AmiSight 5/14: Risk or Reward? The Financial Realities of Choosing Purpose Over Pay

Taking a pay cut isn’t an attractive option for most Americans, regardless of the circumstances. However, some younger workers are more willing to sacrifice a higher salary in exchange for more flexibility or better opportunities for upward mobility, according to LinkedIn’s latest Workforce Confidence survey.

Experts weighing in on the survey found that nearly half of Gen Z workers believe that a pay cut may be worth it.

Marcus Sturdivant Sr, who specializes in financial literacy, says those considering a pay cut need to thoroughly look at how it would affect their short-term financial situation. He advises them to grow their emergency fund, cut down debt, and continue to network.

David Tyree, senior advisor at Valid8 Financial, advises to “play the long game.” While gaining valuable experience and learning lessons are priceless, workers also need to know their worth and strike a balance between short- and long-term goals.

Burt Weinstein, a Baby Boomer who runs his own photography and video production company, says while taking a pay cut for certain benefits is good in theory, companies often fail to keep their end of the bargain. A strong advocate for unions and individual employment contracts, he says workers need to look out for themselves.

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