When You Come Home from Work Shaking With Anxiety…

There are plenty of signs that my current job is on its last legs, and soon it will be time to move on. Although I can potentially obtain another role with the same or even a higher salary, at this point there is the logical side of me that says “stay just another month” as each month is coming to an end, just to save up for my future, just to get to a point in life where I won’t need to be stressed so much about finances, where I can focus on living instead of worrying every day.

My objective in life is to be in my 50s and to be able to take my children and friends out to dinner and get the check, without worrying if I can pay my rent. I imagine I need $2M by my 50s in order to afford this lifestyle. That seems rather impossible, but with my current savings if I can earn 10% YoY for the next 17 years, I’d have over $2M. The 10% annual growth is unlikely, though, so bringing it down to a much more likely 5%, that only gets me to $1M at 50. This doesn’t include any additional contributions between now and then, so it’s still possible… I need to save about $40k annually for the next 17 years in order to hit my goal.

Today, with my current lifestyle and savings, I’m able to save ~$6k a month or more. To be conservative, I would easily save $72k a year at the moment. If I can sustain that for the next 17 years, I will clearly hit my goal (unless all hell breaks loose in the economy, of course.) However, I know I cannot maintain this career for 17 more years. I also don’t want to — I don’t want to get to 50 and look back on my life and see that I didn’t create anything significant or impact the world in a positive way. Yes, I can “start” my life at 50… assuming I have kids soon, they’ll be in high school then, and I can go back to school or change careers at that point with $2M in the bank as a safety net, but that seems sad to me… I cannot imagine spending my children’s entire childhoods and adolescence working a job that requires me to rarely be home… missing out on important life events and just being there for my kids. I really don’t want that.

Of course, if I can’t have kids, this is a moot point… if I end up not able to have children, then two things happen – I can stay employed in this type of role for longer, saving more money, and I don’t have kids, so clearly I would be not spending as much either. Regardless, I still want children, and I’m still going to try to have them.

If I do get pregnant and have kids, I know my life has to change, as does my expectations for the future. I don’t think I’ll be able to continuously save $40k+ a year – some years, I’ll be lucky if I can max out my 401k. If I want to change my career, I’ll likely need to go back to school and invest in that and start at a lower wage for many years. I’m not going to do that until I know for sure what I want to be when I grow up… which may never happen. But this career isn’t right. This career is going to cause me to have a heart attack before I even make it to 50.

There is other $ variables at play, that I don’t consider when planning my future, as they’re all “extras” and “nice to haves” but cannot be counted on. My husband makes a living as well, and although his salary is much lower than mine, he still is able to save something each year, and eventually he can earn more as well. Then we have our parents who may pass down something to us one day, but planning for a life with a potential inheritance seems both futile and deeply morbid. Neither of our parents are well off, but there’s a chance we’ll get a few hundred thousand dollars or more one day down the line. That alone could pay for our retirements. So, the reality is I’m in a good place… the $500k mark in my networth will be a sigh of a relief, a moment to celebrate maybe a glimmer of financial freedom… the opportunity to take a few more risks… to start to find out what really matters to me in this very short life, versus just working for works sake.

I have a new boss. New boss is great in the sense that new boss is really good at her job. New boss is everything someone in a senior leadership role in this career should be. New boss is, in many ways, the opposite of me. New Boss (I’ll call boss “B” for the sake of simplicity) is a tiger. B doesn’t take shit from anyone and knows what she wants and she gets it done. B knows what to do and how to navigate the political waters of the workplace with ease. B is on the ball, all the time, and doesn’t let emotions get in the way of decisions.  B is not someone I can aspire to be like — my entire being cannot be that person. I can’t fake it. I can’t just wake up every morning and put my “B” cap on and suddenly be this great senior executive. B will never be me.

In the meantime, if I want to stay, I have to impress B. I am already starting from far behind as B was clearly told things about me in the interview process that were far from flattering, and B has visibility into my salary and knows that it’s high for my current role (it was high but fair for my prior role where I was running the department, not so much for my smaller and smaller role, which is shrinking by the day.) At some point the numbers just won’t work. At some point either they would give me a pay cut or let me go.

B is very strategic. B knows there is a large amount of change required and will make those changes in an organized manner, getting the most value out of me as possible before I am removed from the organization. If I continue to provide value, I don’t think I’ll be fired immediately. I could be wrong, but the organization seems to have a policy around being fair, and if I’m doing the job requested of me and fulfilling the role, I do not see being tossed out as long as the company is doing well and isn’t going through any formal layoffs. In the case of formal layoff it is clear I’d be one of the first to go. But as long as we’re doing well and I’m doing my job and getting things done on time and at a quality expected of me, I should get to stay.

Yet I’m not sure I’m capable of getting the things done that are required of me on time and at the level of quality expected. I’m determine to try – focusing on doing my very best and giving it my all for ~3 months is not a bad objective, even if my future tenure is limited. That’s 90 days, $18k+ in savings, and ideally a good reference to walk with based on the fact that I really did try my best and, as the song goes, I guess my best wasn’t good enough.

According to my latest networthIQ entry, my networth today is $468k. With that $18k additional, that gets me to about $486k, within an arm’s reach from my $500k goal.

Or, I get another job that pays less, and is more sustainable, and I get to $500k sometime later this year — which is the goal anyway and theoretically I could work through the end of May, get to $486k, take my PTO dollars and some of my savings, take 3 months off and travel the world, come back with $475k in the bank, get a job that pays less than my current one (say $7k take home per month after tax vs $10k), save $4k a month, save $16k for the rest of the year, get to around $491k by the end of the year (and that’s WITH taking 3 months off and taking a job that pays much less when I get back.) So even if I take a ~$3k paycut and take 3 months off, I should still be within striking distance of my goals.

OR, I just suck it up, work in this role through the rest of the year by giving it my all and somehow being “not firable” … save $70k more, get to around $538k, get pregnant sometime this summer, stay at work for the 9 months of my pregnancy, say 5 more months in 2018, save another $35k, get to ~$575k then freelance for a few years earning a lot less, but living off the money I was able to save fighting through this job for … 15 more months. That seems like a very long time and between now and then we could easily have a mass layoff which I’d be caught up in anyway, but logically staying 15 more months gives me +2 years in my current job (good for the resume), and the amount I’d save is almost worth it. With interest, I could have $600k saved up when I leave work for a more flexible lifestyle for a few years when my kids are young. My objective, then, would be to not tap that $600k… to make enough money to pay rent/mortgage/taxes, for food and any vacations/entertainment travel with whatever I earn (and what my husband earns.)

In that reality, with $600k untouched for 10 years growing at 5-6% YoY I get to $900k-$1M by 44. That’s not the $2M by 50, but it’s still rather exciting that this seems possible — better if I stay in my current role for 15 months (or obtain another role that pays the same or more that I can successfully stay in for 15 months!) … or I just say fuck it, stick this out for 3 more months, take a few months off, then come back and get a lower paying job that I can sustain throughout being pregnant and the early years of parenting.

At least, thanks to savings a substantial amount in my 20s, I have options.

 

 

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