This is the first in a series of posts that I’ll throw at you readers to make you think more about your finances and maybe look at things from a different perspective.
here’s your first scenario:
You go into work and get called into your bosses office. He tells you that from now on the company are offering a new pay deal. The two options available to you are:
- keep working your current job and receive a salary of £30,000 a year. OR
- receive an upfront payment of 5 years wage (£150,000) plus a 20% bonus (an extra £30,000). The catch is that you cannot leave the company or change your job for the 5 years.
Which option do you take? the 20% bonus seems like a no-brainer, but would you able to budget for 5 years in advance? How about giving up the freedom to change job or get a promotion for 5 years? Could you trust yourself not to resist splurging the lump sum at the start and struggling in the last year or so? If you chose option 1 what % bonus would have made you choose option 2?
Have a think and stick your answer in the comments box below. I suspect most people will like to think they could plan 5 years in advance to get the extra 20%. lets see if I’m right!
Haha, I’ve already been at my job for 10 years so what’s another 5? I would jump at the 2nd option. Not that it would ever happen! #familyfun
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true, the company probably wouldn’t want to take the risk of someone working less than normal because they’ve already been paid.
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It would depend on the deal. It would have to be written in that the company can’t force you to switch roles knowing that you’ve already been paid and giving you the jobs no one wants to do! If that was the case and I was happy at the company and felt like five years was reasonable in the role, I would take option 2
Thanks for linking up to #BloggerClubUK 🙂
Debbie
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I’d quite like to get 30,000 for a year anyway!! I’ve never earnt over 20 before!! If I was completely happy in my job id take the 5 year plan. How does maternity work with that too!? I’ve moved jobs too much to stay somewhere that long. There you go! Thanks for linking up to #familyfun
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I’d go for the bonus and invest invest invest! #FamilyFun
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Oooh tricky one. The title of this post reallu intrigued me!! Hmm I’m not sure I think I would probably go for the £30k a year option…I’d like Flexibility to leave an earn more ha. I think I’d need more than 20% bonus to want the lump sum…I think. Although the idea of investing it does have some merit! Great post and ha is for sharing at #familyfun xx
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interesting view. Seems most people are going for the extra cash over the freedom and possibility of more.
A bird in the hand is worth two in the bush?
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I would go for number 1 as would fit with our plans for the next year nicely
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What are your plans?
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Number 2 definitely. I’d just think of all the money I could make on interest… That’s what would motivate me to be disciplined about only drawing my monthly salaried amount. 🙂
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good point, even at 3% thats an extra 4-5k depending on how you draw it out over the time.
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Having lost a couple of jobs, I’d take the second unless my current job was awful. If something happened and the company went belly up or had layoffs, I’d still have been paid for my loyalty. (Plus, I like a stable situation.)
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Unless I disliked the job, I’d probably take the second option. I’ve never had an issue budgeting out in advance, plus there’s the bonus and any money you’d make on investing it. The only part I don’t like is not being eligible for a promotion during that time.
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I’d go for the first option. Who wants to be tied into something for 5 years?? I don’t think there’s a bonus amount that could make me promise to do something for 5 years.
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so far you’re the only one in this column, weird as I thought it would be a 50/50 split.
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Ooh – interesting one. I guess it’d depend on how enjoyable the current job is and what you think your prospects would be. Quite a conundrum. I’d like to be promoted before 5 years, so that would be a major factor for me. Thanks for sharing with #PoCoLo
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Oh I love this! More like this please 🙂 OK so my instinct is of course to go for more money, yet I am hopeless with budgeting and would no doubt spend it all in a year and end up having to work a second job for 5 years to pay the bills or something silly! Then, there is the option of putting it in savings, investing and paying myself a monthly wage…. so I think with a little organising I will go for option 2 please, where do I sign?
Thank you so much for linking up to the #FriYAYLinky !! New linky up later.
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I reckon most people would spend it too soon if they took the lump sum. Budgeting for 5 years isn’t something most have practise with.
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Oh this is an interesting one. I think I would choose the 20% extra I’m not the kind of person to move around a lot so that would suit me fine. Thanks for linking to #pocolo
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