Podcast Summary
Is Self-Employment Right for You?: Consider personal circumstances, goals, and preferences before deciding between self-employment and typical employment. Starting a business requires preparation and resources.
While the narrative of starting your own business for freedom and success is pervasive, it's essential to consider if it's the right decision for you. Self-employment isn't for everyone, and there are valid reasons for choosing typical employment. During this episode of Modern Wisdom, Johnny and Youssef shared their experiences of leaving high-paying graduate schemes to start their own business. They also discussed a mental experiment to help determine if it's time to ditch your job. Ultimately, the decision depends on personal circumstances, goals, and preferences. Remember, starting a business requires time, effort, and resources, so it's crucial to be prepared. This episode is brought to you by SORITE, a psoas manipulation tool that can help relieve tension from long hours spent sitting at a desk. To enter the giveaway, leave a review of Modern Wisdom wherever you listen.
Consider the pros and cons before starting a business: Weighing the benefits and risks of starting a business is crucial, just like ensuring a parachute is functional before jumping out of a plane.
Starting a business requires careful consideration and planning before making a leap. Using the analogy of jumping out of a plane with a parachute, the speaker emphasizes the importance of having a solid business plan and revenue streams in place before quitting a stable job. To help illustrate this concept, the speaker proposed a thought experiment where they offer concessions to an unhappy employee, allowing them to keep a portion of their salary in exchange for flexible work arrangements. The employee, in turn, realizes the value of their current job and the benefits it provides. This experiment highlights the importance of weighing the pros and cons and being fully prepared before making a major life decision like starting a business.
Exploring the Concept of a Dream Job: The dream job concept offers flexibility, focus, and enjoyable work, but comes with concerns about cost and potential overwork. People's reactions to incentives may impact work quality.
The concept of a dream job was discussed, where an individual pays a monthly fee to work in a secluded environment, only interacting with people they like, and focusing on the enjoyable aspects of their job. This arrangement would allow for flexibility in location and hours, as well as the ability to outsource less desirable tasks. However, the individual expressed concerns about the cost and the potential for overworking due to the lack of hourly wage. Ultimately, the idea of a dream job is intriguing, but it comes with challenges that need to be addressed to make it a viable and sustainable solution. The conversation also touched upon the idea of people reacting to incentives and the potential impact on work quality.
Considering Unconventional Arrangements for Career Satisfaction: Recognize that waiting for a job to improve might not be the best approach, and consider negotiating unconventional arrangements to add value and find more satisfaction in your career.
People often hold onto jobs they dislike, hoping they'll improve, but the reality is that they may never reach a satisfying point. At the start of a career, people might not expect much and have fewer responsibilities, but as time passes, they may realize they're not adding much value and are unhappy. The speaker shares an example of negotiating a unique arrangement to work from home naked before the office opens, which led him to earn extra money. He encourages listeners to consider the potential value they could add to their current jobs or even negotiate unconventional arrangements. The key is to recognize that waiting for a job to get better might not be the best approach, and people should consider their options carefully to find more satisfaction and growth in their careers.
Signs of deep dissatisfaction leading to self-medicating behaviors: If you're regularly escaping workweek stress through excessive food or alcohol consumption, it could be a sign of deeper job dissatisfaction and the need to explore new opportunities
People's reasons for leaving a job can vary, but often stem from a deep-rooted dissatisfaction that leads them to engage in self-medicating behaviors. This can manifest in various ways, such as consuming large amounts of food or alcohol during the weekend as a way to escape the existential pain of their workweek. This behavior, often referred to as "living for the weekend," is different from the concept of "working hard, playing hard," where individuals allocate specific time boxes for productivity and relaxation. If you find yourself exhibiting such behaviors, it might be a sign that you're unhappy in your job and should consider exploring other opportunities.
Over-reliance on external sources for meaning and purpose: Overusing substances or activities to avoid reality can lead to a lack of motivation and passion in other areas of life. Find your reason to get out of bed each morning for true fulfillment.
Excessive use of substances or activities as a means to escape the stresses of daily life can be a warning sign. It's important to distinguish between genuine enjoyment and using something as a crutch to avoid facing reality. Over-reliance on external sources for meaning and purpose can lead to a loss of motivation and passion in other areas of life. Additionally, if getting out of bed and going to work feels like a chore, it may be a sign that there is a lack of fulfillment or purpose in your career. A reason to get out of bed in the morning is a good metric for determining what truly brings purpose and meaning to your life.
Consider what you can remove for more happiness: Think about what aspects of your job can be changed or removed to increase happiness, beyond just salary.
Happiness in the workplace can vary greatly from person to person. Some people may find joy and fulfillment in their current job, while others may feel unhappy and unengaged. For those who are unhappy, the decision to work for oneself or for another organization can be a difficult one. A thought experiment mentioned in the discussion involves considering what one can remove from their current situation to increase happiness. For instance, Jujimufu, a famous acrobat, initially set up his life with a low-stress, low-cognitive load job to allow for more personal enjoyment. Ultimately, the decision to work for oneself or for another organization depends on individual circumstances and priorities. It's important to consider factors beyond salary, such as hourly net pay and overall job satisfaction.
Finding fulfillment goes beyond salary: Consider skills, interests, and personal desire for fulfillment in career choices, not just financial rewards.
Finding fulfillment in work goes beyond just the salary. If you're considering leaving a job you don't enjoy, it's essential to consider if there's a skill or interest you possess that sets you apart. Alan Watts' philosophy suggests that if you're genuinely good at something, you'll likely enjoy doing it and add value, potentially leading to a good salary. For instance, a photography enthusiast might turn their passion into a business. However, starting your own business should be driven by a genuine desire to do so, rather than just the potential financial rewards. It's also crucial to recognize that not every profession can be facilitated by someone else. In the past, some graduates, like Javier, were thrust into demanding jobs without fully understanding the demands, leading to early departures. Ultimately, it's essential to consider both personal fulfillment and financial stability when considering a career move.
Finding Opportunities in Uncertainty and Cultural Approaches: Excel in less glamorous roles with high demand and low competition, build strong relationships, and make promises to succeed in business despite uncertainty and cultural differences.
While there may not be a job for everyone to love, there are opportunities for individuals to excel in areas of low competition and high demand. This requires a willingness to tolerate uncertainty and potentially less glamorous roles. The success of a business, whether in the Arab world or elsewhere, often relies on cultural approaches such as building strong relationships and making promises, even if not all promises are kept. Ultimately, it's about finding what one is willing to tolerate in exchange for financial security or entrepreneurial freedom.
People may create unnecessary jobs: Recognize that people adapt to circumstances and may provide unnecessary services, but it's crucial to consider context and legality.
In certain environments, people may exploit situations to create jobs for themselves, even if it means providing unnecessary services or imposing them on others. This can lead to a sense of guilt or coercion for those being served. However, it's important to note that not all instances of this behavior should be equated to shame or trading in guilt. Instead, it's crucial to consider the context and whether the service being offered is voluntary and not illegal. A better approach would be for individuals to identify and cater to actual market demands with superior offerings. Ultimately, it's essential to recognize that people will adapt to their circumstances and find ways to survive, even if it means providing services that may not be in high demand.
Challenging assumptions about lower income spending: Giving small sums can lead to impulsive spending, while larger sums encourage thoughtful spending and savings. Personal preference and risk tolerance play a role in financial decision making.
Our perceptions about how people from lower incomes manage money can be misguided. Rory Sutherland discussed how giving small amounts of money to people can lead them to buy immediately gratifying items due to the limited happiness that small sums can provide. Conversely, larger sums can lead to more thoughtful spending and even savings or investments. This goes against the common belief that giving larger sums to people from lower incomes will only lead to wasteful spending. Additionally, the discussion touched on the importance of personal preference and risk tolerance when considering whether to work for oneself. Full-time traders, for example, are advised to have a separate income to avoid the stress of relying solely on their trading profits. The conversation also highlighted cultural differences in business practices, specifically the tendency for Arab businesspeople to play the "big man" role and overpromise while underdelivering. Overall, the discussion emphasized the importance of challenging our assumptions and considering the nuances of various situations.
Weighing the Pros and Cons of a Career Transition: Consider your psychological profile, explore opportunities within your current company, be aware of potential downsides like income uncertainty and long-hours, and weigh the pros and cons carefully before making a career transition.
Making a career transition, whether it's starting your own business or moving to a new job, requires careful consideration. While having a passion and the ability to monetize it is important, it's also crucial to consider your psychological profile and whether you can handle self-directed work. The decision to leave a job is permanent and can be daunting, but it's essential to explore opportunities within your current company before making a move. Dark patterns in resignation forms can add to the stress, making the decision feel final. Consider the potential upside of working for a small startup, but be aware of the uncertainty of income and the potential for long hours. Ultimately, it's essential to weigh the pros and cons carefully before making a career transition.
Pursuing a new dream despite career success: It's important to follow your aspirations, even if it means making significant changes and facing uncertainty.
Sometimes, people find themselves in jobs or situations that don't align with their long-term goals or passions. The speaker in this conversation had a successful career at BlackRock but realized early on that it wasn't the path she wanted to continue on. She was inspired by the intense passion and dedication of her colleagues but also recognized that she didn't want to spend the next 10 years or more in the same role, looking at similar spreadsheets and working long hours. So, she made the decision to pursue a new dream - starting an online fitness business and studying medicine. She kept her plans a secret for a long time, preparing in stealth mode and giving her employer only a few weeks' notice. While the conversation doesn't mention any specific challenges she faced during this transition, it highlights the importance of following one's aspirations, even if it means making significant changes and facing uncertainty.
Valuing experiences and learning over a traditional career trajectory: Identify what brings fulfillment and invest time and energy accordingly, as everyone's puzzle of life is unique
People have different values and priorities in life, and the way we spend our time and energy reflects those preferences. Some people may value their family or a stable job, while others may prioritize personal projects or entrepreneurship. The speaker shares his personal experience of valuing experiences and learning over a traditional career trajectory, but acknowledges that there is no right or wrong answer. The business model of many organizations is based on seniority and time served, making it difficult to accelerate progression based on capability alone. Ultimately, it's important to identify what brings us fulfillment and satisfaction in life, and to invest our time and energy accordingly. As Daniel Sloss's Jigsaw analogy illustrates, we all have unique pieces to the puzzle of life, and it's up to us to figure out how they fit together.
The debate between employment and entrepreneurship: An individual's level of materialism and financial means impact their contentment in life. Those with a high preference for possessions but lack the means may feel sadness, while scrimpers and savers may find less desire for material things.
The judgment between working for a company and being an entrepreneur often leads to misunderstandings and misconceptions. The speaker acknowledges that both sides have their own criticisms, but the only time it's truly unfortunate is when individuals are solely focused on short-term gains and the belief that earning a certain amount will drastically improve their lives. The volatility of entrepreneurship, where income can fluctuate greatly from month to month, can lead to a different perspective on material possessions and their impact on overall satisfaction. Ultimately, the speaker emphasizes that an individual's level of materialism and their financial means significantly determine their contentment in life. If one has a high preference for material possessions but lacks the means to afford them, they may experience sadness or dissatisfaction. Conversely, if one is a scrimper and saver, they may find that they spend less on things they thought they would want.
Investing in personal growth brings greater returns: Investing in personal growth and education can lead to more fulfillment and happiness than material possessions. Beyond a certain income level, additional income does not significantly increase happiness, making personal development a more meaningful investment.
Investing in personal growth and education can bring greater returns than material possessions. The speaker shared their experience of spending disproportionate amounts of money on training courses rather than new clothes or laptops. They emphasized that the motivation behind this investment is not to earn more money to buy more stuff, but rather the joy of learning and expanding one's knowledge. The speaker also touched upon the concept of materialism and how it can be a means to an end, but may not necessarily lead to long-term happiness. They shared their own experiences of acquiring material possessions and houses, but ultimately found more fulfillment in personal growth and liberation from the industry. The speaker also mentioned a study suggesting that beyond a certain income level, additional income does not significantly increase happiness. Therefore, focusing on personal development and investing in oneself could be a more meaningful way to spend resources and time.
Starting a business takes time and dedication: Building a successful business is a long-term commitment that requires patience, hard work, and a clear vision. Focus on areas that drive growth, such as improving production quality or creating engaging content.
Starting a business requires a significant time commitment and may not yield immediate profits. The first few years of a business can involve losses and slow growth, even for those with a solid business idea. However, this doesn't mean that part-time endeavors are impossible. It's essential to prioritize and invest in areas that will drive growth, such as improving production quality or creating engaging content. Passion and dedication are crucial, and financial success may come later as the business grows and gains a larger audience. Ultimately, the journey to building a successful business is a long-term commitment that requires patience, hard work, and a clear vision.
Determining your freedom number for financial freedom: Focus on generating enough income to maintain your lifestyle without having to work, aiming for financial freedom and positive income-expense balance
Building a business or career should not be solely focused on immediate income. Instead, aim for financial freedom by determining your "freedom number" - the revenue level that allows you to maintain your current lifestyle without having to work. This approach ensures a positive balance between income and expenses, providing the freedom to leave your job if desired. Remember, the goal is to have zero downside and infinite upside. We hope this discussion has helped clarify some career-related questions and issues. If you have any topics or concerns you'd like us to address, please leave them in the comments below. As a bonus, leave us a review on iTunes or your preferred listening platform for a chance to receive a free manipulation tool from So Rite.
