So you quit your job and now make less money. Have you made a terrible mistake?
Consider the hypothetical case of Joe, a project manager at an IT company. He made good money but hated his job. He’d been there almost 20 years and, at 41, felt like life was passing him by.
So, he decided to pursue his lifelong dream of becoming a designer. He quit his project management job and signed up for some courses, discovering in the process just how much he enjoys combining creativity with usability in design work.
But after earning a certificate in design, Joe struggled to find a job. Entry-level jobs paid poorly but he wasn’t qualified enough for better-paying mid-level jobs. He finally landed an entry-level gig after three months of job hunting, but it pays 40% less than his old job.
During the job search, he used up most of the money in his emergency fund. And now, with a job that pays significantly less than his previous one, he’s had to adjust his lifestyle, which included cancelling an upcoming vacation.
Joe has some retirement savings, but they’re not liquid — and he doesn’t want to touch that money until he retires.
While he loves design work, he’s now constantly worried about money. Has he made a big mistake?
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Financial implications of career regret
Joe isn’t alone in his desire to leave an unfulfilling job. Only one in five (21%) of Canadian employees are engaged, according to Gallup’s State of the Global Workplace report (1).
Half of Canadian job seekers are looking to switch careers, according to an Express Employment Professionals-Harris Poll survey (2), with 56% looking to get into a “completely new industry” and (47%) looking to change what they do within their field.
Common reasons include lack of advancement or fulfillment in their current role (52%) as well as the desire for a more positive work culture (34%). One-third (33%) cited inadequate compensation — so, while salary is important, it’s not the top reason for wanting to leave.
Many workers also have career regrets, including staying at a job too long (58%), according to an international survey by Resume Now. And more people regret staying at a job (58%) than quitting one (38%) (3).
People react to those regrets in different ways, according to a 2022 study published in the Journal of Vocational Behavior (4). Some people job hop to similar roles, while others switch their career altogether. Others simply detach from their current job, putting in the hours and redirecting their energy toward hobbies or leisure activities.
But there could be financial implications to career regret. If you’re unhappy at work and putting in a minimal amount of effort, you’re less likely to be considered for a promotion (and salary increase). If you leave, however, you may end up having to take a lower-paying job — at least temporarily.
If you’re worried about quitting over practicalities like paying your mortgage, you could try running “low-cost experiments” such as volunteering, Jon M. Jachimowicz, an assistant professor of business administration at Harvard Business School’s Organizational Behavior Unit, told HBS Working Knowledge (5).
It’s a good way to test the waters, particularly in a tight job market.
The unemployment rate in Canada rose 0.2 percentage points in August to 7.1% — the highest since May 2016 (excluding 2020 and 2021 during the height of the Covid-19 pandemic). That means there were 1.6 million unemployed Canadians in August (6).
Since demand for labour is cooling, job hoppers may have less bargaining power when negotiating a salary (unless they’re in a high-demand field).
Amid ongoing tariff pressures and trade uncertainties, organizations are expected “to continue scaling back their salary increase budgets in 2026, with an average projected increase of 3.1%, excluding salary freezes, versus 3.2% in 2025,” according to the Normandin Beaudry Salary Increases for 2026 report. (7)
Read more: Are you drowning in debt? Here are 3 simple strategies to help crush your balance to $0 in no time
Coming up with an exit strategy
Since you could be job hunting for several months, it’s a good idea to make a plan before you quit.
Is your issue with the job itself or is there something larger at play? Maybe you’re bored and need a new challenge, even though you like your team or the company. Or maybe you like your job but don’t get along with your manager.
Consider whether you could look for growth opportunities internally, such as upskilling for a new role or transferring to a different department. Talk to your manager or HR about your career progression and if there are any opportunities to take on new projects or expand your role.
The good part is, if you get promoted, you’ll likely make more money, too.
If leaving is the best option, you may want to start job hunting before handing in your resignation. Research the job market (and salary range), update your resume and set up a few job interviews.
If you want to completely switch careers, like Joe, you may need to upskill or retrain. If that’s the case, consider online courses or night classes that you could complete while you’re still working. That way you’re earning money — not spending it — while you experiment with a new career choice.
If Joe had taken online courses or night classes in design, he could have tried out a few freelance gigs before quitting his full-time job. Maybe he would have been happy in his old job while pursuing his passion on the side (and bringing in extra cash). Or maybe those side gigs would lead to full-time job opportunities in design.
If you’ve decided to quit, try saving up at least three to six months of savings before you leave in case the job search takes longer than anticipated. If you have high-interest debt, you may want to focus on paying that off before you leave.
Switching to a new career takes time; you have to build up expertise and a new network of connections.
While Joe is making 40% less than he did at his old job, it doesn’t mean it will always be this way. As he gains more experience, he may be more suited for mid-level jobs that pay more. Or maybe he can eventually run his own business and set his own rates.
In the meantime, he may need to rein in his spending and adjust his lifestyle to survive on a much smaller income or look for side gigs to supplement his salary.
As Jachimowicz told HBS Working Knowledge: “The pursuit of passion is not a train with a destination, but a train with many different stops along the way. It’s OK if you take detours along the way to figure out where you’re going.”
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Gallup (1): Express Employment Professionals (2); Resume Now (3); Journal of Vocational Behavior (4); Harvard Business School (5); Statistics Canada (6); Normandin Beaudry (7);
This article originally appeared on Money.ca under the title: I left my career as a project manager to pursue my passion — and now make 40% less. Did I make a mistake?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.