One-third of job switchers took a pay cut for better work-life balance. How to prepare to live on a lower salary

cnbc.com:

As the Great Resignation continues, employees are rethinking salaries, work-life balance and flexibility in their new careers.

Some are willing to take a pay cut in exchange for a better schedule.

One-third of workers who switched jobs during the pandemic took less pay in exchange for better work-life balance, according to a survey by Prudential. And, about 20% of workers said they would take a 10% pay cut if it meant they could work for themselves or have better hours.

Many workers also want job security and would trade higher pay to work for a company long-term. The survey found that 56% said they had or would consider prioritizing stability over a bigger salary.

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That could also lead to less paid overtime. To be sure, many people who switched jobs have seen increases in take-home pay. A survey from The Conference Board found that about one-third of workers who left jobs during the pandemic are making 30% more in their new roles. However, about 27% who switched jobs said pay was the same or less in their new job.

Of course, taking a pay cut will directly affect your finances and may not be advisable right away, according to Tania Brown, an Atlanta-based certified financial planner and founder of FinanciallyConfidentMom.com.

If you're weighing a job where you will make less money, there are a few things you need to consider beforehand, she said.

First, ask yourself why you want to leave your current job, she said. Are you burned out? Will a different job or career be more fulfilling? Are you