We all have things we want to achieve financially, whether it’s buying a home, paying off debt or building a bigger savings account. Of course, it takes more than wishful thinking to hit these goals. We also need a game plan, and money to bring this plan together. So if you’re given the chance to earn more—maybe through a promotion—you might jump at the opportunity.
But while stepping into a higher tax bracket is a sign that you’re doing well professionally, there are times when a higher salary isn’t worth it.
1.You’re Headed in the Wrong Direction
You probably have career goals and a clear idea of where you want to be in the next two, five or 10 years. Some jobs are a steppingstone to better jobs in the same field, where you can gain valuable work experience to move up in an industry. On that account, earning a promotion and a higher salary might be the best news yet–if this is the path you’ve chosen for yourself.
But what if your end goal isn’t to move up in a particular industry or with a particular company?
Maybe you have other plans for your life—plans that don’t include this job. If so, being offered a promotion and higher salary can have you stuck between a rock and a hard place. You have to make a tough choice. You can take the job and enjoy the financial rewards, or you can keep your mind focused on the plan you’ve set for your life. Taking a new position could pull your career in a direction you don’t want to go, and take you farther away from your ultimate goal.
2. More Pay Could Equal More Problems
If you’re overwhelmed, burnt out and stressed at your present pay grade, don’t expect a promotion to mend your stress—your stress level might worsen.
Earning more could result in fewer financial worries, yet your day-to-day work life may be anything but a cake walk. I’m not referring to an occasional stressful day or week, which is something we all face. But rather ongoing pressure, headaches and chaos. You have to decide whether a bigger check is worth sacrificing your mental health.
3. The Job Could Zap Your Time and Energy
While we’re on the subject of sacrifice, walking into a new position and earning a higher salary may involve working longer than 40 hours a week. In your present position, maybe you can leave the job behind in the evenings and enjoy uninterrupted time with family. It might be a different story if you advance into a new position.
You’ll not only earn more, you’ll also take on additional responsibilities, and your new role may require more of your attention and time. It could involve being on call, coming in on your days off, or working 50 or 60 hours a week.
There’s a price to earning more. If your employer is willing to pay big bucks, be prepared to give more of your energy. You might be robbed of precious time that could be spent with family and friends, or on hobbies or yourself.
4. The Position Has a High Turnover
To discern whether a new job and higher salary is worth it, look at the turnover ratio for the position. If your employer can’t keep people in this position, there’s a reason why.
A bigger paycheck is rewarding and it might be the answer to reaching your financial goals, but a higher salary is only worth it if you enjoy what you do, and if it doesn’t require too many sacrifices on your end. If you take a job and later decide it isn’t worth the headache, it’ll be harder to walk away because you’ll be used to earning the extra money.
Some people may call you crazy for declining any opportunity to earn more, especially since the cost-of-living isn’t getting any cheaper. However, money isn’t everything. A higher salary might increase your options and upgrade your lifestyle, but at what cost?