I have a job offer for a permanent work from home position with no geographic restrictions, so I could move out of state later on if I decided to. This is a rare opportunity in my field, however it’s a significant pay cut. We are not hurting for money but the thought of a pay cut is always daunting. My wife is okay if I take a pay cut. We have one kid and one on the way.
Current salary: 126,000
WFH salary: 96,000
Wife’s salary: 190,000. She helps her parents financially, probably around 10% of take home
Mortgage: 3,100 (29 years left)
Average monthly credit card balance: 2,000-4,000
529 contribution: 1,000
Utilities: 300-400 in winter
0% loan for boiler/mini splits: 300 (5-6 years left)
Cell phones: 100
We max all tax advantaged accounts (401k, HSA, backdoor Roths, DCFSA).
Anything leftover goes to taxable brokerage or crypto account.
No car payment now but will probably buy a new minivan or SUV next year.
We make lump sum payments for life insurance, car insurance each year.
My wife spends quite a bit on groceries and likes to go shopping. We don’t really budget much. If she wants something she’ll get it. So there is definitely room to cut back on spending. I’m not sure if the 529 contribution is too low or too high but that could be cut back too. Childcare would obviously go up with a second child. However our first one will start grade school in a couple years. If needed we could always scale back on 401k contributions.
Pros of WFH:
-Less stress. I’ll only be using my keyboard, mouse and work phone. My current job has some light physical stress where I stand a majority of the shift or do some light lifting. There’s mundane tasks that I get stuck with, but I wouldn’t have to deal with those with the WFH job.
-No commute. No stress from driving in traffic. Save on gas and wear n tear. Get an extra hour of sleep each night.
-Can move to more desirable or lower cost of living area later on.
-No annoying coworkers to deal with in person.
-No contact with people. Don’t want to get Covid.
-Don’t have to pack lunch or eat out.
Cons of WFH:
-Lower salary. I think that’s it?