For anyone who evolved from a salaried employee to an entrepreneur or business owner, the consideration for the loss of the total cost of employment needs to be evaluated and considered at some point in time.
As an employee worker myself, we are often over-represented by the amount of gross salary we earned, without factoring other remuneration or benefits which could be equally as important to making decisions. Other benefits that we should be factoring in our consideration should also include our performance variable bonus, annual wage supplement, medical, paid leave, allowances, social security employer’s contribution and others. These are the monetary factors which can easily be converted and factored into the total cost of employment.
Then there are the non-monetary benefits which should also be considered – interaction with colleagues, social activities and corporate fighting mentality. Once we leave the corporate world, we leave all of these things behind us and start afresh to a new challenge.
For someone who wishes to leave the corporate world one day, I know things can get very difficult when I had to make the decisions one day. The idea of leaving the benefits the corporate world can get – both monetary and non-monetary, which I have enjoyed over the past decade will all be gone to start a new life afresh.
Kyith, the author of Investmentmoats, proposes in his recent article to try and test out our goals before we decide to make the leaps.
What this means is assuming you are ready to step out of the corporate rat race, do test whether your finances can hold without the need to depend on your monthly salary and whether your character can withstand the time without companion of your colleagues.
Further, also do a test on what you envision life is like after you leave the corporate world. For example, if you decide to spend your time on becoming a house husband – cleaning the house and cooking for the family – do try if it is something you can sustain and enjoy for long periods of time. If you decide to live in another country for an extended stay, do also try out if that is something feasible and worth the while in the long run.
Speaking to some early retirees from the corporate world, I usually get mixed reviews but a common theme. While some are enjoying their flexible time doing anything they could, some feels like there can be instances where you suddenly have too much time and if you are not discipline about it, it could soon turn out to become a lazy attitude.
I guess with potentially another 4 more years of corporate working on my side, it’s prudent to test every scenario out from now on.
For those who has successfully “retired”, how has the transition been?
Beside than the monetary consideration, one would also need to take into account of emotion (frustration, pressure etc) when leaving the corporate world.
Yes, there are many intangible perk we can enjoy while we at corporate level.
To some (like me), enough is enough.
After being leaving the corporate world for 5 years, I am happier and free to roam around to do things at my own pace. Own time own target.
thanks raymond for that contribution. does that mean some people will learn to miss that kind of frustration?
I'm sure to some extent they will.
It's the kind of pressure that will make you think outside the box and outside your comfort zone. Even as I dislike my corporate lifestyle, I have to admit that they have been useful throughout in my growing.
Ass…saya tidak menyanka kalau saya sudah bisa sesukses ini dan ini semua berkat bantuan MBAH RAWA GUMPALA,saya yang dulunya bukan siapa-siapa bahkan saya juga selalu dihina orang dan alhamdulillah kini sekaran saya sudah punya segalanya,itu semua atas bantuan beliau.Saya sangat berterimakasih banyak kepada MBAH RAWA GUMPALA atas bantuan nomor dan dana ghaibnya,alhamdulillah kini saya sudah bisa membuka usaha kembali yang dulunya pakum karna masalah faktor ekonomi dan kini kami sekeluarga sudah sangat serba berkecukupan dan tidak pernah lagi hutang sana sini,,bagi anda yang punya masalah keuangan jangan sungkan-sungkan untuk menhubungi MBAH RAWA GUMPALA karna insya allah beliau akan membantu semua masalah anda dan baru kali ini juga saya mendaptkan para normal yang sangat hebat dan benar-benar terbukti nyata,ini bukan hanya sekedar cerita tapi inilah kisah nyata yang benar-benar nyata dari saya
(((( BUKA BLO DANA GHAIB DAN NOMOR GHAIB MBAH RAWA GUMPALA ))))
Ass…saya tidak menyanka kalau saya sudah bisa sesukses ini dan ini semua berkat bantuan MBAH RAWA GUMPALA,saya yang dulunya bukan siapa-siapa bahkan saya juga selalu dihina orang dan alhamdulillah kini sekaran saya sudah punya segalanya,itu semua atas bantuan beliau.Saya sangat berterimakasih banyak kepada MBAH RAWA GUMPALA atas bantuan nomor dan dana ghaibnya,alhamdulillah kini saya sudah bisa membuka usaha kembali yang dulunya pakum karna masalah faktor ekonomi dan kini kami sekeluarga sudah sangat serba berkecukupan dan tidak pernah lagi hutang sana sini,,bagi anda yang punya masalah keuangan jangan sungkan-sungkan untuk menhubungi MBAH RAWA GUMPALA karna insya allah beliau akan membantu semua masalah anda dan baru kali ini juga saya mendaptkan para normal yang sangat hebat dan benar-benar terbukti nyata,ini bukan hanya sekedar cerita tapi inilah kisah nyata yang benar-benar nyata dari saya.
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Hello, I am Andrew Thompson currently living in CT USA, God has bless me with two kids and a lovely Wife, I promise to share this Testimony because of God favor in my life, 2days ago I was in desperate need of money so I thought of having a loan then I ran into wrong hands who claimed to be loan lender not knowing he was a scam. he collected 1,500.00 USD from me and refuse to email me since then I was confuse, but God came to my rescue, one faithful day I went to church after the service I share idea with a friend and she introduce me to LEXIE LOAN COMPANY, she said she was given 98,000.00 USD by MR LEXIE , THE MANAGING DIRECTOR OF LEXIE LOAN COMPANY. So I collected his email Address , he told me the rules and regulation and I followed, then after processing of the Documents, he gave me my loan of 55,000.00 USD… So if you are interested in a loan you can as well contact him on this Email: [email protected] or text +1(406) 946-0675 thanks, I am sure he will also help you.
Hi B,
If you are planning on entrepreneurship, you can always start something on the side to test the market before deciding whether you want to go all in on it.
It doesn't have to be a sudden transition, burn the bridges kind of thing. Especially when you got mouths to feed.
It's good to start earlier as well so you can identify all the problems with your business at an early stage.
For me I just dived straight in but I did it at an early age, without much liabilities or dependencies. The discomfort and no-looking-back approach will definitely force you to grow your skills and forge out a path.
The risks weren't as scary as I thought they were. But then again, I always had backup plans.
Just take note of 2 things:
– Beware of the comfortable life ( <<< corporate work can do that to you)
– Beware of living with regrets
Entrepreneurship will bring tremendous joy and satisfaction that a corporate world won't be able to provide. If you try it out and don't feel that joy… then stick to your corporate job.
Hi BFGF
Thanks for sharing your thoughts.
I think it's prudent for someone to test out entrepreneurship route while still having their full time job, but i just wonder how much time can be put to these side business.
If it were your case, then you have no choice but to spend 101% effort to build up your brand, but I get what you are trying to say 🙂
" but i just wonder how much time can be put to these side business"
If the side business shows tremendous growth potential and you seriously enjoy doing it, you WILL somehow find the time…
And then when it gets better, you will have to take the plunge.
Don't keep finding reasons to shift the goal post. Life is short.
The pace of life in Singapore is too rapid. We work and work all the time from the time we start school and it continues when we start work. It never ends! Since taxes are low, many Singaporeans also spend on luxury goods, condos, cars etc. For a few years, I have maintained a minimalist lifestyle as a single person. No car, no condo, no debt. In fact, I am considering downgrading to a 2 room BTO to keep my expenses down.
Like you, I am only a few years to being financially independent. When that day arrives, I can decide if I want to stop working completely, work part time (if i am bored) or continue with working full time (if i still enjoy my work). I now live in the west.
Hi Anonymous
Thanks for your well thoughts.
I completely agree with you and having kids of my own now, I can already feel how much he can be left behind if he doesn't keep up with the educational system here. And these things go on until you retire from traditional work age one day.
SG is such a competitive country that if you choose to be different, you need to accept the respective consequences as well, which can be anything ranges from good to bad.
renewed investor
I think i will still continue working even if i hv gained financial independence
Reason is to keep myself occupied & earn even more money
Hi Starlight
Interesting choices there to earn even more money after financial independence!!
"Kyith, the author of Investmentmoats, proposes in his recent article to try and test out our goals before we decide to make the leaps.
What this means is assuming you are ready to step out of the corporate rat race, do test whether your finances can hold without the need to depend on your monthly salary and whether your character can withstand the time without companion of your colleagues."
if you have to test, my sincere advice for you is to stay as an employee.
Hi SMK
I actually disagree there.
I think in life a lot of things are question until we actually try it out and see if we like the idea. It doesn't mean that everything in our concept is 100% right but if we have the chance to try that out, then we know if we actually like it or not.
At least, I definitely know I don't like to stay as employee 😉
the "test" in my previous comment is referring to those "mental exercises" that people believe can actually represent real life changes.
now. it is here that I reread your post and wondered if you are talking about transitioning from employee to full time man of leisure or transitioning from employee to employer/selfemployed.
if it is the former, I would like to take back all my comments regarding this. if it is the later, I would stick to my sincere advice.
Ahh yes ok I see now.
Perfectly makes sense 🙂
To me, one of the perks of corporate life is medical benefits. Don't under-estimate medical expenses, especially if you need long term medical treatment. – Touzi
i don't understand this. care to expand?
Hi Anonymous
Yep, medical benefits are considered under monetary benefits which we need to consider when making the transition.
At least now, if my entire family is sick, I know it'll be well covered under company for GP and I have insurance on them for more serious protection.
no wonder I don't consider that at all.
I see a GP at most once a year.
Hi B
Nvm. If after fi you don't like the lifestyle for say 1 year, you can still go back to the workforce with a bit pay cut. Accountant is always hot in demands. 🙂
Hi FD
Probably 0.0001% chance of going back after I quit permanently. After 10 years of doing, thanks but I rather spend my time elsewhere.
B,
I'll play the alternative voice here; the feedback loop is getting
a bit hilarious…
1) Entrepreneurs are the crash got sound people. They act first; figure out later.
These are the same people who will write memoirs to share if they knew how hard leaving their cushy jobs were; they would never have left!
2) If you have to do a benefit/cost analysis, you know you don't have it in you. That exercise is just an excuse to make you feel better. You know it; I know it.
And if your colleague has the COURAGE (or fool hardiness) to leave and succeed outside corporate life – on the outside you congratulate him, inside you feel miserable. You would feel better if he had failed.
3) If corporate life is so good, why we keep mouthing financial freedom all the time? But when we have reached our X amount in Y years, what do we do? We move the goal posts!
Why? Again, you know it; I know it 😉
Hi SMOL
I was waiting for somebody to poke me on that and I knew it will either come from you, Rolf or SI 🙂 Hahaha
1.) Entreprenuers take all the risks precisely because they bet all their life money there. If we are doing entrepeneurship after FI, then it defeats the risk taking part out of the equation?
2.) Cost/Benefit analysis – Yes, I admit this it to a large extent to make my inner self better. But there is a huge conflict between my inner self and my self. My inner self is protecting the interest of my family, my self is protecting his own interest.
3.) Goal Post – Perhaps so actually. But I'd rather not move the goal post any longer. In fact, I hope I don't have to do that once I have received an X amount I want. This is because I know I can't do the same for my age 😉
SMOL
"I'll play the alternative voice here; the feedback loop is getting
a bit hilarious…"
LOL
2) exactly.
I will add that if you think you didn't get paid your worth, when you leave your employee job, you will know EXACTLY how the market values you.
Wow, what interesting comments here B,
No la, why poke u regarding this.
SMK mentioned that market will value us when we go private, solo. I think I am
Overvalued so I will stay in the system and earn as much as possible to my advantage … Since I also enjoy it somewhat, what is there to ask more of.
As for SMOL take about feeling unhappy inside… When people buy properties and earn plenty I have that feeling. But when people go out and earn big bucks, I only have respect … Because the risk and reward ratio …
Take first pace as a game. Then we can get used to or man whore job and enjoy it
"SMK mentioned that market will value us when we go private, solo"
where did you see that? I thought I deleted it before I hit publish.
Hi SI
I meant that as a joke, truly no offense there, hope you don't feel offended. I apologize.
I read your objectives these days, a lot of focus towards the intangibles. That sums it up 😉
I like the "retired life" very much. Lots of things to do. Don't have time for all yet.
(My main income from reits … )
Hi Anonymous
Great to hear that.
Money is no longer a worry for you!!
For me, enough is enough. I left the corporate world last year and is now enjoying my new found freedom. Nobody to answer to, no time to wake at a specific time, no need to endure all the politics and backstabbing, etc. Life is good.
Hi Henry
Sounds like a good deal and what I like about having your own private time to answer to.
How I Was Rescued By A God Fearing Lender ([email protected])
Hello, I am Andrew Thompson currently living in CT USA, God has bless me with two kids and a lovely Wife, I promise to share this Testimony because of God favor in my life, 2days ago I was in desperate need of money so I thought of having a loan then I ran into wrong hands who claimed to be loan lender not knowing he was a scam. he collected 1,500.00 USD from me and refuse to email me since then I was confuse, but God came to my rescue, one faithful day I went to church after the service I share idea with a friend and she introduce me to LEXIE LOAN COMPANY, she said she was given 98,000.00 USD by MR LEXIE , THE MANAGING DIRECTOR OF LEXIE LOAN COMPANY. So I collected his email Address , he told me the rules and regulation and I followed, then after processing of the Documents, he gave me my loan of 55,000.00 USD… So if you are interested in a loan you can as well contact him on this Email: [email protected] or text +1(406) 946-0675 thanks, I am sure he will also help you.