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!