Please, please, please do yourself a big favor, open your mind for just a couple minutes, and read this post.
Doing so and taking action on it could net you millions in extra net worth and cut your time to financial independence (FI) substantially.
That’s worth a read and consideration, right?
Yes, I’m Begging
So why did I begin this post by begging you to read it? Because people have career issues.
They hate to read about careers, don’t take action to grow them, or do anything else much with their primary source of income — all to their great financial detriment.
We’ll talk about why this occurs and what to do about it in a minute. For now, let me share the conflict between how people treat their careers and hitting FI.
Hitting the Rant Zone
I’ll admit that this post is a bit rant-y.
When I get like that, much of it is tongue-in-cheek, so please don’t go ballistic on me if something ruffles you the wrong way.
Ultimately, I’m writing this because I want to help you.
In addition, the post weaves in and out of one idea to another since there’s just so much to cover with this topic.
Please bear with me a bit and I promise that I do get to some actionable steps at the end.
Now with those things said, let’s dive in…
The Paradox
So here’s the career/FI relationship for many Americans:
- They hate their jobs so they don’t work to grow them.
- This results in them earning less than they could.
- Which also means they save less than they could.
- Saving less by definition means they’ll delay FI and spend more time in the career they hate.
That sounds like just the opposite reaction than what they wanted, right?
Ok, so not everyone HATES his career. But certainly a large number are not willing to take the simple steps required to grow their careers. And the result is a longer path to FI.
So let me suggest that it’s better to grow your career and reach FI earlier. That seems logical to me.
In addition, if you grow your career it’s likely you’ll advance and be able to work on projects that are more enjoyable.
That’s a great side benefit, right?
And even if you love your job, don’t you want to reach FI as soon as possible? You can always keep working after you reach FI. But if you don’t start now, you won’t have that choice.
Careers are So Lovable
Before we get to why people neglect their careers, let’s quickly review why careers should be one of the most-loved parts of our personal finance plans.
Consider the following:
- It’s clear that a career is a multi-million dollar asset.
- It’s also clear that there are proven steps that can be taken to make it worth millions more.
- When people take these steps, they not only earn more now, but can also save more to reach FI faster.
If you don’t believe me, consider that most millionaires I interview grow wealth through their careers. These are people who have achieved FI (or close to it) and they’ve done it by working the ESI Scale — which includes growing your income.
On a side note, it’s funny but I get a lot of comments about wanting millionaire stories that include low incomes because “it’s clear that having a good income helps you become wealthy.”
That’s EXACTLY my point! 😉
Asking me to post millionaire stories with low incomes is like asking me to post ways to lose weight without proper nutrition. Yes, it can be done, but it’s not the best way.
Besides, the ESI Scale doesn’t say you have to earn $200k a year to become wealthy (here’s a great example of what I’m talking about) , but the path to wealth while making $20k a year is a tough road and very unlikely.
So it’s not just me suggesting growing your career represents a clear path to faster financial freedom. It’s the everyday millionaires that are featured here quite frequently.
And yet, with all this tried-and-true advice (including the numbers being spelled out clearly), people dislike career advice and take very little action on it.
Ugh! Enough with the Career Advice!
Why do I say this? Here are the data points leading me to this conclusion:
- I’ve written about careers for over a decade. Career articles consistently under-perform all other articles (I have the stats to prove it). Maybe it’s because my career advice and writing stinks, but I don’t think so. I do have real-world experience in this field, so I know at least a smidge about it.
- I’ve seen a huge lack of career planning as a manager of people throughout an almost 30-years career. I’ve supervised hundreds of people personally, overseen organizations as large as 900 people, reviewed thousands of resumes, interviewed hundreds of people, and on and on. And I can tell you people certainly don’t work on managing their careers (if they do, they are absolutely horrible at it since it appears they are doing nothing).
- I’ve seen the same with my peers. When I’ve asked others about managing their careers, they get this glazed look on their faces like I’m speaking a foreign language.
- This is an issue for college kids. When I meet a student I ask them what they are studying and what they want to do after college. Then I ask them how well the college does at placing majors in those sorts of jobs and what they are doing on their own to supplement that. Then I get the deer in the headlights stare.
So in the end I’ve come to the conclusion that very few are thinking about managing their careers. Fewer yet are actually doing it.
And yet we’ve already established what a great impact career growth can have on a person’s finances.
Why is This?
So given the fact that working on your career is so beneficial financially, why are so many not interested in career growth?
Here is my thinking on some of the potential reasons:
- They hate their jobs. People already give 40+hours of life-sucking time per week to their employer and the thought of spending any additional time working on their careers makes them want to puke. I Googled a bit and it looks like somewhere between 50% and 70% of people dislike their jobs. There are many reasons people hate their jobs but in the end I think it comes down to the fact that they are exhausted and can’t imagine spending one more second on work-related efforts.
- They assume if they “work hard” and “do a good job”, they will be rewarded properly. So they put their noses to the grindstone and go for it. They don’t need to manage their careers — they plan to get ahead by sheer force.
- They think working to grow their careers won’t do any good. Many believe no matter what they do, they won’t see positive results. So instead of trying, they give up and do nothing. Others believe that there’s no way to get ahead in their specific field so they take no action.
- They believe it will take too much time and effort. They only have so much free time and dedicating any to their careers just doesn’t make their priority list.
- They don’t even think about it. Some people don’t even consider career growth as something to take action on.
I probably missed a few good reasons. If you have some others, please add them in the comments below.
My Response to the Reasons
Here’s my take on the above:
- Hate their jobs. My response: All great results require extra effort, sacrifice, etc. Heck, even reaching FI takes quite a bit of effort. So unfortunately, if you do hate your career, one way to success is through the mess. If you want to live like no one else (hit FI at an early age) you need to first live like no one else (earn, save, and invest more money earlier in your life). That’s true in any endeavor, whether that’s parenting, physical fitness, or personal finance. Sacrifice today is for the greater good eventually. So if you suck it up and work to make more now, you can be done with it sooner. (BTW, there’s nothing that says you can’t change your job to something you love.)
- Work hard. My response: Don’t we all know people who work hard and don’t get ahead? I know TONS of them! You can work hard digging a ditch and do a good job at it, but if the boss wanted you to pave a sidewalk, it’s all for naught. Sure, some people succeed by working hard and delivering but they do so because they (often accidentally) give the boss what he wants. Others don’t know what goal they are trying to hit, so working hard doesn’t work. The key is to know what the boss wants and then over-deliver, but that requires dedicated, thought-out, and planned efforts.
- Won’t do any good. My response: In some companies, it’s true that no matter what you do you can’t get ahead. If that’s where you work, you need to make a strategic choice — either get out of there or live with it and wallow in your misery. In other cases (most?) people want to do what they think is right and get the results they want. It doesn’t work that way. They need to do what the employer wants and then they’ll get what they want — and they need to manage that process. As for the “my field doesn’t promote people” line of thinking, that’s simply an excuse. In any field there are people who get ahead and people who don’t. Find others in your line of work who got ahead and emulate them.
- Too much time. My response: What else can you spend time on financially that can deliver such great results? Working on your career is one of the biggest bang-for-your-buck time investments you can make. Why? Because the rewards are great and it doesn’t take much time — again that’s just an excuse. You can manage your career during your normal course of work with very little extra time commitment.
- Don’t consider it. My response: I’m trying to educate people for this reason. But really, with so much career advice out there, don’t they know there’s something to it?
That’s my thinking. Now let’s look at what some others have said here.
Readers Add their Thoughts
Some ESI Money readers addressed the issue of why many don’t invest in their career with some great comments on Your Career Can Pay Off Big-time.
Let’s begin with this one:
If I may offer a simple explanation for the ‘type’ ESI describes, that is “more the rule than the exception”….
This person doesn’t take action, or aspire to spend money/time, because it might not pay off. They might have been ‘average’ (or below) students, and observed that in school the difference between an ‘A’ student and a ‘C’ student isn’t much. They pass along year-by-year at the same pace. And the judgment/pecking order of peers isn’t really based on academics. By age 20, the 75% who do not pursue further education after high-school have forgotten most of what they knew about Algebra, U.S. History, technical vocabulary for English, etc.
Each year that goes by, the ‘payoff’ potential for increased education is lower by one year. Change becomes harder. If this person decides to ‘try’, then they will have to face the cold truth that they were wrong for all those previous years; the Cognitive Dissonance is too great to overcome, for most. They will have to leave familiar people, expectations, and environment, behind. And they still might fail.
This is a good summary of my “won’t do any good” reason above.
Here’s a new option:
I wonder how many people don’t invest in education because there are so many options there’s a paralysis of choice. That’s something I, unfortunately, use to delay learning – doing the research to find out how to get started. Or I’ll look around for books on something and nothing will stand out. Think this falls under the “they don’t know what to study or where” category.
I’m not sure how much of a problem this is, but it’s certainly plausible and worth considering.
What to Do About It
Ok, so I’ve rambled and ranted on for far too long now.
It’s time to put up or shut up.
So my suggestion is to take action now to grow your career — even if you hate it, even if you “don’t have the time”, even if [insert excuse here].”
Ha! I know, that was really helpful, right?
My more constructive suggestions are:
- Get educated on what works. Read my post on the seven steps you need to take to grow your career. Don’t worry, you don’t have to do them all. 🙂
- Develop a plan to take advantage of the steps you think will get you ahead. Of the list, items #1 and #2 are critical, but the others are used to varying degrees. Choose the ones you are good at and can work to make the most of.
- Start implementing. Even small, daily progress will yield good results over time. Look for ways to work your plans into your normal work schedule so you have very little time investment. Some examples: Have lunch with someone you want to network with, get extra education on company time (and paid for by company), work on your “over-perform plan” during your normal annual performance review, and consider being nicer in your daily communication. These are simple but do add up to big results over the years. I know this by doing them.
- Don’t give up. There will be days where it seems like nothing is working and possibly even going backwards. But stick with it, making even tiny investments in your plan every day. Sooner or later, it will bear fruit with most employers. If yours is the exception, you may need to consider moving if you want to grow your career.
After doing these simple things you will eventually reap the benefits.
And then you can thank me. 😉
As a younger gentleman in my early career – I look forward to reading some of your older articles that have career advice.
Thanks for sharing !
*nodding along through this whole article
I could not agree with you more, ESI. I am relatively early in my career (almost 6 years) and sure, I have good days and bad days, but my career has been my highest return investment thus far. The first year or two out of college, I had no idea what I was doing or if I liked it, but I stuck to it and worked hard… resulting in good payoffs both financially as well as in the work-life balance and the “interesting work” arenas.
Thank you for focusing on careers over the past few years on this blog. It is extremely helpful for me (someone not likely to leave the workforce for some time!)
I think you nailed it that growing your career can get you to financial independence faster than muddling your way through to just be done with it. I’ve always had a knack for “finding” my way into middle management with almost every job I’ve ever had. I like to think it’s because I do exactly what you’re talking about and work hard and grow with what I do.
Over the past couple years, I’ve begun to dislike my job quite a bit. I think a lot of it is because I’m seeing the FI light at the end of the tunnel (2 more years!). However, it makes every day a little tougher to get through. Regardless, I’m still putting in my all because the higher pay increases can only get me there faster.
Great post, ESI!
— Jim
Jim,
Trust me…Once you have achieved FI your outlook on your job will completely change…You will feel liberated and the dislike will go away as you know you are in control and can do something else anytime you want. You may even work a few more years and really enjoy them as you have a secret!
I experienced both emotions once I achieved FI… I disliked my job to some degree more as I approached FI but once there I experienced the most liberating of feelings. I could say and do things that I would have feared would bring negative repercussions previously…and you know what? I was seen as bold, creative and the go-to person. Amazing what a little confidence and “what the heck” attitude can do.
M22
I could not agree with you more. I have FI and it is certainly liberating. My biggest adjustment has been mentally to realize that I have FI. I have to continually remind myself.
I, too, was nodding as I read this.
I have stopped posting on most FI sites because my comments are derided due to having an above average income, so not being reflective of the community.
They miss the point that creating that above average income was a methodical process, just as methodical as carefully examining my expenses and focusing on spending only on what mattered to me; just as methodical as making the tradeoff to move to a lower cost of living area, just as methodical as choosing my asset allocation and rebalancing annually.
It was also just as important. In the early days, probably more important.
Investing in your career is one of the best personal finance decisions someone can make. Over time I’ve doubled my income and it’s helped me get closer to FI.
What you’re saying definitely resonated with my own experiences. Great article ESI!
Another nodding head in the choir up here… A career is the single most valuable asset we have and is the vehicle to convert our time spent into money earned. The high savings rate and ability to invest all start with getting a strong career built up and in place. It is the main engine that powers everything else. A high powered management or professional professional career generates as much annual income as a sizable lottery win but with a much higher chance of success!
-Mike
It’s a good thing I am ending my corporate career soon. Otherwise, if I wanted to continue to work my way up the ladder, I’d have a lot of work to do. My current job is the best job I’ve ever had, but opportunities in this area are incredibly limited. I’d have to take a slight step back to get into a different functional area, stay there for 18 months, then move into a position that is equal or slightly better than I’m in now. Only after being there for 18 more months could I attempt to really move up. So, I’d be looking at a 3 year timeline to move up. If I were sticking it out through the whole 10 years, or even 7 years as I originally planned, it would be worth it to step down to climb up high for 4 years.
You make some great points. It’s hard to focus on your career when you don’t always enjoy it. However, if you don’t grow it, you will end up stuck in that job longer. I’ve actually made some moves recently to potentially grow my career. If I can increase my earnings, I can decrease my time to FI!!! Hopefully, the moves work.
I recently had an internal interview. The first question the hiring VP asked me was why this and why now. The answer, the position is in-line with where I want to go. I may only be in my current role for a year, but you should always reach and get your name out there. Job hopping and applying for every job under the sun is bad. But as someone who cares about their future you should always be on the lookout for new opportunities and managing your career to get where you want to be.
This should be included in a personal finance class in high school, before you begin to pick a college and select a degree to aim for. Oh ya, very few if any high schools even have a personal finance class. I would have been much better off if I had one. I didnt really begin to personally invest in the market till in my 40’s. Now in my mid 50’s I am very active (lots of learning along the way). I knew I need a job, but never really thought of it as an asset. The results were assets (salary, bonus, stock options), but not the job itself. It is an ASSET. The curriculum of high school students need to change to help reinforce this for those that want to listen, those that strive for more, those that want to be successful. Even if they dont get it then, they will hear and some will get it later (early 20’s, late 20’s, 30’s, whenever). But gold as in this article should be spread early and often. Great article.
ESI, this is a timely article for my thoughts. I’ve been going back and forth on whether 9 to 5 life is for me. I’m seeing great gains at work (25k increase of salary in 3 years), and could see another double digit % increase next year, but I just don’t like it all that much.
It’s a paradox for sure. With a high salary, you can save a ton, but if you don’t really like it, then what?
I had this happen a few times in my career. It wasn’t that I disliked the career itself (business) but I disliked the company, my position, etc.
So I started looking for new opportunities.
Two different times it took me TWO YEARS to find the right spot, but when I did, it was a move up, a job I wanted, increased pay, etc.
Those two years weren’t that bad either — especially knowing I would be out of there some day.
So many good points here. Career as well as people you work with can make or break your Sunday night! You hit it right from the beginning in that if you like what you do you will do it better, with more passion, willing to stay late more often etc.
ESI, this post really nails it. There are some brutal truths, contained in your words. Since you have the growing career/income handled, I had a tertiary thought to the impact on Financial Independence….
Work is boring (or worse) for most of us. We get that ‘pit in our stomach’ Sunday night, and when we drive into the parking lot. We clock-watch, take a lunch 10 minutes longer than we should, and dawdle the day away. Our life, away from work, is our ‘escape’ with family, friends, four hours of television we can’t recall the next day…or worse. For many of us, we painfully realize that we are working a job we don’t like in order to fulfill our obligations to family and society. So the next step is to ‘escape’ from the ‘escape’.
So my tertiary point is this: “Don’t blow up your life!” One ‘unforced error’ can undo decades of progress, at work or away. Don’t sabotage yourself, and make your employer or family ‘fix your problem’ just to make the pressure stop.
YES!
I’ve seen people do some crazy things (like quitting their high-paying job without another one, be unemployed for two years, and then be forced to take a spot that paid 60% of what they were making). Talk about unforced errors!
Please use gender pronouns that are inclusive of your audience. You shared, “Ok, so not everyone HATES his career” but ‘their’ would have been the more suitable pronoun.
I use he/his and she/her in a rotating fashion when referring to an individual.
In this case “everyone” is singular, so I picked “his”. I could have easily picked “her”. “Their” is technically incorrect.
I realize that it has become common in speech and in informal writing to substitute the third-person plural pronouns like “their” when referring to a man and/or woman, but I often find that language clunky.
That said, if you are looking to be the grammar police, your time is better spent elsewhere since I often violate basic rules. I like to write as I speak, so if that’s a problem for you, you’re going to be irritated.
Also, if you’re easily offended, which it appears you may be (why else leave such a comment on a site providing you valuable information for FREE), you’re not going to like this site.
You are welcome here, of course, but I want you to know what you’re getting yourself into.
You assume that I am offended without evidence to suggest that as truth. It leads me to believe YOU are offended to be corrected actually. Nonetheless, inclusivity could bring about a broader base for your free content- rigid gender roles are a little archaic.
Why bring it up if you weren’t offended?
From someone whose walked the walk and talked the talk. My DH walked away from a job he ended up hating. He loved it years ago when we meet in grad school. He even took a year sabbatical in college to evaluate if he loved it working in the field. He did. Went to grad school, got a job. 10 years he muddled along, getting promoted, but disliking it more and more.
After year 7 and our 2nd child he says I need to get out of here. I hate it. I want to move. We may have to do it without a job. Let’s get serious about saving money. We had already been saving the maximum ESPP, 401k, (ROTH iras barely qualified), and just saving. But we went to the bone. We looked at our expenses and said we are spending $x on living and the rest is cash. We were on the 4 year plan to move in 2016. Why? Because we decided we would do kindergarten for our Dk1 and then we’d have enough cash to survive no matter what. Plus DH wanted to figure out a new career track. He did.
Instead in 2015 after a massive layoff where he no longer had friends at the company DH decided SCREW it. He’s done. He gave them the finger pretty literally and we moved and he left. His new career was chosen and we were given signs where to move so we did. He took a year to retool, we had 2 years of cash living expenses, our home equity to buy our next home, and our retirement savings. We had over 7 figures cash in our accounts and yes some people would say we could “fire” but he wasn’t ready and still isn’t.
So then he landed a crazy dream job and it’s been cushy ever since. Our life has always been about us and family and time with me and the kids. He’s not about climbing the ladder and actually has refused moving into E suite. But he makes a lot without it and we’re happier 1 income, and lower stress life. He just rolled into work today at 10 am and will be home around 2 pm I told him I needed him for the kids. He’ll work from home and have flexibility.
So sometimes you pick your lifestyle and while we aren’t “fire” because we choose for me not to work and we choose for him not to kill himself working we’re okay. We’ll be able to fire without any investing in RE properties just investments in 10 years probably 5. But truthfully we’ll see because it’ll mostly depend when he gets fed up and give working the finger. Until then we’ll just cruise along with honestly I can say an easier low stress lifestyle than most of our collegues and friends.
Awesome, and so on point in many ways. What people really need to take to heart is the fact there is no “S” and “I” without the “E” and probably no FIRE either unless you marry it, inherit it or win the lottery. It is crazy not to really think through a career plan and how to maximize earnings since that is the gasoline (E) that runs the engine (S) that drives the car (I).
I’d also modify one of the traditional axioms about “not what you know, but who you know.” We used to say, “it’s not what you know, and it’s not even who you know, its WHO KNOWS YOU!” Really studying and understanding organizational behavior, culture, and internal politics will help you find the right path to promote and grow your career to maximize your income.
I didn’t think this was rant-y at all, great post. I worked my tail off and did most or all of the things you mention to get ahead and it did indeed work. I have a very nice income. I semi-retired and went half-time 6 weeks ago and 50% of my salary is still way higher than the average family income in America. Not bragging – I’m blessed, but I worked my tail off for it for 25+ years.
Another nod here as wel!
In my teens I knew I wanted to work my way up. I started out of high school as a legal secretary always knowing I wanted to be a lawyer. I started in a paralegal program in night college. Of course it helped greatly that the lawyers I worked for were always super supportive.
By the time I got to finishing my bachelor’s degree in English, with a minor in Sociology, I was sure getting a law degree was for me.
In law school I identified a post graduate degree, a law masters in tax, was going to get me farther along.
Deep into my Estate Planning practice I now work part time, have younger partners and associates to pick up additional work, so I spend more time with family.
At 56 I have many years invested in a wonderful job, work as much or as little as I want, and may retire early…or maybe not.
Investing in my career is the single most important, fulfilling advice I gave myself. You are wise to give this same advice to others.
I am reeping the benefits as I write this comment as I am home at 3pm to meet my teen coming home from school.
Keep up your great work in advising others to invest in themselves!
Loved this post! Before I left work for retirement I tried to help as many younger workers as possible understand how to navigate the corporate jungle (some listened, some did not). My prime advice to them was to BUILD RELATIONSHIPS! In my estimation, along with doing a good job and all the things you mentioned, if you can’t or won’t build solid relationships at work you are ultimately alone. And as important as it is to be able to work in a team environment these days, without those relationships, you’re sunk.
I think my favorite line in your post was… “The key is to know what the boss wants and then over-deliver, but that requires dedicated, thought-out, and planned efforts.”
So many people fail in this very simple concept. They either don’t accept that they have a boss or think they are smarter or don’t need to be managed. In every role I had I worked to make the boss look good. Unless they are a truly lousy boss (and yes I had a couple of those) you tend to get repaid many times over.
The other point I really endorse is the idea that education is ultimately to secure a job and begin (or continue) a career. Too many college students lose sight of this. I hired many grads who mistakenly thought I was going to reward them for what they accomplished in college. They failed to understand that their education only opened the front door to our company and they basically started at zero from there.
I agree with Dwayne’s comment and his favorite line. I actually like the way it was stated in the following paragraph that echoed this same sentiment because it is more detailed about how the employee usually thinks vs what he/she should be doing:
“In other cases (most?) people want to do what they think is right and get the results they want. It doesn’t work that way. They need to do what the employer wants and then they’ll get what they want — and they need to manage that process.”
I do have a question for you ESI. From some of your past writings I think it is fair to say there were times when you disagreed quite strongly with your boss’s decisions/direction. I have found myself in that position a number of times too. Obviously we as employees can certainly be wrong and the boss might have far more information than us so that we don’t have enough information to understand why those decisions are being made. But when there is enough evidence or pattern of poor choices to indicate that the what the boss wants is often not a great idea, how do you suggest someone does what is best for themselves in those environments? I can see a few possibilities.
1. Doesn’t matter how bad the idea is, if the boss wants it, you do it, period (unless it is illegal / immoral).
2. Try to carefully convince the boss to do something different, but if unsuccessful then give the boss what they want.
3. Just do what you know is better and show the boss the better results (Seems very risky, if it goes poorly you take the blame, if it goes well, you still didn’t do what the boss wanted and he can likely claim that it would have been even better if you did what he wanted)
4. Look to leave the company or move to a different part of the company as this boss isn’t going to work out well for you.
5. Amazing idea that solves all your problems …..
Which path would you suggest? My thought is that you likely do #2 followed by #4 if #2 is repeatedly unsuccessful, but would be curious how you would approach those situations.
Well, you’ve done a great job of identifying the major options.
I always tried to read the situation and pick the option I thought had the best chance for success.
Some thoughts on your list:
1. Yes, sometimes you need to simply bite down hard and do it. The worst bosses are the ones who make you do something you know is stupid then blame you when the results are poor (yep, I’ve had that happen more than once). Fortunately it wasn’t common.
2. This is probably the path I took most often. If you have a decent boss, have performed well in the past, and have a good relationship with him/her, then you can often find success with this approach. I would certainly listen to my subordinates and often change my mind if they had well-thought-out reasoning and a good track record.
3. I did this in my last two jobs quite often. Sometimes it went well (record year) and sometimes it didn’t (HUGE conflict). I know one guy who’s #2 at a company and this is his complete strategy for dealing with an owner who is clueless. It’s worked for years as his division has grown massively each year, but in the past year things are starting to slow down and he’s getting more and more pressure to fall in line. I don’t recommend this as a regular strategy if you want to be there long-term.
4. This has been an option I employed a few times. I worked for eight different companies and many different divisions/owned affiliates in my career, which seems like a lot when I tell people my history. A handful of those moves were simply because the boss was a crazed-person and I had to get out of there!
5. Every once in awhile this happens, but not too frequently. I still remember vividly when I offered a new twist on an idea one of my crazy bosses (he was fired a few months later and I got promoted) had suggested. He said, “I love how you take my wacky ideas and actually turn them into something that works well.” But you can not bank on this strategy as it’s hard to be “amazing” all the time.
So to summarize, I would try #2 first of all. If that didn’t work and there seemed to be no hope for the boss in the future, I’d go to #1 while at the same time begin working on #4. As I got closer to #4 and knew I was going to leave soon, I’d probably switch to #3, though I might coast on #1 and let the boss reap the disaster of his decisions while I headed out the door.
Hope this helps…
It does, thanks. That was a more comprehensive explanation than I expected, but enlightening.
Hi Dwayne, ESI : Really enjoyed your comment:
” So many people fail in this very simple concept. They either don’t accept that they have a boss or think they are smarter or don’t need to be managed. In every role I had I worked to make the boss look good. Unless they are a truly lousy boss (and yes I had a couple of those) you tend to get repaid many times over”
I need some advice. I have a great boss with whom I share great relationship over the course of the last two years (At least I thought I did), we are pally, good friends, and work well together, potentially even thinking of ideas of starting our own business.
Very recently, he screwed me over but not giving me any credit in an important project where I was the second highest contributor…giving credit to about 15 others but me.
I’m still trying to grasp on why he did that, of course I’m upset and shaken but haven’t approached this topic with him yet. It makes me think he has very little respect for me.
What would you advise in this situation? Is it good approach to talk to him about this or let it be, cool down and talk to him months down the line?
Personally, I would not wait. I’d talk to him soon. I have never seen situations like this get better over time if no one mentions it for months.
I’d be very casual about it. Something like, “Hey, Bill, can I talk to you about something? When you were mentioning the people who contributed to the Jones project, you didn’t mention me. We both know I was pretty involved in that one, so I’m wondering why I was left out. If I did something wrong, I want to learn from it, get better, and never have it happen again because my goal is to be the best employee I can be.”
Those are not the exact words, but you get the idea. Bring it up casually and under the pretense that you’re looking to improve/be better/correct a wrong you may have done. Only a total loser of a boss would object to an approach like this.
My guess is that it was simply an over-sight on his part, but if there was a problem or specific reason for him leaving you out, now he’s got a clear opening to tell you what it was.
Hope this helps!
Thank you! Very helpful since I was stuck with words. Will approach and share on how it worked out.
Feisty, I think ESI gave you some great advice. I would only offer one other perspective which may not be a good one because obviously, I don’t know any specific details of your situation. However, what caught my eye was something you said about the relationship you have with your boss, “we are pally, good friends, and work well together, potentially even thinking of ideas of starting our own business.”
Is it possible that the closeness the two of you share as friends could create some consternation among your peers? Is it also possible that because of this, your boss may have sensed concern among the team as well, and perhaps is going out of his way to purposely recognize others, and not you in this instance, so as not to appear to show too much favoritism toward you because of your friendship?
My wife has this exact situation at her work. There is a guy on her team who is the drinking buddy of the boss. They are inseparable at meetings and many on her team feel like this guy gets a lot of breaks because of that relationship, so much so that others are becoming resentful.
Again, this may not apply to you but something to consider if you do see some potential similarities.
Right there in complete agreement for all of this. The more you can work towards getting better at your job, the higher earning potential you’ll have. Even more than that you’ll likely like your job more if you’re better at it!
Being surrounded by people who are really good at “future thinking” in the personal finance community, it’s easy to remember that most people at most jobs don’t have too much of an idea of where they want their careers to go (other than “gradually up”). I recently read Radical Candor, and she had a good definition of two categories:
Rockstars: The stable core of a business that keeps it running. They might enjoy a raise, but a promotion into a different role might not be welcomed. They like what they do and want to do it better.
Superstars: They want constant change and new challenges. Once they’re solved a problem they want to move on and take on new challenges.
Superstars will generally have higher earning potential since they’re always moving up and taking on harder challenges. Rockstars are the core that keeps businesses humming.
For either though, your advice holds true about knowing what you want. It could be a future that involves perfecting your craft, or one around constantly finding new challenges.
This is all fine and we’ll until you get to the pay ceiling of your career. Then you face the choice of having to take on additional stress/ time commitment to move into upper management. At the end of the day, you really limit yourself by focusing solely on your career as a paid employee, instead of investing in yourself and unlocking unlimited earning potential in the form of starting a side hustle or business.
I’ve seen my co-workers slogging away putting in extra hours late at night and over weekends, to essentially get a pat on the back and a pittance of a raise. People need to realize that as an employee you are a tool to make the company money. They are always trying to find ways to maximize your output while paying you the least amount of money. Not that this is always the case, but especially for publicly traded companies, profits to shareholders are the bottom line.
Had they spent those extra hours learning financial literacy, starting a side hustle, and paying themselves first; they would be in much better financial situation.
Bottom line, invest in yourself, work smarter so that your money makes you more money, create streams of income from multiple sources, and you will work less, make more, and be a lot happier for it.
I got there and you can too, good luck!
I have been a avid fan and have emulated some of your advice in the past couple years, it has been incredibly helpful. I have worked on growing my career and earning more $$ consequently. I strive to save about 60% of my salary. Trying to strike a balance between being frugal and live a comfortable life. I have an emergency nest of living expenses for 2 years and the rest is invested in stocks. I am yet to max out 401k, will work on that next!
Interesting reading as usual. Thanks. Here’s another thought for you, what about people that are stuck in their job because it’s awesome. That’s a trap too. I have a job that pays well and I love. I could be content to sit at this same job for years, but I don’t think that would serve me in the long run. 🙂
ESI, I seem references to Dave Ramsey-like views in your articles. Have you checked out the Ken Coleman show on podcast or Sirius XM? He’s one of the Dave Ramsey personalities and started a new show a few months ago and I’ve been listening to it. Pretty interesting stuff about career choices and listening to the problems people face. It really fits well with this article.
I haven’t, but I’ll check it out. Thanks for the recommendation!
Here here! As someone who’s been in a similar situation of managing professionals for over twenty years, this totally resonates.
The advice I give to my current team is to simply get results and make friends in the process. I agree you can’t just rely on “doing a good job” to advance to something “better.” You need to be a home run hitter – get the big wins that get noticed and appreciated. This means going above and beyond when the sh*t hits the fan. And demonstrating resilience and persistence.
I am totally living the paradox each day. I know I need to grow my career which result in me reaching FI faster. But since I am on path of FI, there is sense of contentment, which makes motivating myself to take action to grow my career even more difficult.
Very well articulated article.
ESI where are you? I love your blog. Please don’t leave us.
I’m not sure what you are talking about…
Well apparently my favorites was messed up and I’ve missed all your posts this last month. I’m an idiot but at least I have a bunch of posts to read. Cheers
ESI..small request..please improve your mobile blog experience, currently it’s pathetic to read and post comments. Your blog is alienating a lot of millennial readers who majorly use mobile to access your blog. 🙁
You need to be more specific…
I agree with you here. I also think you’re missing at least one item from your list of reasons that people refuse to focus on their careers: they think of “career” as synonymous with “parts of my job that I hate,” such as sucking up to management or doing work-type events outside of work (without being paid) to advance. Or, they think of “career” management as unpaid and no-fun work (which it often is — in the very short term). Nobody likes that guy who is so focused on where he’s going that he could care less whether he does a good job right now.
For those reasons, I think people can undervalue planning and the extra things that cause you to be more valued in the marketplace. I get it, because I also don’t like doing things purely for the purpose of building a career, even though it remains my best asset. Also, it helps when I enjoy what I do (so those things are more fun), which many people do not. And people often miss that the extra 2% of work and planning can net you the highest gains.
It’s invaluable to think of where you want to be in ten years – to map out some big goals – and then see what it would take to achieve those. And then re-evaluate every so often as time moves on. If you don’t like where you’re headed, then maybe search out a new direction (which is the part of career and work searching that I enjoy talking about).
I honestly don’t like to work and the idea of a life of leasure is more Appealing. In order to one day not have to work, I have always took advantage of what my employer offered to grow my career and worth. I did so by volunteering for committees, mentoring, being mentored, and taking advantage of the tuition assistance program to earn a Masters degree for almost free. Getting involved has changed my attitude towards work and has made it more tolerable.
Hmmm. As an RN my options for managing my career seem limited. I could go back to school to be an NP or nurse anesthestist. 2-3 years of school and clinicals for a 50-75% bump in pay. But I’d have a totally different job with more responsibility (i.e. more people trying to die on me) and more work-too much work. If I wanted to work my ass off I could go this route, but I like my low stress 30 hour workweek.
I could go the management route (eww) and go from hourly to salary. In theory make twice as much, but not really since salaried usually means unpaid overtime and as a RN I get $66-100/hour for overtime. So 60 hour weeks (also eww) I’d break even. Plus, you know, I wouldn’t actually be helping patients and that’s the whole point of being a nurse in my mind. Plus middle management is a major headache. Pulled in both directions, trying to please everyone, meeting state requirements.
I’m open to suggestions but all the cost/benefit analyses I do just suggest I stay put.
First of all, are there people at your current job who make more than you? If so, can you do what they did to earn more?
Next, you can consider other hospitals, working privately for a doctor, or even taking a job in a different city to grow your income.
Then, as you point out, you can grow in many different ways (education, responsibilities, etc.) to earn more money.
In the end, if you don’t want to do any of these (for whatever reason) then you need to accept that you’re likely set at the level you’re at (obviously, if you don’t do anything different you won’t grow your income.)
At that point you may want to consider options for earning more outside your career, such as starting a side hustle (which can help you tremendously financially). Details here:
https://esimoney.com/side-hustle-business-can-get-financial-independence-10-years/
Very nice post that struck a couple of nerves.
People hating their jobs is a fairly large target. What parts of the job do they not like, the manager, some of their peers, the industry, sitting in a cubicle, etc?
Working a job that you hate is your own accountability and your own choice.
One can either fix their response or change their environment.
I have seen statistics saying that from 20% to 80% of employees are disengaged from their jobs and their employers. Usually around 40% to 60%.
A lot of workplaces are full of people going through the motions and nobody really cares, including managers!
I guess their subjective reality is that they hate what they do, can’t see how to get out of their rut and just put up with things?
Hey ESI,
For those of us in either supply chain or sales, we come in contact with a lot of people. It’s almost as if the networking happens naturally. On large or joint projects, you get to know suppliers pretty well.
What would you say are the dangerous of jumping ship (they offered) who has an existing relationship with your current employer? I just wanted to get your perspective on it.
Just so I understand, are you asking about going to work for another company that your current company has a relationship with?
If so, is it a competitor, supplier, or purchaser from your current company?
For most parts, a supplier of the current company where I am at. In some other areas of the business, they could be and is sometimes a competitor.
From what I have research in my state, they cannot enforce a non-compete agreement on me. At least legally, it should be okay.
Compensation is about the same, but the opportunity at the other company is present. I essentially hit the ceiling where I am currently at. That’s really the only enticing aspect. Otherwise, I am in a fairly comfortable position currently.
I tend to think that enjoying your day to day is a key part of life, but I would guess that in most cases where people hate their jobs they are either overqualified for the position or not actively managing their career as you have outlined. It’s easy to be dissatisfied with something that you’re checked out on in the first place.
Find a better situation, get educated, or double down and enjoy the side benefits of a good career. I think this article is great advice and a relatively rare thought path in FI.
My only addition to the advice here is to additionally think about and manage for your boss’s career in making your own choices. It will help you succeed, network, and grow.