How much side hustle income do you need to quit your day job?

When it came time to quit my job and go full-time as an indie hacker, I struggled to pull the trigger.

Like many indie hackers, I’m risk averse.

I had a little money coming in from a side hustle, but it was nowhere near my software developer’s salary.

How much side hustle income is enough? Did I need to match my salary? Cover my expenses? Or could I get away with less?

Rich IH: Match your salary

I’ve heard of many indie hackers who didn’t consider quitting until they were making more from their side hustle than they were earning in their day job.

This is safest bet. Assuming your customers don’t all churn the moment you quit, you know you can support yourself.

But it has its downsides. Software developers’ salaries, in particular, are substantial, and it might take a long time to reach that level of profitability.

And as long as you’re working a full-time job and can’t focus 100% on your side hustle, you might never reach that level of profitability.

There’s another, slightly perverse downside. If you aim to match your salary, by the time you’re ready to quit, you might have grown accustomed to living off your salary plus your side hustle income. So losing your salary will still be a hit.

For Rich IH, the numbers are simple. If you take home $8K/month from your day job, you’ll need to reach $8k MRR before you can quit.

Frugal IH: Cover your expenses

If you want to go full-time as an indie hacker sooner, you might find that you’re able to spend less than you earn.

It’s easy to get used to spending your entire salary, especially when everyone you work with is spending the same. But if you take a long, hard look at your finances, you might find that you’re able to live on much less.

That makes the numbers are more favorable. If you take home $8K/month, but you’re able to cut your spending to just $4k/month, you’ll only need to reach $4k MRR before to quit.

Airplane IH: Build a runway

If you’re able to spend less than you earn while you’re still employed, you’ll be able to save the difference and build a runway: money you’ll be able to draw on in your early days as a full-time indie hacker.

If you take home $8K/month but spend only $4k/month for two years, you’ll save an impressive $96K.

That’ll give you a runway of two years, even if you don’t earn a penny.

It’ll be enough to slowly build your business to cover your expenses if you’re able to reach $1K MRR after 1 year, $2K MRR within 2 years, $3K MRR within 3 years and $4K MRR after 4 years.

Barista IH: Get away with less

There’s another option if you want to last even longer.

Making more time for your indie hacker ambitions doesn’t mean that your salary need fall to zero.

Ask your employer whether you can go part-time, maybe 3 days a week at 60% of your salary. They’d probably prefer that to losing you entirely.

Look into freelancing. You have marketable skills that might bring in some income from occasional contract work.

Or maybe even get a part-time job doing something you love, perhaps something that’ll keep you connected to other people while you follow your indie hacker ambitions. Is your local coffee shop hiring?

All of the above

Me? I did a combination of the above. I saved. I invested. I went down to 4 days a week at my day job. Then I went down to 3 days a week. I built my side hustle to the point where it was bringing in a little money.

And then? I quit. I still don’t know whether I have long enough runway. But in the end, to be an indie hacker, even a highly risk averse indie hacker, you’re going to have to take a leap. After all, there’s always the barista option.

How about you? How much side hustle income do you need to quit your day job?