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| Prepare for involuntary termination… |
Steve Jobs: “I didn’t see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.”
Recently, I was watching a TV show where main characters working at a technology company, were given a choice between voluntary retirement or involuntary termination. Even though it was a make believe TV show, it brought back memories of my involuntary termination at a car dealership eons ago.
I walked in to the dealership after a week long vacation in early January, and was asked to come in to the supervisor’s office. There was the used car manager and the finance/insurance manager waiting for me.
They asked me to sit down, then told me that they were letting me go due to my low sales numbers. I told them that January is a slow month for everyone, but I quickly realized that they already had their minds made up…
I finished listening to what they had to say, then I said my goodbyes to everyone who was there that day. One of them offered to contact a sales manager he knew at a Lexus dealership for a sales consultant position. I thanked him, but I declined.
I cleaned out my desk, then drove back home. I contacted several people who I had sold cars to, asking if their company was hiring an IT technician or help desk technician. In the end, none of them were able to help.
It got me thinking how vulnerable I was to a job loss. A job, at that point in my life, was the most important thing in my life. It’s what paid my mortgage, paid for the utilities, and paid for food on the table.
I broke the news of my termination to my wife, and it was a devastating news. Her retail job income wouldn’t cover all our bills. We wondered how we were going to make the next few months mortgage. It was a stressful period…
The same day I was fired, I applied for unemployment. After initially getting turned down, the state unemployment agency changed their minds for some reason, and decided to pay half of my paycheck. We counted our blessings and thought we were lucky to get even that.
With our bills taken care of, I thought hard about my next move. I didn’t want to go back to selling cars, as I knew there really wasn’t a future in the industry for me. I wasn’t an aggressive salesperson who would use questionable tactics to get a sale.
My selling style was to help/consult with buyers, and low key. I knew many dealerships were looking for aggressive salespeople and not someone like me…
I decided then that I would go back to the IT field. My previous IT job had been several years ago, so I needed to brush up on my IT stuff. I immediately bought a book on Windows XP Operating System, which was what was being used at the time (2007).
The following month, I took my certification test and passed. It was then that I started to apply to all kinds of IT technician/IT help desk positions.
I got an interview request at the company that would allow me to retire early. Long story short, everything worked out! Fast forward to now, my wife and I are happily retired.
Looking back, what that job loss taught me was how fragile we all are to a job loss, whether it’s involuntary or voluntary. We depend so much on that paycheck, that to not have a paycheck, is simply devastating.
I promised myself then, that I will never be in that helpless state, ever again. I promised to always have a Plan B (or Plan C, Plan D, etc.) whenever life throws a curve at you.
With that long and winding preface, I’d like to share my recommendations on how to prepare for a job loss (or anything life throws at you):
- Stop living paycheck to paycheck
This is obviously simple yet so hard to actually do. We were in the same boat. We didn’t think about a job loss as it was too depressing to consider. We didn’t think it could happen to us. We were in denial…
By controlling your spending, you should and must always prepare for the worst. Figure out the needs vs wants. The quicker you figure this out, the better your financial situation will be…
I hear so many reports lately that most people can’t come up with $1000 in an emergency. I hate to ask what a job loss will do to their finances…
- Budget, budget, and budget again!
Budgeting goes hand in hand with not living paycheck to paycheck. You must figure out how much is coming in vs going out.
When you get this figured out, then you can start saving for the future, including…
Emergency fund is what you need to not panic when life throws a curve at you. Prepare one, as I guarantee that you’ll run into this thing called life. Life will happen: Your car will break, you may need to see a dentist or a doctor, your home roof needs repairs, your kid wants to go to a summer camp, etc.
Having an emergency fund will allow you to breathe easier when things happen. If you get fired or laid off, you can plan your next move, without panicking.
If you have a 401k or an IRA, add to it diligently. Use the power of compounding interest to let your money earn more money. Use time wisely. The more time you have, the more money you’ll make thanks to the power of compounding interest.
- Once all these things above are put in motion, create Plan B, Plan C, Plan D, etc.
Once you budget, live within your means, have an emergency fund, and invest diligently, you should now be able to create a backup plan or plans.
If you do get fired/laid off, take the time to learn or relearn a skill that pays better. Like Steve Jobs quote above, his involuntary termination turned out to be a great creative period in his life.
Take this negativity then turn it into positivity. Stop blaming yourself, the management, the company, or the universe for your mishap. This never did anyone any good…If blaming someone or something fixed all your issues, then everyone would be happy right now, but this is obviously not the case…
In conclusion:
Getting fired from that job brought out some strong emotions, such as anger, despair, blame, uncertainty, and hopelessness. It’s never fun to go through a job loss knowing how devastating it is to not have a paycheck coming…
Looking back, like Steve Jobs, I feel it was the best thing that could’ve happened to me. If it wasn’t for that job loss, I would be stuck selling cars, getting fired few more times, and reliving a Groundhog Day.
That job loss propelled me to relearn a skill (IT technician) that would allow us to retire early.
By doing all the things listed above, we were eventually in a better place where we can deal with life’s tantrums. We no longer needed to worry about what’s to come, knowing well that we’ve paid our dues, and did (mostly) the right things to get to that enviable position in our lives.
To be financially independent means more than just being able to retire early. Some of you may not want to retire because your current job provides fulfillment and satisfaction, while some of you can’t wait to retire.
Whether or not you want to retire or not, it’s a satisfying feeling to know you can retire if you wanted to. This is where you want to be, to have the wherewithal to withstand whatever life throws at you AND/OR to have the option to retire if you wanted to…
We wish you the best of luck in your journey to reach that comforting place!
Thank you all for reading!
Jake
Wandering Money Pig
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