Earlier this year, Sam Dogen quit his job.
To most people, this wouldn’t be much of a story, but to Financial Samurai’s millionaire founder, a few details stand out.
First of all, this is his first performance since 2012.
Dogen, 47, has been a retired stay-at-home father since 2012, boosting his annual income Passive income will reach approximately $380,000 by 2023 Through a combination of stocks, bonds, real estate and other investments. Late last year, he returned to work after selling much of his investment portfolio to fund the purchase of a new home.
He only stayed on the new gig for four months is its own story But it’s also worth noting that by leaving so suddenly, he went against one of his own pieces of advice: “Never quit,” Dogan said. “Get fired.”
This is what Dogen did more than ten years ago. He didn’t leave; Planned layoffs That earned him three months of base salary and a low six-figure severance package. This money, combined with the $80,000 in passive income he was earning annually, allowed him to retire early.
If you’re considering quitting your job, here are Dogen’s best tips for you to follow in his footsteps.
How to negotiate layoffs when leaving a job
How you handle separation will depend on your specific circumstances. For Dogen, 2012 marked the end of a 13-year career in investment banking. He had accumulated enough passive income outside the office to feel comfortable leaving, and he knew he wanted to leave.
do not miss it: Achieve Financial Wellness: Happier, Wealthier, and Financially Secure
He also knows the power he has as an employee when he leaves. “As a former boss, the worst thing that can happen is for a valued employee to quit and give you two weeks’ notice or less,” he said.
Here’s how to harness that power to achieve the exit you want.
convey your unhappiness
Dogen says letting the right people know you’re not happy with your current role can make things work.
“You basically have to talk to HR or your direct supervisor and say, ‘I’m not happy here and I want to make some changes,'” he said. “Ultimately, if these changes are not met, I want to leave.”
Dogen says this creates a win-win situation because your superior is likely to be willing to accommodate your needs.
“They might give you a raise. They might give you more flexible hours. Great!” he said. “No employer wants an absent-minded person.”
Propose a simplified transition
If your company can’t accommodate your demands, make things easier for your employer by changing the conversation to the possibility of you leaving.
“Let’s figure it out,” Dougan said, you might say. “I would love to stay as long as possible to help with the transition. But with that in mind, let’s talk about severance.”
After Dogen had this conversation with his boss in 2012, he stayed on for two months, using the time to train his junior employee and introduce him to customers.
If you’re willing to do something like this, “often your employer will work with you — especially if you’re better than the average employee,” Dogan says.
negotiate layoffs
Ask if your company is planning a round of layoffs and if you can be a part of it. Under the WARN Act, companies with 100 or more employees (fewer in some states) must provide 60 days of warning before making large-scale layoffs. In lieu of the warning, the company pays compensation to affected employees, usually equivalent to 60 days’ basic pay.
Dogen recommends further negotiating your severance package, in addition to any warning bill pay you may receive. “The standard is one to three weeks’ pay for each year of service,” he said.
Negotiating a layoff rather than resigning requires more than just a cash payment, Dorgan said.
“If you get laid off, you get unemployment benefits. You get severance, deferred compensation, health care subsidies. You get a ton of stuff that gives you a huge financial runway for your next endeavor.”
Want to stop worrying about money? Sign up for CNBC’s new online course Achieve Financial Wellness: Happier, Wealthier, and Financially Secure. We’ll teach you about the psychology of money, how to manage stress and develop healthy habits, as well as simple ways to grow your savings, get out of debt, and invest in your future. Starting today, use code EARLYBIRD to get a 30% introductory discount until September 2, 2024.
add, Subscribe to the CNBC Make It Newsletter Get tips and tricks for success in work, money, and life.
