What goals did you set for quitting for W2?
What goals did you set for yourself to achieve before quitting your W2 job? What's your journey to time freedom and financial independence look like?
To make as much as I was making at my job as well as having 6 months in reserve
@Dominick Johnson As investors chasing the dream I've come to realize any goal you set (with a number attached) usually changes. I'm nowhere near retirement but I'm hopeful owning, renting, maintaining, and paying down property won't hurt. When I started out I calculated I needed 28 properties (leveraged) to match my current income. Well my income has gone up a little. Those calculations are incorrect. Taxes changed, rents go up, and it's always an estimated return. Not to mention I don't even want 28 SFH anymore.
I'm in the same situation regarding PTO. It's impossible to use it all so I take personal days to work on REI and I don't lie about it. It's the only way I can focus on market research, networking, calling/paying contractors, buying materials, and rehabbing properties to our standard. If you're passive income is matching a six-figure income you should probably quit. Depends on how levered you are and how much reserves you have for the units. Depends on a lot of factors. Someone posted last week about goals and buying 10 doors, paying them all down 50%, selling 5, and retiring with 5 pay for cash-flow properties. It's not the best use of money but it's realistic.
Maybe you goals are have shifted as well??
#4 All Forums Contributor
- Plymouth, MI
1 - Total Profit that paid off all personal debt,
2 - CF/month to cover all monthly bills plus 15%.
3 - Mechanism/system that delivered #1 and #2 to remain in place continually repeating itself for......?
Quote from @Jaron Walling:
@Dominick Johnson As investors chasing the dream I've come to realize any goal you set (with a number attached) usually changes. I'm nowhere near retirement but I'm hopeful owning, renting, maintaining, and paying down property won't hurt. When I started out I calculated I needed 28 properties (leveraged) to match my current income. Well my income has gone up a little. Those calculations are incorrect. Taxes changed, rents go up, and it's always an estimated return. Not to mention I don't even want 28 SFH anymore.
I'm in the same situation regarding PTO. It's impossible to use it all so I take personal days to work on REI and I don't lie about it. It's the only way I can focus on market research, networking, calling/paying contractors, buying materials, and rehabbing properties to our standard. If you're passive income is matching a six-figure income you should probably quit. Depends on how levered you are and how much reserves you have for the units. Depends on a lot of factors. Someone posted last week about goals and buying 10 doors, paying them all down 50%, selling 5, and retiring with 5 pay for cash-flow properties. It's not the best use of money but it's realistic.
Maybe you goals are have shifted as well??
@Jaron Walling I removed the explanation of my situation just incase the off chance someone I work with sees it.
I agree with you, goals related to owning real estate investments are continually changing for me as well. I see the rental investments as more of a marathon goal of financial independence, where as the job situation I previously mentioned is a sprint goal to time freedom.
@Dominick Johnson It's crossed my mind numerous times I can get ____ done today, tomorrow, or in the future without going into work, but health care in this country is insane. I'd have to be dependent on my wife's plan and it's more expensive. If you can handle the health care aspect of "retirement" I'd quit the 9-5 job for sure. I can already see myself as the stay at home Dad because she earns more, and it saves so much $$$ on child care. Plus I'd have more time to do more REI. First world problems I'll admit.
@Jaron Walling sounds like we have very similar situations. Insurance is way too expensive, but I think we found a solution. We know 3 couples who use a cost sharing insurance company. Their premium is around $400/month and we’ve heard nothing but good things about it. One couple had a c-section delivery and receive a check for 100% of the bill from their policy.
@Dominick Johnson
I think your goals are always changing. It’s an evolutionary process. As your own life changes so does your goals. There is definitely one constant in life “It’s always changing”. See some examples: college for your children, marriage, divorce, Illness, great success at your W-2 job, unexpected move, the list can go on and on.
When your working a W-2, your time is limited and those of us who have done well are able to manage it at a high level. I’ve seen people who quit there W-2 and they thought I have all this time, I’m going to crush it. Then they are not as productive and financing without a W-2 requires creativity.
It’s definitely a fluid plan. I had always set a total income in retirement at $10,000 a month. Once again, it’s a goal. You should cover all of your expenses plus saving money for unexpected things . I think saving 20% above expenses makes sense. It’s all relative.
For me, I followed the runway concept from Scott Trench's book set for life. I had enough saved up for personal expenses and business expenses for several months before jumping into my business full time. I also spent 2 years building it up as a side hustle so I had some predictability on what full time self employment would look like. This was a asymmetric bet on myself being able to make per hour than my salaried job.
If you haven't picked up that book yet, I highly recommend it!
@Ty Ash thanks for the book recommendation, I'll definitely look into it!
Good advice building up your side hustle for 2 years for predictability before making it your full time business.
Depends on your risk tolerance, lifestyle, obligations, savings etc. I quit my office job with 3 months in reserve. That helped me push myself even harder to make it happen
@Dominick Johnson
I left my 6 figure job when my wife and I had no personal debt except for our personal mortgage and our portfolio netted my W2 gross income. That transition happened 4 years ago or 11 years into our real estate journey. My wife still works, but she will be leaving the w2 life January or February next year.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
I didn't set any. Knew if I went all in I would succeed