I’m long overdue to share some big personal finance news with you: I’m unemployed! Or, FIRE’d (read on for a “FIRE” definition if you’re not sure what that is)! Or both? It’s complicated. You decide.
As some readers might recall, I went through a “restructuring” job relocation scenario last year at MegaCorp and my teammates and I were given the “option” to keep our jobs via relocating to NYC or the Bay area. Alternatively, we were given a small time window to find other roles at the company. I’m not one to relocate when an employer suggests it – so I opted to stay put in favor of a short term-limited rotational role that lasted through Mid-April, where I backfilled for a member of a different team that was on leave.
The temporary role went well and it reinvigorated my intent to continue my time with MegaCorp. COVID-19 had other plans for me. When it came time to find my next role, towards the end of my rotation in March, COVID hit, a work-from-home order was implemented, hiring ground to a halt with the pandemic and economic uncertainty, and MegaCorp implemented a company-wide hiring freeze as a final anti-climactic nail in the coffin for my time at the company.
I would have liked to have continued my tenure, at least until economic and public health conditions returned to a relative normal – whenever that may have been (though I’m starting to doubt we’ll ever return to an old normal – I think we’re in an indefinite new normal). It’s not particularly fulfilling to be confined in relative isolation at home during a pandemic, after all. But, fate had different plans for me.
I’m not bitter. I had a great run in 13 years at MegaCorp. In the role where I spent the majority of my time at the company, I finished #1 globally in revenue in the history of my organization – among thousands of colleagues – and by a large margin <pats self on back>. I even finished with 2 of the strongest quarters in the history of the organization on my way out the door, as an encore, for any doubters. I also had a chance to experience 5 other roles at the company over the years, which broadened my skillset, and allowed me to make a lot of new friends and acquaintances. It took a team shutting down in my office, a fixed end date, and zero hiring due to an unforeseen global pandemic to kill me off – not quotas, stress to perform, or mismanagement from one of 15 ambitious managers I reported to in my time at the company.
As I’ve stated before, luck – both good and bad – can be one of the biggest determining factors of your financial fate. I had a lot of good luck for most of my tenure, and a lot of bad luck in my exit. This is why I recently stressed the importance of looking at work as a temporary transactional opportunity. Your current employment status quo is never 100% guaranteed indefinitely (even nurses and other critical, high-demand health professionals have faced layoffs during the pandemic). So, make it count while you can, particularly from a relationship and personal savings standpoint for the hard work that you do, because the future is unpredictable. Time and independence are more valuable assets to purchase than luxury and stuff, so save as much as you can while you can. Your earnings at the beginning of your career have a critical impact on your lifetime earnings.
This is the first time that I’ve not been employed since college, but nobody should feel sorry for me. In fact, by walking the walk on what I’ve been preaching on this site for so many years, I’ve built up a safety net that allows me the luxury of choosing whatever I would like to do moving forward.
Am I “FIRE’d”? What is the Definition of “FIRE”, Really?
If you’re a reader of this site, you are probably familiar with the concept of “FIRE” – short for “Financially Independent, Retired Early”. It’s a concept that I have been drawn to.
Am I FIRE’d? Well, by traditional standards, my status is unemployed and looking at the moment. But, I could be FIRE’d by most people’s definition (if absent the looking part). We’ve lived a very low-cost lifestyle, which has boosted our household personal savings rate to a very high level. By definition, the “Financially Independent” part of FIRE is reached when your annual investment income surpasses your annual cost of living (often referred to as “the crossover point“) – and we’ll pass that most years. With the “Retired Early” part, many experts recommend a saving level equivalent to at least 25X annual expenses, which allows for a safe withdrawal rate of 4% or below. Check mark on that too (important note: it doesn’t require a fortune when your expenses are low)!
But… I value freedom. Including the freedom to not be labeled. I’m not going to box myself in with a label or an indefinite status as many have done when reaching a similar status (and then consequently criticized when deviating from that label). Since April, I’ve been doing a lot of reflection about what is next for me. I’ve entertained the idea of rejoining MegaCorp, I’ve searched for other interesting roles (which are very limited with all of the continued uncertainty and historically high unemployment), and I have even played around with the possibility of purchasing or investing in a bike shop!
If I had to summarize the path forward for me, it’s this:
- I will continue to look for things to do that I’m excited or passionate about.
- When I find those things (or they find me), I’ll do them.
- If those things result in income, that’s a bonus.
So, label it what you will, but the output is that I will be doing productive things with my time, when I find them, and some of them will result in added income, whenever that may be. Notably, I will not be beholden to any employer simply for the paycheck. That much is certain. And while my delivery of this news may come across as anti-climactic, that is the big climactic payoff of this story.
Much more to come. Carry on.
Update: here’s my 6-month FIRE update and 1-year FIRE update.
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Congrats for getting laid off! Were you able to get a severance? The severance was my catalyst to leave in 2012, otherwise, I woulda have probably just continued.
Sam
Yessir. That definitely made the departure more palatable.
Enjoy the time off! I can relate, but it was a painful time for me. I was blindsided with a laid-off ~3 months ago. The time was mostly not used so wisely, but reading your articles really helped me re-affirm my footing as an independent person. I wanted to thank you for that.. Keep ya head up!
Glad I could help. I think anyone laid off during this time gets a bit of a free pass to not be overly productive. At least for 3 months… ;-)
Good luck! If you’re comfortable sharing, I think your readers would benefit from reading about your experience with filing for unemployment.
Congratulations on FIREing. Welcome to the club! I FIRE’d exactly one year ago and spent the last 12 months mentoring high school students as a volunteer through a nonprofit. It’s been a lot of fun. I hope you find the next thing that excites you and gives you purpose!
Wow – that’s an excellent way to build in some purpose – cheers to you. Are you still able to mentor these days virtually or otherwise?
Congrats on achieving a comfortable FIRE! Best of luck on your next adventures.
Thanks, Michael A!
G.E., the best part of working is when you’re not FORCED to do it. You’ve been very responsible with your employees aka money and they have worked very hard for you. They are allowing you not to stress over not having a job. They are affording you the freedom and mental comfort that most Americans will never enjoy. I read extreme gratitude in your post as you should be. You sacrificed earlier to enjoy this freedom. Bravo, young man!!!
Yes. Once the lock downs occurred we moved mentoring sessions and classes to Google Meet. Google Meet has been a very useful tool and allows students from overseas to join in the classes. I think I learn more from listening to the students than the students learn from me when I teach my classes!
Love it – thanks for the inspiring message, Sir.
Congrataulations on your accomplishments on your last job: they sound very fulfilling. Also on your new status, and financial independance.
I keep responding (mostly in my head) to financial “experts” who criticize FIRE that the “retire” part isn’t mandatory. It’s not a command. The “financial independence” part is the important thing we want to achieve (and that’s the part that corporations are more afraid of.)
And, as luck goes, it seems rather good luck that you didn’t choose to move to NYC (outrageous housing costs and very severe pandemic) or the Bay (even more outrageous housing costs, and currently on fire, which is, now I think of it, the only thing that will, in the end, bring the prices down.)
Yes – at the time I made the decision not to move (end of last summer), I couldn’t have predicted either situation. I don’t think I would have been very happy with either location, but now I am fairly certain of that. NYC has recovered well, but it’s still not a place you want to be during a pandemic obviously (same for Bay). And it is awful what is happening in CA right now with the fires. This seems to be an annual new normal for CA, sadly.
Congratulations on getting more time. We FIRE’d last year, July 1, 2019 to be exact. My husband started volunteering to teach Computer Science in our local high school. Funny, when he have to introduce himself to the students – “I’m a retired Software Engineer..” and the teachers started asking him how to retire early. I’m still trying to find my purpose. Right now, it’s being a full time parent for a 3 yr old and a 7 month old. I tell myself that I’ll figure it out once the youngest is in Kindergarten.
Sounds like your going to be alright G.E.. I’m looking forward too reading all about the updates coming ahead. Who knows you could blog full time. I’m happy for you sir.
Glad to hear you have such a healthy perspective about this news. So many people panic when they lose their job and then just take the first job that they offered–even if it really is not the best job for them
I feel like for high achievers capable of actually hitting all of the requisite FIRE related breakpoints, the end state goal isn’t actually retirement, but the knowledge that financial motivations now comprehensively are not at the forefront changes outlook, and work becomes a different type of transactional opportunity, instead of requisite activity to maintain lifestyle and sustenance.
In our case, this has been electing to not work full time already, spending that time with kids and working on side projects, finishing up education goals (admittedly with huge financial assistance from this and previous work). It really is a case of previous sacrifices having a real payoff, and the nature of exponential growth really means the upslope on that effect has no end, provided you don’t fundamentally change spending habits (which in our case, was kids, and that will be its own challenge).
I suspect your answer will be to leverage teleworking capabilities of the ‘new normal’, use this downtime to get out ahead, and your niche will rapidly become the telecommuting consultant type, and you’ll be able to graciously allow companies to fly you out to destinations that you want to combine with a vacation anyway. Sounds utterly miserable ;)
Congrats! Inspirational. :)
Good luck on the future and keep us updated!