Hey guys what's up this Seth from the REtipster Blog and right now, I'm parked not far from
the place where I used to work my full-time job, just less than a year ago.
I've been thinking a little bit lately about the subject of quitting
your job and specifically, for those who do you want to quit their job some day,
how much money do they need to have saved up in order to do that safely and
comfortably? I think it's a really good question, it's something I thought about a lot
before I quit my job and I think if you're working your real estate business
the right way and if you're doing it long enough, it's just a matter of time
before quitting your job is the only next movie can make - because your job is
basically the bottleneck and it's getting in the way of the progress of
your real estate business. So if and when you get to that point and you're trying
to decide how much do you need to save up before you quit,
I think there are three things to keep in mind. The first thing would be...
If you're running a side business of any kind, whether it be real estate or
something else - if it's the kind of business that's actually going to be
successful, then it should be throwing off some amount of cash before you quit.
There should be some fairly strong indicators that it's doing well and it's
growing and it's ultimately going to be a self-sustaining, long-term solution for you.
So for example, when I quit my job... for several months
beforehand, I was basically earning more than a double income between my job and
my business and I wasn't spending any of the money from my business.
I was literally just stashing it away and saving it up - and I think when you're running a
business that's going to work and be sustainable over the long term,
that's the kind of thing you should probably see before you pull the plug on your job.
So if you're going to jump into your side project full-time and it's not
already putting out some pretty serious revenue for you, that's something that
you might want to be concerned about and just sort of think twice about
before pulling the plug and leaving your job. If it's not throwing off
enough cash that you're able to save up a substantial amount fairly quickly
then maybe you just need to give it more time or maybe the business idea itself
isn't really mature enough or ready or even appropriate to depend on over the
long-term. So that's the first thing, is just being aware that if your business is
going to work, it should be fairly reasonable to expect it to be throwing
off a lot of income on the side even if it's like half of what your day job
earns, if you're not spending any of it, it shouldn't take long for that to accumulate
and for you to build up a slush fund to fall back on. The second thing I'd
encourage think about - is to look at your business from a
removed, third-party perspective. If you're an investor and you're going to
invest your money in somebody, would you invest that money in yourself?
Do you really believe in what you're doing to the point that you be willing
to throw your money in that and lose it all if it all went wrong? Because that's
essentially what's going on in a very real way and if you're not confident
enough to do that, then I don't know it may be worth re-evaluating whether you
believe enough in your project in the first place because if you don't really
believe in your own project enough to do that then it may not be time to roll the
dice and actually try to do that in the real world.
The third thing I think you should just be aware of and think about, is the fact
that when you quit your job
it's like, a MAJOR life disruption - even if everything goes perfectly and
you sail into self-employment with no issues or revenue problems, it's still
just a big life change and there's a lot of things that shift very quickly.
I think in the instances where things do go sideways and where self-employment
does not end up working out for people, it has the potential to be a fairly
traumatic event IF it's not handled correctly. What i mean by that is, if you
sense that your business is starting to go downhill and that's not gonna work
out, I would encourage you to make the necessary moves to correct the problem
whether that means getting another job, or going back to the drawing board in some way,
or just building up some other source of revenue. Don't wait until things have
just gone HORRIBLY wrong to do that. Try to have some foresight and see
what's coming down the pike. Leave enough fuel in your tank if you do decide to
leave your job and pursue a dream, leave enough fuel in the tank so that if
it doesn't work out, you can go back to the drawing board and maybe another two
or three years from now, you can try to hit it again with a different approach
or a different business. It really is an awesome thing when you can do your own
thing and run your own business, but if you let things get to the point
where they hurt you, you're going to be too scared or too traumatized to ever go and
try it again. That's the place that I don't ever want you to get to. I want
you to be able to take that leap of faith without having some past terrible
experience or memory of how things went the first time you tried it.
Those are my ideas and just thoughts when it comes to how much to save up
before you quit your job. I think the number and the answer is probably
different for everybody. I would say obviously, the more you can save up the
better - it's just going to help decrease the anxiety and give you something to
fall back on. In my mind I didn't want to have anywhere less than
six months of savings saved up and preferably a year, and I think if you can do
more than that - great - but I also realize that that's not necessarily the perfect
answer for everybody and there are some people who can make it happen and
replace their day job's income a lot faster than others depending on the
business and and the circumstances of their situation. If you've got a
legitimate business that's running on the side and building up income that
you're not siphoning off from your savings account,
it shouldn't theoretically take all that long for you to build up a pretty
sizable nest egg to live off of. I mean, six months worth of your living expenses
I don't think should be that much to ask if your side project is building up
enough income on its own.
Those are my thoughts, I hope you found that helpful for whatever it's worth and
I wish you all the best if you're in that position and be smart about it.
Thanks for watching then I'll see you again soon.
yeah