Oppotunity Cost: How do you know if you can afford to quit your job?

November 12, 2007 8:07 AM

Career/Financial Advice: Safety vs. Fulfillment - Can I afford to quit my job? Great salary, massive stock options, utter boredom/disappointment.

I'm bored and dissatisfied with my job, but the pay is fantastic and recently vested stock options have become very valuable.

I'm a software engineer with a very large company and miserable with the day to day aspects, but good at what I do with great reviews and raises. However, I get no satisfaction and I'm desperate for a change.

Financial picture: 26 years old, single, zero debt, strong retirement (2/3 year's salary) and personal savings (1/4 year's salary).

The catch: vested stock options worth excess of one year's salary. Vested over next 2 years.

The question: Am I fool to walk away from this? How do you balance these types of values. I'm generally financially conservative and can't justify what my gut is telling me ( to leave)

posted by anonymous to work & money (21 answers total)

Unless you've got enough options to retire on after those 2 years (I'm guessing not), I'd not let that stop you getting another job. I've always treated options as a bonus/lottery.

You spend too much time at work to permanently miserable there. Occasional misery is to be expected.
posted by crocomancer at 8:13 AM on November 12, 2007

Sounds to me like you don't know what you want. Figure that out (Retire? Startup? 3 holidays every year?) Once you have that, what you should do to get there will be self-evident.
posted by Leon at 8:19 AM on November 12, 2007

so what's next if you walk away? you can ALWAYS afford to quit your job, as long as you are willing to adjust your expenses (and by extension, your standard of living).

don't consider your retirement savings as regular savings. you have 3 months salary saved away. i have no doubt, if you're any good, that you could find another software engineering job within three months. but if you're on some sort of life changing odyssey to find yourself and a new career path, three months may be a short amount of time to find someone willing to take a chance on you.

i'd personally stay and use whatever leverage i had with the company to make improvements with the current position. unless you just hate all aspects of engineering and you want to do something totally different.
posted by uaudio at 8:20 AM on November 12, 2007

If you have a great job (financially), you have the luxury of been able to wait until another great job comes along rather then just jumping into the first thing that gets you an offer, so I'd certainly look for something new if you don't want to stay at the current job, but take your time to find a job you're really passionate about.

What ever you do, don't leave your current job before you get something new, because having a financially sound job already is a great negotiating point to come from in the next job.
posted by paulfreeman at 8:23 AM on November 12, 2007

This is obviously a personal decision, but I think you are too young and unencumbered to chain yourself to a desk you hate just for financial security. The real question is whether you have your eye on a job that will make you happy, and can you get it?

(I'm unhappy at work but though I was just offered a very cushy job offering a big raise and regular hours and a nice office and lots of pretty perks, I said no because I could tell I'd be bored to death. Life is too short to be bored to death.)
posted by CunningLinguist at 8:23 AM on November 12, 2007

I'm generally financially conservative and can't justify what my gut is telling me ( to leave)

If you're anything like me, you'll perform much better at a job you are enthusiastic about, and this will lead to more success. Don't quit your current job until you find another one.
posted by grouse at 8:26 AM on November 12, 2007

Until you have a line on something that you will find more enjoyable you should stick with the job.

If you're at the point of considering a move elsewhere you can always talk to your current employer about a move elsewhere in the organization to a job you might find more enjoyable. If it really comes down to it use up all your vacation time and go do something you've always dreamed of, walk across a country or continent something that will give you some perspective on what's really going on, or request a leave of absence to do the same. I recently did this for my honeymoon and came home from a 3rd world country with a wholly different perspective on what is and isn't important.

I'm sure people will say life is too short at my next comments, but you're in a very strong financial position now, if you make it your goal over the next year or two to improve your financial position further, ie get to a years salary socked away in cash/liquid assets/retirement funds you'll be in a great financial position to have more flexibility to do things with your life down the road.

At 26 one of the best things you can do is build up your retirement nest egg, the extra years it spends gathering momentum really pays off and you will be set up with an incredible safety net for you and your family down the road.

Regarding stock options, they're nice but in no way should you ever count on them showing you one penny unless you're on the phone with your broker and are liquidating them.

Finally, if you have the cash talk to a financial planner, if you have a significant other take steps early to insure their financial future, consider setting up a trust/etc. A good financial planner will work with you to determine your short and long term goals and how to shape your investing to match those goals.

I would lean towards staying where you are, finding an outlet or something that interests you outside of work and working to improve your financial position as long as you can tolerate it. The grass always seems greener and having made a few jumps I've occasionally been dissapointed. Also, if you're going to leave, leave after you get your yearly or quarterly bonus first :).
posted by iamabot at 8:30 AM on November 12, 2007

Go with your gut. Options are gravy and are no reason to stick around.
posted by rhizome at 8:38 AM on November 12, 2007

Am I fool to walk away from this?

That depends upon what you are walking into. If it is unemployment, then yes it is probably foolish to walk. However, if instead it is a more rewarding career then even a year's salary (don't forget the taxes) is not too much to forgo.
posted by caddis at 9:21 AM on November 12, 2007

Hmm, I sort of did what you're talking about just recently. The one difference is the stock options were 99% mirage, but much of the rest was the same: good at a job that wasn't rewarding. I half-assed my exit due to personal responsibilities: essentially a wife and mortgage to think about (the dog can always get a job). I "half-assed" it by lining up enough contract work to keep me funded for the next 6 months or so.

I'm generally financially conservative and can't justify what my gut is telling me

I would challenge your assertion. If you were financially conservative, you'd see those options for what they are: a possible payout two years in the future. And these particular options come with a potentially high price tag. I sat around a long time before I left and now I spend some of my day-to-day time retraining myself in how to apply myself like I used to. I'm still very good at what I do, relatively-speaking, but I'm not happy with my level of performance yet. The job I was at was doing a decent job of rndering me unfit to work anywhere else. So weight that cost in with the potential options payout.

Your gut isn't financially conservative, it's understandably afraid of the unknown. From me, this situation turned out to be one where The Devil I Don't Know was better that the one I did.
posted by yerfatma at 9:38 AM on November 12, 2007

Should be: "For me" in that last line.
posted by yerfatma at 9:39 AM on November 12, 2007

It is wise to use this time in your life, and this position of financial comfort, to be very careful and diligent in planning your next career move. If you've got good pay and good benefits, you can probably easily afford therapy and/or a job coach; neither of those would be a silver bullet (or even necessarily what you need), but they might get you thinking about what you really want out of a career. If you can handle staying in this job for a few more months, then you are in a perfect position to start doing some serious soul-searching and planning for the future. But you have to start now and not six months from now when you've had absolutely all you can take from this job and entertain thoughts of walking out whenever it's rainy or you haven't slept enough or the guy in the next cube brought tuna salad for the third day in a row.

That said, if you do quit today with no concrete plans for what to do next, it's not the end of the world. You're not going to hell if you walk out today and spend the next year playing Xbox all day and night, eating a whole bag of Doritos every day, burning through your savings and accumulating debt. It's not good for you, but you'll live and you might even come out of it happy. I'm not advocating that you actually do this, but the point is you can.

There are tons of people around your age in similar positions, but they don't all have the great salaries or great resumes or savings, or they have other obligations (debt, dependents, whatever) that keep them in mediocre jobs that they hate. Whether you leave your job after months of thinking and planning and interviewing for the perfect opportunity, or just flip your boss the bird and drive off into the sunset, now is a great time to do it. I recommend you do the former before frustration drives you to do the latter. Good luck!
posted by Metroid Baby at 9:45 AM on November 12, 2007

Yeah, quitting your job is one thing, but then what? For a 26-year-old software engineer who likes being good at what he does, there are a lot of options. Without ever breathing a word of your plans to anyone where you work, you should start investigating some of those other options. You may find something that's too good to pass up. Give your two week notice then. Or, you may find that the grass really isn't that much greener on the other side of the fence.

Meanwhile, do your job, and don't fall into the trap of thinking that if your work isn't delightful and fun, rainbows and unicorns every day, that you're somehow missing something. Work isn't supposed to be fun.
posted by ikkyu2 at 9:51 AM on November 12, 2007

I was recently in your shoes. As a very productive, busy person, I worried about feeling like a slacker or getting depressed or creating a financially dangerous living situation for myself. Or basically just making a big mistake.

To combat this, I made a plan to help with the transition. I wrote a list of all the things I needed to do, all the things I'd like to do, big goals, small goes, etc. I'd be fine as long as I hit at least one thing on that list every single day. Some days I'd be more motivated and I'd do five things. Some days I could only manage one thing (ie. get drunk before noon). I allowed myself no repeats. This list kept me busy for 2 months (that's 60+ things accomplished!)

What I found was that by the time I'd tackled most things and some time passed, I found balance in my new life. I don't need a list. I also learned that I can trust myself. I'm way too introspective and self-regulating to let myself become a slacker or whatnot. You'll find this too...I can tell that your work ethic and responsibleness is ingrained in who you are. Otherwise, you wouldn't be asking this question.

Quit your job. You'll feel the burden lift immediately. And you'll be more alive and productive than you've ever been in your life. I promise.

Now go run free!
posted by iamkimiam at 10:27 AM on November 12, 2007 [4 favorites]

IANCE (I am not currently employed), and I'd say keep the job that fills 8 hours of your life 5 days a week with boredom, so that you may enjoy the other 128 hours of the week to their fullest.
posted by tehloki at 12:50 PM on November 12, 2007 [1 favorite]

Walk away! Run away!!!
posted by croutonsupafreak at 2:14 PM on November 12, 2007

Work isn't supposed to be fun.

Stuff and nonsense. One of the great secrets of happiness is getting a job you genuinely enjoy.
posted by CunningLinguist at 3:36 PM on November 12, 2007

The easiest thing to do would be to quit and also to stay. Try volunteering during your time off (nights and weekends) or taking a two week vacation before you decide to run free.
posted by brikee at 6:41 PM on November 12, 2007

I'm surprised that you've gotten so many cautious responses. I think if you would have phrased the question differently (i.e. I'm financially successful but I'm thinking about changing directions to pursue my dream of travel/teaching/music/whatever) people would be a lot more encouraging.

I was in a really similar situation last year and I ended up doing an international relocation to Tokyo with my company. There are still some things about the job that drive me nuts but the change of scenery really helped me to re-focus. I don't necessarily see myself doing what I'm doing for the rest of my life but for the time being I'm happy to enjoy being here.

Regarding the money, yes its important to save for retirement while you're young but its also the time to live your life while you're single and without financial obligations. You have the rest of your life to worry about making money.

And I say if you're going to quit, quit. Don't half-ass it splitting your time with what you think you really want to do. Jump in and do it. Your current job will only distract you. If you decide you made a mistake there will be plenty more lucrative software engineering jobs waiting.
posted by rsk at 5:14 AM on November 13, 2007

I recommend getting Cool Careers for Dummies by Marty Nemko.

My own story is that I went after what I was passionate about and am now burned out by my own drive and intensity. I recently took a job that a lot of people hate and I really appreciate the quiet and lack of challenge. I like working and coming home. I realized at my last job (a few months after actually) that I never really got paid enough for the achievements I made at any job I liked, let them squeeze me for all the brainpower they could get out of me, and work felt complicated when I was doing what I was enjoying. I was shortchanging myself and putting too much effort in for too little pay because I was excited and stimulated by what I did.

I honestly prefer job security and stability over a fun job. I guess what I mean is that I prefer making money to being intellectually challenged by employers who say they reward top notch work, but really don't. And you can never trust the people charged with paying your salary -- unless they are incredibly kindhearted people who love you, they'll lowball you on pay any chance they get and squeeze out energy from you, droplet by droplet until the passion is gone.

But I think you have to get your butt kicked by reality in order to appreciate job stability and a good paycheck. Go for what you think will be fun and go from there...

Good luck!
posted by onepapertiger at 8:21 PM on November 13, 2007

First I sympathize with your situation. Been there. They don't call them the "golden handcuffs" for nothing.

But in the end it's pretty simple. If money is a priority for you for the next two years, then stay. And be happy. Sounds like you're socking it away for your future, which is great. Is there any other need for money in your life? Do you have a plan that makes two more years of this plan worthwhile?

I'm guessing no. It sounds like you're just afraid to walk away from money because "you'd be stupid to," right? This thought is pretty much about what other people value. Not what you value.

The real question isn't easy either, but at least it won't be a waste of your time: what do you value? You are young and free and healthy and there's a world of wonder, opportunity, beauty, and adventure waiting for you. Isn't there anything you can think of to do with yourself that could compete with the thought of money? If so, do it, enjoy the thrill of taking a bold move. And milk it for all it's worth.

There are also good reasons to make a ton of money while you can. If you can fit a short period of banking cash into a big picture that's meaningful to you, great! Do it.

Just don't do it by default. That has a way of turning from 2 years into 4 years into a lifetime of sitting around unhappy doing shit you hate because you think only a moron would do otherwise. Ironic, ain't that?

Keep in mind life is short. Today you're 26 and on top of the world. Tomorrow you could be under a bus, watching hot coolant scald your mangled legs as your eyes go blurry atop your broken neck. And your last thought will be that you were an ass to waste the time you had.

And even if it's not tomorrow - someday you'll have that reckoning to face. How do you want to spend your 26th year?
posted by scarabic at 8:23 PM on November 14, 2007