When a High-Paying Job Keeps You Low

My sister, Melissa, made a decision a few months ago that she knew would wreak havoc on her family's finances: She quit her job. Melissa and her

supervisor didn't get along, to the point that she'd been diagnosed with a condition her doctor said was stress-induced. After a particularly unhappy

exchange with her boss over a minor problem, Melissa snapped and resigned on the spot.

It was a dicey decision. Melissa had been looking for a new job for almost a year, but hadn't been able to find a position that offered the same level of

salary and benefits. Indeed, the pay at the job she left was much better than what she'd had before, and the increased income made it possible for Melissa

and her husband, Joe, to buy their first home. But that increased income was now gone. Out of work for weeks, and worried about spending down their savings,

my sister ended up taking a job for less pay.

Fifteen years ago, I was in a similar spot. I took a job as a copy editor for a legal-publishing firm right after I graduated college. It paid relatively

well, but the job was deadly dull. I dreaded facing work each day, but was reluctant to leave because of my messed-up finances -- at the time I had about

$20,000 in credit-card and student-loan debt. The economy was bad, and I searched in vain for a job that paid as well or better. But I kept at it, and

finally found a position with a small business magazine that sounded ideal: The job would allow me to do some reporting as well as editing, the office was

closer to my home, and during the interview I really clicked with the managing editor. Granted, the benefits weren't as good and the pay was $2,000 less

after taxes than I'd been making, but I figured saving gas and reducing wear and tear on my car would make up for some of that. The new job just felt right,

and I'd had it with my old job, so I went for it.

As I'd feared, the transition period was rough -- for the first six months, I struggled to adjust to a smaller paycheck. A $2,000 drop in pay doesn't

sound huge now, but I was just out of school, and we're talking entry-level journalism here -- my salary was around $20,000 a year.

Lots of people stay in jobs they hate solely because it pays the bills -- ask any newly minted lawyer slogging away at a corporate job to service $100,000

in student-loan debt. My sister and I weren't that deep in the hole, but we still felt trapped by debt.

With the benefit of hindsight, there are a number of things we could have done to ease the financial stress of switching to a lower-paying job. What we

both needed was a better plan -- for finding a new job and for managing cash flow.

To ease the financial shock, we should have focused on reducing debt. We'd both known for some time that we wanted out of our jobs. As soon as we starting

searching for a new position, we should have started devoting as much of our disposable income as possible to paying down debt to free up cash. That would

have made the decision to move to a lesser-paying job less frightening -- and living with less disposable income would also have made the transition less

stressful.

Debt was an issue for my sister and me. If that's not a problem for you, it's still a good idea to shore up your finances before moving to a lower-paying

job. Build up your savings now, in case you encounter a shock to the wallet -- an unexpected car repair or health-care emergency -- after you move on. (If

saving outside a retirement account doesn't come naturally, learn how to trick yourself into becoming a better saver here.)

While getting our finances in order, Melissa and I also should have been trying to address why we were unhappy. Most people stuck in miserable jobs don't

give enough thought to what they could do to improve the situation other than leaving the company. Can't stand your boss? Try searching for a position

elsewhere in the company. Work and home life clashing? Ask for a more-flexible work schedule. Job boring you to tears? Think about how you could do your work

more productively and urge your employer to make changes that may give you greater job satisfaction. By finding a way to stay with your current employer, you

avoid giving up seniority by starting as a new hire somewhere else -- and in times of layoffs, seniority often counts. As an added bonus: If you wind up

improving your current work situation, you will have paid down debt or put some money away.

Melissa and I also should have spent time investigating the state of the job market before sending out our resumes. To determine your employability, it's

necessary to understand job-market conditions, not just in the larger economy but within your field, says Bob Basile, founder of Career Coaching Inc. For

example, he says, look at Wall Street: "If you're a trader earning big bonuses in this environment, there could be tremendous opportunities for you. On the

other hand, if you work in the mortgage end of the business you could be facing a job risk."

To get a feel for market conditions, Mr. Basile suggests talking to other people in your industry, including former employers, personal contacts, or even

your alumni association. Networking is the best way for people in high-paying fields to find jobs in alternative careers.

Speaking of resumes, consider ways to set yourself apart from other job candidates before you start applying. When my husband, Gerry, was unexpectedly

laid off in 2005, he spent some time reviewing job postings in his field to find skills that employers were looking for, and he took technology courses to

learn skills that weren't required at his previous employer. Improving his computer skills helped Gerry land a job that pays more but isn't as physically

demanding as typical jobs in his field. (Slinging a keyboard is a lot easier than slinging a wrench.)

If personal and networking contacts haven't yielded promising positions, online networking services can help. Web sites such as Execunet.com,

LinkedIn.com, and Netshare.com cater specifically to business professionals, but today you can find networking and career-oriented job-search sites for most

fields. (To find search sites for your industry, check out job-list Web site such as Quintcareers.com and Topjobsites.com.)

My sister still feels anxious about her finances, but she loves her new job and feels confident she made the right choice. And that small business

magazine I left my first job for? It went under -- a victim of recession. But I had no regrets. The work was challenging and fun, and I made lasting

friendships -- a year-and-a-half later my former boss was one of my bridesmaids. And the career contacts I made working for the magazine were essential in

helping me quickly land a new job -- one with a much better salary and benefits.

So when a job makes you miserable, don't let your finances stop you from jumping ship. Just look before you leap.