Are You Trapped By Your Income?

March 02, 2012

I had a conversation with someone who was leaving a very high-paying job in order to do something that paid far less but was far more personally fulfilling. I asked her what her friends and coworkers thought of her decision.  She laughed and said that they all think she’s crazy.  But…they are all incredibly envious too!  I had to follow up and ask why.  Apparently they have never seen her as happy as she’s been since she made this decision.  She is making a major change in her life and taking a substantial (~60-70% reduction) pay cut in order to make that change.  Yes, her friends think she is crazy.  But I found her story compelling and inspiring.

When someone chooses a passion, something that they feel is their calling in life, something that is emotionally rewarding over something that is financially rewarding, many people have a hard time understanding that decision.  It’s funny; I just learned that Tiger Woods considered leaving golf at the height of his popularity in order to become a Navy SEAL.   Imagine the uproar in the sports world if he had won the Masters and then gone off to Navy basic training.

Why is it that this type of decision always seems so surprising?  Our culture seems to reward and admire people who constantly strive for more.  Bigger and better are ideas that seem to dominate our thinking.  But is more “better” than less?  I guess it depends on your goals in life, your view of the world, and what’s important to you.

One of the things that I talk about a lot with people in meetings about their financial lives is the question “What really matters to you?”  Often, it is making enough money to support a family, provide children with a good education, and save for retirement.  All of these are very worthy goals.  I share some, if not all, of them.

Fortunately, I’m in a position where I can do these things AND be personally fulfilled.  I get feedback on many of my meetings with people and when I hear that someone walked out of the office feeling like there was hope, that their stress level went down significantly and that our conversation has the potential to make a meaningful impact on their lives, that is what makes me happy to roll out of bed in the morning and get my work day started.  I am one of the few people in my group of friends who actually really enjoys his job.   Many of my friends feel trapped in their jobs because they can’t make nearly the income anywhere else.

I’ve heard that phrase, “trapped because of my income,” so often in the last few years that I’m starting to think that there may be a very large number of people feeling that way. What if that describes you?  What can you do to not be trapped?  How can you do to position yourself, starting now, to get out of that trap and do something that you would find personally, emotionally and/or spiritually fulfilling?

Prioritization! In one word, that’s the answer.  What am I talking about?  Here’s what I mean.  If you are thinking about a major life change, downsizing either to pursue a life’s passion or maybe you’re contemplating retirement and know you have to cut some costs in order to make your money last longer, there are some things you can do to give yourself the best shot at long term success.

When you understand these things, the hard work begins.  Determine where you can really cut costs.  Do you have a big mortgage payment?  Think about refinancing or even selling the house and moving into something smaller, less expensive, and in a lower tax area.  Do you have car payments?  Consider paying them off quickly and/or driving them for a very long time.  I try to get 300,000-500,000 miles out of my cars.  I’m at 213,000 on my current car.  It’s been paid off for years now and the cost of repairs is still much lower than the cost of monthly payments.  Cook more & eat out less.  Get rid of your land line.  Ditch your cable channels and use Hulu or Netflix.  Look for ways to cut every single line item of expenses.  In other words…do the complete opposite of Congress!   Is it radical?  Yes.  Is it effective?  Absolutely!  But, if it will help you reach your goals and it’s something you’re willing to do then the payoff will be worth it.

I’ve talked to a number of people over the course of my career that have done this and for some reason these stories stick with me for a very long time.  People call them crazy, yet they wish they had the courage, the resources, and the determination to follow that path too.  It’s the unconventional nature of these decisions that makes me proud to know these people and to help them think through their decision-making process.  Choosing a life’s passion or a meaningful personal goal over more money goes against the grain in today’s society.  If that’s what you want to do, I want you to know that you’re not alone.  There are others out there doing it and the things that they did in order to prepare can be done…by you too!