Last month my company reduced my salary. But I can't complain because I asked for it. And before I tell you why, let me ask you this:

How many of you value quality relationships more than a few hundred dollars? How many of you think life satisfaction is a better metric to aim for than your bank balance? How many of you believe that happiness is more important than money? If your answer to any of these questions is a big yes, then reading this blog might be worth your time.

Every year during the annual review, I ask my manager for a raise. But this year, I asked him instead for a 10% cut. Now, whatever reason I had behind this, the doing part of it wasn't easy. Any loss from the status quo is always painful. But deep inside, I knew that this was a small price to pay in return for what I would gain. Because I was trading a part of my salary to buy one of the most valuable assets in the world: Time.

Most of us go through life as if we have all the time in the world.

There was a sci-fi movie released in 2011 with an amazing cast: Justin Timberlake, Cillian Murphy, Johnny Galecki, and Matt Bomer. The movie is called "In Time". In the movie, a timer that counts down to death is stamped on everyone's forearm. To know how many days you have left, you just have to turn your wrist.

Now for a second, imagine if this was not fiction, and you could somehow know how long you will live, would you keep doing the things you do or would you spend your time differently? Would you be okay sitting at a desk five days a week, doing a job you hate?

Would you stand in a queue in front of a store for hours on Black Friday to save a couple of dollars?

First, just because there is no real death clock stamped on our forearms, doesn't mean it isn't there. Just that the clock becomes visible only when we are on our deathbed. And then we start thinking, "What the hell did I do? Why did I wait this long to do the things that I always wanted to do?”

I didn't want to wait until then. So when I came to know that my company has a scheme where I can exchange a part of my salary for a month off, I decided to give it a try. Fortunately, I am in a position in my life where I can pursue this without making huge sacrifices in my lifestyle. And I totally understand that it may not be the case for everyone. And of course, it makes sense to work for every penny if that's what it takes to put food on the table and survive.

But once we get past the point of just working for basic needs, then work is more than just survival. We work because it gives our life a much-needed structure. What we have to do, from the moment we wake up is clearly laid in front of us. So, it is way easier to keep doing what we've been doing instead of thinking of any alternative. And for a job well done, we get rewarded in the form of promotions or raises.

And that makes us addicted to our work so much that the thrill of making money exceeds the thrill of actually living.

It took me some time to fully grasp this, and when I did, I wanted to do something about it. So I decided to trade a portion of my salary to have more time for myself. I know I will always have the potential to earn more money in the future. However, I can never go back and regain the time that is lost.

“No one ever regrets not having spent more time in the office”

Although I decided to do this, actually going through with it was not easy. Because of one thing.

Loss Aversion

We are always scared of losses. We try to avoid it by any means. So once we start making money at some level, it's really difficult to earn less, even though that difference may not have any big impact on our lives.

And that was also the case with me. I couldn't be happy about my salary getting reduced. But then I did something to get around it. The work council in my office had negotiated an 8% salary hike this year. So, I timed my salary change at the same time frame as the hike so that on average I don't lose much. Still, that's a decrease, but it's something I can live with. But more than the psychological factor, there is another major reason why people can't adjust to the idea of reducing their salary for more time.

Responsibilities

We take on huge responsibilities in the form of student loans, house loans, etc very early in life. And these responsibilities tie us down. When we live on rent, we can't wait to get our own studio apartment. Once we own a studio, we look forward to having an apartment with an additional bedroom.

Once we have a 2-bedroom apartment, a house, and garden become a necessity. We keep raising our living standards at a higher rate than our salary hikes so we have to take loans to afford these higher standards. And the whole purpose of our life comes to paying off the debt as soon as possible with every penny that we can earn.

I am not saying it's a sin to own property and you should all live for rent. But realize that the moment you sign off the loan application, you are making sacrifices somewhere else. So even though I know economically it makes sense to buy considering the long term, and I have the means to do so, I still live on rent. I value having the flexibility to invest in life experiences more than the comfort of staying in my own place. There is no right or wrong here. It all ultimately comes down to our happiness and what we want with our life.

Life Experiences

Our life is the sum of every single experience positive or negative that happens around us. But when we have a positive experience, we not only enjoy it in the moment but also that moment create good memories that we can carry throughout our lives. I am someone who loves to travel. In 2017, I traveled to a part of the world that very few people have ever been: Antarctica. However, the trip was expensive and I had doubts about whether it was worth spending so much money. But then during the trip, there was a moment when I was in a small boat, in the vast sea surrounded by icy mountains, and there was complete silence.

The only sound I could hear was that of the cracking sound of faraway glaciers falling into the sea once in a while. I can't explain how I felt at that moment. But If I close my eyes I can still go to that small boat and feel the same way I felt. Now, after 5 years, I don't worry about the money I spend. But I can still remember the days and feel the goosebumps when I saw the glaciers, the penguins, and the whales for the first time.

I could have also taken this trip when I retire and have more money. But then some experiences can only be delayed for so long before they become unavailable forever. Antarctica may not survive in its almost unspoiled state much longer, due to climate change. If we hope to see the continent in its present state, we can't wait. Sad, but true. I understand going to Antarctica may not be one of the experiences that you look forward to. But then there is an expiration date for each and every experience in life. For example, we can't take a trip to Disneyland with our children when we are 70 years old.

Technically, we can, but it won't be the same as when we do it when our children are kids. I don't think I can enjoy scuba diving as much as I do now when I am 70 years old. So for increasing our overall lifetime fulfillment, having each experience at the right age is important. And when I am in a stage where I am still healthy and have money, I just need to find the time to build those beautiful memories.

And I believe that's the whole point of earning money. To be able to spend it on such meaningful experiences. But then I am also planning to use a part of this extra time to invest in something that will give me much more returns in the future.

Invest In Myself

“By far, the best investment you can make is in yourself.”

— Warren Buffett

We always have work to do, bills to pay, schedules to keep, and people to care for. We spend so much time being there for our friends and our families, our colleagues and our neighbors, that there is precious little time left for taking care of ourselves.

I own a YouTube channel, write a blog, and create digital products. Every day, I get ideas to create or start something new. However, with a 9-5 job, it's very difficult to find enough time for other activities. So, I want to take this extra time to do things that will make me a better or smarter person, more creative, more well-read, or more highly skilled. Because I know that the skills I acquire now will pay off today or tomorrow with more returns.

Just to make it clear, I am not suggesting everyone should stop worrying about money and do whatever they want. If you are struggling to put food on the table for yourself and your family, of course, that should be your number one priority. But if you have enough resources and money, if you are saving too much for your own good, if you're more in love with the paycheck you bring home than with the daily experiences of being in your office, then you should take time to do a status check on your life and determine what you really want to get out of it. And if that's money, then of course, stay where you are.

All I hope to do with this blog is to make you think about your life in a more purposeful, deliberate manner, instead of simply doing things as we always do.