Career Center Blog

July 24, 2009

Is quitting your job during the recession crazy?


NWjobs

I'm not talking about quitting for another job you've lined up or quitting to take the full-time reins of the freelance business you've built on the side. I'm talking about giving notice because you're burned out and desperate for a change of scenery, rotten economy be damned.

I'm talking about those who wanted to learn a new trade or travel awhile. Those who generously forfeited their position so a coworker didn't have to. Those who simply couldn't wait any longer for the layoffs their employer has been promising will arrive.

Walking away when so many others would gladly trade their unemployment income to be in your paycheck-collecting shoes seems like the luxury of the relatively young and responsibility-free, doesn't it?

Steven DeMaio, who's been blogging at HarvardBusiness.org about how he quit his stable, full-time job in October 2008, is well aware how the decision sounds.

"What I'm leaving behind is admittedly a middling (but respectable) career in publishing, but one, from the point of view of the working-class people I grew up with, you just wouldn't throw away," DeMaio wrote about his fall 2008 resignation. "My parents didn't go to college, and to them 'pissing away' a decent salary is about as stupid a move as you can make."

More than 250 days have passed since DeMaio's decision to kiss his paycheck goodbye with only a modest amount of savings under his belt. From this recent post, it sounds like he's faring well, enjoying the language studies, freelance writing work, and part-time teaching work he's picked up.

But as someone who's constantly on the hunt for new short-term, project-based work herself, I'd like to remind you that from a financial standpoint, doing what DeMaio did is no cakewalk. So before those of you untethered by mortgages and mouths to feed start mooning over the carefree freelance life and typing up your resignation e-mail, I suggest taking the following precautions:

Make a game plan. Don't just quit because you need a vacation. At least not without deciding how you'll spend the days and weeks to come (for example, pursuing other work, education, adventures, hobbies or business enterprises). Take away the structure of the workday and it's far too easy to waste months watching daytime TV or playing World of Warcraft.

Build a financial cushion. Money guru Suze Orman recommends having eight months of living expenses easily accessible. (Note: Retirement funds and credit cards don't count.) If you have no other prospects for work, I suggest saving a year's worth of living expenses. Seriously.

Maintain a health insurance plan. Don't skimp on this or you'll regret it. One big trip to the ER can obliterate several months of savings.

Offer to freelance. Is the job you're quitting something that can be done remotely? Unless you'd rather eat nails than continue to associate with your soon-to-be-ex-employer, let them know that although you're moving on, you'd love to do some consulting or freelance work for them should the need arise. Companies love farming out projects to people they already trust.

Recommend a friend. You know that friend or colleague who's been out of work for six months? If they're a close fit for your former job and you can truthfully recommend working with the company, pass your pal's resume to your manager. Besides making some lucky job seeker's day, your manager will appreciate the tip.

Readers, have you ever quit a reasonably stable staff job during tough economic times because you were miserable? What did you do to prepare?

Michelle Goodman is the author of "My So-Called Freelance Life" and "The Anti 9-to-5 Guide." E-mail Michelle at mgoodman@nwjobs.com

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16 Comments

Larry on July 25, 2009 6:48 PM | Reply

I keep thinking about this for myself. My job is teaching me some skills I didn't think I could do but, I am getting frustrated with what they r asking of me. The job is fun and challenging--which is what I am looking for--but, it's not the job for me.

Rob on July 25, 2009 8:43 PM | Reply

A years worth of living expensises? Good advice but hard to do for some of us, almost impossible when you get right down to it.
Leaving a job without having something else or the cash cusition makes leaving impossible.

That's life.

greg on July 26, 2009 1:25 AM | Reply

I quit an easy job with a terrible commute in april 0f 2008 just before the recession started. The small company I spent 11 years helping build got sold to a big public company in NY. I got sold down the river all my perks and profit sharing deals went bye bye. Since I was the entire engineering dept. I called the head of the big company and told him everything he thinks he bought (for 10 million) is between my ears. Then I walked out. Aerospace engineering sucks I would rather clean out horse stalls if the pay was the same.

theantibush on July 26, 2009 11:16 AM | Reply

Sometimes you have to leap frog the intrinsic limitations of the work place to fulfill your own vision, and to find out just what you are capable of. Do you bring value to your company? Then you can bring value to yourself. If your company is not limiting you, and you find yourself stuck in a rut, then its not you company’s fault and you should not depart least you starve.

You cannot keep a good person down, as the saying goes. You will have no choice but to depart if you are truly limited long enough. Its like breaking up a relationship that’s going nowhere; one day you’re together, the next its over...and you know its over. If you then find yourself running for the arms of whoever will take you, career wise or otherwise, you are obviously setting yourself up for a problem.

But if instead you are of the mind that if your company profits from you then you can profit from yourself, then take it to the next level and go. See what you can do, uninhibited. Your true person will emerge, and what will that be? Someone eating bon-bons watching American Idol reruns all day? Or the most demanding, ambitious, slave-driving, failure-not-an-option, perfectionist, scheduled manager from hell you have ever worked for (yourself)?

Are you ready to know who you really are...that is the question. If you s*k and know it, then stay where you are. Otherwise, grab the rawhide and open the bull gate...and prepare for the ride of your life.

Michelle on July 28, 2009 10:59 AM | Reply

I did this. I quit during the terrible recession immediately following 9/11. I had an amazing job that was helping to pay my tuition and rent. I was only 19 and supporting myself with no parental help at all. Having that stable job was a bit of a miracle for someone at my age. But it was a terrible environment and I felt like my spirit was suffocating. I had to get out. It was scary. I only had about 2 months of savings but I made it last. It was through this rash move that I started a whole new career as an independent music teacher, which has been pretty successful and it continues to be so. That was 6 years ago. I'm so glad I made that move when I did.

Casey on October 9, 2009 4:30 PM | Reply

I am doing exactly this. My company split a little over a year ago and opened a second building in another state. I moved for the company, now there are lay offs and demotions every month. I can't sit around in this god forsaken place, waiting for the axe. I was promised ample opportunity and what did I get but a barely making it wage. I am isolated from family and friends and I can't take it anymore. So before the snow flies I am quitting my job with or without my next employment lined up. I've have NO savings - I barely make it as it is. But I have the support of my family and friends that understand how draining this situation is on my mental health. I've worked for this company 6 years and they have never appreciated all I've done. Well I suppose it was appreciated, as a supervisor or manager presented my work as their own. Good bye and good riddance! I can't WAIT to live in poverty!

Kim Eraser on December 3, 2009 8:30 PM | Reply

I work in the entertainment industry and three years ago I quit my studio job because I was so dissatisfied. I can attest that freelancing is no cakewalk. In fact, after this experience I can say with confidence that there are certain people who are good at freelancing and most who are not. If you get super stressed about paying your bills then freelancing is probably not for you. The stress will overwhelm you and maybe even paralyze you. If you aren't very good at drumming up work for yourself, i.e. hustling, then freelancing is not for you. If you aren't good without daily structure and have no discipline then freelancing is probably not for you. Of course, you can learn to adjust and make it work. Not having a structured job has its advantages but it takes a while to master.

Drew on December 21, 2009 7:39 AM | Reply

It's good to hear from so many people that this has been done. I moved to a far away city for my first job out of college, been here two years, and am in the process of taking the leap. I do not know what I'm going to do with myself after this but I know DARN well that change is a'comin. I can definitely relate to the "paralyzing fear" though that Kim referred to in the above paragraph. Given that I don't plan on staying in this new city, my only choice is to move back home closer to friends and family - a true support network. Then we'll see!!! Any advice for figuring out your career direction in the midst of all this? I would like to get outside myself and try new things, but am so burned out by my job I've had difficulty figuring out whether I want to do some volunteering, travel abroad, or what.

Jay on January 25, 2010 12:11 PM | Reply

I've been biding my time at a job I despise for 4 years. The first 2 were awesome, great mng'mnt, laid back atmosphere, etc. When my manager moved to a new position, I told him "I would have quit 2 years ago if I wasn't working for you".

Over the last 4 years I've managed to get a real estate broker license in GA and FL, but leaving good money in a EASY job is hard to do... but I am at least comfortable with the fact that I have an instant "opportunity" to make money in RE.

Just gotta pull together that 6 mos of savings.

Jeanette on January 28, 2010 7:47 PM | Reply

I absolutely hate my job and was so hoping for a layoff. I put my name on the list for layoffs but no luck. It is almost like they enjoy my misery. I have 6 years of expenses saved but health care would be expensive. I am no spring chicken but I am dying slowly here, a little everyday. I do have a part-time small business that I love but I need healthcare.

Amy on March 11, 2010 2:26 PM | Reply

Reading these posts has been like reading my mind. I have been away from my friends and family for 6 years. I am no longer with the fiancee that I originally moved with and no longer remember why I was so gung-ho about this relocation in the first place. My entire family is about 3000 miles away. The real reason I don't quit is because my company pays me ridiculous amounts of money and I can't justify walking away from it. I'm mostly afraid that I'll blink and it'll be 10 years since I left when I only planned on 2. Help!

Kristy on March 15, 2010 1:54 PM | Reply

I just quit my job for the some of the same reasons mentioned above and I'm going to be blogging all about the traveling and big move I have planned next. I'm taking the biggest risk of my life so far, but hoping it'll be worth it in the end.

http://www.thetravellab.blogspot.com

Tunica on April 5, 2010 8:49 PM | Reply

Email for Amy, life is short, families are not here forever. Try to move closer, there will always be an opportunity out there. ;)

Jonha @ Happiness on October 6, 2010 4:59 PM | Reply

I am currently contemplating to leave my current job. I have been thinking about this several months ago but the feeling hasn't been this stronger than ever. During those times I had a backup plan but at this, I just want to take things lightly and not to worry too much as to what I can become. I decided that if I want something to change, I couldn't spend the rest of my life waiting for it, I need to make it! Also, I know that the feeling of wanting to leave doesn't go away, it just tarries.

I want to pursue my passion, I know, it may sound ridiculous especially during recession. But I guess at the end of the day, at least I could tell myself that I've fought a good fight by listening to my heart. Forget about all the practicality, sometimes we just need to take risks, or life would be nothing but boring routine.

I will probably have more time on my blog, which the idea of having all the time of my life excites me greatly.

http://jonhappiness.blogspot.com

hopeful on October 31, 2010 2:23 PM | Reply

you must love what you do to do it well.

Jake on March 8, 2011 4:04 PM | Reply

Quit my job during the recession, found another one in a month. I did not follow any of the traditional job finding advice. I think if you go against the grain, you get noticed.

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Randy Woods Randy Woods writes about job-search tools, networking techniques and other tips to help you land your dream job.

Matt Youngquist Matt Youngquist based in Bellevue, is a recognized expert in career coaching, job hunting and professional networking.

Natalie Singer Natalie Singer is a Seattle writer who covers workplace issues, work/life balance and self-employment.

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Michelle Goodman is the author of "My So-Called Freelance Life" and "The Anti 9-to-5 Guide."

Paul Anderson helps professionals in transition find their desired employment.

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