These People Quit Higher-Paying Jobs for Better Work-Life Balance. Inflation Is Testing Their Mettle.
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These People Quit Higher-Paying Jobs for Better Work-Life Balance. Inflation Is Testing Their Mettle.

Millions of Americans have taken new jobs that earn less than they used to make, either by choice or because of a layoff. Now they are contending with rising prices too.

By KATHERINE BINDLEY
Fri, Nov 4, 2022 8:47amGrey Clock 4 min

Many of the millions of people who switched jobs during the pandemic are feeling the bite of inflation especially hard, and for an often overlooked reason—they opted for pay cuts.

All around, it has been a good time for American workers and their earning power—if not their spending power. Labour shortages have driven up wages, and many in-demand employees have quit jobs for better-paying ones.

Yet a sizeable share of job switchers took pay cuts in the Covid-19 era, according to new research. In a survey of more than 2,300 workers, 32% of those who changed jobs since early 2020 said they made less money as a result.

Many have traded in a higher pay check by choice. While nearly a third of job switchers who now make less money said they had been laid off from their previous jobs, about 25% took a pay cut for better work-life balance, according to Prudential Financial, which commissioned the study. Others said they took a lower-paying job because they wanted to pursue a passion, work remotely or in a new location, or find an employer more aligned with their values.

Rising prices for everything from food and housing to vacations are now testing those decisions, pushing many to tighten budgets already trimmed when they opted for lower-paying jobs. Some job switchers say they are pursuing extra work—even if their original goal was to work less.

Many, including 38-year-old Mae Singerman, say they still have no regrets.

“I sacrificed savings for now to live a more balanced life,” says Ms. Singerman, who left her job as director of operations at a nonprofit last fall for a lower-paying administrator role at another organisation.

She made the decision to find a new job after her appendix burst late one night and she pinged her co-workers from the emergency room to say she was in the hospital but acted as if it were no big deal. “I was obsessed with the job,” she says she realised. “In retrospect, why was I emailing my co-workers at 3 a.m.?”

After her recovery, she took a new job that would let her spend more time with her two young children and help take care of her mother, who has dementia. The catch was it came with a 35% pay cut. Because her husband has a union job with predictable annual raises, Ms. Singerman says the couple didn’t have to make major changes to their lifestyle: She lives in a rent-stabilised apartment, and her youngest is no longer in daycare. But as other expenses have climbed, there have been adjustments, such as no longer contributing to her 401(k). The trade-off has been worth it, she says.

“It’s hard for me to imagine going back to what I had at this point in my life,” she says.

Some who quit jobs for lower-paying positions are now seeking extra work, as are many U.S. workers. In a recent survey of more than 1,000 working adults, 38% said they had looked for a second job and 14% said they planned to.

Nearly two-thirds of respondents said it was harder to pay for living expenses than a year earlier, according to the business-software maker Qualtrics, which conducted the study. Inflation is running near a 40-year high, raising the cost of everyday needs such as car repairs and hair cuts.

Christopher Doran, a 32-year-old in northern New Jersey, makes 20% less than he did as a director of nursing at an assisted-living facility until about a year ago.He says he made the switch to nursing at a hospital after realising that his work affected his relationships with friends and family, and his mental health.

“I was missing events with church, or dinners with friends or family. I had to work holidays, so really, I didn’t have any opportunity to enjoy my life,” he says. “I was burned out.”

Mr. Doran says he is happy with his choice, but he feels the effect on his finances daily. He doesn’t go out as much because of gas prices. “I used to shop healthier,” he adds. “I can’t because it’s so expensive.”

To offset the salary difference and pay off his credit-card debt, Mr. Doran picks up extra shifts at the hospital, which gets him overtime pay. It’s fewer hours and less stress than his old job but still a lot of work, he says.

“I’ve been sacrificing my leisure time to pay the credit cards,” he says. “It’s still kind of taking time I wish I had away.”

For many who have lost jobs, a pay cut was the only option. Kimberly Allen, 38, has changed jobs several times during the pandemic, and her pay has fluctuated with each change. In 2020, she left a nonprofit and took a pay cut for a role in recruiting. A little over a year later, she left that job and almost doubled her salary by taking a contract role with a tech company as a talent sourcer. She was suddenly unemployed when the role ended a few months later.

“I took a leap of faith,” says Ms. Allen, who lives in Schererville, Ind.

Ms. Allen has since found another recruiting job on contract, but it pays 10% less than her last job. Meanwhile, everything from school supplies to sports-team fees and gas spent shuttling everyone back and forth is more expensive than it used to be. Ms. Allen says she and her husband have put a cap on the number of activities their kids can participate in and cut back on entertainment spending.

“We’re working on creative low-budget ways to have fun at home for the entire year and probably next year,” she says.



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Things I miss about my local gas station:

That’s it. That’s the list. OK, fine, I did enjoy the communal squeegees.

This week marks six months since the grand opening of my home electric-vehicle charging station. Congrats to the whole team! (Me and my electrician.) Located between my garage door and recycling bin, it’s hard to beat for the convenience. And also the price.

If you’ve followed my ad-EV-ntures, you’re aware of my feelings about the hell that is public EV charging , at least before Tesla started sharing its Superchargers with its rivals. Truth is, I rarely go to those public spots. The vast majority of EV owners—83%—regularly charge at home, according to data-analytics company J.D. Power.

I already discovered many EV virtues , but I didn’t quite grasp the cost savings until I tallied up half a year of home-charging data. In that time, I spent roughly $125 on electricity to drive just under 2,500 miles. In my old car, that would have cost me more than twice as much—assuming gas held steady at around $3.25 a gallon . And I was charging through the winter, when electricity doesn’t stretch as far in an EV.

Rebates and programs from my state and utility company sweeten the deal. So I will be able to take advantage of discounted electricity, and offset the cost of my charger. The same may be available to you.

But first, there are technical things to figure out. A 240-volt plug? Kilowatt-hours? Peak and off-peak charging? While other people are in their garages founding world-altering tech companies or hit rock bands, I’m in there finding answers to your home-charging questions.

How to get set up

Sure, you can plug your car into a regular 120-volt wall outlet. (Some cars come with a cable.) And sure, you can also simultaneously watch all of Netflix while it charges. It would take more than two days to fill my Ford Mustang Mach-E’s 290-mile battery via standard plug, known as Level 1 charging.

That’s why you want Level 2, which can charge you up overnight. It requires two components:

• A 240-volt electric outlet. Good news: You might already have one of these higher-powered outlets in your house. Some laundry dryers and other appliances require them. Bad news: It might not be in your garage—assuming you even have a garage. I realise not everybody does.

Since my suburban New Jersey home has an attached garage, the install process wasn’t horrible—or at least that’s what my electrician said. He ran a wire from the breaker panel in the basement to the garage and installed a new box with a NEMA 14-50 outlet. People with older homes or detached garages might face trickier wiring issues—more of a “Finding NEMA” adventure. (I apologise to everyone for that joke.)

My installation cost about $1,000 but the pricing can vary widely.

• A smart charger. Choosing a wall charger for your car is not like choosing one for your phone. These mini computers help you control when to start and stop charging, calculate pricing and more.

“This is not something where you just go to Amazon and sort for lowest to highest price,” said Tom Moloughney, the biggest EV-charging nerd I know. On his website and “State of Charge” YouTube channel , Moloughney has reviewed over 100 home chargers. In addition to technical measurements, he does things like freezing the cords, to see if they can withstand wintry conditions.

“Imagine you are fighting with this frozen garden hose every time you want to charge,” he said.

One of his top picks, the ChargePoint Home Flex , was the same one my dad had bought. So I shelled out about $550 for it.

Just remember, if you want to make use of a charger’s advanced features—remote controls, charging updates, etc.—you’ll also need strong Wi-Fi in your garage.

How to save money

I hear all you money-minded WSJ readers: That’s at least $1,600 after getting the car. How the heck is this saving money? I assumed I’d recoup the charging-equipment investment over time, but then I found ways to get cash back even sooner.

My utility provider, PSE&G, says it will cover up to $1,500 on eligible home-charger installation costs . I just need to submit some paperwork for the rebate. In addition, New Jersey offers a $250 rebate on eligible charger purchases. (Phew! My ChargePoint is on the list.) If all is approved, I’d get back around $1,250. Fingers crossed!

I didn’t know about these programs until I started reporting on this. Nearly half of home-charging EV owners say they, too, are unaware of the programs offered by their electric utility, according to a 2024 study released by J.D. Power . So yes, it’s good to check with your provider. Kelley Blue Book also offers a handy state-by-state breakdown.

How to charge

Now I just plug in, right? Kinda. Even if you have a Level 2 charger, factors affect how many hours a fill-up will take, from the amperage in the wall to the current charge of your battery. Take Lionel Richie’s advice and plan on charging all night long .

It can also save you money to charge during off-peak hours.

Electricity costs are measured in kilowatt-hours. On my basic residential plan, PSE&G charges 18 cents per kWh—just 2 cents above the 2023 national average . My Mustang Mach-E’s 290-mile extended-range battery holds 91 kilowatt-hours.

Translation: A “full tank” costs $16. For most gas-powered cars, that wouldn’t cover half a tank.

And If I’m approved for PSE&G’s residential smart-charging plan, my off-peak charging (10 p.m. to 6 a.m. and weekends) will be discounted by up to 10.5 cents/kWh that I’ll get as a credit the following month. I can set specific charging times in the ChargePoint app.

Electricity prices fluctuate state to state but every expert I spoke to said no matter where in the country you live, home charging should cost less than half what gas would for the same mileage. (See chart above for a cost comparison of electric versus gas.) And as I’ve previously explained , fast charging at public stations will cost much more.

One big question: Am I actually doing anything for the environment if I’m just taxing the grid? Eventually, I’d like to offset the grid dependence—and cost—by powering my fancy little station with solar panels. Then, I’ll just be missing the squeegee.

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