The Corporate Escapee

Staying on Point & Afloat Part 3: Goal Setting

noreply@blogger.com (The Corporate Escapee) — Fri, 20 Jul 2007 15:02:00 +0000

When I left my previous job, my boss sponsored a small farewell lunch in my honor even though I wanted to leave quietly under the radar. He poo-pooed the idea saying that doing so would seem scandalous - as if I had received the hatchet or something. During this farewell lunch, I found myself unprepared for the question my co-workers asked, "So, where are you going?" In my final installment on Staying On Point & Afloat, I share what I didn't tell my previous co-workers regarding my goals.

Key Objectives
Being on my own nickel, I naturally have motivation to make something happen sooner rather than later. In order to keep a brisk pace, I have developed action items. These steps should propel me closer to realizing and/or coming to terms with my goals with respect to life, liberty, and career happiness.

Invest in at least one relatively passive income producing venture

Determine my commitment to and viability of my various business ideas

Try to land an independent contracting gig

Get my blog built and optimized

Get at least one additional professional certification

Study for and take the GRE/GMAT

Apply for a Master's Degree program

Get my house market-ready

Take a film-making seminar or course

Take a hiking trip/vacation

Timeline
Being very conservative, my plan is to spend no more than 13% of what I have in my non-retirement cash savings/investment accounts before evaluating my position and making my next critical decision career-wise. This gives me a three to four months. If I get a part-time or contract job, then this time frame can be extended, which is desirable. I would be happy to spend much more time figuring out a way that I can earn income outside a corporate-type job with a two-three week vacation and 40+ hour mentality.

Thoughts on Relocation
Even though I am single, I am not in a position to "pick up and go". Initially, I was going to put my house up on the market right away. But having no home AND no job did not seem like a good idea. I am open to relocation, although I might be content, under the right circumstances, to stay in my current location. A big reason to stay in my present location is that I have a relatively low mortgage and mortgage rate. Anyway, I'd prefer to have a business income, a job offer/contract, or college acceptance in hand before making a move. So during my alloted time, I will be continuously paring down all my belongings and streamlining my files/personal documents. I have a 2300 square foot house now, but I may not have that luxury in the geographical locations I am considering.

To finish my opening story, what did I tell my co-workers about my leaving? I stumbled through a variety of vague responses ranging from: "I'm looking to relocate", "I'm going back to consulting", and "I'm taking a summer vacation". One guy took me aside to try to confidentially find if something was happening with the company that he should know about. Another thought I was just being coy about stating the name of my future employer. But most people didn't really care about the answer, they just wanted their free fajitas and enchiladas and thought it was polite to inquire.

Staying on Point & Afloat Part 2: Taking Care of Personal Business

noreply@blogger.com (The Corporate Escapee) — Thu, 19 Jul 2007 16:23:00 +0000

The best laid plans can be fouled-up if inadequate attention is paid to personal financial matters first. In Part 2 of my series on Staying on Point & Afloat, I cover key areas of financial concern to plan for when leaving Corporate America.

Ensuring Medical Coverage
Under the Federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), I can extend my coverage from my previous employer for up to 18 months. Yesterday, I received my COBRA election packet. The cost for me, as a single non-smoker, would be approximately $300/month ($263-medical and $35-dental). I researched additional insurance quotes at eHealthInsurance. The range for me based on gender, age, number of dependents, and location was $115 to $244 monthly depending on how much of a deductible and co-pay I am willing to assume. COBRA does tend to be costly, but is the best choice if one has a pre-existing health condition - not that I have one. Insurance aside, staying healthy is one of the best things a person can do for his or herself. It costs much less not to have to see the doctor at all, not to mention giving one more stamina mentally and physically for corporate escapee pursuits.

Getting Disability Insurance
I can do no better on this subject than redirect the reader to an unlikely, amusing, and yet informative article on the Motley Fool website entitled What factors should I consider before buying private disability insurance? Regarding one of the benefits for purchasing private disability insurance, the Fool writes:

"The policy will not be tied to your current job. This leaves you free to experience a mid-life crisis, heading off to the Himalayas with disability insurance in tow. More seriously, if you have entrepreneurial ambitions, it might be a good idea to lock in an individual policy while you can. Once you become self-employed, affordable disability insurance will be very difficult to find."

Managing Expenses
My last paycheck from July 15 is enough to cover my expenses for the next month. Over the course of the last several years, I have saved nearly half of all my income each month. This for some may be something of a radical idea. But in my mind, I earned and therefore spent only half of my actual salary. I had tracked and budgeted actual expenditures for a year's time on Microsoft Money to get an accurate awareness of my true spending habits. I was in the "habit" of spending according to budget and confirmed this less rigorously on a spreadsheet. The way I adhered to a spending budget was through the idea of tradeoffs. If I splurged or spent too much in one category, I scrimped or cut expenses in another. Last year I had particularly high veterinarian bills, so I dispensed with most luxuries and contented myself with the basics. It wasn't that I didn't have the money, but that I had trained myself to believe I couldn't afford it. The result is that I have the funds to not feel "trapped" by bills and be able to make a concerted effort towards career change or entrepreneurialship.

Rolling Over Your 401K
Taking control of your 401K is as simple as rolling it into a Roll-Over IRA with a custodian such as Fidelity. But one thing to consider is timing. I checked with Human Resources and found that I was eligible for a full company 401K match but that the distribution would not be made until next spring 2008. However, so long as I keep $5000K in the account, I can leave it in my previous company's program until I'm retirement age (assuming the company doesn't go under and continues to meet Federal requirements for a group sponsored tax shelter). I will therefore wait until I get my distribution next year before rolling my 401K elsewhere.

In Part 3 - Goal Setting

Staying on Point & Afloat Part 1: Strategies for Transition

noreply@blogger.com (The Corporate Escapee) — Wed, 18 Jul 2007 18:43:00 +0000

Recently, I received my last paycheck from my previous employer. This reminder of reality compelled me to reinforce and/or re-exam my corporate escape plan. In the first of my series on Staying on Point & Afloat, I have outlined my strategy for transitioning into a new career.

Getting a Part-Time Job
I have been searching for a decent-paying part-time gig in order to have some cash flow while sorting out my career plans. The types of part-time jobs I am considering are:

A creative job such as writing or editing
A job with a flexible hours and/or telecommutable
A contract job leveraging my existing skillset

While having some income during this period of change is desired, I would rather not work if the pay is too low to be worth my time. The exception would be if I the job would be useful in making a career transition or if the experience would be very fun and creative. The primary sites I am using are Craigslist and Sologig.

Opening Pathways for Opportunity
As far as looking for a permanent position, I have already put my resume out on the job boards - rather than waiting till later - for three major reasons. First, I want to gauge what type of interest my resume draws, if any. Second, I figured that posting my resume was a passive activity that might yield a lucky chance offer for a fabulous job. Third, by looking at what type of work is out there I might get a better sense for what I do and don't like - and whether I will need additional training. The job boards I posted to are HotJobs! and TheLadders.

Using External Resources
In addition, one of my blog's advertising partners, Job-A-Matic, actually screens for jobs that corporate escapees like myself might like; so that is another source for me to see what's out there on the job market. Thus far, I have had some recruiter solicitations for employment. But I think I will get my resume professionally written because, quite frankly, I'm tired of looking at it. But mostly, I need for it to be search optimized. I've recently learned that, like a website, getting "hits" requires imbedding good tag words.

In Part 2 - Taking Care of Personal Business

Blown Away by Big Ideas: $500 Start-Ups

noreply@blogger.com (The Corporate Escapee) — Mon, 16 Jul 2007 03:17:00 +0000

Before I officially became a corporate escapee I would often watch the The Big Idea with Donny Deutsch on MSNBC. Today I was particularly invigorated and motivated to prod away at business ideas by some very impressive success stories that appeared on the show tonight. The featured guests all initially invested less than $500 to create multi-million dollar businesses. I've summarized their inspirational stories below.

Turbo Tap
Turbo Tap was the brain child of a college student impatiently waiting in line for beer. After noticing how long it was taking for the tap to be drawn, he endeavored to design a faster tap in conjunction with an invention competition held at his university. With $200 of seed money provided to the contestants, he enlisted two of his engineering friends in his efforts. Their submission won first prize along with $10,000. A portion of the proceeds was set aside for research and development of the tap invention. Their first proposal with Anheuser-Busch failed due to a faulty prototype. Lesson learned, their next meeting with Wrigley Field concession representatives went much better with an agreement to test the product live at the ball park. The new, improved tap saved money by limiting waste and speeding sales rendering Turbo Tap a success.

Bear Naked Granola
Here is a relatively simple story: An active, outdoor college girl makes good homemade granola. After graduation she decides to employ herself by selling her granola. She creates a small batch of product, packages it in sandwich bags marked with computer labels, and managed to sell them to a small local store. The product sells, and the store places a larger order. A childhood friend believes in her product and joins forces with her. They rent commercial kitchen space at night from a grocery store to cook up their orders. Later in order to expand their operation, they stage an early morning meeting, providing the breakfast, with the head of a chain of gourmet stores. The head is out of town, but "junior" isn't. They approach the son instead, and he buys a multi-store order which propels the careers of both himself and Bear Naked Granola.

Sinus Buster
As a self-defense instructor, Wayne Perry would use pepper-spray on himself to illustrate its effectiveness in repelling attacks. He later noticed that his chronic, sinus headaches cleared after these demonstrations. So he concocted a sinus headache remedy based on its active ingredient, capsaicin, for his personal use. Years later and broke, Wayne used his last $350 to create a batch of his special potion, bottled it in nasal spray containers, and offered it up for sale on eBay. Intending simply to create a bit of cash flow, the huge response for his product ended up launching a profitable business instead.

Triple Crown Publications
Vickie Stringer was a former inmate who wrote an autobiography six weeks prior to her release from prison. The book was meant to be a cautionary tale about the dangers of getting involved with drug dealers. Twenty-six publishers and agents passed on her manuscript. So Vickie decided to self-publish a single, professionally bound book for a few hundred dollars. She showed her book to friends and family, asking for no more than $100 each to invest in both her and her story. She raised $1500, self-published several more copies of the book, and sold these out of the trunk of her car and at the bar she tended. The buzz generated by her book got her noticed and allowed her to start her own company, backed by industry partners. Today the company has published over 25 authors and is a leader in raw, urban works.

Tom's Shoes
On a trip to Argentina, Blake Mycoskie was disturbed by the prevalence of unshod children, too poor to own shoes, whose feet were dirty and mangled. A native friend of his happened to be wearing a traditional Argentinian shoe when Blake had an epiphany: create a company where for every shoe sold, one was donated to a child in need. His friend was so touched by the idea that he volunteered to manufacture a variety of samples to test market - Blake need only buy the materials. Back in the states, Blake asked his stylish female friends to advise him on the top retail establishments to target. He sold his shoes at his first prospect, a boutique in Los Angeles. A small time reporter, hearing about his story, asked to interview him. The resulting article, which included photos of the colorful, lightweight shoes, ended up being featured by a big time newspaper. Orders started flooding in immediately and Blake had no staff to handle the load. So he took out an ad in Craigslist offering a future monetary upside potential for free internship today. Those interns are now the highest paid in the company. The company became a success with admiration from the likes of designer Karl Lagerfeld and actress Sienna Miller.

Further details on the company origins, products, and accomplishments can be found by visiting the linked websites. Each story illustrated different business factors.

Turbo Tap exhibited design improvement and inventiveness.
Sinus Buster was a result of both discovery and innovation.
Bear Naked Granola relied on feed back and marketing.
Triple Crown was formed with determination and persistence.
Tom's Shoes used reciprosity to create win-win scenarios.

In all cases, there was belief in the viability of the product and a resolve to succeed. But the most important lesson for me is that it can be done.

What's Luck Got to Do With It?

noreply@blogger.com (The Corporate Escapee) — Thu, 12 Jul 2007 15:42:00 +0000

The concept of luck is found in diverse cultures though its form and source varies. In Western Africa, juju is an aura or other magical property related to luck. In the far east, Qi, or ch'i, is the life force or spiritual energy whose flow can be manipulated to bring luck. In Hindu and Buddhist religions, luck or karma, in essence is the result of a causative action. Greek, Meso-American, and Celtic pagans believed luck was written "in the stars". Christians have only to "Ask, and it shall be given you; seek, and ye shall find."

Given the wide-spread acceptance that prosperity can be attained through metaphysical means, I should probably give it more focus. Being a control-freak, I never factored luck into the equation for success. I simply did not trust in it. Thinking back though, I was most "lucky" when I had already mentally accepted a favorable outcome of a desired goal. When I said to myself "I will", I did. When I said "I can't", I couldn't. When I had clear focus on what I wanted, I achieved. When I thought "It will work out", luck stepped in to save the day.

Unfortunately, the older I've gotten, the more pragmatic I've become. My reality has become manifested by my limited beliefs. When one is young and tries new things, expectations tend to be positive because real disappointments have yet to be experienced. There are no points of comparison, just youthful optimism. A verse in "I Dreamed a Dream" from the musical Les Miserables sums it up:

Then I was young and unafraid
And dreams were made and used and wasted
There was no ransom to be paid
No song unsung, no wine untasted

Being fearful is the antithesis to creating an aura of luck. It is imagining the worst, not visualizing the best. Negative scenarios can become immobilizing: What if my business or venture fails? What if I lose a lot of money? What will my family and friends think of me? What if I'm not good enough? Am I too old?

My greatest challenge is retraining my mind to think beyond artificial boundaries that keep me from achieving career happiness. It is uncovering in my heart of hearts what it is that I want to do with my life. I think juju, ch'i, karma, a good astrological reading, and religion work by channeling positive energy into thoughts & actions that in turn, attract good fortune. I hope this blog works for me in the same way. I will also try prayer, meditation, feng-shui, practice good deeds, and perhaps wear a charm bracelet because I can use all the luck I can get.

I Am Techno-Dinosaur, Hear Me Roar

noreply@blogger.com (The Corporate Escapee) — Wed, 11 Jul 2007 19:12:00 +0000

God Bless America. Just so you know - that is one of my expletive substitutions. You’ll see others (indicated by italics) in this post because I am very frustrated at the moment. I’ve been exposed to the world of web search optimization and barely have a clue of what I am doing. Who knows how long I will be posting to this blog with me as the only reader (and maybe some friends to whom I sent this link).

I’m beginning to understand how my mom felt about using computers. She feared them. She was ashamed of her ignorance. But she also used that as a crutch for not bothering with them. In today’s world where knowledge and information transfer is king, I had to learn about submitting, claiming and authenticating URLs, freaking adding meta-tags, pinging search engines & blog directories, inserting widgets…..etc. And did I mention, I don't know the first thing about HTML or Javascript?

Gosh-darn everywhere I go on the internet for service or information, I have to sign-up for this, register for that. I ended up signing up twice for the same service and screwed up settings that had previously been working well. And I’m running out of login names and passwords to help avoid compromising my user identity.

What started to push me over the edge was stumbling across some 22 year old techno-punk’s blog. He was in the process of being courted by the likes of Yahoo!, Google, Ask.com, and Microsoft that lucky “illegitimate offspring”. Being sought-after by avant garde companies, he may never comprehend wanting to be a corporate escapee (see the article on Inside the Best Companies to Work For). Anyway, his blog came up from a how-to search I was conducting. He had posted a list of what I could infer was extremely useful, handy information. But son of a gun, I had no idea what to do with it and he didn’t elaborate.

Well, the solution is very simple: outsource, get formal training, or be patient in my learning process. Starting my websites was fun at first and I have been at it only a week. So perhaps I just need to take a break and see the new Harry Potter flick opening today.

Junk Info and Garish Websites Galore

noreply@blogger.com (The Corporate Escapee) — Wed, 11 Jul 2007 14:39:00 +0000

There are a lot of corporate escapees, corporate never-beens, and flat out crooks out there trying to make a quick buck selling completely useless information. One can spot them pretty easily for their websites sport titles like:

How to Make a Million Bucks Trading Foreign Currency
I Made $10,000 in One Day by Ad Placements - You Can Too!!
Residual Income as a Web Writer - Starter Kit for Only $29.99

I have to wonder what kind of people fall for this type of cow pasture droppings. They must be the same people who fall for spam mail that contain mispelled words, in the subject line, of the very product being sold (example: Pleeze contact me ASAP regarding your morgage aproval).

A huge red flag for huckster websites, in my opinion and probably obvious to most, are ones that look brash, gaudy, and loud. They often feature big, bold-lettered testimonials with inset personal photos of people standing next to sports cars, wearing a lei, or holding a glass of champagne. The color schemes, font, and layout tend to be unsettling or unpalatable. Distracting flashing objects and kitschy gadgets are excessively embedded. The content is repetitive in nature, contain no substance, and always end with a sales pitch.

I'm not saying that all ugly, rudimentary websites are bogus while beautiful, literate websites are bona fide. I just hate sorting through muck. I have been doing alot of that lately in doing internet research and starting up my own websites. I, too, would like to make money leveraging the web. I have ad boxes on my sites, but don't have control over the ad content. Perhaps this article might have an impact, though. I certainly don't expect my readers to be of the quality to want or need pay day loans. I'm no shyster.

Independent Contracting, or "Hey, Do You Want Help With That?"

noreply@blogger.com (The Corporate Escapee) — Tue, 10 Jul 2007 16:59:00 +0000

I've just had an enjoyable session of applying for job positions. Huh? Yes, generally that activity ranks right there with getting a physical examination - you know its good for you, but you feel vulnerable & exposed. In this case, I was applying for open independent contracting positions. My mindset was completely different than in the prospect of applying for a permanent position with a company. I felt more like I was offering my services rather than trying to convince a prospective employer of my professional worthiness.

Why would a company prefer to contract to an individual rather than work with a staffing or consulting company? Having been on the other side of the fence in a consulting (or staffing) firm, the following comes to mind:

The hourly fees for an independent contractor is a mere fraction of the fees charged by consulting/staffing firms. The reason for this is that basically no one but the independent contractor is making money off the actual billable labor. There is not an Associate Director, Director, Partner, and Senior Partner trying to get a piece of the action.
The project requirements have already been scoped and budgeted; unsolicited offers for further or additional services are not welcome. Typically a consulting firm will use the opportunity of being "in" on a client to try to expand their presence there through cross-sales.

The hiring company has greater control over selection of individuals who will be involved in the project. When a company contracts with a consulting firm they may be assigned personnel rather than being able to choose them.

Independent contracting appeals to me because I can throw my name in the hat for only those projects that I find interesting. In most cases, the hourly fees and project length are clearly stated in the job postings. The idea of each job being incremental and self-contained is a plus - it's hard to get bored or in a rut. I could also choose to take mini-breaks in between all engagements rather than have a paltry two, three, or four weeks per year vacation.

Obviously the down side would be the unpredictability of landing a contracting job and therefore, the intermittent nature of earning an income. This downside is shared by most commission-based salespersons or service-based business owners. Again the draw of being an employee is not having to constantly market oneself and generate income opportunities. In exchange for limited risk, one gets steady, though limited, pay. With risk, comes some upside potential.

"So, you're an independent contractor. How nice." For some people this can have a negative connotation for being unemployed. For me, being one rung above Maslow's Esteem Needs, I am not perturbed. Though we shall see whether six months from now I take a few steps down from my lofty position.

Should Work Be Just About the Money?

noreply@blogger.com (The Corporate Escapee) — Sun, 08 Jul 2007 20:53:00 +0000

In looking at whether I simply need an attitude adjustment, as opposed to escaping from Corporate America, I had to ask myself: Should I shift the motivation from career satisfaction to making it all about the money? If I were more appreciative of the monetary benefits, would I be less inclined to worry about whether I liked a job or not so long as I got paid well?

I've noticed that even though I have allotted at least six months worth of cash for expenses based on the same spending habits from my last income, I'm trying to spend less. It's been less than a week since I left my last job. Already I've shut off the air-conditioning, opted to do my own cleaning versus a maid service, and decided not to take a big vacation unless I use only my travel award points. I mentioned this because having to make "sacrifices" draws me back a little to wanting a secure corporate paycheck.

A big reason it's so hard to break away from Corporate America is because the steady income is like a drug. To a certain degree, one can ease the pain of boredom, drudgery, or being over-worked with retail therapy and lavish weekend trips. The problem is that like any drug addiction, one has to up the amount of use to feel the same high. When buying one's way to happiness spirals upward, there is no choice but to continue working and thus continue the spend-work cycle.

This concept of buying the good life so that one is obliged to keep working can admittedly be a good motivator for those who would otherwise be unproductive. But it can also be a trap for those who are unhappy in their profession by being indentured servants to their debts and bills. Is there any wonder that depression is wide spread amongst our society?

But back to my title question. Certainly, there are those who are living at poverty levels or have limited skills and any work should be just about the money. Also in this category include people with families to support; they have more to consider than selfish needs, as with yours truly. In conclusion, I think Maslow had it right: Where one is at on the hierarchy of needs, drives whether work should be just about the money.

Career Attention Deficit Disorder

noreply@blogger.com (The Corporate Escapee) — Sat, 07 Jul 2007 17:39:00 +0000

So now that I've escaped from the corporate world, what am I doing with my time? Well, I've been spending 6-8 hours on a computer each day conducting research on different career paths, potential income streams, possible post graduate education and/or certification, as well as investment & business start-up ideas. As I wrote in my first post, I've never had a particular calling in life. I like a bit of this and a bit of that. The problem is, I'm not sure whether I'm dedicated enough to follow through in the long run on any particular area. I don't think it's that I'm lazy but that I have career Attention Deficit Disorder (ADD). Apparently, it's not that unusual a concept. Two articles on the subject can be found on About.com and Born to Explore.com.

That non-corporate job I'm seeking might be owning my own non-brick-n-mortar business such as wholesale trading, information & research services, or internet-based sales. Or it could be working in a not-for-profit organization like the United Nations or Homeland Security. I would also not be adverse to working in a consulting firm where I perform an interesting professional service such a analytical fraud detection. Perhaps I simply get a master's degree in a subject of interest such as economics and let the career opportunity follow from there.

The 6-8 hours I spend on the computer each day is in between working out, doing household tasks, and various leisure activities. I'm not tied to my desk and I like that. I can multi-task: e.g. watch TV, wash clothes, pet my cat, and fill out various forms or take a web course on the computer all at the same time. In the background, I can spend time on major personal projects including getting physically fit via multiple workouts throughout the day, purging household items, doing minor home repairs, and organizing files without the dependency of being in a specific place at a specific time.

Yeah, sure I could have done this while I continued to work and get a paycheck. But the outcome I wanted was to find a great new career path or at a minimum, get a different job without a heavy corporate flavor, while taking a break from the nine-to-five office routine. It would also give me the opportunity to apply for school in the fall should I go that route.

This blog helps me in organizing my thoughts, activities, and priorities by advertising to the world what I am accomplishing or not accomplishing. It's sort of like Weight Watchers for career changers: Corporate Escapee Watchers?

What About those MLMs?

noreply@blogger.com (The Corporate Escapee) — Fri, 06 Jul 2007 14:54:00 +0000

My primary problem with Multi-Level Marketing is that so called independent distributors end up directly targeting their friends and family for sales opportunities. A friend of mine, also a corporate escapee, has been trying to sell me on some beauty products. Now when she calls, it's not just to chat but to generate sales, leads, and set up "beauty" parties. One can easily say "no thanks" to strangers, but with friends, it's hard not to be supportive.

To be fair, the third generation MLMs are much improved from their predecessors in that there is no need to purchase an inventory. Instead agents are more marketers than distributors because the product can be directly sent from the company to the purchaser. A very aggressive, outgoing sales person with lots of friends and acquaintances can potentially generate a decent to good amount of residual income after several years.

As far as the products themselves, they are generally of good quality. However, I found that they can be twice as expensive as department store brands and 3-4 times more expensive than drug store products. The mark up in price has got to reflect how agents get their cut.

I think the MLM idea can work if the products are unique enough and priced well enough to sell on their own merits, not from the pressure of helping a friend to earn commissions.

Not Falling Prey to Indentured Servitude

noreply@blogger.com (The Corporate Escapee) — Thu, 05 Jul 2007 12:46:00 +0000

As yesterday was a holiday, I rented a couple of movies to enjoy while staying inside from the heat of the day. One of the films I watched was Maxed Out. This documentary style film, in the vein of Michael Moore, exposed the problem of indebtedness in America.

After reading Your Money or Your Life several years ago during a mountain retreat where I had an an epiphany regarding time and money, I became enlightened to the possibility of early financial independence. The road to financial independence was not just to earn more but to also control expenses. Financial independence did not have to be defined by vast wealth. All that was needed was residual income greater than expenses.

At that time, I had around $5000 in credit card debt plus a car payment. I had decent pay, was a regular saver/investor, and had previously paid off $5500 in student loans early. I remember thinking that there was nothing wrong with having $5000 in credit card debt - I always paid more than my minimum payments. Everyone had credit debt. Heck my friends were even taking out home equity loans.

But lightbulb a went on - Why am I carrying debt? It was costing me more over the long run for the mental comfort of having more cash to myself. If I really could achieve financial independence before retirement age, I would have to be completely solvent. So I began writing huge checks each month to pay down the credit card debt. I learned the true cost of credit card debt by having to part with large sums of money. If people were to make purchases on a cash basis, I think they would be less likely to spend freely. Paying with plastic feels numb. Paying with cash feels painful.

For the most part, I adhered to staying debt free. I incurred debt when I bought my house and needed the instant gratification of furnishing it. However, I stuck to an aggressive repayment plan - paying down the furniture and hardwood floors debt before the special no-interest periods expired.

Prior to taking a planned six month time-off from work two years ago, I was debt-free. I had been debt-free for years, during which time I redirected my income to saving and investing. Thus, paying my monthly bills (including a mortgage) during my sabbatical was not a problem. I even managed to do a modest kitchen remodel, travel, and gift $10K to needy relatives.

So now again I am between "jobs". I have no debt, a six-figure retirement account, and money in my bank account equal to some people's annual pay. Still, I got little nervous after watching Maxed Out. While some people are unable to make ends meet, I just up and left my six-figure job.

There was a quote in the movie John Q, where the lead character played by Denzel Washington told his son:

"And if you have a chance to make money, go for it, even if it means selling out once in a while. Don't be a knucklehead like your father. Everything's so much easier with money."

I really do hope that this second escape "takes". I can't deny that this quote gives me cause for some doubt and fear. I have to remember that indentured servitude can be either to Debt, to Corporate America, or both.

My Own Declaration of Independence

noreply@blogger.com (The Corporate Escapee) — Wed, 04 Jul 2007 15:01:00 +0000

On the cusp of the new millenium over seven years ago, I had an epiphany during a stay at a friend's mountain retreat: Time is a limited commodity, money is not. Freedom is owning one's time. Being an employee means a large chunk of your time is owned by the company. Ergo, working for "the man" is to give up personal freedom.

As a former military officer, I was serving the country rather than self. Duty and honor was my motivator, not pay. Eventually, the realization of being owned by Uncle Sam set in. The needs of the Army overrode personal desires one time too many. So I decided to resign my commission. I have great respect for those who have and continue to serve with self-less sacrifice in the Armed Services. I cherish the memories from that time in my life. But now it was time to regain some control in my life.

I became a consultant at a large audit & accounting firm. I was somewhat giddy over my new found freedom. I had choice of where to live, what career to pursue, and what to wear. I no longer had to request a "pass" to take weekend trips outside of a 50 mile radius from home base. I morphed from soldier to individual.

I fell into the life of a salaried employee. I gave my time in exchange for good, steady pay and benefits. It seemed reasonable enough. But then my consulting engagements began to incur 12 hour plus days. Then the client asked if I could work weekends. My company pushed for increased billable hours because this equated to increased revenue. The client was incented to push for long hours because the shortened timeline would translate into large executive pay bonuses.

It is true that I had a performance bonus that factored in billable hours, but the earnable bonus did not seem equitable. In addition, I was not truly compensated for the time I spent traveling to the client locations or for the inconvenience of being away from home. Moreover, I could only work so many billable hours in the day to translate to a capped bonus income. Any extra hours worked after a certain point would have diminishing returns. I actually felt like my employers were "pimping" out my professional service.

After several years of consulting, I planned and took a six month career sabbatical. I had gone from military to civilian work without a break. Between the pace of the military and consulting work, I was exhausted. I ended up taking a nine-to-five job at a small investment company. But as my first post in this blog pointed out, I became stagnant, bored, and mentally atrophied.

So my goal is to earn money in ways that is not so dependent on my time, which most corporate jobs are not. Alternatively, if I were to put considerable amount of time into an income earning activity, it should be doing something I greatly enjoy. Life, liberty, and the pursuit of happiness is my fitting objective on this 4th of July.

Today I Leave My Six-Figure Job

noreply@blogger.com (The Corporate Escapee) — Tue, 03 Jul 2007 15:13:00 +0000

Stagnant, bored, and mentally atrophied. That is how I feel and that is why I am leaving my 100K plus salary job today. I am one of the unlucky ones who never felt a strong calling in life. I envy people who love their careers. If they are high income earners as well, the more to admire.

I'm financially responsible for just myself - that is, I am single. I have often told my friends that if I was married with children, I might view my job not so much as a path to self-actualization but as a means to support a life outside of work - not the be all end all. Perhaps I need to tumble down Maslow's Hierarchy of Needs a few steps to feel purposeful, hungry again.

I timed my last day of work - July 3rd - so that my first day of freedom would be on "Independence Day". I have built a cushioned bank account, trimmed my spending habits, and dispensed with debt other than my mortgage to transition me through my search for a satisfying career. I have no idea whether the journey will be one of inner attitude adjustment, one of discovering the work I was meant to do, or simply creation of a change in pace and environment.