Not all money is equal

Photo by Oliver Roos on Unsplash

We all would be happy if we were told that we would get a pay raise. In general the primary means for most people to reach Financial Independence or to pay for things is through a salary coming from a job. Generally if you don’t have a salaried job, you most likely have your own business. But not all money is created equal and every opportunity has its drawbacks. I learned this as I moved to a higher level staff position where the main form of mobility would be moving to a management position. So here are 4 things for you to consider about money.

1. Scaling stress

In most cases the greater the opportunity to make more money or the higher the salary the higher stress you will likely run into. Now you may be thinking stress is minimal because the increased money will allow you to hit your financial goals faster. While that is true, one of the things that you should consider is does the stress increase faster than the dollars that you are making. For example if you make $100 in a low stress job, and an increase happens of $2 (promotion, raise, etc…) but your stress goes up exponentially it can make the $2 not worth it given the long term impact of stress. Some examples could be the pressure that is put on you when you start your own business, if you move to a management position, or if you are consistently being put into high stress projects. I see this in my own life, I have seen myself and relatives work in jobs where the salary increases don’t match the stress level that came with the job. For some it led to health problems. It often led to concerns from others, of if the extra money is worth the stress. So you should ask yourself, is the extra stress or responsibility worth it?

2. Benefits

Benefits are really, really important. Some of things that you should consider are retirement planning (matching contributions?), vision/dental insurance, or paid time off. These are important because the maintaining of your health and management of stress is just as important to the money you make. It leads to better quality of life if you are pursuing FIRE (financial independence retire early) or ease of life. Having things like paid time off makes it easier to travel or take care of life issues. These benefits can make your life easier, while sometimes they may not always come from the highest salary. It is something to…