How much is quality of life worth to you? It turns out, most people believe it’s 20% of your paycheck.
Of 16,086 adults worldwide surveyed between August 11 and September 1 by Ford Trends, 52% overall and 51% of Americans said they would accept a 20% pay cut to prioritize their quality of life.
“They are opting to step away from the constant hustle of career advancement and are willing to accept the potential sacrifices that come with prioritizing their own well-being,” the survey said.
While a better work-life balance may benefit your mental health, and may be necessary, taking a pay cut could negatively impact your financial health, advisers warn. It’s important to understand the financial consequences of doing so now and, especially, in retirement.
“That’s an alarming statistic that so many people are willing to do that,” said JB Beckett, founder of financial planning group Beckett Financial Group. “Over the long term, it’ll hurt your financial health.”
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How did 20% fit into your budget?
Say you earn $60,000 a year. If you took a 20% pay cut, that’s a $1,000 per month pay cut. Over a year, that’s $12,000, and over 10 years, it’s $120,000.
To put that into perspective, see what that 20% could have paid for:
- Median U.S. rent for a one-bedroom apartment in December was $1,593, according to rental site Realtor.com.
- The national median monthly mortgage payment in December was
