Have a question about finance?

How should I be managing savings/ investments/ debt in light of job change with pay cut?

Asked in Los Angeles, CA · October 29, 2015
26, work in analysis. Moving from a corporate job paying $90k to a start up job paying $60k. How should I be thinking about my retirement / savings / debt, specifically in terms of priorities, given this loss of income?

Advisor answers

It's difficult to thoroughly answer this question without knowing your specific expenses. In general, you want to minimize your monthly debt expenses so that less of your money is being spent. Money is only relevant to your expenses. In other words, it's not a financial hardship to have less money if you have less expenses.

Assuming that your monies were properly allocated, your savings and retirement should be reduced by the percentage of the decrease in your income. For example, if your income decreased by 30%, you could redu...

Have a question about finance?

Didn't find what you're looking for?

Ask your question and we'll connect you to our network of financial experts for free