Skip to content
Welcome! Are you part of the community? Sign up now.
x

Posted about 3 years ago

What Getting Laid Off Taught Me About Financial Independence

Normal 1609737808 What Getting Laid Off Taught Me About Financial Independence

This series is going to focus on what a layoff taught me about being financially independent from a W-2 income.

In the fall of 2020 with the world in the middle of a pandemic, I was laid off from the company that I had worked at for over a decade. Fortunately, this was not totally unexpected. I worked in the oil and gas industry which is known for its epic booms and busts. Compensation and benefits within the industry are fantastic, but when times get tough, they get tough. From 2013 to 2020 the company I was at averaged a layoff about every 8 months, and we went through a bankruptcy. The crazy thing? We were average. Some companies went through more than one bankruptcy during that time. Our family was already mid-way through a 5-year plan to achieve financial independence so that if we lost our W-2 income, we would be fine.

My layoff occurred on a Friday morning. On Thursday we had been told via e-mail to not come into the office that Friday. 10% of the company was going to be let go. The rank and file had been expecting this for several weeks, so the news was not a surprise, but the method was. Previous layoffs were initiated by an e-mail from HR telling everyone to remain in their offices and be on the lookout for the layoff e-mail. Everyone huddled in their office waiting

for the dreaded e-mail from HR to arrive. We would watch as recipients would anxiously shuffle down the hallway to the designated conference room. Those of us that remained through each round would quickly text or e-mail each other to see who was safe and who was no longer going to be a colleague.

The pandemic necessitated a remote layoff. I sat at my dining room table and felt isolated from the rest of humanity even as text messages pinged my phone about every 45 seconds. It was nervous chatter at first, but soon we started receiving names of (former) team members that HR had reached out to.

My call came at 8:46 in the morning. It was timed perfectly with my daughter arriving home from marching band practice (it was her day to learn remotely due to the pandemic). She was privileged to hear the entire conversation as she sat in the chair next to me and listened to the human resource employee explain to me my compensation package and the final steps I would need to take so that the company and I could part ways. I say my daughter was privileged, and I absolutely mean that, but more on that in future updates.

My first step was to call my wife and let her know. I then called my business partners. I wanted them to be aware of what I was going through, and I did not want them to hear about it second hand. Their reaction was awesome, and I would encourage everyone to find friends like the ones I have. They showed some empathy, but their real value was turning the situation upside down and challenging me to 1) see this as one of the greatest adventures for my family, and 2) to figure out how to emerge financially stronger.

Time will tell if my wife and I are able to deliver an adventure and point to this as a turning point in our financial lives, but I am cautiously optimistic.

The best advice that I have received so far:

  1. 1. Exercise every morning. It elevates your attitude and gives mental clarity.
  2. 2. Do not check out for even a day. Some people may choose to take time off. I did not. I do not think there is a right or wrong answer, but I do think whatever path one goes down, they should do it deliberately. If down time is needed, how much? What are you going to accomplish during that time? Be intentional.

  3. 3. Do not be afraid to accept the first job that comes along. Bills must be paid, and healthcare is needed. Even if the job is a step down, you can always maintain your job search.
  4. 4. Plan for the long-haul. Cut expenses, cut your bills, cut your lifestyle. On day one we had cut our subscriptions by 15%, we were looking for insurance quotes (auto and home), and we were shopping around for a healthcare policy even though we were eligible for COBRA.


Comments