How Will the Great Resignation Impact Us in 2022?
Everybody is quitting to make more money
As you can see above, a lot of people are leaving their jobs to find new ones and make more money.
At the same time, just one day after the article above was published we read this headline:
Does that mean that all those who quit were government workers and 20% of them found new jobs in the private sector?
No, not really. It means that there is a lot of movement in the jobs market and that companies are hiring to fill positions. That’s true both for those people who quit to find new jobs and for the companies that need to fill those open positions.
A lot of people keep reading that work from home does work and that you can make as much money or more working from home. In addition, you will not have to commute to work, not really have to dress up for work. In some cases, you will not always have to work exactly the 9–5 hours your employer used to demand if you can still complete your work and pick some time with flexible options earlier in the morning or later in the evening. All you need to do is attend all the meetings (on Zoom, WebEx, Teams, etc.) you might be asked to attend or schedule yourself.
Compare that to getting into a company-provided uniform after driving to your restaurant or retail job, having to commute, then dealing with unhappy, Covid-fearing customers, getting a meager hourly rate with ever more unpleasant restrictions, and potentially getting fired as soon as something goes wrong, or the government puts out a new mandate.
What are we talking about in real terms and money?
According to a AAA study in 2018, the average cost to own and operate a new vehicle was $8,849 a year. That’s $737 a month. With the increase in prices for cars and inflation since then, it is probably fair to assume it’s about $1000/month now.
In March of 2021 Amy Beardsley wrote:
The Value of Time
You already know your time is valuable, but not all uses of time are equal. If you spend more time doing profitable work, you’ll make more money. For instance, if you spend time commuting, you can’t spend that time to invest in better relationships or use it to do more profitable work. Figuring out how much your time is worth is more than whatever wage you’d earn if you spent that hour working. You’ll need to add up the total amount of time you invest to earn money, not just the time you’re physically at work.
The median household income in 2017 was $61,372. Using that average, the typical U.S. worker makes $29.50 per hour. If you commute 40 min each way and work a five-day work week, you’re spending 346 hours throughout a year, the equivalent of 14.5 days, commuting. What could you do with an extra two weeks’ time every year?
If we assume that the wages have increased at least a little bit, I am sure you would be ok if I were to say we use $35/hr for easy calculation. That means you would have lost $12,110 during commuting in a year. If your commute is more than 40 min, which it is for most people the number climbs. If your income is a little more than $35hr, the amount will also be more.
The 4.5 million people who quit in November 2021 are probably looking for jobs that pay more and ideally can be done from home. The saved 346 hours can then be used for other stuff. Let’s say you spend another 40 min to get ready for work each day, getting kids to school, having breakfast, etc. that’s a total of 2 hours a day (40 min getting ready, 40min to work, 40min back from work). You could do a side-gig in that time.
We normally use 250 days/year for work, so that would mean at 2 hours per day you would accumulate 500 hours, let’s say for the same $35/hr. That is $17,500 a year. If you find a job with better pay, it’s even more.
What does it all mean taken together?
You could use the time not spent in commute to make money.
You can save $1000/month for the vehicle (cost, fuel, insurance, maintenance, etc.) and use it to improve your financial situation.
We help people who want to get completely out of regular work and jobs to build a passive income portfolio and get on a path to time freedom.
By leaving traditional, low-paying jobs and seeking better income, ideally working from home, you will not just improve your comfort and income. You can also start your investing journey.
After 1 year of living your changed life (maybe you want to make 2022 this year, like millions of others before you last year), you will have about $30,000 to invest.
That will get you a nice $150,000 house from a turnkey provider we can put you in touch with to start generating passive income through rent.
Here is another benefit from the Great Resignation:
This home-based workforce would much rather live in a single-family house than in an apartment. Not just for the larger space but also because working from home or a home office is much easier and nicer when you rent a house.
For those who own that house, which could be you, can make more rental income, which increases the cash flow and gets us to your Time Freedom Point faster.
Some people might think that people quitting their jobs isn’t a good thing.
I believe it’s good for them because there is the hope of finding a better, more satisfying job. There is an improvement in the financials and there is a starting point to an investment journey that will increase freedom and generate independence.
If you would like help finding the right turnkey provider or properties to start your journey, please let us know. We are happy to help you.