On Yakezie.com, I write 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.
On the flip side, I interview my friend Jun Loayza from RewardMe on Untemplater.com to understand the joys and tribulations of entrepreneurship. 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. The transition will just lead me straight towards becoming a full-time entrepreneur.
We really don’t need that much to survive if you 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 $60,000 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 $60k in SF is like $45k 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!
It’s been around six years since I started ONIG Financial Blog and I’m actually earning a good passive and active income stream online now. The top 1% of all posts on ONIG Financial Blog generates 31% of all traffic. The average age of the top 1% posts is 2.3 years old. In other words, after putting in the hours to write some very meaty content over two years ago, 10 posts consistently generate a monthly recurring income stream that’s completely passive.
I never thought I’d be able to quit my job in 2012 just three years after starting ONIG Financial Blog. But by starting one financial crisis day in 2009, ONIG Financial Blog 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!
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 180 pages from 100 pages in the 3rd edition thanks to tremendous reader feedback and successful case studies.