When is a Job Not Worth It?

I had a conversation with 3 friends last week discussing the following scenario: 1) Person (won’t name which one) hates their current job, it causes too much stress; and 2) Same person is concerned about the state of the job market and afraid that if they quit before acquiring another job, they would never be able to be hired again despite being highly qualified for a number of things. The summary of the discussion was that 3 of us thought, including me, thought that our friend should quit, as they had planned well and had substantial savings; and the risk of never working again was not that realistic.  Here are some factors that I consider (which have probably shifted over time):

–How badly does the job impact the rest of your life — what are the stress levels? Is this affecting your health? Are your co-workers causing the stress? Have you missed important events due to your job? Are there opportunity costs for staying where you are?

–Are you willing to switch industries or career paths – since so many people spend time and energy preparing for their careers as well as working their way up an organization or for seniority, the thought of stepping away, even for a brief sabbatical is very difficult.  I think the decision becomes easier if you are not attached to your industry or the organization.

–Are you willing to (radically) change your lifestyle to a much lower budget — most people will not choose a drastically lower monthly budget by choice, but this is often the best path to allow for career move freedom.  Not sure if you can handle this? Try it for a month or two.  Keep in mind when not working a number of expenses should decrease such as commute costs, lunches, dry cleaning, etc…

–Can you increase your savings over the next 3-4 months — many people, if aware they will face a cut in pay, can become more disciplined and creative and ramp up the savings sharply. Having a larger emergency fund is almost always a good thing.

–Do you have alternative sources of income — do you freelance or have a side business? would some of your current contacts be willing to hire you as a consultant?  This is a tough one as creating alternative sources of income, especially recurring ones, takes substantial work and time investment.  However, with the labor market increasingly moving to freelancers and contract workers, employers are increasing their appetite for more flexible hires.  I think my friend would find this solution the most palatable.

Are any of you in a similar work-life decision situation?