Why would anyone want to downsize their job from full-time work to part-time?.
There are several good reasons: –
Less time spent at work
More time to do things that you want to do
The career/job isn’t what it once was, disillusionment
Concentrate on building a business
More time for hobbies, (that may, or may not turn into a business)
The list can go on and on, and each person who takes this approach has their own reasons. Of course, there are also disadvantages, such as: –
Less money (at least initially)
Possibly starting a new job, including the application process and all that it entails
Less prestige, in certain professions
Loss of identity for people who have been in one field for a long time
Possible loss of benefits, such as medical/dental/vision
Loss of seniority, influence and authority
Sometimes, a career field that a person started in, changes so much over the years that it is no longer attractive. If you find that this is you, then consider doing something different. This is mainly written with the older person in mind, as a younger person doesn’t need to downsize, but rather completely change career tracks and a younger person may not have the resources to consider downsizing anyway. It would still be wise for a young person to have more than one source of income though.
However you feel about money, you need it to survive in the world. Before downsizing from full-time to part-time, whether in the same field, a completely new field or just an easygoing part time job to supply a bit of cash and maybe some benefits, you need to evaluate your finances.
I went from a high prestige career to a part-time job and some online contract work. What enabled me to do this was mostly a pension that I could claim several years before the normal retirement age of most people.
I had an idea that I would move several hundred miles from where I was working, to a more rural area and continue in the same field there, maybe with less pay, but I expected the pension to cover the shortfall. I succeeded in this, but not long after starting, I found that it was not what I thought it would be and I left. I then went to what would be seen as an unremarkable part-time job. This job however, was enjoyable in a strange way. It was simple enough, it required a reasonable amount of physical exertion and I could finish work every day without having to think about it anymore until I went to work the following day.
I am lucky enough to be in good physical condition and I like to work out, so the part-time job is an extension of my workouts with the added bonus of getting paid for it. The pay isn’t as much as I am used to, but the people who I work with seem to think that the pay is quite reasonable for the area.
I have found over the months that the amount of money flowing into my bank account from all sources, equals and generally exceeds my previous full-time net monthly income. I haven’t quite got to the stage where I do exactly as I please, but it gets closer every day.
I have found that the loss of status is a minor issue and it does not bother me, but that is because I always knew that it was coming and I have prepared myself over the years. I have never really been one for completely buying into an identity that has been manufactured for me by someone or something else. I once did when I was younger, but it was so difficult to re-adjust after leaving the job that I was determined never to allow it to occur again, and I have been successful in that.
If you have other resources to draw on and you feel that it is time to do something different, I would do it. Resources such as pensions, business income, contract work, investments, expectations of future pensions etc are very liberating. Nobody should rely on one entity for their income, it is very precarious, especially in today’s work environment. The world of work is not the same as it was in the 1950s, 60s, 70s or even the 80s. No employer has a duty to you. Many good employers do feel and act in a responsible manner towards employees, which is admirable, but sometimes they find that they have no choice but to let employees go. It is wise to not put all of your eggs in one basket, don’t rely on only one source for your income.
My income percentages from various sources is –
Pension – 46%
Part time employment – 31%
Business interests – 8%
Some of the income can be called passive, about 54% if you class a pension as passive. It is passive income now, but it has to be earned over time.
My aim is to increase the online work and business interest percentages to at least 70% and get the part-time employment and pension percentages down to about 30% of total income, and have at least 7 sources of income while investing as little of my time as possible. This will also result in more money flowing in.
A younger person can take this approach but will normally have to become an entrepreneur as opposed to working several low paid part-time jobs, because you still have to invest at least 40 hours a week total in your part time jobs to make a living wage. The whole goal is to generate as much money as you want, but also minimize time spent working for someone else and maximize time spent on doing what you enjoy. Also, a younger person won’t generally have the bonus of a pension.
Work out your figures and see if it is possible for you. You don’t necessarily need to equal the money that you are earning at present (initially) if you are willing to make do with less, smaller house, cheaper car etc.
Let me know what you think.