earn

if they're changing direction yeah I

think that if you keep changing

directions it's hard to maintain an

upward career path it's easier if you

stay within the same career path and you

kind of keep going up in that kind of

movement one of the questions of course

a lot of people have is how to negotiate

this stuff are people generally good at

it do you think people especially

Millennials know how to negotiate for

their salary I think it's hard when

you're starting out to have the

confidence to negotiate I think it's

important to be confident and to have

all the information ahead of time before

you decide to go into a salary

negotiation and what's your advice on

that would you say I think some some

would-be employees potential employees

are afraid of scaring somebody off with

a high number what's the best approach

to getting what you want do you

overshoot or are you quite realistic

about what you need well I think when

you're starting out it's a good idea to

take a look at all the other jobs that

are out there that you're interested in

and take a look at the pay scale for

example if you're starting out you know

you're not going to be looking at you

know an 80 or 90 thousand dollar job

you're going to be looking at something

you know around entry-level thirty to

forty thousand and if you shoot within

that ballpark and the employer will come

back with you with it probably what the

counter offers so I think it's important

to not underestimate yourself at the

same time be realistic with your

expectations there is some data and

research out there that suggests that

women are not as good at negotiating or

bargaining for salaries as men do you

think that that's that's fair and if it

is fair what can be done about it I

think that might be true I mean in my

past it has been you know I've been

called aggressive with my approaches for

getting you know salaries but I really

think that if you don't go after what

you're looking for someone else is going

to beat you to it and so if the offers

out there you need to be the one to

seize that otherwise you've lost that

opportunity so what's your best advice

on preparing for a salary negotiation I

think it's a good idea to go on the

internet and do some research into other

comparable jobs as well as go on

websites like Glassdoor and talk to

colleagues and other people within your

industry to see what the going rate is I

think it's also really important to take

into consideration like we talked before

about the

compensation package so for example if

they're offering you a lower salary

perhaps that's okay if the benefits of

that job outweigh that and would you

ever recommend that somebody in order to

get an opportunity to take a wage that

isn't really a living wage well I think

that's really difficult it's I mean I

live in Vancouver so if you don't look

you know have a living wage it's hard to

to get by but it is there's always

opportunities to make more income if you

at your full-time job you aren't making

enough to make ends meet you can

freelance find a second job there

there's definitely ways to get around it

all right crystal great to have you with

us thanks for having me