Big news from the life of EarlyRetirementGuy this week is that I’ve quit my job!

No, this wasn’t some heat of the moment walkout during a particularly bad performance review, but a much thought out and pre-planned action as a result of the discussions around my post last month and future career aspirations. It took me a long time to come to this decision, and was one of the hardest I’ve had to make in a long time. Several lifestyle and financial factors helped in making the decision:

Emergency stash

The concept of having an emergency stash is well known by many and yet rarely properly utilised. It is not a holiday fund to dip into or savings account for Christmas. Instead that money should be put aside for genuine unplanned emergencies or where it has to be used to enable free choices to be made.

My current jobs pays on the last day of each month for the days worked during that month, however my new job pays 1 months in arrears. What this means is that I will get paid from my current job in October, however will not get paid from my new job until the end of December.. despite having no breaks between. Fortunately I’ve built up a cash holding of several month’s worth of expenses which means I’m not having to live from paycheck to paycheck. Missing a payday in November will have an impact on my current networth, but should be easily covered from the cash reserves and not require any debt.

Had I not had this emergency stash of cash, I would have had to load November’s expenses into debt and possibly incurred interest payments.

Delayed gratification

As several commentators on my cash or comfort article noted; It’s likely most of the relatively small pay rise will be chipped away by increased expenses such as paying tax on the company car and having to purchase my own mobile phone. In reality; this new job is likely to be longer hours and so result in a decrease in average pay-per-hour.

Despite this, I believe that this new role will give me much stronger opportunities for advancement within the new company, and if not.. the experience gained will be far broader then that which I’m gaining in my current role. Looking ahead at the next 5/10/20 years, I believe I will be in a far better financial position then had I just stayed at my current employer.

Too many people focus only on their current self instead of thinking forward to the impacts it might have on future selves. Investing in yourself early can compound both your finances and lifestyle later on.

Motivation to work

While I love my current role, the truth is that I’ve become lazy. The work is no longer challenging and there is no clear opportunities for advancement. This has killed my motivation and worth ethic over the past year resulting in disappointing gains both within the workplace and at home. I’m hoping that this new move will present new challenges as well as the opportunities which will rekindle my motivation for the work and hopefully lead to increased motivation at home.

I’m excited but very nervous about the changes this will have, however I’ve no doubt it was the right decision in the end and will ultimately reduce the time required to reach my final number required for Early Retirement.

Have you recently moved onto a new job? How did you find it and any tips for a new starter? Please let us know in the comments below.