For many individuals, especially those who lost their loved ones to the pandemic, being part of the corporate rat race suddenly became unattractive after Covid struck. Having a work-life balance, pursuing dream careers or passions and spending quality time with their families took centrestage. People started discovering alternative ways of living and earning, which some found was more fulfilling.
Not surprisingly, the world underwent the “Great Resignation”. According to the US Bureau of Labor Statistics, over 47 million Americans voluntarily quit their jobs in 2021. India is not untouched. A recent report by recruitment agency Michael Page predicts that 86 per cent of Indian employees are planning to quit their jobs in the next six months. The numbers are unprecedented.
While Covid was a trigger for many people, an alternative way of life to 9-5 beckoned to several others, such as Financial Independence Retire Early (FIRE), or living a more fulfilled life.
Three months ago, Ayushman Basu, 30, left his 9-5 communications job in Mumbai and came back to his hometown Kolkata to piece together his life in a pattern that he likes. “I have never let my job define me though I used to like it a lot. It is only one piece of my life. So, every evening after work, I would ensure that I gave enough time to put the other pieces together,” says Ayushman, who pursues his passion for music, podcasting, and poetry in his free time.
But in doing so, Ayushman didn’t get any breathing space. In the last few months of his work, he felt exhausted and faced crippling anxiety. “I felt I was burnt out. Plus, I was done with the inflexibility of having a 9-5 routine. I wanted to create and experiment with things that make my life whole. Over the 5-6 years of my work life, I tried to strike that balance, but by the end of it, I realised there was not enough latitude in a 9-5 job to do other things parallelly,” says Ayushman, who is now laying the groundwork for his own start-up. He hopes that having his own setup will give him enough flexibility to do multiple things.
Freedom from 9-5 is an enticing concept, but only if you are confident of having a financially secure future that is truly independent.
Ayushman has taken a bold step to experiment with his ideas and life, but he was able to do that, “even in the present (sagging) economy”, because of his supportive family. “I live with my parents in Kolkata, and we have a big enough space, which gives me the flexibility of having my office at home,” says Ayushman, who does not just depend on his family, but also has his own savings stashed away to support his dreams. Plus, he is open to making adjustment to his lifestyle.
Ayushman Basu 30
He quit his 9-5 job in Mumbai and returned to hometown Kolkata for more flexibility
“I live with my parents in Kolkata, and we have a big enough space which gives me the flexibility of having my office at home. I also have my own savings to support my dreams, and I am open to making adjustments in my lifestyle, too.”
Those taking a blind plunge may, however, have reasons to worry. “A lot of people who are doing this are still relying on support from family where parents are bearing all their expenses. I am not sure how many people in their 30s can say that I am going to just freelance and have steady finances. I would be extremely worried about this trend,” says Mrin Agarwal, founder director, Finsafe India, and a Sebi-registered investment advisor.
Switching away from 9-5 would need a sorted approach and a truly financially free future. “Financial freedom is a combination of a lot of things, but in essence it is about having enough to lead your life on your own terms, without having to worry about your financial goals. If you have enough to meet your financial goals, you could go ahead and do whatever you want, whether it is setting up a business or charity, or something else,” says Agarwal.
A blind-sided approach to freedom from 9-5, where you are not sure about how your future will look like, may not always work. Guwahati-based writer, Sanskrita Bharadwaj, 32, flirted with freelancing a few years ago because she was unable to adjust to the chaos of the workplace. The stint didn’t last long because of lack of adequate savings, and she went back to a regular job soon enough.
Two years ago, she took a plunge once again. This time, she was prepared—she had saved some money and shifted from Mumbai to her parents’ house in Guwahati. “I earn enough to meet my own expenses and save some money. Thankfully, my father inculcated a saving habit in me early on,” says Sanskrita, who puts aside most of her earnings and ensures she is not a financial burden on her parents.
Sanskrita learnt a lesson the first time she dumped a regular job. Agarwal says that people who do not think about the future may ultimately learn the hard way. “Impatient decisions never pay off. Take the example of young people who quit stable jobs to join start-ups. There were mass layoffs in several of these start-ups,” she says.
What Can See You Through?
If you are serious about ditching 9-5, ensure you have enough savings to see you through emergencies—of having dry work spells, medical or others—and to fulfil goals, such as funding your own start-up or your child’s education or your own retirement.
If not, ensure you will be able to provide for these.
Calculate how much you will need: A cardinal mistake that most individuals commit is not calculating how much they will need for their financial goals. “People think they would be able to afford their expenses through some amount of work or rental income or other small sources, but that is often not the case. I have met people (even the ones who stick to 9-5, but aspire to FIRE) who are shocked to see the calculation for their retirement needs,” says Agarwal. Then there are goals such as children’s education and marriage, which can cost lakhs of rupees, she adds.
Sanskrita Bharadwaj 32
Left a 9-5 job and shifted to Guwahati where she works as a freelancer
“I wouldn’t have decided to being a freelancer if I hadn’t moved to my hometown, where I don’t pay any rent. The metro city lifestyle wouldn’t support my cash flows otherwise.”
Plus, you can’t ignore your short-term needs. “At any point in time, ensure that expenditure for the next few quarters (that could vary from two to six, depending on your work, market conditions, etc.) is kept in safe instruments. That way, you are not compromising on the essentials even if income is uncertain,” says Navlakhi. You could even split your savings into buckets of short-term needs and long-term goals.
Adjust your lifestyle: How much savings you would need depends on your lifestyle expectations and financial goals.
Remember that freedom from 9-5 could come at the cost of something else. “There may be sacrifices involved. It will be about choosing between your dreams or a good lifestyle. That’s because in most cases, especially for people in their 30s, there may not be enough savings,” says Agarwal.
Fix your cash flows: One of the biggest challenges you may face when starting out on your own is uncertainty of regular income. “Action must be taken to smoothen out the cash flows, as expenditures may continue even during no-income periods,” says Navlakhi.
Sanskrita says she may not have moved to being a freelancer if she hadn’t decided to move to her hometown, where she does not have to pay any rent. “The lifestyle of a metro city may not have supported my cash flows,” she says.
Keep an eye on future: Over time, Sanskrita has built networks that provide her with work assignments that pay in dollars. “Though the payment structure is erratic, I have been able to manage, as I have looked for new avenues over the years,” she says. After two years of working on her own, Sanskrita is hopeful that enough work will keep rolling for her.
“If you expect that you will have stability in income in three years from the time you start, and you can ensure that your interim goals are not impacted (during the period that your income is uncertain), you could comfortably move from a job to freelancing,” says Navlakhi.
Face The Reality
The impulse to move to 9-5 may be strong for some, but it can also trigger, quite understandably, anxieties and insecurities about the future. Ayushman says if he didn’t have a financial back-up, he would be very anxious. The fact that he has emotional support from his family also helped. “It’s like putting your career and life at stake, so the risks have to be considered carefully,” says Ayushman, who wanted to start his new journey while being close to his family.
Moreover, it’s not easy to break a habit. Thinking about how you would use your free time is equally important. “I know people who have enough money to switch, but they are unable to break out of the habit of working in a regular job,” says Ayushman. He gives an example from his own experience. “Although I don’t have a list of office to-dos to tick off, but I do have to conjure my own to-do list. It’s a massive change for me as I am learning and unlearning a lot about what it means to be really productive. This shift is a challenging one,” he says.
If you are not sure about yourself or about your financial future, moving out from a 9-5 routine could be counterintuitive and may need a rethink or postponement. Instead, you could look at freeing yourself from other financial shackles.
nidhi@outlookindia.com