I took a paycut for a job I love and have risen steadily in the organization where I work. I think if you do something you love you in an environment you love of course you will get promoted because you will demonstrate genuine passion. Short term loss definitely worth it!
I did exactly this. I left my first job in 2011 to join the company I'm at now. I left a full developer position at my former employer to join a graduate program at a slightly smaller wage (cost of living taken into account) half way across the country. Everyone (parents included) thought I was insane. A year later I'm getting £10,000 more in salary than I was after 2 years at my old place.
Jobs, like everything are a long term game. Play the right career move, and a bit of short-term pain pays off in spades.