Would you take a job promotion?

22 Replies

Currently my day job is a great one, maybe even the best I've had.   Sure I'd like to make more money but it pays well, it's flexible, not a lot of stress, I'm good at it, the commute is easy (for Los Angeles), great benefits, all good things.  Best of all I have enough of a work-life balance to enjoy life, pursue real estate investing, and build an extraordinary future with my wife (real estate investing helps a lot too).  

Well, I was just approached about a promotion at my day job. It would mean more hours and more stress, roughly $15-20k more a year, and a better career path.   The work-life balance would not be as balanced as it is now.

What would you do?

Stay where you are. 15-20K After taxes is a nice chunk but may not be as life changing in a positive way as the added stress of a job change.  

@Powell Chee
Do whatever makes you happy. Money isn’t always happiness. You could be a garbage man but be happy, and that is the ultimate goal in my opinion . That’s my 2 cents hope it helps

@Powell Chee

Take the money and continue to invest in real estate. 

Don't let anyone fool you, $20,000/yr is a lot of money. Anyone saying it isn't must have been born rich. 

402-965-1853
Originally posted by @Powell Chee :

Currently my day job is a great one, maybe even the best I've had.   Sure I'd like to make more money but it pays well, it's flexible, not a lot of stress, I'm good at it, the commute is easy (for Los Angeles), great benefits, all good things.  Best of all I have enough of a work-life balance to enjoy life, pursue real estate investing, and build an extraordinary future with my wife (real estate investing helps a lot too).  

Well, I was just approached about a promotion at my day job. It would mean more hours and more stress, roughly $15-20k more a year, and a better career path.   The work-life balance would not be as balanced as it is now.

What would you do?

how many more hours?

How many hours do you work now?

How much do you make now?

What do you do with the hours you don’t work now?

Yes take the promotion. Don’t think short term, think long term. Your pay raise is just the beginning. You could get more raises or promoted again down the road.

I’d take it, it is a better career path. I was never happy with being a project engineer on one company, I had to be a project manager, then had to run the whole company. I didn’t care about the hours, or life balance. I care more about my future and what i can do with it than just work on a cubicle. Had I not take more stress, I would have been on the same position as where i started.

Supervising or managing people is terrible. I'm not saying don't take it but just know what you are getting into. 

I think I’m life you’ve got to do things that challenge you and make you grow. You can get that from career, you can get it from personal life, from side gig, etc. Maybe you’re ready to step it up somewhere but not with the promotion. You were offered that promotion. But what would you choose if you could offer yourself anything?

I'd recommend sitting down with your wife and writing down what you value in life.  And then, make daily decisions that align with those items.  Making these types of decisions get a lot easier when you know what's most important to you.  You may find that the money is more valuable and you may find that your time is more valuable.  Congrats and good luck.

Take the promotion and work the same hour.

@Powell Chee ,

Take the position, but fight aggressively for the $20K+ and have all the analysis ready to prove why you're worth it!  

Good luck!

@Powell Chee Take the promotion.  Take the promotion.  Take the promotion.  If not for the $20K today do it for the addition $20K in 3 years when you get your next promotion.  But just for fun, let's worth through some of the numbers:

$20K of additional marginal income

$12K after taxes (let's assume you make a good chunk and have a high marginal tax rate)

$100/door per month is what many people tout as a reasonable ROI metric

$12K per year is roughly then equivalent to 12 doors of real estate in terms of cash-flow

How many people on BP would work "more hours" to get 12 more doors of income producing real estate?  I know this is a monumental oversimplification, ignores tax benefits, ignores paying down principal, etc.  But I figured it couldn't hurt to bring up since so many people talk about "replacing their W2 income through real estate".

Not to mention it's makes it easier to save/reload for the next purchase.

Not to mention it helps your DTI ratio when you're talking to lenders.

Not to mention you could use a portion of that extra income to pay a property manager.

Anyway, just my random thoughts.  For all I know you love surfing and this would cut into your time to catch those morning swells ;-)

Much like when people ask whether they should sell a house or not or cash out their 401k, I'd say it depends. The question you have to ask is - what are you getting and what are you giving up?

You're getting more salary. 20k. Thats a hefty raise for most anybody. And it sounds like its going to mean a shot at even more upward mobility in the future.  What are you giving up - apparently more time. 

But what does that really equate to? What are you going to give up when you have less time? Less time with the family? Less time investing in real estate? Less time doing xyz?

Lets assume its a little bit less of everything.  A little less time with family here and there. A little less time investing in real estate and a little less doing something else.

What is your cost to the relationship? What is your cost in spending less time investing in real estate? How many deals less would you do if you switch jobs? 

Lets say you were adding 2 or 3 deals a year and making 30k to 50k in equity on every one. And lets say you would do one less deal per year because of the new promotion.  I'd pass on it then. I'd rather have my time and the extra deal 

The other thing is whether you have enough money and/or if you're on track to have the kind of money you want to have. If yes, then why give up the time?  Time is something you can't buy back later on.

Honestly, it depends on what your goals are. 

Are you planning to move full-time into real estate investing? If yes, then I'd pass on the promotion and focus my spare time on real estate investing. 

If you never saw yourself as a full-time investor, then I'd take the promotion and put that extra money towards real estate investing in the form of turnkey properties. You are more hands off, that way your time with the family isn't compromised.

Sounds like you have a pretty good thing going now. Is $15k per year going to improve your quality of life? I would think not, but the price you pay for that, more time away from your family, less time to invest, probably will. If I were in your shoes, I'd just be determined to make an extra $15K in RE next year on your own time and in your own way so that you don't have any regrets. We are investing to free up our personal time- right?

Best of luck!

Corby Goade, Real Estate Agent
208-297-3010

You left out an important point - how much you make right now (I'm not asking you to tell us, but it is relevant).

If you make ~$75k right now, that's a huge change in quality of life & free capital to invest.

If you make ~$300k right now, it might be better for you to spend the extra energy elsewhere.

Also - people often forget to realize that raises compound just like investments do. If you consistently get 5-7% pay raises, boosting your base by 20% today will mean you double your salary 3 years sooner than you would otherwise. Also that better "career path" you mentioned might bring some even better raises.

let the numbers guide you.... you know best how many hours you actually work now and how many "more" hours the new job would require. 20k being a lot or not isn't really the issue... look at it on the return on your investment. If you had to say double the actual hours worked and you're "only" getting say a 25% raise... maybe it's not worth it.

Wow so many interesting points and great discussion.  Thank you all for responding.

I met with my manager today and told him that I am going to pass on the new job.  I followed my gut.  It wasn't easy because he recruited me to the company with the expectations that I would climb the corporate ladder as fast as possible and he was going to help me do that.  

For me, it comes down to my current situation which is a great one for all the reasons I stated earlier.  Including the freedom to pursue real estate investing and I'm making good progress thus far.  I don't want the new job if it's going to hinder that progress, which I think it would.  

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