Getting fired sucks. You won't be able to collect unemployment benefits. But it might not be so bad for your life in the long run.
On Yakezie.com, I wrote a post about what I'd do if I got laid off tomorrow. Go check it out. I am the perennial optimist and try to see the good in everything.
However, black clouds are coming, and they are going to start throwing lightning bolts very soon! I've seen this movie before in 1997-1998, 2000-2005, 2008-2009, and now 2011-X. Things never end well in booms and busts. We saw more busts in 2020 and 2022.
Buckle down for a potential recession.
On the flip side, I interview my friend Jun Loayza from RewardMe on Untemplater.com to understand the joys and tribulations of entrepreneurship.
Getting Fired Might Not Be So Bad
He quit his six-figure job in the social media space to go launch a start-up in Silicon Valley. He was kind enough to answer a ton of questions such as how he got the courage to quit, whether to raise money or bootstrap, and how one should balance profitability and market share. Its a 2,400 word interview so I've broken it up into two posts.
From both posts, I find an interesting introspection. On the one hand, I'm bracing for potential employment and income pain. On the other hand, I realize that there are plenty of other things to do to make money and spend one's time on.
If the decision is made for me, then so be it as clearly I was not good enough for the job. Getting fired isn't going to happen. The transition will just lead me straight towards becoming a full-time entrepreneur.
Don't Need Much To Survive
We really don't need that much to survive if I think about it. And since we don't need much to survive, the hurdle rate to replace that income is quite low.
A couple with or without a kid can get by on $80,000 of income combined in San Francisco. If the couple were to move to any other city in America besides New York City, they'd probably lead a pretty comfortable life as $80k in SF is like $40k elsewhere.
I could live off $30,000 gross a year in SF ($15-20K elsewhere) for at least a couple years as I go find a roomie to shack up with and cut costs. $1,600/month in unemployment for 99 weeks + some a cash job teaching tennis would do it!
However, some people are scraping by on $500,000 a year! These people are all caught up in the rate race and hardly ever see their kids.
And in 2024+, thanks to inflation, some families feel like they need to earn $300,000 a year just to stay middle class.
Consider Starting A Website
I started Financial Samurai in 2009. Today, I'm actually earning a good passive and active income stream online now.
I never thought I'd be able to leave my job in 2012 just three years after starting Financial Samurai. But by starting one financial crisis day in 2009, Financial Samurai actually makes more than my entire passive income total that took 15 years to build.
If you enjoy writing, creating, connecting with people online, and enjoying more freedom, see how you can set up a WordPress blog in 15 minutes like mine w/ my step-by-step tutorial. You never know where the journey will take you!
Recommendation For Leaving A Job
If you want to leave a job you no longer enjoy, I negotiating a severance instead of quitting. If you negotiate a severance like I did back in 2012, you not only get a severance check, but potentially subsidized healthcare, deferred compensation, and worker training.
Since you got laid off, you're also eligible for up to 27 weeks of unemployment benefits. Having a financial runway is huge during your transition period.
Conversely, if you quit your job you get nothing. Check out, How To Engineer Your Layoff: Make A Small Fortune By Saying Goodbye, on how to negotiate a severance.
I first published the book in 2012 and have since expanded it to 200 pages from 100 pages in the latest edition thanks to tremendous reader feedback and successful case studies.
Both my wife negotiated six-figure severance packages to be free. Please never quit your job. Getting fired is a no no. Instead, get laid off, collect unemployment, and negotiate a severance package to help you with your next life!