Sorry for the weird question, but I would just appreciate your input based on your experiences.
My boyfriend and I are both web developers. We both did really well in our early 20’s (we’re still only 25 now), and we worked for some rather large IT companies, doing development and project management stuff.
We just got sick of the daily 9-5 commute to a cubicle, the politics, and not being around each other-so we decided to do some freelance and hook up with a start-up web developer.
They can only pay us 60-70% of what we made in the real world, but we get to work from home most days and they’re all working their ass off to keep it that way for everyone. There’s a big chance they could fail, compared to the gigs we had before, but if they don’t it is so much better mentally.
Do you think living on less for your sanity/being with someone you want to be with more is insane? We still make what I would consider good money regardless.
Not insane at all. Your mental and emotional well-being is worth something!
Also, if you’re only making 30-40% less, have you considered the money you’ll be saving on gas, lunches, coffee and clothing? Depending on where you worked previously, that could add up to a pretty even switch.
If that makes you crazy, then I might be downright insane
I’m about your age, 24, and am debating quitting the job that I’m really well of at and starting my own company because I’m sick of the daily grind and can’t imagine working for someone else the rest of my life. So I totally know where you’re coming from. Whether that makes you less crazy, I dunno =P
What Gatopescado said - the inverse is insane. I used to work full time and be miserable. I switched to working half time a few years back. As for the loss of income, I realized that when I was making more money I was simply creating more things to spend money on. I live just as comfortably now, with some differences that only really have good side effects: riding a bike instead of public transport, no TV, library instead of bookshops, buying used clothing and furniture instead of new etc. I’m much less stressed, and I have time to do what I want. It’s awesome.
I look at salary as being composed of two pots, what you need and the beer and skittles money. What you need is to pay your bills and feed and clothe yourself. Beer and skittles is anything you buy just because you want it–savings, investments, Ipods, new nail polish, a cleaning person, whatever. The way I see it, you’re taking some of the beer and skittles money from the old job and using it to buy a life where you get to see each other more, commute less, and are generally happier. Provided you’re using only the beer and skittles money and can still support yourselves on the new job, what’s so crazy about that?
The other thing you have to look at is the total compensation package–less actual cash might turn out to be more money overall, or at least a smaller cut than you initially think. When my husband switched jobs last fall, he took a roughly 10% cut in his salary. But he got a huge bump in benefits, including a double-matching up to 5% on his IRA. It worked out to actually be about a 2% or smaller drop in total compensation, for a job where he works fewer hours in office and takes and eighth as much call.
Living on less is not insane if you can manage it, your mental health is very important. Living on less with the possibility of having to live on nothing on the other hand is not quite so clear cut. Just how big is their chance to fail? in this economy you might not find it easy to get back your old jobs if that were to happen. I can’t agree with everyone else on this, that “high probability that they could fail” is a deal breaker, specially if BOTH of you are planning to do it. Putting all of your eggs into one very unstable basket does not sound like such a great idea to me. You are both still in your early 20’s its waaaay to early to be tired of the 9 to 5 thing.
Security does matter, and both of you working for the same start-up seems particularly risky–if you both got laid off the same day, how long could you go with no income? How long do you think it would take at least one of you to find a new job (and that’s longer now than it was 3 years ago)? If you have enough saved/live a modest enough lifestyle/have a solid enough relationship that a double-layoff wouldn’t be an epic event, then I would go for it, though I would certainly continue to save heavily against the possibility (i.e., don’t adjust to your new wage by cutting saving) Otherwise, I might look for 2 different lower-stress, telecommute jobs.
Do it. Even if the first place eventually goes under, you have time to network and find some other potential work as well.
I switched to the work-from-home thing with the hubby several years ago, and you couldn’t pay me enough to go back to an office. About the only thing I really miss are big-company benefits. The work-at-home benefits are more intangible (less stress, control of your day, dog in your lap, etc) but overall make up for the lack of a 401K plan and paid time off.
I think that life is too short not to be happy. If you are happier now than you were then, I think you made a good choice. It isn’t the choice everyone would make, but it is right for you.
You made the right choice - tho, as someone said, live within your means and build up a cushion in case the worst happens.
Money is nice - but once you have enough to support the lifestyle you desire, you really have to be careful what you give up just to get more money, and whether that additional money will improve the quality of your life.
As long as you don’t bail on your current financial responsibilities, it’s no crime to live on less, especially if you regain your sanity. My brother lives on almost nothing. He has no debt and seems quite happy.
You haven’t stated it explicitly, but I hope that “saving for retirement” is in one of those pots. The stats show that most people aren’t really doing enough here. Time is your friend in this endeavor: if the OP and her BF are in their 20’s, NOW is the time to start salting away. The alternative is to start at 40+ and save a lot more each year. I’d suggest reading up on retirement investment (two good books: The Intelligent Asset Allocator and The Little Book of Common Sense Investing), and running some spreadsheet simulations with HONEST numbers (in terms of savings rates, inflation, and ROI) to see if your current practices will land you where you want to be when you hit your golden years.
If your new lower salary will pay your bills, pay for your fun, AND cover your retirement investment needs, then it’s a viable option.
Other considerations:
If you’re very outgoing people and engaged in various social activities (sports, hobbies, etc.) that put you in contact with a lot of other people and friends, then the loss of social opportunities that comes with working from home might not be a problem. But if you’re at all shy, then being forced by your job to hang out with other people during the day might be a good thing for you. Take an honest look at yourselves, and think carefully about whether or not this might be an issue.
Also, spending 24/7 with your BF may sound like a good idea at first, but it might - not for certain, but it might - get old after a while. OTOH, it may be a match made in heaven, who knows? Just be aware of this possibility, and if you do end up getting on each others’ nerves, it might be time to consider a job(s) that gives you some time away from each other during the week.
