I’ve written before about the health impacts of having a corporate job and the toll financial stress takes on your life. And in my opinion, these negative health consequences are a very good reason why you should move forward with the best retirement plan for you, like becoming an entrepreneur.
That said, I never had the hard evidence to prove that jumping the corporate ship and starting anew is actually better for you. Until now.
I came across a research paper recently: Perceived Job Insecurity and Well-Being Revisited: Towards Conceptual Clarity.
Here’s what I learned:
You’re worse off than you thought
There have been tons of studies that show how worrying about losing your job can affect your health. The stress can lead to sleepless nights, anxiety, heart attacks, and more. It’s safe to say that if you spend years worrying about your job, it can actually shorten your life.
But this study has shown that the impact is even bigger than other researchers imagined. The authors took into consideration two factors of perceived job risk than no one ever has before:
- How people perceive their risk of job loss
- How people perceive the potential cost of losing their job
By taking these factors into consideration, the authors found that other economists are underestimating the impact of perceived job risk on well being. They estimate it’s more than twice the size of other studies.
Knowing that, sticking with your on-the-rocks job might not be the best retirement plan for you.
You’re better off quitting
The study also took a closer look at how people perceived their risk of job loss. Some people are more worried than others. People who are only a little worried have less consequences for their well being. People who are really worried have more consequences. Simple.
But here’s the kicker:
For the people who are very concerned about their job security, their well-being actually improves when they lose their job.
In other words, the stress and worry about getting fired is worse than actually getting fired and moving on with life.
I love this research paper, because I think it has an important message for high-stress corporate workers who worry constantly about losing their job:
You are literally better off quitting now.
And if you do quit, the decision frees you up to start something new with your life — something personally and financially rewarding.
There are a lot of reasons why people stick with their crappy corporate job, even if it’s killing them. A steady paycheck, the prospect of a pension, fear of what’s next.
But if you’re one of those people who’s really worried about getting fired, you’re better off taking a step back.
And even if you aren’t so worried now, you might become so. There’s the ever-growing threat of robots or bowtie-wearing millennials swooping in, taking your job, and doing it for much less money.
And if you’re still too scared to jump ship, there’s plenty you can do to improve your situation and adopt the best retirement plan. Start a side business on evenings and weekends and begin building up an independent stream of income. That in itself will likely lower your stress about losing your job, improving your well-being in the process.
You have to do what’s best for you and your family, that’s for sure. But one thing is clear:
You have to do something.
Because right now you’re sitting around waiting for one of two things to happen:
- You lose your job and head to the unemployment house, or
- You slowly kill yourself from stress and worry.
None of that’s worthwhile. In fact, changing your mindset from employee to entrepreneur can help you diffuse stress. Suddenly, there is hope and potential.
We can help you with the mindset and we have the tools to help you make the changes you need. Jump on our list below to get the exclusive information we give our subscribers.
Ian Bond is a private banking senior executive with over three decades of experience in wealth and asset management with Goldman Sachs, Credit Suisse, and Citigroup. He has built major businesses on four continents.
Despite his professional responsibility for assets over $100B and revenues over $1B, after the 2008 crash Ian was personally going broke. Within five years he destroyed his debt, became an expat in 2014, and built multiple streams of income to fund his imminent retirement. Ian is also the founder of MyRetirementRehab.me created to help other executives and professionals rehabilitate their finances and make a prosperous, enduring retirement a reality.