Getting fired might feel like a disaster at first since you lose the ability to collect unemployment benefits, but it might actually be a blessing in disguise for your life in the long run. Despite the stormy forecasts and economic downturns I’ve witnessed, like those in the late ’90s, early 2000s, and the more recent 2008 and 2011 recessions, there’s a silver lining.
For example, when interviewing Jun Loayza from RewardMe, he shared his insights on leaving a lucrative job in social media to pursue entrepreneurship. He discussed the challenges and rewards, including whether to fundraise or bootstrap a new business, and how to balance profitability with gaining market share. This conversation was so rich in detail that it spanned over two blog posts.
Reflecting on these discussions, I realize that while the threat of job loss looms, it also opens up numerous other avenues for making money and filling one’s time productively. If I were to lose my job, it might just push me towards new opportunities that I wouldn’t have considered otherwise.
When it comes to living costs, most of us don’t need as much as we think to survive. For instance, a couple in San Francisco can manage on $80,000 a year, or significantly less in almost any other major U.S. city. Personally, I could get by on $30,000 a year in San Francisco by sharing a flat and trimming my expenses, supplemented by teaching tennis on the side.
There’s a prevailing race to earn more, especially with inflation on the rise, pushing some to feel they need to earn more just to maintain a middle-class lifestyle. This constant race can detract from family time and personal well-being.
Starting an online venture like my blog, Financial Samurai, which I began in 2009, can be a viable alternative. Surprisingly, this venture began making more money than the total of my passive income that had taken 15 years to accumulate. For those who enjoy writing, creating content, and connecting with others online, launching a website can be a fulfilling and potentially lucrative path.
For anyone considering leaving an unfulfilling job, I recommend negotiating a severance package rather than quitting outright. When I negotiated my severance in 2012, not only did I receive a severance check, but I also got benefits like subsidized healthcare and deferred compensation, along with eligibility for unemployment benefits for up to 27 weeks. This financial safety net can be crucial during the transition to your next chapter in life.
Both my wife and I managed to negotiate six-figure severances that have greatly supported our transition from traditional employment to pursuing our passions. It’s vital to approach job transitions strategically—getting laid off with benefits is far preferable to quitting with none.
This strategy and approach have allowed us the freedom to explore new opportunities without the immediate financial pressures that quitting outright might have imposed.
