There's an old saying that one should, “Make hay when the sun is shining.” Do you work harder or relax more during good times? When I was in my 20s I had two modes of work ethic. 1) Work hard and 2) Work harder. I'd wake up around 4:30am every morning in NYC from 1999-2001 to read the Wall St. Journal before walking over to 1 New York Plaza for work at 5:30am. I knew knowledge was power and I had neither.
After the 10 year mark, I began to burn out. Perhaps all the traveling, stress to perform, ridiculous market cycles and business school classes while working started taking its toll.
I did everything I could to increase financial returns when the times were good because times would eventually turn sour. When times were bad, I felt I needed to work harder so as not to fall too far behind. People were getting fired left and right back in 2001-2003 and 2008-2012.
Ask anybody who has worked on Wall St. since the late 90s and they'll tell you that 2007 was the last great compensation year. It's been downhill ever since. There was no longer hay to be made, even if we are reaching new highs in the stock market.
Did I always work harder or relax? I woke up to the realization in 2010 that the outsized returns in finance were over, at least for the foreseeable future. So instead of complaining about working harder and getting paid less each year, I got out in 2012.
A Change Of Heart To Working Hard
At 36 my work ethic has changed. It became 1) Work hard for the things that truly matter. And 2) Make sure my money is working for me so I don't have to. There's no more “work until you drop dead” type of mentality.
Probably the biggest conundrum I encounter on a regular basis are complaints from people who are unhappy with their existing financial situation, but who aren't doing everything possible to improve.
There are actually people out there who only work 40 hours a week or less who complain about their financial situation! Why not just try harder to get ahead? Why attack someone who has what you have instead of working on yourself? We are only owed what we deserve.
Should you work harder or relax when you don't enjoy your job?
Working at a job you don't enjoy to make money to survive is very depressing. You're a slave to your needs and wants. The hope for my book is to empower people to stop being too afraid to run out the door. Waking up 12 years later filled with regret about time wasted is horrible.
The key is to build a big enough financial nut that matters. There will be an inflection point where you start making enough money from your financial nut that you no longer need to work as hard or work at all.
We are talking about principal gains to your portfolio and not passive income streams. Just imagine if you had $2 million invested in the S&P500 index on Jan 1, 2013. You would be up around $500,000! The same goes with holding similar amounts of real estate in markets such as Vegas, Oakland, San Diego, San Francisco, and Seattle.
Work harder or relax?
Of course it's much easier said than done to amass a large financial nut and actually have the guts to invest the money. But the point is that if you are a hard worker who can't ever seem to relax beyond the normal vacation periods, your mindset will eventually change the more you accumulate.
The value of time begins to trump the value of money as you no longer feel good chasing the all-mighty dollar. Do not kid yourself. If you are working at a job you don't enjoy, even if you don't make a lot of money, you are a dollar chaser.
You Need Less Thank You Think
The biggest discomfort for those who decide to relax when times are good is the fear of losing ground. Why not make lots of money in your investments AND at work? There's really no limit to how much money you can make. We've just got to decide for ourselves how much is enough to be happy and stick to that figure.
Now that I've been out of the work force for almost two years, I'm becoming more enlightened to the fact that it's absolutely crazy to work so hard at a job for money if you aren't happy at least 70% of the time.
If you're making at least the median income level for your area, you need much less than you think to enjoy life. I promise you will be much happier working at a job that pays less, but provides more satisfaction than at a job that pays 50% more but makes you dread coming to work.
The “one more year syndrome” is so difficult to break. But when you do, you'll wonder what took you so long.
Negotiate A Severance Package
Never quit your job, get laid off instead if you want to move on. Negotiating a severance package provided me with six years worth of living expenses to help me focus on my online media business.
Check out my book, How To Engineer Your Layoff: Make A Small Fortune By Saying Good-bye. The book is recently updated if you want to learn how to negotiate a severance package and do your own thing.
Start your own business
One of the best ways to make more money is to take matters into your own hand and start your own business online! It used to cost a fortune and a lot of employees to start your business. Now you can start it for next to nothing with Bluehost.
Brand yourself online, connect with like-minded people, find new consulting gigs, and potentially make a good amount of income online one day by selling your product or recommending other great products.
Not a day goes by where I'm not thankful for starting Financial Samurai in 2009. I have maximum freedom now thanks to working on my side-hustle while working for 2.5 years. You never know where your journey will take you!
Updated for 2020 and beyond. The 11 year bull market has so far been amazing!