Late 30s couple big decisions

[Nonethewiser]

Hello all,

We are looking to make 2 potential (drastic) career moves but wondering if we are crazy to do so. My logical brain is saying yes but is life too short to be in a stressful career?! Views very much appreciated...

No kids just yet but in the plan.

I am 36 and spouse 39.

Salary 150k (138 base + car allowance 12k) corporate stressful job - only recent salary uplift

Salary of spouse 79k (70k base + 9k car allowance) similar corporate role

Mortgage: 280k potential value: 500k hoping to switch to Avant 1.95 (process underway)
Savings: 27k ( life policy and CU savings)
Life and health insurance through work
Pensions: 130k and 70k respectively
No consumer debt
Monthly expenses 1500k

Savings are low but education and house renovations paid with no loans recently.

We both would like yo move to a shorter working week 3-4 ideally have salary between 40-50k each.

Any immediate observations?

 

[miser]

Have you kids? They’re expensive & need to be factored into your plans.

 

[Clamball]

Your plan sounds do-able.
How affordable will your mortgage be on €90K between you?
When you do have children is the plan to both work opposite days and do all the childcare yourself?
When you are on maternity leave your earnings will be reduced but your current savings should cover that.
How easy is it to get the 2/3 day week job that offers flexibility and pays ~€80K pa full time equivalent.

If you have no childcare costs and can afford the mortgage on reduced wages. Then why not.

 

[PGF2016]

Hello all,

We are looking to make 2 potential (drastic) career moves but wondering if we are crazy to do so. My logical brain is saying yes but is life too short to be in a stressful career?! Views very much appreciated...

No kids just yet but in the plan.

I am 36 and spouse 39.

Salary 150k (138 base + car allowance 12k) corporate stressful job - only recent salary uplift

Salary of spouse 79k (70k base + 9k car allowance) similar corporate role

Mortgage: 280k potential value: 500k hoping to switch to Avant 1.95 (process underway)
Savings: 27k ( life policy and CU savings)
Life and health insurance through work
Pensions: 130k and 70k respectively
No consumer debt
Monthly expenses 1500k

Savings are low but education and house renovations paid with no loans recently.

We both would like yo move to a shorter working week 3-4 ideally have salary between 40-50k each.

Any immediate observations?

Have you any plan to renovate or move house? If yes then you should sort that out before any drop in salary and ensure you can afford any new mortgage payments on lower salaries.

You should factor the cost of childcare into any future plans. Can you afford child care on reduced salaries?

You could try living off the lower salary for a year or two. You learn if it's possible to live off ~80k a year (albeit without kids) and also you save a large cash buffer.

There are many, many people who life off 80-90k (or less) a year on a 5 day week so no reason why you can't.

 

[Brendan Burgess]

I think that this is more a career question than a financial question. Yes, you can afford to live on €90k a year. And if you find that you can't, then you should be able to move back to a full-time job.

It's a very big leap from two high pressure jobs to working 3-4 days a week.

Could you not switch to a different company on 5 days a week without the high pressure?

In the few cases I have seen, senior people who reduce to 3 days a week, often end up working on the other days as well.

If you are working as a secretary or shop assistant, you can work 2 1/2 days a week and that is that. But in senior roles, you can't usually just switch off at 5.30pm on Wed and say "See you on Monday at 9 am."

So there is a real risk that you will end up still in a high pressure job but just being paid half of what you were paid.

Is the pressure time pressure or some other pressure?

You might find that you need some pressure but not too much.

It's probably worth having a chat with your employer about how you feel.

Brendan

 

[Honestly]

Definitely echo what BB just said. To add to that, I might suggest you stagger it. One of you trial going part time, and see what you find/learn, and then iterate.

 

[messyleo]

In the few cases I have seen, senior people who reduce to 3 days a week, often end up working on the other days as well.

This - I know a couple of people who dropped down to a 4 day week and 3 days a week at certain times of the year - they essentially have to do teh same role for less money. I think the only way it would work would be to set up as a contractor or consulting etc and manage your time and workload essentially yourself as a self-employed worker.