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PMET took 30% pay cut but thankful.

Saturday, July 8, 2017

This is an email from a 37 year old PMET, sharing his experience and thoughts on getting a pay cut:

Hello AK:

I recently took up a job offer that pay me 30% less than my previous employment.

I had to look for a new job as my current job is in the oil and gas industry and the office in Singapore might be closing soon.

The new job is much more stable and in view of slower growth in Singapore going forward and me hitting 37, I decided to settle for this job. So many stories of PMET with no job I am worried.


Retrenchment On The Rise.

From here, finally I realize and understand what you say in your various blogs. Let me highlight a few:

1) Find a job that pays you at least what you are worth or better if more. My job in the oil and gas sector pays me well. I admit that they are over paying me for what I am doing currently. Hence, I have enjoyed the good years and looking back no regrets.

2) Taking a 30% pay cut is a lot. However, as I have more than 6 months of emergency funds, I was quite relax about this and could take my time to look for a job. Just to share, I started looking actively for a new job for 4 months and I only have 2 interviews so far. This tell me the economy is not good. I realized the prudent habit of myself finally was useful here.

3) I think you mention before in your blog that even if you don't invest but live prudently, you will not be in a too bad shape if something drastic happens. If I no emergency funds then I sure stress. No peace of mind!

4) I have no debt or loans to pay. This gives me peace of mind too.

5) I have dividend income from my stocks & REITS. Not a lot but better than nothing. Income investing is important.

With the pay cut, I definitely need to watch my expenses even more but this will not kill me. I cannot imagine if I have over stretch my finances what is going to happen to me?

I just like to share and hopefully people will be aware and be more vigilant on their finances.

Lastly thank you for your blog and I have learn so much from you.

Related post:
Holistic approach to a secure future.

6 comments:

pf said...

Realize that the economy and sectors are cyclical. To weather proof own career, the possible solution is to be transversal.

AK71 said...

Hi pf,

I had to check the meaning of "transversal". ;p

Oxford says:
(of a line) cutting a system of lines.

I think I know what you mean but it could be difficult for many and for those who are able to cross industries, they should be prepared for a possible reduction in pay.

pf said...

We shld ask the rat catcher. Whether he got pay cut when he go from PUB to LTA or not. Hee hee...

I think it's a broadening of mindset. It's knowledge integration. It's grasping and principles of that one is doing and applying elsewhere.

Maybe, it can be fun. :)

kehyi said...

lemme guess: no family or dependents as well? a 30% cut would be much harder to swallow if you gotta explain it to your spouse or kids...

AK71 said...

Hi pf,

I very much prefer to develop sources of passive income. However, for those who are unwilling or unable to, yes, making sure that we are able to stay gainfully employed one way or another is important. Of course, in all cases, being financially prudent will help. :)

"Of course, I could still fall into a pit or two in future. I don't know everything there is to know, for sure. However, I hope that I have done enough that is right so that, unless the pits I fall into in future are particularly deep, I would be able to recover quickly."
Source:
How to recession proof your life?

AK71 said...

Hi kehyi,

When we have a dependents, definitely, the burden is heavier. This is why I have said before that financial freedom is a family affair and everyone has to be on board. :)

"Be prepared and get everyone in the family involved, yes, including the children."
Source:
Achieving financial freedom is a family affair.
http://singaporeanstocksinvestor.blogspot.sg/2014/01/achieving-financial-freedom-is-family.html

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