Why Taking A Low Paying Job Is Not That Bad

Advisor January 15, 2018

The world will make us think that earning a lot of money is the ultimate measurement of success. We slave ourselves into work, disregarding the quality time we should be spending with other people. Despite this common notion, more and more financial advisors encourage the younger generations that earning less money is not that bad!

The U.S. has a minimum wage of $7.5 per hour

Although this article is going to present some points why this is so, it will not encourage unfairness. These unfair salary grades we see in the corporate world are very common. One of the most common is the discrimination between male and female workers, where men get more paid for the same amount of work. Just because there is a silver lining in earning a moderate amount of money, this should not be a reason to tolerate marginalizing some of the workforces.

Now, let’s talk about the basic reasons that we sometimes overlook in the low-paying jobs that are offered to us. And why should we consider them instead of rejecting it on the spot?

Low taxes

Our taxes are directly proportional to the salary we earn. That means, the smaller the salary, the smaller the tax we are going to pay and vice versa. This law is very much felt to states or countries that have higher income taxes. And if we are going to accumulate the taxes that we have paid over the years, the amount will definitely shock us. It may sound silly, but the moment we receive our paychecks and we see that a huge chunk of it is going to the government, then that’s probably the time where we start to hate our jobs.

Cost of Living

Some of the low-paying jobs are located in cities and places that have a low cost of living. The salary may be bigger in an administrative position in New York compared to where we are right now, but New York is also one of the most expensive cities. We end up working to pay for our rents and food instead of working to save money.

A dinner in New York City is 50-65% higher than the national average

The direct relationship between salary and commodities can affect the way we view our jobs. One important thing to consider also is that the high-paying jobs are usually located in big cities. And we all know that big cities have many temptations that involve money.

Dream Job

There is an argument which costs burnout more. A high-paying job that we don’t like or a low-paying job that is based on our passion and dreams. The answer is the former. Going out of college and entering into the world of bills and rents, we are made to believe that we should hold down a job with a big paycheck. But giving up on our dreams and refusing to pursue our passion for the money will not be worth it in the long run. Sure, we can buy more stuff and shop on a regular basis but these will not be enough to make us have that sense of fulfillment. Never trade a dream for money we can all earn.

Saving Habits

Take this scenario as an example. We are given a single loaf of bread to consume the entire week, while others have the supply per day. The other group would most likely engage in extravagant actions, giving it all or wasting them. This is because they feel less concern since a new loaf will be delivered to them the next day. In contrast, we would be more particular on what and when to eat the bread. We ration it to last us an entire week.

Save money by assessing the things that we really need

Same is true with salary. People who have high incomes usually end up being a major consumer, buying things they think they need. They are not worried about saving money since they will still have a lot of money to spare. But what will happen if these jobs are taken away from them? That is why it’s important to start from the ground up. Having just enough of salary to cover our expenses will make our budget and be more particular on what to buy. It may sound so restricting at first but it will develop us into handling finances better.