That’s right, you read that headline correctly.
By quitting my job, or in corporate office jargon “resigning my position”, I am turning down the opportunity to earn at least 2.7 million dollars. (Based on my current salary and assuming I wouldn’t get raises or promotions.)
That’s like getting a lottery ticket, winning, saying no thanks, pouring lighter fluid on it, and watching it burn.
Why would I turn down so much money?
I’m not winning the lottery. No one is getting me a ginormous check. Nope. I’d have to earn that money by working another 33 years. I know, the thought is just preposterous! Working a corporate job to earn money?? CRAZY TALK!
But seriously, 33 years is a lot of my life time to spend cooped up in a cold office being forced to do things and interact with people who I don’t want to do.
Don’t get me wrong, I’m not averse to work, and working hard. No one who got their Gold Award can say they don’t work hard at things.
What I’m not a fan of is doing things I’m not interested in. Things I’m not passionate about. Sorry, but fixing iPhones and ensuring meetings start properly is not my life’s purpose. I’m here for more important things in life. (Although I have to say getting to play the hero and swooping in to fix things when everything is going terribly wrong is pretty great when I can get things back up and running.)
I started this conversation here in my 2017 Chautauqua recap post. Some of you asked fantastic questions, so this is my follow-up post where I address those comments on a deeper and more thorough level than I wanted to get into in the comment section.
My favorite devil(‘s advocate) Fervent Finance asked a few questions:
- Ok so number one was more of a statement than a question. “Have a backup plan if living with your BF doesn’t work. Nothing personal, but shit happens.” Shit does happen. If said shit does happen, I’ll probably stay in Minneapolis but will definitely move out. Depending on when said hypothetical break up occurs, I’ll go back to 9–5 world or keep doing the earning money on the internet thing.
- This is more like 4 questions in one. “It seems like your rental has been in the red since you’ve bought it. When do you think you’ll be in the black? Due to its age do you think you’ll be able to get recurring cash inflows from that investment? Would hiring a property manager be a good option or take too much of the profit?” Yeah the house needed a ton more work than I thought it would. Also all that work was more expensive than I thought it would be. Also, I screwed it up and need to redo some of that expensive work. So, the answer is, I have no idea when it will be in the black. I’m forecasting earning over $19k from rental income next year, and spending close to that amount, if not more, on fixing it up more. I hope I would actually earn something on it in 2019, but that depends on how some things in the house hold up. I don’t plan on hiring a property manager and will instead manage it myself from afar. Aside from the big repairs, it’s actually been pretty smooth sailing from a landlord standpoint.
- How much cash do you plan to have on hand when you quit? No idea. It honestly depends on any number of factors. How much I get in my bonus this year, what else needs to be repaired on the house, how fast I find a tenant for the vacant unit, how long I stay at my day job, what I get from selling off some of my belongings before I move, and more. I think I’ll have somewhere around $15k on hand, but that’s an educated guess. Heavy on the guess, light on the educated part.
My friend Felicity (you know, the lady with the dog photo) asked me way more fun questions!
What are you most excited about for your new lifestyle? Oooo how will you do time management in general without a 9 to 5 limiting you? Honestly, I’m most excited to see my boyfriend every day. Long distance is not fun. Aside from him, I’m excited about not having to go to an office job every day, getting to travel to events, and getting to explore a new side of myself with regards to creating things. Those things include creating stained glass masterpieces and helping others out in their lives. As for the time management thing, that’s going to be tough, I’m not going to lie. I’m not very good at forcing myself to do things. (writing posts, emailing people back in a timely fashion, and working out, to name a few). Thus, I plan on implementing a daily/weekly schedule where I plan out my days. Otherwise I fear I will waste my time and opportunity presented. I’ve recently started using Todoist and I can tell you it’s already started to help. I’ve also discovered automating what I can in my life is a huge burden off my shoulders and I will continue to figure out ways to improve that.
Reader SteveC was interested in hearing more about my plans to acquire rental properties without a W2 income. It basically came down to three options:
- Buy a place with my W2 income, quit, put my stuff in a room, leave my residence as that address, and then move. A year later I could get my stuff and rent the whole place out. I probably won’t take this option as it requires all sorts of trickery and I’m not sure I’m up to dealing with all that. Plus, taxes would be a pain.
- Quit my job and get a rental mortgage. Obviously the rates would be higher than a mortgage that assumes I’m living there. I’ll be able to use my rental income from the house so that will help the banks feel better. This route is a bit more painful, though, as I would still be required to go through a bank for funding and do the whole closing process which is a pain. (As anyone who’s tried to buy a house knows.)
- Find hard money. Hard money is cashola from private lenders. The interest rate is again higher, and there are some strings attached like what happens to the property and who gets paid first if something should happen and I need to default. This is the option I will probably take. I’m not a fan of super high interest rates, but the investors need a return on their money. I know several places and people to inquire about this path and feel like I could line up investors easily.
FIRECracker would like to know what I’m going to do to celebrate first! I will celebrate by sleeping in that first Monday, and then start packing up all my stuff for the big move. I know, not very inspiring but that’s life hah!
Reader TJ would like to know what I’ve done to have people want to give me money. Honestly.…… I’m not sure I’ve done anything deliberately. It’s just kinda happened. I’ve been involved with the FI community in some fashion for 5 years now. People know me. People know my skill set. They come to me. I had two offers of freelance writing at FinCon. I didn’t go looking for that, but I’m definitely not opposed to it! One of them I’m particularly excited to see what plays out. One of the times I was just taking a quick charge break and someone pulled me into a conversation where an offer was made. I think going into this with the mindset of not looking for it helps. I’m going into this with an abundance mindset which makes me more relaxed and approachable. There’s ALWAYS money to be made. There’s no need for a scarcity mindset.
And finally, reader John would like to know how I shifted my plans from saving up lots of money to my current path. I originally started out by thinking I would work for 10 years, save up a bunch of money, and then be done. However, as time has advanced that changed. I gained new skill sets like being a landlord and starting a podcast. It showed me there was no need to stay with the first plan when I can earn money not at a traditional job. The catalyst was meeting and starting a relationship with my boyfriend. If I didn’t have a concrete reason to quit, I’d probably stick with work for a little bit longer and really diversify my income streams. However, I think I’ll be ok with his encouragement and support so I’m quitting earlier than planned. There are many, MANY ways to achieve financial independence. The path I’ve chosen now might be a bit more difficult, but I ultimately believe it will be more rewarding!
So there you have it. A fun Q&A shesh about the plans I’m going to carry out coming up here in the next year!
Got any other questions for me? Did I miss something stupidly obvious? Sound off in the comments below!