“Voluntary Salary Reduction” by Jeff Kaufman 🔸

Until recently I thought Julia and I were digging a bit into savings to donate more. With the tighter funding climate for effective altruism we thought it was worth spending down a bit, especially considering that our expenses should decrease significantly in 1.5y when our youngest starts kindergarten.

I was surprised, then, when I ran the numbers and realized that despite donating 50% of a reduced income, we were $9k (0.5%) [1] richer than when I left Google two years earlier.

This is a good problem to have! After thinking it over for the last month, however, I've decided to start earning less: I've asked for a voluntary salary reduction of $15k/y (10%). [2] This is something I've been thinking about off and on since I started working at a non-profit: it's much more efficient to reduce your salary than it is to make a donation. [...]

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First published:
January 15th, 2025

Source:
https://forum.effectivealtruism.org/posts/3TLTrJS2DZJ5mcrkc/voluntary-salary-reduction

Narrated by TYPE III AUDIO.