Posted on 12/15/2010 5:52:49 AM PST by CSM
Pulling the plug on a bad job
Dear Dave,
My husband and I are completely debt-free. He makes about $100,000 a year with great benefits, plus we have $80,000 in savings. The problem is he hates his job. He wants to try something else, but hes not sure where his passion lies. When is it okay to pull the plug?
Sarah
Dear Sarah,
In a situation like this, I think you need to combine the desire to do something you love with enough wisdom that wont leave your family in jeopardy. In other words, lets run to something, not from something.
Id suggest that he grab some of Dan Millers books, like 48 Days to the Work You Love and No More Mondays, and begin a process of reading, studying, and thinking about what he really loves to do. Then, figure out a way to monetize that idea. Youre more creative and passionate when you love what youre doing, and with the right plan in place youll make more money, too!
Now, doing this will probably result in a temporary pay cut. But even if he goes from making $100,000 to $50,000 that first year, you guys can adjust your lifestyle and still live comfortably. You can get by on way less than a hundred grand, and if needed, you can live for a little while off bits and pieces of that big pile of cash youve got in savings.
I cant imagine spending my entire life doing something I hate. If every Monday morning looks and feels like youre having a root canal, then its time to find something else. Just make sure youve got a plan, and be smart about it!
Dave
Refinance for a lower payment?
Dear Dave,
How do you feel about people refinancing their homes? Is it smart to refinance a house in order to have a lower mortgage payment?
Anonymous
Dear Anonymous,
No, its not. But it is smart to refinance a house to get a lower interest rate. By doing this, you pay off the home faster.
Think about this. Right now, with a 15-year fixed rate mortgage and one point paid, you can get an interest rate under four percent. Thats awesome! Lets say you have a $300,000 mortgage, and you refinance from six percent to four percent. A two percent savings equals $6,000 a year, and thats $500 a month in interest saved. In my book, thats worth doing!
So, refinancing definitely makes sense in cases where youre going to stay in the home a long time and you get a lower interest rate. Good question!
Dave
The first team meeting
Dear Dave,
Our company is about to have its first-ever employee meeting. Do you have any suggestions on how to conduct something like this?
Brooke
Dear Brooke,
If you have an existing company, and youve never had an employee meeting in the past, I think the first one should be spent explaining why youve decided to have employee meetings.
We have staff meetings every week with all 300 team members, mainly for the purpose of communication between the different departments and divisions. We cheerlead when things are going right, and lots of times Ill read email letters bragging on various team members.
Now, no company is perfect, and sometimes theres housecleaning to be done. That kind of stuff isnt always pretty, but we tell the truth and shoot straight with the team about these issues. Occasionally, Ill even use one of the meetings to teach on the principles of the way we run the company. This can cover accounting, marketing, or even the concepts of unity and loyalty.
Just do things gradually, and dont hit your team with too much right off the bat. You might even take suggestions from your team as to what they feel would be beneficial in your meetings!
Dave
Considering my last ping, pulling the plug on a bad job doesn’t sound all that bad!
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>>Dear Dave,
My husband and I are completely debt-free. He makes about $100,000 a year with great benefits, plus we have $80,000 in savings. The problem is he hates his job. He wants to try something else, but hes not sure where his passion lies. When is it okay to pull the plug? <<
Start doing what you think you want to do on weekends. When you find something you like, take a vacation from work for a month and work at it to find if it is right for you.
That way you aren’t dumping a $100,000 a year paycheck on the wrong idea.
You are exactly correct and to put it in Dave’s words, “Don’t jump out of the boat until you pull up to the dock.”
;-)
I’d say, “Don’t toss out your steaks because you are wanting a hamburger for dinner.”
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