Ask IH: How much do you need to quit your day job?
Hey guys, just wondering how much profit (not revenue) do you personally need to have from your side projects to quit your day (freelance) job? In my circumstances (AU, Perth, family+baby) I will consider to go wild having $4kAUD (~$3.5kUSD). What is your personal number?
Your bills for 6 months!
This is the correct answer.
I think significantly underestimate how much money they need when they quit their full time job, particularly if you're an adult with costs like rent, mortgage, bills, kids, and subsequently burn through the reserve much faster than expected.
If you consider how much you're making on average monthly now, subtract how much you're consistently saving (which for most people is nothing), then that's a realistic ballpark for your day to day living costs, without reining things in significantly.
$1500.
That's my number.
7K
To match what I'm currently earning, I'd need about 4k USD a month - but as "going solo" would be bring inherently greater financial risk, I wouldn't feel comfortable doing it until I was consistently hitting at least the 5k mark (and expected to do so for the foreseeable future.)
Between 8-10k. Unless I sold everything and moved somewhere cheaper. Then 3-5k.
Right now my happy number for going all in would be around 5k. Thats a bit over the number I NEED but if I am to go all in I'd want to account for that risk financially at least a bit. And I don't think that's too far of a ballpark and hopefully will be there sometimes next year.