When most people start earning a decent side income from their online ventures, they quit their day job and focus entirely on building their empire. I want to explore this idea, asking if is best to keep you day job or get rid of it. As I start to build up my side business (and businesses in the future), I have started to ask myself this very question. I want to suggest a different answer to this question.
Quitting My Day Job
Having enough money from my side ventures would be such an encouraging thing. In theory it would suggest that I can do even more with my skills and efforts if I had more time. Quitting my day job would give me a lot more time to focus on these online efforts, as well as planning my entry into real estate investing. While I like my job in many ways, I don’t see it as my career and it can be somewhat monotonous at times.
The only downside to getting more free time when quitting my day job is that I’m not guaranteed to increase my income right now. While I have been successful in growing my first blog to make money, I can’t guarantee that it will continue to grow or that my other blogs will be as successful. There’s a good chance, but nothing guaranteed.
Keeping My Day Job
Staying at my current employer as I continue to work on my side income would offer me great security. It might limit the time that I can invest in expanding my side ventures, but it is a huge safety net. Giving that up would be hard, even if I was earning just as much online as I do at my day job.
Earning the same amount online doesn’t mean that you are bringing home just as much. Going to self-employment means paying your own taxes and healthcare. Thankfully my wife works and I could easily get on her healthcare plan for not too much more, but it is something else where I would lose. In addition to that, I would also lose my ability to contribute to my current employers 403b plan. This is what most concerns me in the switch. My employer offers a decent match and that is hard to give up.
It is for this reason, that I want to keep my day job, for at least a couple of years after being able to replace it. If I start to make close to my regular salary with my income streams within the next year, I plan to maintain my current employment and maximize my 403b contributions. This may not sound that radical, but consider that I make less than three times the yearly contribution limit, it is quite radical. This would be taking almost half of my check and saving it for the future. This means that my retirement fund radically increases in little to no time.
I can’t keep up the pace of investing lots of my free time in my online sites while also working full-time forever. This is why I would only do this for a couple of years beyond the point where I start to make as much online as in my day job. After two years, I should be able to judge whether I have grown steadily and whether online income this is maintainable.
Would you quit your day job at the point when you make the same about online?