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| Spruce Knob, WV |
Since the emergence of Covid-19 in 2020, I’ve been reading up on various news articles about the “Great Resignation”. Upon initially hearing about this phenomenon, I thought it made perfect sense. Living through a once-in-a century pandemic, where people are dying in droves, will no doubt change one’s perspectives on life.
People will try to make sense of all this as they start realizing their own mortality. Many will wonder what life is and what is really important in life. Many, like I did, will come to the conclusion that life is just way too short. Because of that we should try to live the best life we possibly could now, rather than wait for the perfect or the ideal time…
In reading between the lines, there are always nuances in analyzing any data sets. The Great Resignation is no different. There are multiple reasons why people quit.
People may leave/resign because they’re fed up with or tired of working that job. Many may seek better working conditions, better benefits, or leave the retail/hospitality industry altogether, in search of better opportunities and/or careers.
This act of quitting creates an unintended consequence in which those coworkers who are still at that work, must now take up the slack left by the resignee. This starts a vicious cycle where more people will leave the job due to increased stress coming from extra responsibilities and extra work.
I know what it’s like to pick up the slack when my coworker was out sick or was on vacation. It meant all of us working had to do more, and be stressed more. I remember those times vividly…
For a job that requires 5 people to do well on any given day, it’s next to impossible for 3 or 4 people to do the same job. It was not one of the days I enjoyed, to say the least.
The moment I found out someone was out unscheduled was the beginning of my misery. I knew what that meant while working my last job. That meant, the rest of us, had to keep up with the call volume/email volume throughout the day. If that day was a Monday, it was absolutely the worst, as Mondays were our busiest days.
Nobody likes working extra, with more stress, for the same money! I can only imagine what it’s like for those who are still working while coworkers leave one by one…Hell, I would also seriously consider leaving the job in that same situation!
One other reason why people are quitting is due to those close to retirement age (mid 50’s or older) resigning their positions and retiring early, thanks to rising home prices and rising stock markets (at least until the end of 2021). These folks are the lucky ones, who are in envious position of being able to retire early.
For those of you that know me, I always talk about having a back up plan or two. This way, you always have options when navigating through this interesting thing, called life.
And it is for this reason, why I think everyone should try to achieve financial independence. This way, you can choose to work or retire, depending on what makes you happy. If another life changing event were to happen, you are prepared to “float like a butterfly, and sting like a bee.”
Here are my thoughts and recommendations on how to get to that point of being financially independent:
- Life will kick your ass whether you’re ready or not
You can either live your life prepared or not prepared. To live unprepared means any small kick in the ass, will be an emergency. Any bad thing that will happen (job loss, injury, illness, etc.) will set you back or wipe you out.
I’ve seen too many documentaries on how someone living a middle class lifestyle, can become homeless with a job loss. For those that do not have a good support system like a family/friends nearby, a job loss for most people will be a disaster. If you can’t pay the rent, and you don’t have an emergency fund, and/or you can’t find a job quickly enough, then you’re out of options.
Nobody said life is fair. My family was evicted from our apartment when I was 11 years old. We had to live with our uncle in his studio apartment for about 2 months. I certainly know life can be a pain, and let me tell you, it’s definitely not fair.
We all have to prepare for the worst, because to live our lives without being prepared, means life’s temper tantrums will become a disaster. I don’t ever want to be evicted, or be in a similar situation where I’m completely helpless and hopeless…
Always have this mind set to prepare for the worst and good things will start to happen.
- Have an emergency fund, please!!!
This is the most important thing to have so you don’t go insane when life kicks you in the ass. Strive to save something each paycheck in an online savings account, then increase it on a regular basis.
The ultimate goal is to have several months worth of your expenses, but don’t stop there. As I mentioned in the past, strive for a year’s worth of expenses or more!
You’ll sleep better at night not having to worry about life when something bad happens.
- Budget, please! This should always be something you should be doing…
Without budgeting, you will not know how much money is being wasted each month. Write down everything to figure out where all your money is going.
Cut out what you can (coffees bought from stores, groceries, shopping trips, multiple monthly subscriptions, etc.), then put away more towards your emergency fund.
- Once you have a good emergency fund set up, pay off debt AND ramp up your retirement savings
Debt (good debt or not), is still debt. The less you have of debt, the more money you’ll have.
Work towards paying off your debt(s) as quickly as you can. Plan/commit to how much you’re going to pay off each month.
As you’re doing this, be sure to ramp up your retirement savings as well.
Note: If you’re new to this blog, please search for ‘Importance of…’ Series. There are posts that deal with the importance of things like emergency fund, budgeting, retirement accounts, etc.
- Keep figuring out ways you can ramp up more money towards your retirement accounts
With proper budgeting mastered, and with an emergency fund ready to go, always think of ways you can ramp up more towards your retirement accounts. You’ll be amazed how much you can save towards your retirement once you start to see your money grow.
Getting to your first $100,000 is incredibly difficult, but once you do, the magic of compounding interest will start to do wonders for your financial future!
In conclusion:
No one said getting to financial independence is easy. It requires dedication, sacrifice, hard work, and forgoing what most people do, to get there. Sometimes it’s doing things that’s not fun, or glamorous like forgoing your favorite drink from Starbucks, forgoing a concert to your favorite artist, or forgoing a vacation to the latest hot vacation spot.
While you’re living this way, others may look down at you or worse, point fingers at you, for being cheap, frugal, fill in the blank. What’s important is to be steadfast in your dedication to achieving financial goals and eventually financial independence.
Like I said, it’ll be hard doing things your way when everyone else seems to be having a great time. Just know that your sacrifices will all be worth it when you do achieve your goals. You’ll have options that others will only dream about. You can choose to work or not work. You can choose to go travel to a new destination for a month (or longer) just because you can…
Starting with budgeting, having an emergency fund, then paying off your debt, are all steps that most financially savvy people have done to get to early retirement.
In this age of constant technological upheavals and societal upheavals, it’s more important than ever, to be prepared. Don’t be that person who refuses to go with the times and to adapt. Don’t think the job you’re doing now will always be there next 20-30 years.
Always prepare for the worst! Prepare for these upheavals by doing what you can, which is to strive to become financially independent. It will be a goal worth achieving…
Thank you all for reading!
Jake
Wandering Money Pig
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