Even in college, I knew I wanted to be financially independent one day and quit the corporate rat race. I never felt that my personality was a great fit for the corporate environment.
Sure, I work hard at my job. I’ve worked hard since my days harking back to grade school. But I am an introvert by nature. Developing the right relationships in order to move up in a corporate environment was always challenging for me.
Also, I hate to play office politics, deal with bad people and there is plenty of room to improve on my interpersonal communication skills. Not to mention I have family members who are entrepreneurs. I’ve always wanted to be my own boss.
Therefore, since my early 20’s, I’ve kept my eyes on the prize of escaping the rat race.
Back then, I used to say the reason why I work so hard today is so I don’t have to work tomorrow. That was one of my mantras early on in my corporate career.
I worked hard, saved, and invested my money hoping one day I can submit my resignation letter to my manager, hand in my building pass, and never look back.
There were times in my past when I find myself thinking about what I would even write in my farewell email to my colleagues.
My Change Of Heart
It’s nice to dream but I’m not quite at financial independence (FI) yet. I reckon I am still 2 to 3 years away from hitting my FI number.
But the funny thing is that the closer I get to FI, the less desire I have to quit my corporate job. I do not know how I will feel about working a corporate job once I reach FI. But I currently don’t plan on leaving my corporate job even after achieving financial independence.
My mind has pivoted from all those early years of wanting to escape from work. Maybe in my wiser age I realize the virtue of holding down a job.
There are plenty of reasons why I have this change of heart and wanting to stay at my corporate job for longer.
Here are the 10 reasons why I think leaving my corporate job is not the best move:
Reason #1: It Is Nice To Receive A Monthly Paycheck And Have A “Stable” Revenue Source
There are close to 18 million Americans still unemployed. And the unemployment rate is 11.1% in the month of June.
This is not surprising given that the economy is still recovering from the effect of COVID-19. When the government orders businesses to shut down to stop the spread of the fatal virus, unemployment spikes up.
It is hard to look around right now with so many people still unemployed and not feel fortunate to still have a job. I know people who are struggling to pay their bills because they are out of a job and have very little saved.
Once you see how fortunate having a job is, it becomes harder to complain about the downsides of having a job.
Additionally, the stability of having a paycheck is something that is hard to give up. I know that once the 15th of the month and month end roll around, I will receive a deposit into my bank account.
That level of stability in cash flow is very comforting to have in such an uncertain and challenging time.
I also believe in having at least three substantial revenue sources to diversify away any downside cash flow risk from any one source. Other personal finance bloggers recommend having up to 7 different cash flow sources.
Whatever the number, it is nice to have my job as a substantial revenue stream. I have already seen the negative impact of COVID-19 on my rental income stream.
I collected about 65% of my rental income in the month of April. My collection rate has gone up since then for May and June. But this shows that even someone like me who is close to FI can face challenging times when an economic disaster happens.
Why should I voluntarily give up a significant revenue stream?
Reason #2: It Is Difficult To Escape The Golden Handcuffs
Even though I am close to financial independence, money is still a huge consideration in most things I do.
While the after-tax annual income from my corporate job is less than 5% of my overall net worth, my pay is still a substantial component of my overall annual cash flow.
A six figure net pay is still a large sum to give up. It isn’t easy to just walk away from that.
In addition, my unvested equity stake in the company is in the high six figures. I would have to forego that equity stake if I resign from my position at the company. This is another financial handcuff to the company.
Not to mention, there are other nice perks at the company such as a month and a half of vacation days, benefits such as key man life insurance coverage, and 401(k) match.
Overall, the pay, equity stake and benefits add up to sturdy golden handcuffs for me and they are hard to break.
Reason #3: Job Is Being Molded To My Liking
There are negatives to my job just like any jobs out there. You have to take the good with the bad right?
Well, as I’ve gotten closer and closer to FI, I started to mold the job to my own liking. Over the past couple of years, I’ve tried to reduce the negatives of my job; thus, making my job more enjoyable.
When there is less dependency on the job to maintain my livelihood, there is less fear of reprimand on avoiding the negatives.
I focused my time on engaging projects I enjoy working on and feel no need to have to volunteer for projects or tasks which I don’t find beneficial.
The crazy work hours are gone. There is more balance between work and life. I don’t stay in the office simply to put in facetime.
I am also putting less pressure on myself to try to increase pay substantially. This reduces the stress to try to outperform and eliminates sacrifices needed to outperform my peers at work.
Even before the pandemic hit, I started commuting into the office less and opted to work from home more days instead.
I also avoided dealing with negative people. It doesn’t matter to me that my career progression might suffer in the long term because of this. If certain managers are difficult people, I just avoid them.
Because of these adjustments made at work, my job became more enjoyable.
Reason #4: Great Relationships Developed At Work
Studies have shown there is direct correlation between the level of happiness and the deep relationships formed in life.
I believe happiness from work is no different. A lot of it comes down to the relationships formed.
By avoiding nasty coworkers, I can filter out the negative relationships. It also frees up more time for me to focus on positive relationships.
I focus my time on dealing with good people and with whom I enjoy interacting.
Some of my work relationships span years. I’ve seen coworkers go from being single to being married with kids.
I’ve also seen people move up in the organization from a junior staff to assuming leadership roles.
Being along for the ride on all that personal and professional growth of my coworkers makes the relationships deeper.
Reason #5: A Job Grounds Me Daily and Provides Daily Purpose
Having a job provides a level of stability in my life.
It grounds me and provides me with a daily routine. I know I have to wake up in the morning to get ready for the work day. I also have to ensure I get enough rest the night before to function at my job.
I am naturally more a night person than an early bird. In my teens and during my college years, I used to sleep very late at night (or early morning) and wake up late as well when I didn’t have classes the next day.
Although in my older age, I find it harder and harder to sleep my day away, there are times over the weekend when I find myself going to bed late at night.
Without my job to provide me with a daily routine, I might sink into a pattern of late nights and late starts. I would probably then end up feeling bad about my situation which then might result in later sleep. It becomes a vicious cycle of later sleep and later start.
My job provides me with daily grounding and purpose.
Reason #6: Work Provides Me With More Exercise And Movement During The Day
Along with the daily routine comes more physical movement for me. If I don’t have a job to go to, my level of physical activity drops off significantly.
I see it during this extended remote work situation during the pandemic.
My commute to work is currently eliminated. I also don’t have the opportunity to walk to meetings, to walk to the pantry, to go out for lunch, and other movements made during the work day.
I also feel more sluggish the past few months working from home.
I know people who are spending a lot more time exercising at home given the current environment. But I am not someone who likes to exercise or routinely hits the gym.
Therefore, going to work gives me a good reason to get some movement in during the day.
Reason #7: Being Home Without A Job Has Its Challenges As Well
Maybe it is just the current environment of being quarantined at home because of the pandemic; but being home with 3 young kids also has challenges.
Don’t get me wrong. There are many pluses, chief among them, being able to spend a lot more time with my kids. However, it can also be exhausting.
Shepherding three kids for breakfast, lunch and dinner is not easy. Developing an at-home educational program for the summer is not easy. Even getting them to clean up their room involves a lot of repeated requests.
I know we are currently in a unique situation right now with the quarantine at home due to COVID-19. Maybe in a normal environment, I might think differently if I can bring my kids to a museum, the zoo or to a sporting event on a workday when those venues are less crowded.
Also, what’s my excuse now for hiring a contractor/cleaner to handle handy work and to keep the home clean if I am home all day without work?
I’m not sure which is worse: (a) having to scrub down my shower tiles or (b) working on an excel file. Actually, I do know which one I prefer and that is (b).
Reason #8: Negative Stigma With Not Working
One topic that frequently comes up when meeting new people is the question of “what do you do?” I might get weird looks if I say I’m currently not working.
There is still a negative stigma with someone who is unemployed. “What is wrong with him?” might be a common thought.
Who wants to deal with this negative stigma? I know that I would prefer not to have to deal with it.
Reason #9: I Have Nothing Else Lined Up Yet
There are many reasons why people leave their jobs. One reason is that they have something else planned.
They might want to start their own business and be their own boss. There is certainly an attraction to having to answer to no one (well, except customers).
Also, starting one’s own business allows one to keep more of what is earned. Who doesn’t want there to be a direct correlation between compensation and level/quality of effort.
But I personally don’t have anything else lined up at this moment. If I leave my job now, I would in essence be a stay at home dad.
Although that is a perfectly fine role, I currently don’t have a desire for that.
I might be able to work on my blog more. Who knows, one day it might be a significant revenue stream for me. But I can still work on my blog now even when managing a full time job, especially in a remote work environment.
It is hard to leave my job when I have nothing else lined up.
Reason #10: Maintain Household Balance
Sometimes, it is best to leave a good situation alone.
There is already a balance in my household. My wife has her own career as do I.
If I leave my job, that would disrupt the balance in the household. While being open and frank about our financial goals early on should help, it will still be a change nonetheless.
There is currently a nice financial balance in my household. We both work, and spend separately with the exception of big ticket items and shared household expenses.
It would be a lifestyle shift for me if she is the only one collecting a paycheck. She might want more say on where money goes. The balance will undoubtedly shift to her.
It is good to maintain the household balance we have currently.
To the audience: How hard was it for you to quit your job after reaching financial independence? Any readers who are FI but still continue to choose to work? If yes, what are your reasons why?
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Many people work hard to better their physical and mental health. What about their financial health?
I started this blog back in 2019 to help people better their financial health as well.
My financial journey began with tens of thousands in student loan debt. Over the span of 20 years, I am close to achieving financial independence.
I truly believe anyone can get to strong financial health. Hopefully, this blog can help you on your financial journey to greater wealth and financial independence.
You can read more about me here.
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I really relate to most of your points. In the early years I thought I would reach FI, quit my job and sail into the sunset. Well, not so fast. As I got closer to this point, my mindset changed to only work on projects I want and on my terms. I mean, I’m good at what I do, get paid relatively well and have some great friends at work.
However, I still have quite a few things I want to do in this world before I’m 70.
This led me to aggressively pursue a change in my corporate position as well as move to working remotely (thanks to Corona this hasn’t happened yet). I sort of pushed to join the work LITE movement 🙂
Without the financial cushion I wouldn’t have mustered up the courage to push this forward. Not in a lifetime.
Nicely done on making work fit into what you want. Having a nice financial cushion sure does make it a lot easier.
I haven’t master moving far from my home base of New York yet. It becomes a lot harder with kids. But maybe when the youngest hits 18 and is out of the house, I can pack up and live a bit of the nomad lifestyle in a remote work setup.
Thanks for this post. It’s a good reminder that perception is reality, and each person’s situation is unique given their own goals and needs. If I had spent the past 20+ years like you climbing the corporate ladder to achieve a high net worth and high annual income, it would be really hard to walk away. So much of our identity, our habits, and our lifestyle is based on the time we spend at work. With any major change, I find writing out a list like you did very helpful as it allows you to be objective in your decision-making criteria – never good to make big changes solely based on emotion!
I’m 35 y/o now with paid off home in Denver suburbs and investments of $825k along with a wife and 9-mo old baby. Annual spend should be $30-$40k moving forward. My vision for 10-20 years from now is to be a highly engaged father with various entrepreneurial side hustles. Through that process, I hope to teach my kids about alternative ways to live and make money so that more options are available to them. I’ve realized the last few years of working 60 hours/week doesn’t leave me much energy to pursue hobbies and personal relationships
Growing up in a household with 2 very traditional parents who worked as public school teachers, I never realized all the different ways to set up an enriching life. Instead, I just was a “good boy” getting good grades and a good paying job out of college. It’s good to have a stable income, but what I value most is freedom – the ability to live as I wish.
With all of this in mind, I do plan on leaving the corporate world at the end of the year and starting anew. I’ve found that even when you’re on the wrong path, even if you don’t know what the “right path” is, it’s best to get off the wrong path and give yourself the time and space to find the right path.
Wishing you good luck and hope you keep up the writing
Agreed. There are many paths people can take. Especially in today’s environment, there are so many opportunities for self-sufficiency and self-reliance.
Why do you believe you are on the wrong path and what is driving your decision to leave your job?
I worked until I was sixty even though I had millions in assets and zero debt years before that age. Work was fun, I was the big boss and was a local and state wide celebrity of sorts and that was something I enjoyed. Plus I was getting raises of 30 to 50% and it was hard to leave that kind of money when I had never made so much in the past. But I did leave at 60 and started consulting the next day. Instead of working 50 hours a week I work about 8 hours a week now. I also volunteer quite a bit and have a host of active outdoor sports and hobbies. I also have no kids at home and a wife that shares all my hobbies. The six figure income I make from my limited consulting isn’t really of any use but it does feel good to earn money and the job keeps my old contacts in place. If I had three young kids at home and a working wife I’d keep working too. My wife was a stay at home mom and she never returned to the workforce so we are both retired now. One thing that’s important, cultivate fun things to do together, those kids will be gone soon and at some point it will just be you and her, if she’s not your best friend with lots of shared activities you enjoy together, well, it might be tough on the relationship.
While I don’t plan to work at my job until sixty, I can’t say it won’t happen. If I’m having fun at work and getting nice raises, then I can’t see why I would leave. But nice raises have been hard to come by in today’s environment.
Thank you for sharing your advice on having shared interests with the wife. I am still trying to get through the next decade. It is pretty hard for me to think or plan for life without my kids at home, especially when I see them 24/7 now.
I enjoyed leaving finance world and stopping before 40. It was great to spend more time with extended family. Dont have kids, so we’ve really enjoyed our time. I think I’ll start something at some stage, but I enjoyed getting away from the fixed structures of work in terms of commute, workdays, being in the office. I’d probably enjoy it at the moment though with work from home, but I found having to go to an office a drag. I did like interacting with colleagues though.
The stigma of not working is real though, often get asked what we do all day, and most working folks don’t relate at all.. Only wealthy people understand doing your own business or investments etc, and my family are more the self employed type, so it makes no sense to them. I’ve started focusing on new businesses with them, since they all seem terrified of having too much free time available to do anything besides work.
Did you jump right into something after leaving your finance job? What led you to leave the finance world? Did you try to mold the job into something you like?
There was a period of time when the only thing I wanted to do was quit my corporate job to do something else due to the stress of the work. But then somewhere along the way, it became better. I think gaining more personal financial security and less dependency on my job for my livelihood definitely helped reduce the level of stress.