While a third of Americans say they are constantly stressed about their finances, new data finds that making more money can actually do harm as well as good. People who report making a higher income tend to face higher levels of stress at work and don’t necessarily experience higher job satisfaction, according to career platform LinkedIn.
Based on a survey of 1,000 LinkedIn members currently employed in the U.S., researchers found that people who earn between $51,000 and $75,000 generally feel the least stressed. By contrast, of those who make an income of $200,000 or more, nearly 70 percent said they feel stressed.
LinkedIn researchers also found that higher incomes did not translate to higher levels of job satisfaction: Roughly the same share of people who earn more than $250,000 a year say they are satisfied with their jobs as those who earn between $75,000 and $100,000.
Those who earn between $51,000 and $75,000 actually reported the highest levels of satisfaction at work. Those making under $50,000 are the least satisfied.
While men and women generally experience the same levels of stress and satisfaction with their jobs, there is a noticeable difference when it comes to age groups.
Although millennials report the least amount of stress from their jobs, they are also the least satisfied with their jobs. Meanwhile, 78 percent of baby boomers, people aged 53 and older, are satisfied with their jobs.
Even millionaires will tell you that making more money does not necessarily lead to a happier life and certainly not a stress-free one.
A recent study of 4,000 millionaires from Harvard Business School found that the price of happiness can actually be quite steep: It ranges from between $8 million to $10 million. Only at these levels “are wealthier millionaires happier than millionaires with lower levels of wealth,” the study reports, and even then, a larger fortune is only associated with “modestly greater well-being.”
One entrepreneur earning $1 million a year recently told The Cut that “money and power make people greedy and crazy, and I am not exempt.” Despite living a highly privileged life, she admits to always wanting more, adding that when you make that much money, “you get in this rut where you’re still tired, stressed and miserable.”
Regardless of what you earn, learn how buying your way out of tasks you hate can help you lead a significantly happier life.
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It can be difficult to choose the type of work that you do, and it can be difficult to balance the stress you feel at work with a healthy personal life. In fact, according to a LinkedIn survey, higher earners do experience higher job-related stress. You may be so focused on earning enough money that you may not be enjoying the other parts of your life.
But less stressful careers often mean lower pay. How to decide?
Key Takeaways
- The decision to pursue a job with more stress and higher income is not an easy one.
- Consider how the the position will affect future career goals, how your lifestyle may be affected if you forgo the income, and if you have alternatives.
- If you’re married or have a family, they should be involved in your deliberations.
If you are offered a new position with more responsibilities at your job, or if you are seeking one elsewhere, you will need to weigh whether the stress and additional responsibilities make taking the position worth it. While it is always nice to make more money, you may find that you are willing to work at a job with less stress so that you can enjoy your life more.
As you consider changing your current career you should ask yourself some basic questions.
Is This a Position I Want?
It is important to consider whether or not you will enjoy the work that you will be doing in the new position. Often a promotion means you will be doing a different type of work. You may be moving into management, which means that you will not be “getting your hands dirty” with the day-to-day work of the firm.
- If this position will move you toward your long-term career goals, then taking the new position makes sense.
- If you love what you do, and you do not want to move into management, it may make more sense to stay where you are.
As you look for new positions, you should learn as much as you can before you apply. It is okay to interview for a position and turn it down if it does not feel like a good fit for your goals or personality.
Note
If you are married, you should discuss the opportunity with your spouse. Whether you take the position or not, either course will affect your family and your marriage.
Do I Need the Extra Money?
Before you take a new, more stressful job, evaluate how the extra money will affect your current lifestyle. If you have a family, you really may need to make more money to cover your basic expenses.
A simple household budget should give you an idea of the minimum amount you need to earn to maintain the lifestyle that your family is comfortable with.
Note
If you consider the hourly cost of some of your wants and needs, you may be able to cut back on your spending to go with a less stressful job. For example, if you take home $25 per hour, and your car payment is $400 per month, you’ll need 16 hours of labor to meet that payment. But if a monthly bus pass is just $100 per month, you’ll need just four hours of labor to meet that need.
If you are married, you and your spouse need to determine, together, the financial goals for your family and how your career change will impact them. You both may be willing to make sacrifices for your long-term financial goals or to provide a less stressful lifestyle that is more family oriented.
The key is to make the decision while being fully aware of your current financial needs and wants.
What Are My Alternatives?
If you know that the new job will bring additional stress, but you still need the extra money, come up with a list of alternative solutions to the problem.
- Can you reduce your expenses enough to live comfortably staying in a low-stress job?
- Can you mitigate the stress of the higher-paying job (in a healthy way)?
- Can you find a less stressful job in a lower cost of living area?
Moving to a smaller town will provide a different atmosphere. You may sacrifice some of the benefits of a larger city, but you can have additional family time and lower housing costs to compensate.
Another alternative is to change careers. If you are stressed by your job, you may need to find another field that you will enjoy more.
Frequently Asked Questions (FAQs)
What occupation has the highest stress?
According to the job search website CareerCast, the most stressful jobs in 2019 were enlisted military personnel, firefighters, and airline pilots, in that order.
Should I take a pay cut for less stress?
There’s no clear-cut answer for this question; only you can decide if your income is worth the stress that comes with your current position. One thing you can do to help decide is to look carefully at your budget and determine if you can maintain the lifestyle you (and your family) desire on the income afforded by the less-stressful job.
A high-paying career may seem like a dream come true—but at what cost? Say you finally have savings and money to invest, have finished paying off debt, and no longer live paycheck-to-paycheck. But has that paycheck become too costly? Do you dread going to work or come home drained every day?
Of course, making a fair salary has its perks. But sometimes—no matter how many digits are on that paycheck—it isn’t worth the tradeoffs in terms of health, mental well-being, and work-life balance. If you’re at a crossroads, contemplating whether to stick it out or take a hike, consider these five signs that your job may no longer be worth the money. If those signs hit home, keep reading to learn how to transition to a better work situation that nurtures your health and your wallet.
When to Quit Your Job
Your health and mindset are suffering
Most jobs are served up with a side of stress, but if it’s contributing to a major decline in your overall physical or mental health (or both!), that’s a problem. If you’re having trouble concentrating or feeling anxious or depressed about work, it may be time to find a less stressful job.
Stress is dangerous and can lead to long-term mental and physical effects—from headaches to gastrointestinal issues to trouble sleeping—so keep an eye out for these stress-triggered symptoms. While those dollar signs are great for your wallet, they may also be detrimental to your well-being.
There is no room for advancement
Aspirations for a better position in your company is admirable, but is it possible? Some businesses—particularly very small or family-owned ones—aren’t structured for raises and promotions, and offer no path for you to become a lead or manager. Or perhaps you keep getting overlooked for a promotion you’re clearly suited for. In either case, assess your salary versus your goals, and consider a job with growth opportunities.
Your workload has increased but the pay hasn’t
It’s good to be a team player, take initiative, and learn more for the sake of advancing your career, but work creep—when your workload increases, but your pay doesn’t—can be a real problem.
If you find yourself buried in countless projects that were not part of your job before, it may be time to have a sit-down with your boss. More work should lead to more money, and if it doesn’t, is it worth your time and happiness?
You have a toxic boss
If your boss makes Meryl Streep’s character in The Devil wears Prada look congenial, that’s a red flag that your job isn’t worth it. A toxic boss can be truly detrimental. According to a survey by Society for Human Resource Management, 84 percent of workers attributed unnecessary work and stress to an inept manager.
Take note if your boss sets unrealistic deadlines, gossips, blames others for their mistakes, gaslights, or creates conflict. After all, work is hard enough without dealing with unnecessary drama or a toxic work environment. If you can’t transfer to another manager or department in the company, it’s probably time to polish up your resume and head out.
You aren’t being used to your full potential
Is work too easy? Have you acquired new technical skills that aren’t used or appreciated? Have your responsibilities stagnated for years? When a promotion opens up, are you overlooked? If you answered “yes,” you’re being underutilized, which can decrease motivation, reduce confidence, and lead to work boredom. You deserve to use your unique and valuable skillset to excel in your job.
Tips for Switching Careers
Identify your passions
What do you enjoy doing? What excites you? What are your core values? Use these answers to start a list of qualities you’re looking for in a job. An analysis by Clockify determined the average American spends 1757 hours a year at work. Why not spend that time in a way that’s worthwhile?
Transfer your passions into career ideas
Once you’ve articulated your passions and core values, research compatible careers where they’ll thrive. For instance, if you’re an animal lover, consider a career as a vet tech or pet sitter, or look into vet school. If you love to write, consider copywriting, pursue a communications gig, or try your hand at ghostwriting. Bottom line: Find a career you’re passionate about, and you’ll make money doing what you love.
Update your resume
Leaping into a new career can be daunting, but once you’ve found a new path, update your resume with an eye to highlighting transferrable skills and experience useful at your next job.
Lauren Rikleen, president of the Rikleen Institute for Strategic Leadership, suggests you closely examine the description for the job you’re pursuing, identify skills and requirements in it that you have, and then emphasize them on your resume.
If you don’t have the exact experience an employer is looking for, consider updating your skills or coursework to make your application stand out. There are plenty of in-person and online options, and many courses are affordable or even free. Grow with Google is one of many fantastic resources.
Tap into your network
The doors that open for you by people you already know might surprise you. Your network—friends, family, and previous coworkers—forms the basis of a huge support system to put you in touch with new opportunities and help you reach your goals.
