5 Signs Even a High-Paying Job Isn’t Financially Worth It
Written by
Cindy Lamothe
Edited by
Rebekah Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
You’ve finally made it — you’re in the running for a high-paying job that could make a real difference in your quality of living.
The problem? Making more money may come with some big costs.
“High healthcare deductibles can quickly eat away at a seemingly attractive salary,” said Kevin Shahnazari, founder and CEO of FinlyWealth. “I worked with a client who took a $150,000 job but spent $12,000 annually on medical expenses due to poor coverage — effectively reducing their take-home pay by 8%.”
He said many professionals overlook these hidden healthcare costs when evaluating job offers. While the numbers look good on paper, below are some signs that high-paying job isn’t actually financially worth it.
Benefits Gap
According to Angelo Crocco, certified public accountant (CPA), chartered global management accountant (CGMA) and owner of AC Accounting, one hidden red flag is when a company’s benefit package isn’t on par with industry norms, especially if health insurance premiums are steep or coverage is limited.
“Paychecks can look bigger on paper, but steep monthly healthcare contributions can chip away at that higher salary,” Crocco said.
Without a retirement match, he said you lose out on free money that can compound over time.
“Sometimes, the higher wage doesn’t offset the loss of these long-term perks,” he added.
A major red flag Shahnazari warns clients about is missing 401(k) matching.
“When a company doesn’t offer retirement matching, you’re leaving substantial money on the table. One of my clients passed up a $20,000 higher salary for a position offering 6% matching — that decision added $180,000 to their retirement savings over ten years.”
Unpaid Overtime and Unrealistic Hours
High-paying jobs often have unspoken expectations to work far beyond 40 hours a week.
“If you find yourself crunching numbers and realize you’re earning the same or less per hour than a lower-paying position with saner hours, the job might not be financially wise,” Crocco said.
The long hours can also drain your energy, leaving you less time to manage personal finances, side hustles or family commitments.
Minimal Professional Development
A big salary with zero growth opportunities can hold you back later, Crocco explained.
“If the role doesn’t offer new skills, you may stagnate professionally and miss out on promotions elsewhere,” he said. “A paycheck can only go so far if you’re not acquiring marketable skills that your long-term earning potential suffers.”
That affects your ability to negotiate future salaries.
Shahnazari also explained that limited growth opportunities often signal long-term financial stagnation.
“I advise clients to investigate promotion patterns,” he said. “One professional I worked with stayed at a high-paying job for five years but received only 2% annual raises, while peers who switched to lower-starting-salary positions with clear advancement tracks now earn 40% more.”
Lack of Transparent Compensation
Sometimes, a company might tempt you with a high salary figure, only to slip in hidden details after you’re on board.
“Suppose your offer letter has vague statements about bonuses or future pay bumps,” Crocco explained. “In that case, that’s a sign you may not see the money.”
For example, you might learn your “competitive bonus structure” is tied to unrealistic sales quotas.
“You miss out on a good chunk of earnings when you can’t meet those,” he added.
Crocco said a solid employer is upfront about how and when you’ll be compensated without burying you in legal jargon or hidden answers.
Tallying the Overall Cost
Shahnazari said poor work-life balance carries measurable financial costs.
“Many of my clients in demanding positions spend significantly more on convenience services, takeout meals and stress-related health issues,” he said. “One executive saved $15,000 annually by switching to a job with reasonable hours, despite a $10,000 pay cut.”
These extra red flags, lack of transparency in how you’re paid and zero work-life balance can each chip away at your net benefit.
“The high salary feels more like a trap than a reward if you’re constantly in survival mode,” Crocco explained.
Your money could end up going toward stress-related medical bills or expensive convenience services to keep daily life running.
“Be honest about whether the job’s demands outstrip the financial perks,” he added. “If you see these warning signs, you may want to look for a role that respects your wallet and well-being.”
More From GOBankingRates
