Financial Mistake #7: Not Leaving My Company After Finishing My MBA
I’m going to start this one off with a rant, because who doesn’t love a good rant nowadays? And it’s been a little while since I’ve been really feisty.
I’ll be frank, there’s a lot of bullshit advice out there with teaser headlines – how I doubled my salary in a year, etc. etc. etc. But your boy Q-FI is about to drop some top-secret shit for FREE that is going to save you tons of money down the road and shave years off from your FI date! (Most likely it will do neither of these, because who really takes a rambling online persona seriously? But I had to try. No one saw the pandemic coming either, right?)
You don’t need fucking worthless courses and career/life coaches to steal your money (although if you are already FI, then feel free to spend however you want).
So why should you listen to me? Well, as I stated above, you definitely fucking shouldn’t, but since you’re reading this and have the time on your hands, let’s go for it.
I HAVE actually doubled my salary in a year. Yes, you can do this too.
It is real. It is possible. And it is simple.
But let me be crystal clear. First, this is not your typical FI post stating, hey, I doubled my income by switching from a salaried position to a contract worker (yes, this was a real blog post by someone). No, you definitely did not double your income, nimrod. All you did was change the tax structure and you probably are actually losing when you factor in all the lost benefits. If I see another one of these clickbait bullshit articles then I’m going to find you and set your computer on fire.
Second, I’m talking the normal corporate America climbing the ladder route. If you’re a government employee, teacher, doctor – different employment structure – I don’t have much for you.
Third, I’m talking full income package. Rarely do you double your actual base salary (that can happen, just not often. And if it does, it usually means you were super fucking underpaid for a long, long time. Hahaha.) I’m talking the whole enchilada here – base, signing bonus, variable comp, RSUs, 401K match, medical, company car allowance – the entire picture.
If this is for you, then read on. Here’s the mind-blowing step by step instructions:
- Job hop
- Negotiate
Boom goes the dynamite!
I know, I know. You stare at your computer screen in absolute disbelief and awe, trying to push your gaping jaw back into place. How the fuck did Q-FI come up with this meticulous algorithm of career slaying genius?
All I can say is it’s in the genes… haha.
But in all seriousness now, it is not rocket science, yet just like financial independence, it is simple but not easy.
Why is this not easy?
Because it requires work, motivation and stepping out of your comfort zone. You need to be aggressive and hustle (which normally I’m against, but in this one rare situation the payoff will absolutely be worth it). So, if that is what you want and you are willing to put in the effort, yes, it is as simple as that (might take a little luck and time, but it will happen).
Now, back to the topic at hand, what was my financial mistake? I didn’t take my own advice and job hop and negotiate sooner. It took a personal crisis before my eyes were opened and I finally got cracking on getting my due.
Let’s set the stage…
I’ll never forget what my boss told me when I had first completed my MBA: “You have changed Q-FI. But the rest of the company hasn’t. They don’t like your new confidence and although you have a nice new fancy degree, everyone here still sees you as the same old Q-FI that has worked here the past seven years. They don’t care.”
Talk about taking the wind out of my sails. Did I just get bitch slapped by the man? You bet I fucking did. If there was ever a time to move on, it was now.
And the sad part was, he was right. I waited around another 3 years for the promised promotion that never came. And what eventually did come was a pink slip and pat on the back for my over a decade of company service.
Let’s call a spade a spade and not sugar coat it. I was a fucking sucker. And it felt terrible.
Corporate America had pimped me out and I let them do it. I stood by and watched still hoping that what they had promised me was waiting just around the corner, all gift-wrapped in glittering approbations and ready to make all my problems drift off into the sky like scattered clouds to the wind. Boy had I wasted my time and made a huge career mistake in not leaving while the timing was perfect.
So, what happened? Why didn’t I start my job search when I was first lied to?
Why do people always stick around in abusive relationships? They’re stuck. I had given in to complacency and hope. I had let others dictate my future instead of taking action to rectify my own situation. And when you let that happen, these are the results you reap. You get royally fucked. I had fallen into the company man trap. They owed me I thought, I had been loyal and hard working. But in truth, they couldn’t have given a shit.
Why didn’t I really do it?
Because I was weak, complacent and scared to make the jump. Plus, I was fucked up on drugs which probably did play into my decision, but even take that away, and I still think I had been beaten down enough that I didn’t have the confidence to make the leap into the unknown.
In my personal opinion, one of the worst things a company can do is pay for an employee to get an MBA. Because when they do this, the employee now sees how fucked up the company’s systems and personnel are. Hahaha… counterintuitive, right?
Yet, even with my eyes now wide open, I still didn’t make the jump. The timing couldn’t have been more favorable, because when you get a new degree, there is a certain window of opportunity when job hopping and transition are best. Your contacts are fresh, your story fits your career timeline. All those little inconsistencies fall into place and pave the way for a perfect transition of why you are the best candidate at this time.
You know my story of what happened instead, and I learned my lesson the hard way. It was painful both emotionally, mentally and financially. I left some serious money on the table by not switching employers. Now, I did have a two-year contract on tuition that I would have had to pay back, but the leap to my next opportunity would have covered that and then some.
So, if you’re happy in your current role, cool. If you got a good deal going, by all means stay and keep reaping the rewards. But if you’re not happy and disgruntled being under compensated. There’s only one good option to rectify your situation in my mind.
Bounce from that job ASAP and negotiate your way into the promised land.
Don’t be a corporate chump like I was for far too long.
Do what needs doing.
Till next time.
-Q-FI
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P.S. What is the biggest career mistake that you have ever made or that cost you the most?
Nice post! Well done on the job front, even if it’s an example of better late than never. I think so many of us fall into this same trap. We grow complacent and hope our company will eventually realize our value, then we watch others get promoted. I know I’ve seen it. Unlike you, I don’t have an MBA and dropped out of grad school because I realized I didn’t want a promotion after all. That’s definitely a mo’ money, mo’ problems situation for me. No, thanks! But good for you! You deserve the rewards, especially after getting sober. I’m a big believer that the right thing comes along at the right time.
What’s up Miss Katie and thanks for cruising on by. Yeah, I’ve seen this same thing happen so many times and don’t get me wrong, it’s the norm to get sucked into it. But I’ll also say, I have yet to hear someone leave their company for a promotion and say, “man, I wish I would have stayed at my old company.” More often than not it tends to work out making that jump.
Honestly, if I didn’t have the situation I had with grad school – having the company pay half and then working full time for three years to pay the rest as I went – I wouldn’t have done a masters. There was no way I was taking out six figures of debt. I just got lucky the timing and situation was right. So it sounds like you made a good personal decision in bypassing it. Plus, that is hard to drop out because I’m assuming you already had some sunk cots. So good self awareness to know what was right for you.
Sometimes I kick myself for the lost years and income, but it’s like you alluded to, when the student is ready the teacher will appear. It’s all about the timing. Nothing I can do now but learn from it, which I have.
i have to agree with your strategy assessment to strike while the iron is hot. i had an early employer pay for the better part of an expensive private undergrad degree but they stiffed me on the raise and promotion so i left. i see something similar in my large company the past 15 years. there was one guy who came in at a lower level but got his engineering degree while he was working here. theoretically that “should have” helped him advance. the thing is that it so often matters how you are perceived and i think he was always that guy who started in that lower role and was limited in this particular place. you gotta be willing to move to get the money but sometimes i think folks just don’t want to relocate for family/social reasons which are valid. the other is the dreaded complacency. you got played once but at least learned the lesson. some never learn it.
All good stuff Freddy and I agree that perception is key. Sometimes you need to move on regardless if you have done anything wrong, it’s the higher ups that can’t recognize the value for whatever reason. Or a lot of times you’re limited simply by company structure – raises aren’t allowed to exceed 10% a year, etc.
And chasing money really comes down to a personal decision, weighing all of the complex life choices like you mention above.
That is sage, sound advice and I wholeheartedly endorse it. My employer paid for my grad degree and I left immediately to nearly double my salary after the 1 year I had to stick around after getting it. They were a great employer, but I needed to move up and make more, so I did. I kept following your advice until I retired in my 40s.
My biggest career mistake was taking a chance on a start-up. I was well aware of the risk going in, but there was massive upside. Gratefully, It imploded quickly and I rebounded back to Fortune 500 Land without any issues. No risk, no reward though – same a job hopping & negotiating.
I think you’ll also agree with this as well Mr. Fate, that after you make that first move it gets a lot easier. It’s that first jump that can really paralyze people. But after you get things down and have confidence negotiating and understanding your market worth, you should be doing just fine.
Hey, I would have taken that shot at the start-up as well. If it would have hit, you probably would have been FI then or close to it with stock options. That’s worthy risk/reward in my book.