Should I change to a less stressful job to make time for REI?

Should I change to a less stressful job to make time for REI?

Member since 2019 · 5 posts · 1 vote

Hey everyone, I've finally worked up the courage to post... Been in turmoil the last few months and would love to hear what y'all think given I probably have blinders on. For context, I have had a fairly straightforward path in life, went to college, began my career as a management consultant, and then moved into the industry doing similar strategy and operations work. I realize that as I moved up, my work hours became more demanding and the responsibility is quite stressful. Earlier this year, I learned about the idea of passive income and I want to have more time and mental capacity to work on these streams. My current compensation is $150K+ (I live in SoCal) but I come home every night drained. I am considering looking for a job that pays probably 1/3 of that but gives me the mental energy to focus on other streams. The biggest risk here I see is that this move would hurt my potential to save money for REI but my gut or my burnout is telling me that this is the right path. Am I crazy here? Should I just stick it out for another year to accumulate savings? Has anyone gone through a decision like this and what was your outcome? Any advice you wish you could've given yourself at that decision point?

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  • Real Estate Investor · Des Moines, IA · Member since 2016 · 922 posts · 533 votes
    7y

    @Maggie L.

    Hi Maggie, kudos for asking the question.  What do you have saved? - you might be surprised on what it takes to get into a RE deal that cash flows well (and the power of leverage is.. staggering, both good and bad when used) - but you typically (ideally) do need some capital to start.

    You must be sharp to be effective in management consulting.  That's a kind of competitive field to get into and even top MBA grads from elite schools fall over themselves to get those jobs out of B school.

    However! And this is a big however! Those skills may or may not translate to RE - the 'grit' to get into work, use your hands, use tools, I would say is the single most important thing to have a successful outlook as an investor.  Work will always need to be done, properties degrade and depreciate, and there will always be great opportunity for someone who is willing to roll up their sleeves.  I had someone tell me awhile back to take off the silk, and like a lot of great advice, it was unclear to me at the time what that meant.  Now I know, though.  You'll have to change your wardrobe from your Management Consulting days, a little.  You may want to get more OK shopping at Goodwill :)

    But yes, there's a path and its rewarding.  I don't miss the $100-150k jobs and office environments. 

  • Member since 2019 · 5 posts · 1 vote
    7y

    @Jim Goebel 

    I've got about $40K saved right now, which would be enough for an out of state investment. 

    Maybe I'm too optimistic but I do like learning new skills via hands on methods, so I'm totally cool with getting my hands dirty. I've already reduced my wardrobe to t shirts since I'm on the lazy side! Feels like I'd fit right in.

    Nice to hear that there's a rewarding path here. If I may ask, how did you get started in RE? I'm thinking of breaking in as a project manager or analyst for RE company to get some hands on experience. It would probably also give me time to plan out my REI strategy.

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