Can You Afford to Quit Your 9-5 Job?
So many people want to quit they’re 9 to 5 job but do not know where to start. Hundreds of questions usually come up. Will I have enough money to sustain myself and my family? What will my partner think? What about job security, and the pension that I’ve been saving up for?
Can you quit your 9-5 job? The way you can know if you can quit your nine-to-five job is by evaluating your social and economic circumstances and context. What is your current cost of life? Could you live more humbly? What is the cost of your aspirations and dreams? How motivated, dedicated and skilled are you?
What are Your Circumstances & Context?
Family & Peer Context
Along the same lines as above, do you have a supportive family and peer group? Building passive income is extremely time demanding. Building a sustainable passive income source will require long days and long nights of work and dedication. Will your spouse or your life partner be supportive of your building passive income sources? If the answer is yes, that is great news 🙂
Not many people are fortunate to have a supportive partner when building passive income sources. However if you believe that your family or your spouse may not be supportive of your work, rest assured that there are ways to make compromises and also to find that support outside of your family and home.
One of the biggest drawbacks a life partner may talk to you about is “job security.” Although you can tell them over and over again, they may never understand that job security just does not exist. One way you can help reassure them while opening up more time for you to create your passive income, is by negotiating your terms at work. We talk about that more below.
It’s important to have a strong support system. One way you can find this is by subscribing to other YouTubers who talk about making passive income while providing inspiration and motivation. We highly recommend the following channels: Pat Flynn, Gary Vaynerchuk, Income School and our own channel Beginners Passive Income.
It’s really important to think about this before leaving your current job. What is it at your 9-5 that you do not like? Some things that usually keeps people from enjoying their job is a lack of:
- Alignment with personal goals
- Free Time
The main reason that people leave their 9-5 jobs is because it does not align with their personal goals. Therefore “know thyself.” No matter what you decide to do, create your own business, create passive income sources, or get a different job, make sure that what you chose aligns with your personal goals. We will have a closer look at that in the section on the cost of your dreams (below).
Before you decide to jump ship and leave your nine-to-five job, consider having a look at other options. Why not rearrange your schedule to free up your time? After testing things out, you may see some success and want to go part time. Being part-time will provide you more time in the week to build your own income sources.
Working for yourself is very very different from working for someone else. Instead of having your task list dictated to you, you are responsible for creating your own schedule and providing yourself your own income. The best way to know if you’re cut out for this is to give it a try before you leave your 9-5 job. Another criteria that’s important with regards to personal motivation is your tolerance to stress and risk. If you are highly risk-averse, you may not be willing to leave your 9-5 right away, and that’s okay.
You can start out with a couple side hustles and see how much you enjoy them. These are income sources that can be fairly active initially, but can be made passive through delegation and automation. Starting out with a side hustle will allow you to better understand how you work for yourself, and if you actually like it. Not everyone is cut out to be an entrepreneur and that’s also okay 🙂 We have a full list of passive income ideas available in this guide. Some are more risky than others, some require more entrepreneurial skills than others. But each guide covers both criteria. Check them out.
What is Life Costing You?
Click on the button above for our budget planning Excel spreadsheet. If you do not have Excel on your computer you can open it in Google Drive (free for anyone with a Gmail account). Fill in that document to calculate your monthly average. And be honest with yourself. Now you have no excuses 🙂
Can You Live More Humbly?
Now that you have an idea of your monthly expenses, it’s time to look at if you can live more humbly. Gary vaynerchuk often talks about moving in with your parents. This may sound absurd and socially unacceptable, but it is one way to save a lot of money.
After housing, Another thing that costs people a lot of money is there transportation. Is there a way that you could lower your transportation expenses, by taking public transit, commuting to work with others, walking, or using alternative means of transportation?
Also have a look at your monthly subscriptions. There are certainly things that you are currently paying for in a recurring manner that are not providing you that much value. If you can cut these things out of your budget you will save a lot of money in the long run.
What do Your Dreams Cost?
This is so underestimated but so important. How much would it cost you to achieve your dreams? And it’s actually possible to calculate this!
We are very grateful to have read the 4-Hour Work Week by Tim Ferriss (learn more about the book in our Passive Income Book Guide here). This book contains a PDF document that he calls a “Dreamline.” What dreamlining entails is calculating how much your dreams will cost you per month, in the following categories:
- Own: Things you would like to have
- Be: The person you would like to be
- Do: The things you would like to do
Take the cost of all of these things and then divided over the time in which you would like to achieve your goals. Check out this PDF document to be able to calculate how much your dreams cost you.
You May Not Need to Quit Your 9-5
You will die. What legacy are you planning on leaving?
How can I make enough money to quit my job? Some ways to make enough money to quit your job include lowering your expenses, saving money, living more humbly, and replacing your current income with passive income.
Should I quit my 9 5 job? Knowing if you should quit your 9-5 job can be based on factors such as social and economic circumstances and context. Evaluate your current cost of life, ability to cut expenses, and the cost of your aspirations and dreams. Also have a look at how motivated, dedicated and skilled you are.