When to quit the day job and go full time

8 Replies

Hey all,

Forgive me as this isn't really real estate however it could help many in the same state when it comes to real estate. I work full time and have a side hustle. Lately this side hustle has exploded generating 2-3 times what I can make from my full time job. I'm young and don't have many liabilities other then car and insurance. How consistently should I be getting enough jobs to go full time in this side hustle and make it a business. How much in reserves should I have before I do so? I'm looking into real estate investing and am sure within a year I will have the same question towards it so that's why I thought I may as well ask it on here. How much cash flow did you have before you went full time? How much in reserves?

Car payment: bi-weekly $140

Insurance: monthly $240

Living expenses: monthly $100

Other expenses: monthly $200

Full time job pays $950 bi weekly

Each business job pays avg $250

Secured 8 jobs in the last three days alone seems to be exponentially growing as each person I do a job for recommends me to 3-8 others each wanting a job done a week and is starting to be hard to keep up.

Can do one job after work and 3 on a weekend but many people want it done during the week.

How did all of you know when to start to higher people when you started your real estate businesses.

@Cole Black

Congrats on the success with your side business! In my mind it depends on a few factors. 

1) How easily could you get back your old job / a similar paying job if you quit and your side hustle fizzled out?

2) How much money do you have in reserve? (at least 6 mo would be good for taking the plunge into your side biz)

3) How much can you do your side hustle and still keep your day job? 

If you could easily get a similar paying job later on, you have some reserves, and you think your side hustle could grow much quicker without time spent on the day job - then I think you could take a stab at it and go full-time on the side hustle now. 

Main reason I say so is cause your living expenses are extremely low, so "failure" isn't really going to hurt you much long term. 

A sidenote, but any way you can get that car insurance down? $240 seems crazy high, but I've always driven old cars where I don't care to have full coverage. 

@Taylor Chiu

Hey Taylor thanks for the reply. It’s a minimum wage job so I’m sure I can find one similar if it doesn’t work out. I only have about one month reserves as the rest goes back into the business. I should be able to raise some capital for reserves fairly quickly tho! And yes unfortunately my insurance is low for my age. Canada likes to rip you off. I have friends with tickets that pay over $500 a month. Between that and phone bill they have no money left over lol

@Cole Black Oh I see, yeah if it's minimum wage then I wouldn't hesitate much to just go full bore on your side hustle. Worst case scenario you run out of money and find another min. wage job within a week and get back on your feet. 

That's the advantage of where you are at - you might not make or have a ton, but you have lots of flexibility and not much to lose (and plenty to gain!). 

On that insurance thing - that is absolutely nuts! I pay $60/mo for my car, and that's only cause I have to have higher liability to go with my umbrella policy, lol.

@Taylor Chiu

Yes that is true I might wait it out a few weeks see where the trend is heading and then go full time if it keeps it up. Prices are terrible in Canada my insurance started at $330.

@Cole Black

Some people are wired to be able to work at a job and work on their side hustle, I personally was not. I quit my job without even having started my side hustle. Change only comes when the pain of staying the same is greater than the pain of change.

I would save up a  5-6 months expenses and go for it. If there is not enough business to support you full time you will know soon enough and you can get another job. If it takes off you might be pulling in 6 figures before you know it. Just don’t forget to save for taxes.

Originally posted by @Chris Marshall :

@Cole Black

Some people are wired to be able to work at a job and work on their side hustle, I personally was not. I quit my job without even having started my side hustle. Change only comes when the pain of staying the same is greater than the pain of change.

 How did that work out for you any regrets?

@Cole Black  

It worked out fine. although my wife and I were newly weds she had already started her business and it was going well enough and our expenses were low enough if I didn't make much money in the beginning we would be fine. the first year I assumed I would be making furniture full time and doing wood working. after about 3-6 months that changed into me getting my first general contracting job and I finished it in a few days and made more than the first six months of furniture making. I quit making furniture started doing general contracting full time and about 11 months later it led to me helping an investor do their first flip and immediately after that project I found my first flip. 

I've quit doing general contracting and I'm not even doing the work on my second flip. I hired another GC to do it all. I did that because we ended up purchasing a martial arts school and it takes a good chunk of my time. 

I've never really planned out what I was going to do and when. I'm very good at jumping out airplanes and attempting to build the parachute on the way down. so far most of the time it works occasionally not. I always just look for what the next right step is for me and my family. we now have a kid so I do spend more time up front planning my endeavors but I never let fear or analysis stop me from taking a step if I feel like that is the next right step for me. I believe a lot of that comes from my belief that no matter what I'm at God will provide for me and that it is my duty to him to use my gifts to the fullest of my ability. If I'm not using my gifts cause I'm scared then I don't deserve those gifts.

In short, figure out what you believe is best for you and remember as long as you stand back up, you cant be called a failure when you fall down. 

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