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When should I quit my day job and do IM full-time?

by SirLucius
18 replies
I've been at IM for two years now and this will definitely be the year I actually start to net a profit at this. When should I quit my day job ? What is a good rule of thumb in terms of consistent income and savings?
#day #fulltime #good #job #quit #quiting #rule #thumb
  • Profile picture of the author Chris Busa
    I would say when you are consistently making double your income, yes you could quit your job if you were a little bit under or matching, but you would still be making money on the side. So if you can grow your income to double your pay checks consistently than I think its time to quit, unless you enjoy your job.
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  • Profile picture of the author rapidscc
    IMO if you are already earning enough to cover all your living expenses and have a few more left for savings, and you are doing it consistently, then you could contemplate on
    leaving your job or not..

    The amount of money you've saved is also another thing to consider. Going fulltime with IM has its benefits but you'll have to give up job security, and the best way
    to compensate for the lack of job security is by knowing that whatever happens you'll
    at least have some cushion.

    The last thing to consider is if you still love your job. If you feel trapped and you're just doing it to bring food in the table, then I guess it will be alright to go full time in
    IM now that you're earning, and especially if you love doing it.

    All the best,
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    • Profile picture of the author Simon Royal
      I think it was "Big Mike",
      in another thread that was stressing the importance of a reserve fund. (savings)

      I am with that thinking all of the way,
      I would feel pretty safe about quitting my job if...

      I was making 150% of my current monthly income for the last 6-12 months.
      And I have 6-12 months worth of reserves in the bank.

      The thing with IM is your income can change quickly from companies chaning their TOS, Google changing their algorithms, and many other factors.

      I am a conservative though so I would think this way.

      For you, you will ultimately make that decision when you know it is feeling right.

      Good luck on this years earnings.

      Torrance
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      • Profile picture of the author David Hooper
        I think you should do it ASAP. If you believe in your ability to pay your basic expenses, why wait until you have a ton of cash in the bank? I doubt the people giving that advice are doing it because they've been successful using that technique.

        The way to learn how to "fly" is to jump off the cliff and figure it out.
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        • Profile picture of the author sbucciarel
          Banned
          Originally Posted by David Hooper View Post

          I think you should do it ASAP. If you believe in your ability to pay your basic expenses, why wait until you have a ton of cash in the bank? I doubt the people giving that advice are doing it because they've been successful using that technique.

          The way to learn how to "fly" is to jump off the cliff and figure it out.
          Yeah ... if you want to end up squished like a bug. There have been more than one thread around here like .... help ... been doing this for years and haven't made a buck and my family is out on the streets and my dogs don't have anything to eat.

          Follow the sounder advice of at least 150% of your income for a year and a nest egg in your savings account. What's the rush?
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          • Profile picture of the author Intrepreneur
            Just don't quit until your income online is enough to cover your assets while still making plenty of profit.
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            • Profile picture of the author fiero
              For my case I made sure I settled all the major debts (the roof above, cars, credits...). Now I'm no longer employed. I'm learning by doing, more misses than hits. I learn from both the misses and hits.
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              • Profile picture of the author TheRichLife
                Don't forget to consider your entire compensation package when deciding if 150% is the time to take the leap. If your current employer provides free or discounted health insurance, 401(k) matching, etc you need to consider those items.

                Health insurance for somebody who's self employed can get quite expensive (especially if you're providing it for a family). Being self employed doesn't mean you won't want to, or have to, retire at some point, so losing an employer matching program for your retirement plan is also lost compensation. Finally, use your gross income as your basis, not your net (i.e. take home). While there can be tax benefits to being self-employed, you'll be responsible for paying estimated taxes on a quarterly basis. If you based your decision on net income, you may find yourself having a difficult time paying your taxes.
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  • Profile picture of the author paulie888
    You have to be making consistent income, first of all. Sometimes IM can be rather unpredictable, so if you're going to leave your job completely (i.e. have no other source of income except IM) I'd suggest having at least 6 months' worth of expense/living money saved away before attempting this!
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  • Profile picture of the author AndrewStark
    It's entirely personal, and may have a lot to do with your personality type.

    If you're a risk taking entrapeneour trapped in a crappy job who just has to think about themselves and can fall back on family & friends for a roof and food then just stick 2 fingers up to your boss now.

    If on the other hand you've got a good job, mortgage & family to consider then it's not wise to be so cavalier in your attitude.

    Spend some time reading books like Rich Dad, Poor Dad and concentrate on building up your asset column. If you're going to become your own boss then it's worth learning about self development.

    As you're a grown-up it should become obvious, but don't do it just because people you've never met before on the internet said that after 2 months of this programme you should quit your job.
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  • Profile picture of the author Dennis Gaskill
    Make sure you've proven to yourself (and your family if they depend on your income) that you can make enough money consistently, month in and month out, for at least 6 months. I also agree with having some living money set aside. Income can be inconsistent, and if you feel pressure to earn now because it's been a while, it can lead to you making decisions that are made out of desperation rather than out of sound judgment.

    Remember too, that once you give up your job you may have a hard time finding another one in this economy, if IM isn't paying the bills.
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  • Profile picture of the author Profit-smart
    no matter how consistent, wait until you have six months income in the bank. This gives you room to reposition yourself if your current business model flops.
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    • Profile picture of the author RichMag
      I would like to add that in addition to a good reserve, you should also be Debt Free (or close to it). Make sure that all those Credit Cards are paid off. You really want to mininize the amount of money you are sending out each month.

      I am in the same boat as the OP. The thing is, I actually like my "day job". While that is a good thing, Ill probably never reach my ful IM potential because there are nights when I get home and just cant motivate myself to work 3-4 hours on my "night job" (IM).

      Good luck to you on whatever you decide.

      Rich
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  • Profile picture of the author timer
    Personally I will only quit when I am earning enough to cover all my bills +30% each month and I have 3 months worth of savings for quiet times. Until them I'll keeep going part time.
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  • Profile picture of the author James12C
    I guess (you imply) you don't like the day job? In my case, I like consulting (day job) and do OK online..... Advice above is all good - get the outgoins under control, and be sure that you are OK with the unpredictability of IM...
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    • Profile picture of the author Craig Zimbrowski
      Just analyze yourself, how much you are making on IM for a good living? If so, you can quit your day job and start IM at full time. Some persons have a day job and work online every night and weekends.
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  • Profile picture of the author J Bold
    For my family, they always seem to be asking me, when will I quit doing IM full-time and get a "real job," full-time or part-time.
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