Unexpected benefit of FI: Ultimate negotiating leverage

[brewer12345]

I pulled the plug on what I consider to be my career in January.  When I bailed on the cube I went with the idea that if a juicy consulting/contract job came my way I would be interested, especially as I am doing this at 40 with two small kids (long portfolio draw period and I don't have a really stupid amount of money).   a contract gig was pretty much thrown in my lap by a buddy and former colleague: work from home, defined project, 1 year contract period, hands-off boss, minimal travel, etc.  When the offer came today it was 20k less than my requirements to disrupt my life of leisure for a year.  Bluntly stated that that would not do and named my price.  I also raised the issue of how much my time will be mine vs. theirs.  The hiring manager is pretty pragmatic and has already decided I am the one she wants for this project, so she said she would get back to me by close of business tomorrow.

Meanwhile, I am cool as a cucumber.  I have spent 20 years as the primary breadwinner always trying to climb the ladder.  Suddenly I have more negotiating leverage than I have ever had, since don't give a flying fuck at a vintage jello mold whether this job happens or not.  I would be perfectly happy to be undisturbed in my life of genteel unemployment and getting by via the miracle of the loafs and fishes ("I loafs and I fishes and its a miracle I get by").  Realistically, I am pretty sure they will meet my price and terms and the work will start within the next 6 weeks, but if not it is the least important deal I have had to conclude in the last 2 decades.  Pretty sweet.

[Emilyngh]

Awesome!

I am not yet FI, but can see tangible benefits of our progress towards (and low cost lifestyle) through the difference in the desperation/fear that my colleagues sometimes exhibit vs my general attitude about things.   I can only imagine how much this will increase the closer I get to FI.

[Paul der Krake]

I secretely hope this happens to me when I pull the plug in 10 years or so. Unexpected goodies seem to find their way towards people who need them the least.

[jordanread]

[...] I don't give a flying fuck at a vintage jello mold [..]

I'm using that. Just thought I'd let you know. Also, congrats!!!

[Calvawt]

Sounds like you are in control of the situation.  I like that!

[socaso]

Isn't it amazing how opportunities like that pop up in a well-planned retirement? My father has often said they are doing better financially in retirement than they did when working and he has many amazing friends who are retired and enjoying profitable hobbies like organic gardening to sell at farmer's markets and travelling all around the world for projects.

[Cassie]

About 6 months after I retired a good paying p.t. gig that I wanted to do just fell into my lap.  I have been doing it ever since.  It is so nice when things like that happen.

[brooklynguy]

The Mad Fientist's latest post has a similar theme:

http://www.madfientist.com/power-quitting/

[brewer12345]

And they came back this morning and agreed to my price.  If it turns out to be a complete mess, I can always quit.  In the meantime, I suppose I will be gainfully employed once more at least for a while.  Nice to do it on my own terms.

[happy]

Congratulations. Pretty cool.

[Nords]

And they came back this morning and agreed to my price.  If it turns out to be a complete mess, I can always quit.  In the meantime, I suppose I will be gainfully employed once more at least for a while.  Nice to do it on my own terms.

It's also nice to finally be paid what you're worth!

Hey, if you play your cards right and you're really lucky, maybe they'll give you a chance to do some business travel...

[briandougherty]

Glad to hear this is working out for you, Brewer.  I'm hoping to use FI to negotiate on time and flexibility.

[...] I don't give a flying fuck at a vintage jello mold [..]

I'm using that. Just thought I'd let you know. Also, congrats!!!

Remind me of the quote from Slapstick, "Why don't you take a flying fuck at a rolling doughnut. Why don't you take a flying fuck at the mooooooooooooon! "

[brewer12345]

And they came back this morning and agreed to my price.  If it turns out to be a complete mess, I can always quit.  In the meantime, I suppose I will be gainfully employed once more at least for a while.  Nice to do it on my own terms.

It's also nice to finally be paid what you're worth!

Hey, if you play your cards right and you're really lucky, maybe they'll give you a chance to do some business travel...

I am way, way burnt out on business travel.  This new gig will mean the occasional (every two months or so) short trip to the city of my birth where most of my family and lots of old friends live, so I am ok with that.

[Nords]

And they came back this morning and agreed to my price.  If it turns out to be a complete mess, I can always quit.  In the meantime, I suppose I will be gainfully employed once more at least for a while.  Nice to do it on my own terms.

It's also nice to finally be paid what you're worth!

Hey, if you play your cards right and you're really lucky, maybe they'll give you a chance to do some business travel...

I am way, way burnt out on business travel.  This new gig will mean the occasional (every two months or so) short trip to the city of my birth where most of my family and lots of old friends live, so I am ok with that.

Better and better.  I figured that you'd negotiate quintuple overtime if they wanted you to go on the road...

[Sofa King]

EXCELLENT!!!

[viper155]

haha....good for you. I, too, am in a similar situation. I collect a very well earned and handsome pension and have no real need to work but I like and miss doing so. I have a job now that is "per diem" and I can take the work, or not. If I don't like the job, whether it be location, day of the week, or whatever!, I just say no. Enjoy yourself!

[brewer12345]

And they came back this morning and agreed to my price.  If it turns out to be a complete mess, I can always quit.  In the meantime, I suppose I will be gainfully employed once more at least for a while.  Nice to do it on my own terms.

It's also nice to finally be paid what you're worth!

Hey, if you play your cards right and you're really lucky, maybe they'll give you a chance to do some business travel...

I am way, way burnt out on business travel.  This new gig will mean the occasional (every two months or so) short trip to the city of my birth where most of my family and lots of old friends live, so I am ok with that.

Better and better.  I figured that you'd negotiate quintuple overtime if they wanted you to go on the road...

If this required lots of travel, I would have flatly said no to any and all offers.

[Davids]

And they came back this morning and agreed to my price.  If it turns out to be a complete mess, I can always quit.  In the meantime, I suppose I will be gainfully employed once more at least for a while.  Nice to do it on my own terms.

I wonder if you should have asked for more...

[brewer12345]

And they came back this morning and agreed to my price.  If it turns out to be a complete mess, I can always quit.  In the meantime, I suppose I will be gainfully employed once more at least for a while.  Nice to do it on my own terms.

I wonder if you should have asked for more...

I wonder a bit, too, but at this point it is a moot point. 

[chasesfish]

Congrats Brewer...

Do you have any concern what it'll be like going back?  You're at 7 months since pulling the plug

[brewer12345]

Congrats Brewer...

Do you have any concern what it'll be like going back?  You're at 7 months since pulling the plug

Yes, I have lots of concerns. However, I plan to just see how this pans out.  The job I quit was in a huge, gubmint-type bureaucracy with a completely inflexible and massively rule-bound hierarchy above me.  A steadily increasing amount of my job was becoming make-work, yet I was always required to either be in the cube or on the road.  I travelled 30 to 50% of the time depending on the season, mostly to places you would never plan on visiting for fun.  Meetings seemed to be valued for the time spent in them, and the weekly overhead cost in time of pointless meetings was spiraling upward.

In contrast, I will be making more in the new gig, have minimal travel, work almost exclusively out of my home, and aside from meeting certain check points I will mostly be responsible for when and how the work gets done.  This is a very different proposition than the old place.  It also ends in a year and I have complete freedom to quit any time I wish.

[mikefixac]

A benefit of not having to be busy.

I put an ad on Craigslist for $150 service call for emergency air conditioning repair.

I know it's above market, but the customer could/should expect their issues to be resolved quickly. If customer feels I'm too expensive, I understand.

[missj]

Cool!

My BFF is a very talented poker player.  She works in the film industry (behind screen stuff) and tends to work 3 contracts per year each of about 12-15 weeks.  so she basically works 9 or 10 months of the year.

Last year she made as much money playing poker as she made at her job (but in way less hours) so she decided that THIS year she was only work 2 contracts and to join the World Series of Poker circuit for a few months.  Well, they come beating down her door for a pet project they want her to do.  She says no thanks.  They increase the wage she says no thanks.  They offer her producer credits, she says no thanks.  They offer her even more money, she says let me think about it.

Finally she decides to counter offer, all of the above things but with Fridays off (since most poker tournaments are friday thru sunday anyways...).   They said OK!!!

The beauty of not needing the money!  Just like casinos offering all kinds of comps to the high rollers who can TOTALLY afford their own fancy hotels and meals.  But if you're joe schmoe who makes $15 an hour and you're playing $5 a hand black jack, you can barely get a free corn dog from the casino!

what's that old saying? Oh yeah "the rich get richer!"

[The Hamster]

Its a great position to be in.  In my line of work, I could easily pick and choose short term contracts if I was FI and only work 3 or 4 months of the year for the equivalent annual salary I make now.  Its definately a plan for the future.

[cchrissyy]

congratulations

[Elderwood17]

Well done.  I hope to be able to transition to consulting in a few years and being FI will be such an advantage.

[pugchief]

Well played, indeed. Remember that the employer can afford to pay a "consultant" quite a bit more than an employee because they don't have to any for any benefits or payroll taxes which amount to a larger percentage of the total cost of employing someone than most people realize. Anyone who is negotiating a consulting gig should do the math and use it in their favor.

[brewer12345]

Well played, indeed. Remember that the employer can afford to pay a "consultant" quite a bit more than an employee because they don't have to any for any benefits or payroll taxes which amount to a larger percentage of the total cost of employing someone than most people realize. Anyone who is negotiating a consulting gig should do the math and use it in their favor.

In this case it is a W-2 contractor arrangement.  I know full well they will not be carrying overhead and negotiated accordingly.  I am based in a location that is something like 25% or more cheaper COL than the firm I am contracting with, so I basically get to exploit the locational cost difference to y advantage on top of having lots of leverage.  I would have preferred a 1099 arrangement, but it probably would not have passed muster with the IRS and I got a high enough rate that it does not matter.

[Dr. Doom]

And they came back this morning and agreed to my price.  If it turns out to be a complete mess, I can always quit.  In the meantime, I suppose I will be gainfully employed once more at least for a while.  Nice to do it on my own terms.

I'm just catching this thread now -- wanted to say that this is _awesome_.  Really happy for you.

[pugchief]

Well played, indeed. Remember that the employer can afford to pay a "consultant" quite a bit more than an employee because they don't have to any for any benefits or payroll taxes which amount to a larger percentage of the total cost of employing someone than most people realize. Anyone who is negotiating a consulting gig should do the math and use it in their favor.

In this case it is a W-2 contractor arrangement.  I know full well they will not be carrying overhead and negotiated accordingly.  I am based in a location that is something like 25% or more cheaper COL than the firm I am contracting with, so I basically get to exploit the locational cost difference to y advantage on top of having lots of leverage.  I would have preferred a 1099 arrangement, but it probably would not have passed muster with the IRS and I got a high enough rate that it does not matter.

Not sure what the advantage of a 1099 arrangement would be for you; that is almost always to the benefit of the employer. Could you clarify? IMO, a W2 deal is an even bigger coup since you are now presumably getting full benes and they are also paying 7.65% in taxes that would have been on you with a 1099. The additional 'control' they have over you as an employee vs. contractor is an illusion anyway since you basically have them by the short hairs.

[Nords]

The additional 'control' they have over you as an employee vs. contractor is an illusion anyway since you basically have them by the short hairs.

I think Brewer lived this philosophy for his entire employment career...