I Quit a $100K Job for a $50K Job -- and It Was One of the Best Decisions I Ever Made

My first job out of college was a trading assistant at a hedge fund, and I was able to quickly climb the ranks as a result of hard work and an ability to learn on the fly. As such, by the time I was 27, I found myself earning a six-figure income.

That income made it possible for me to do things like pay my bills with ease, travel several times a year, and sock money away for retirement. There was just one problem -- I was miserable at my job.

Not only were the hours long, but the atmosphere was downright toxic. There was constant yelling, and while it wasn't always directed at me, it was a stressful environment to work in.

In addition to feeling constantly stressed and unhappy about the workplace atmosphere, I just plain didn't enjoy what I was doing. I wanted to spend my days doing something more creative and fulfilling. And so after five years in finance, I quit my high-paying job and took a job designing electronic toys.

My new job came with shorter working hours and less stress. But it also came with a lot less money. In fact, I took a pay cut of over $50,000 in the course of getting that new job. But it was more than worth it.

When you prioritize your personal wellbeing

Data from the American Institute of Stress reveals that 41% of workers who are stressed cite their workload as the cause, while 32% point to issues with the people they work with. At my finance job, both factors applied.

Not only did I have lots of work I was expected to get done (hence the many late nights), but the people I worked with weren't pleasant for the most part. A few were downright rude and obnoxious. And most of the people I worked with didn't show me much respect -- perhaps due to my younger age.

That's why leaving my finance job when I did was the right choice. I had reached the point where the idea of going to work had me stressed beyond belief, and that just wasn't a good way to function. So I decided it was worth making some lifestyle changes to be able to do something completely different at a lower salary.

How I made my pay cut work

I knew, after five years in finance, that I didn't want to just leave my job -- I wanted to leave the industry. But I was well aware that doing so was going to mean earning a much lower salary, at least at first.

That's why I prepared for my resignation strategically. Rather than quit on a whim, I spent many months socking money away in my savings account. By the time I left my finance job, I had enough money in the bank to cover more than six months of essential bills. I figured that in a worst-case scenario, I'd be able to dip into my savings to cover some expenses until my earnings picked up in my second career.

I also made a point to slash some expenses in conjunction with changing careers. For one thing, I gave up a costly New York City apartment and moved in with my then-boyfriend, now-husband in the suburbs. Doing so cut my housing costs significantly.

I also limited myself to very low-cost travel the first year I was in my new toy designer job. That meant staying at budget hostels where you bunked with seven other adults in the same room because hotel rooms just weren't something I could pay for. I also cut back on dining out quite a bit, reserving restaurant meals for special occasions only and doing the vast majority of my cooking at home.

Taking a massive pay cut wasn't easy. But it was worth it in the end and I don't regret it at all. So if you're feeling burned out at work, you may want to explore options that are better for your mental health. And if you prepare accordingly and get on board with some spending changes, you may find that you're able to manage a giant pay cut should the need to take one apply to you, too.