One of the reasons why I am so enthusiastic about my book, How To Engineer Your Layoff, is I want to teach more people like you how to potentially double or triple your income. You could essentially earn more than you've ever earned before.
I know some of you are scratching your heads wondering what on earth I'm talking about. Getting laid off typically means no more job income, unless we count unemployment benefits.
Don't worry, I'm not talking about unemployment benefits. Although you should claim unemployment benefits if you're no longer working. You should have been paying into the system through your W2 payroll taxes after all.
Instead, I want to explain why being laid off could be one of your best financial and mental decisions ever.
Profitable Negotiations Can Triple Your Income
If you're one of the hundreds that have read my book, How To Engineer Your Layoff, you're now prepared to take the leap of faith and negotiate a severance from your employer. If you haven't read it yet, you can purchase it here.
You're no longer afraid of your boss, human resources manager, or the legal and compliance department that watches your every move to protect the firm.
Instead, you've essentially leveled the playing field and equipped yourself with knowledge and a framework to succeed. You also now understand that you could very well be doing your firm a big favor.
I want to provide you a very common example of how I worked with a client to successfully engineer her layoff and double her income. Then, I will highlight how another client managed to triple his income. Read on.
How To Double Your Income By Quitting Your Job
Marie worked at one of the major department stores as a clothing buyer for five years. She made about $70,000 a year, but wanted to do something different with her life now that she was 30 years old.
During every year in her 20's she was absorbed with fashion, studying, following, and participating in every way possible. Unfortunately, she grew tired of the industry. In addition, her colleagues began to get on her nerves.
Marie and I worked on a six month game plan to engineer her layoff. Part of the plan was to discover new companies she'd like to work for. Marie made a list of five companies in the internet space, three companies in retail, and one company that was a direct competitor.
The idea was to get her talking to people at her target firms over the next six months. This way when she finally got laid off, she'd already have established relationships. As a result she wouldn't come across as desperate when she asking for a reference.
6.5 months after we launched our plan, Marie got laid off with the following severance package:
- Two months of base pay as part of the California Warn Act: $11,667
- 10 weeks of severance: $13,461
- Six months of COBRA (Health Insurance): $2,100
- 15 days of unused vacation: $2,876
- Eligibility for unemployment benefits: $1,800 a month
Total Severance Excluding Unemployment Benefits: $30,104
The reason why we're excluding unemployment benefits is because Marie got a new job two weeks later at a startup for the same salary!
Her severance of $13,461 was paid in a lump sum a week after separation. Meanwhile, I recommended Marie negotiate a start date 1.5 months from the offer. This way she got a 1.5 month vacation fully paid for by her old employer thanks to the WARN Act!
Marie took my advice and essentially doubled her income for three months once she started thanks to her severance package.
How To Triple Your Income By Quitting Your Job
Joe is an investment banker who worked at the same firm for eight years. He got sick of the industry due to the long hours, pay declines, and lack of fun. Things were a blast in the late 1990's. But now, his industry is under the microscope of regulators, politicians, and the public.
His compensation structure was a base salary of $200,000 and a discretionary bonus. It ranged from $0-$350,000, which is ultimately split 50% cash and 50% stock.
The stock component vests by 33% a year for three years. As you can tell, after three years, Joe's stock portion can equal as much as his entire average year end bonus!
I also worked with Joe to set up a plan to engineer his layoff based off the framework in my book. Since Joe had recently got paid his annual, he was anxious to make his exit as quick as possible. Hence, we worked on a two month plan to get him the hell out.
Joe successfully engineered his layoff with the following severance package:
- Two months of base pay as part of the California Warn Act: $33,333
- 24 weeks of severance: $92,307
- Six months of COBRA (Health Insurance): $3,600
- 25 days of unused vacation: $13,698
- Eligibility for unemployment benefits: $1,800 a month
Total Severance Excluding Unemployment Benefits: $139,338
His total of $139,338, excluding $1,800 a month in unemployment benefits, is a pretty penny. Joe would be a fool to just quit and not engineer his layoff. He was able to get a severance package completely above board. In addition, he also got three years of deferred compensation in the form of stock!
Joe has roughly $220,000 in company stock which gets vested in roughly $73,333 increments a year over the next three years. Each spring, Joe will receive net proceeds after tax of roughly $51,000.
By engineering his layoff, Joe is now triple dipping his income. Earlier this month, he joined one of his long time clients on the corporate side!
Thus, Joe earned $92,307 in a lump sum severance, is now earning an undisclosed amount at his new job. In addition, he's got three years of deferred income coming in at $73,333 gross a year no matter what!
To Triple Your Income, Plan And Plan Some More
As you can see from the two real life examples above, engineering your layoff can double or even triple your income for a period of time. I talk to so many people who are afraid of getting laid off because they lack awareness.
Without the guidance and insights available in my book, those who are afraid don't know yet how to negotiate. Nor do they know their powerful rights as employees.
My book encourages you to plan, build relationships, and execute strategies I used for my clients and my own six-year separation package. The playing field is completely unfair if you plan to quit your job with nothing.
I know this because I was a manager for the last five years of my career. As a result, I went through an intensive amount of managerial training. In addition, I got the HR and Legal departments on my side. Employees, on the other hand, have nobody but themselves.
An Opportunity To Double Or Triple Your Income Awaits
Knowledge is power. It's the only way you'll be able to negotiate your worth upon departure. You must devise a plan and work on it over the normal course of three to six months.
Some of you might take longer. I patiently took two years to engineer my own layoff. Ultimately, there's no magic bullet to leaving your job with a nice goodbye gift. You've got to work for it if you want the chance to triple your income.
Again, please never just quit your job if you've been there for longer than even just a year. You will leave real money on the table to your employer's delight.
Don't Leave Money On The Table
For example, I know a guy who just quit his job because he was so confident he could find another job for similar pay within six months. Well, it's been nine months and he's still jobless, with no unemployment benefits, and a completely spent emergency fund. If he had engineered his layoff instead he'd have been much better off.
Another person I know quit her job because she wanted to leave on “good” terms just in case her freelancing failed and she wanted to come back. Turns out her freelancing efforts did fail and she's also burned through all her savings. To add insult to injury, her old employer has a hiring freeze and won't let her come back.
Speak Up For Yourself And Get Paid
I don't know what will become of these two folks, but I will certainly try and help them out. Don't be so cavalier with your career or life by not researching all your rights and arming your brain with knowledge before quitting your job. You are worth more than you think!
If you're planning on leaving your job anyway, ask yourself what's the worst that could happen if you try and negotiate a severance? I strongly believe if you don't ask, you don't get. Look out for your own best interests in your career and journey to growing wealth.
Learn More, Make More Money
Here are some additional resources I've put together that will help you on your financial journey to earn more, save more, and hopefully double or triple your income!
- Take advantage of free online financial tools: Free Wealth Management
- Explore my top financial products recommendations
- Learn how much you should aim to have saved in your 401(k) by different ages. The numbers could surprise you.
- Look beyond your salary and start earning passive income. Here are the best passive income streams I recommend.
Stay In Touch
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Readers, what would you do with an extra $13,000-$100,000 dollars in severance money if you had another similar paying job lined up?
Do you think people are unaware of their rights as employees, and therefore are unaware of how large severance packages can be?
Why don't more people try and engineer their layoffs?
Note: If you've barely worked at your job for a year and are miserable, suck it up! You've got to pay your dues, because nobody will care that you want it, and you want it now.
The good thing is you now have the opportunity to empower yourself with knowledge and devise a plan. There is no magic Genie who is going to save you. Put in the effort once you've armed yourself with knowledge. Nothing good comes easy after all, but it's worth it in the end!
Buy How To Engineer Your Layoff: Make A Small Fortune Walking Away. It's newly updated with more case studies and strategies than ever before!