Deciding to leave a high-paying job can be tough, especially when you’re at the peak of your career. But sometimes, the pursuit of money can lead to regret. You might find yourself missing out on time with loved ones, opportunities to travel, or the chance to follow your passions. If you’re not happy in your job, this regret can sting even more. So, it’s important to make the most of your free time if you choose to prioritize money.
Many people struggle to break away from the cycle of always wanting to earn more. But once you reach your income goal, the happiness it brings often fades quickly, and you find yourself wanting to earn even more. This cycle continues until you learn how to break it.
At 34, I was earning a base salary of $250,000, with a potential bonus of up to $500,000. But instead of sticking it out for another year, I chose to leave my job and negotiate a severance package. If I had stayed, I could have earned around $5 million by now. But the more you earn, the harder it is to walk away. On the flip side, the less you earn, the easier it is to take risks.
If you’re unhappy with your current situation, it’s crucial to find a way to overcome the desire for more money. Once you have enough to cover your basic needs, more money doesn’t necessarily bring more happiness, unless you enjoy what you do.
So, how can you be okay with not earning the maximum possible income? First, be realistic about your income potential. If you choose to work for the government, for example, you know your pay will be within a certain range. But if you become an entrepreneur, your income potential is unlimited.
When I decided to stop trying to earn the maximum possible income, I lost my title and became a "nobody". For some, walking away from status and prestige can be even harder than walking away from money. But this post isn’t just about early retirement. It’s about saying no to a promotion or job transfer that requires more work for more money. It’s about choosing a job that brings you more meaning, even if it pays less.
To decide whether you want to earn the maximum possible income, consider your boss’s lifestyle. Look at their home and car, and try to guess whether they have a happy home life. Rate their overall happiness at work. After working together for several years, you should have a good idea of what their lifestyle is like. Then, you can decide whether the pursuit of more money is worth it.
Of course, you won’t necessarily replicate your boss’s lifestyle. But a lot of stress in life comes from your responsibilities at work and the activities you do to earn money. So, be realistic with your comparisons.
Next, calculate the minimum amount of money you need to be happy. This should cover your basic living expenses: food, clothing, shelter, healthcare, and children (if any). Some researchers believe that once you earn over $75,000 a year (or about $100,000 today, adjusted for inflation), your happiness no longer increases. But this amount can vary depending on where you live.
When I left my job, I realized that I had overestimated how much I needed to be happy by about 30%. After retiring, you no longer need to save for retirement. But if you have a net worth equal to 15-20 times your average annual household income for the last three years, you can probably retire comfortably.
If you find something you’d be willing to do for free, it’s much easier to stop trying to earn the maximum possible income. If you’re making a lot of money but not helping anyone, you’ll eventually lose interest. Your soul might start to feel empty.
If you choose to walk away from the maximum possible income, make sure you gain back more time in your day. Be purposeful about how you use your extra time. Don’t just go through the same motions with your new occupation.
Finally, try to negotiate a severance package when leaving a high-paying job. This can help cushion the transition to a lower income. If you can leave your job with a win, it’s easier to walk away from the maximum possible income.
In conclusion, making a lot of money won’t necessarily make you happier. If you’re not happy, calculate the minimum amount you need to cover your living expenses and pursue something that brings you joy. Although I left behind millions of dollars in finance, I gained back time. And if time is truly priceless, then giving up a lot of money is no sacrifice at all.
