Leaving a $200K Job for a Side Hustle: A Sanity Check

Financial Snapshot and Goals

• 🎯 The caller is in Baby Step 7 with a net worth of $1.6 million, earning close to $200,000 annually from a corporate software developer job.
• 💡 His side hustle, buying and selling abandoned storage units, consistently brings in about $2,000 net per month over two years.
• 🚀 The caller's wife, recently starting her dream job as a teacher, nets approximately $4,000 per month.

Burnout and Desire for Independence

• 😩 The primary driver for considering leaving his job is burnout, stemming from "corporate nonsense" and a lack of independence.
• 🧠 He feels his soul has been "sucked out" by his current role, despite its financial security.
• 💡 He questions if trading security for independence is wise, especially at age 44, and if Baby Step 7 is meant for such transitions.

Evaluating the Side Hustle's Potential

• 📈 The side hustle has seen a best month of $6,000 net profit, achieved by buying multiple lockers when he had more spare time.
• 🗓️ He plans to use a six-week sabbatical in March (due to 15 years of service) to dedicate 40-60 hours per week to the side hustle.
• 🎯 He anticipates averaging $6,000 per month and having breakout months of $10,000 during this intensive period.

Expert Advice and Mindset Shift

• ⚠️ The advice given is a firm "no" to leaving the $200,000 job for a $24,000 side hustle at his age.
• 💰 A recommended rule of thumb for transitioning is having 6-12 months of income ($200,000) in retained earnings for the side hustle.
• 🛠️ The suggestion is to explore freelance software engineering or consulting to leverage his existing skills and potentially earn more while gaining independence.
• ⏳ The recommendation is to use the six-week sabbatical to rigorously test the side hustle's potential, rather than quitting immediately.
• 🧠 A mindset shift is advised: focus on wisdom and patience to achieve the desired future state, rather than rushing into a less financially secure situation out of burnout.
• 🤔 There's a concern that the perceived passion for the side hustle might be confused with the freedom and independence it offers, rather than the business itself.