F53-077: Making the leap - Is Giving Up A "Secure" Job Irresponsible

Show Summary: Today's show is about making the big leap. This is for all of you that has a side hustle, a day job, and would want to make a big leap. Just like every show, this is strictly my opinion but there's a big narrative out there of “going all in” and “burning the bridges.” This is dangerous for older people or those with responsibilities. And it gets glazed over too much. I think that's dangerous. I'm not suggesting it shouldn't be done because I'm a big fan of going all in. And I'm a big fan of going all in when it's calculated and not just because you're sick of your job or you think you have the next best thing. I'm going to talk about what my mental process is or would be if I were to make a big leap. How much money do you make? How much money are you making right now? How much money are you making in your side hustle? You have to be really diligent about this. You've got to add in back in things like your healthcare, cellphone, retirement, stock options, home, mileage, or any other perks that your company pays for. You've got to account for all that stuff because it does add up. Healthcare is a huge one. If you have healthcare and you're on your own, maybe you can swing it but if you have a husband/wife or kids, you can't play with that. You've got to have that all mapped out. At least be aware of it. You don't have to do anything but if you're already living okay and you have a side hustle and you've been making money, and you're probably doing financially okay, then you need to figure out what that level is for you. How much money do you really need to make to live and survive? Then add 20% because things could go wrong and there are always problems. Kids will always get sick. Things in your house are going to break. Your cars are going to need repairs. So make sure you know how much money you have to make and don't undercut that number. How much money do you save? How much money have you saved? If you've had a full time job and you've had a side-hustle and you don't have any money stashed away, here are three possible reasons: Not as good side hustle as you thought You have a spending problem. You have a cash flow problem. Any of these will turn into big problems once you start running your business on your own. Cash flow is a really important thing to have. You have to have cash to run a business. You have to have cash to pay your bills. Managing your cash is critical. The Profit First Model This means that if your side hustle is making money, that money goes into profit before you do anything with it. Put it in a separate account that you can set aside. How much money do you have stocked up? This is both personal cash and business cash. If you're going to make a leap, sales are not always going to happen or things are not going to go the way they normally do so you have to have a number of months of cash set aside so you're safe and not in panic mode right out of the gate. How would you handle slow months? Of course, it goes back to much money you have saved up but more importantly, could you survive? Could you pay your bills? Could you find auxiliary work? Do you have ways that you could work harder to make more money? How are you going to account for slow months? Because, guaranteed, it will happen (lost deals, economic downturn, holidays, high interest rates, snowstorms, etc.) You have to be prepared for it by having a plan in place. Have you talked with your significant other? Talk about your husband/wife/partner what's going to happen when there's a slow month, what you need to do, and what you need them to be aware of. More importantly, ask for their understanding and support. This is very important. It's your responsibility to have this conversation with them. Get them fully on board with what you're doing. It's not going to make the situation any easier but your significant other has to be on board with you. What sacrifices are you willing to make? How long are you willing to stick it out for? Are you willing to live off of credit cards? Are you willing to cut your cable bill or sell your car to have cash? Are you willing work weekends or when your kids are playing sports or on holidays? What sacrifices are you going to make? You have to define this and hopefully, you won't have to compromise on them. You need to account for these but at the same time, you need to be very self-aware and really understand the sacrifices you're willing to make. For example, you can't trade three months into working 7-12 hour days and seeing your family less because you're in the basement or office. It doesn't make sense. Are you ready to make that big leap? If you're really going to do this, please talk to your significant other. Please understand what you're getting yourself into. And please seek advice from others that have done it. With all this being said, I love people who burn the ships and people that go all in. Personally, I am far more motivated, efficient, and determined when my back is in the corner but it's hard to do that when you're in the comfort zone. So I think you're crazy if you have other responsibilities and you've risked it to the extreme if you have not answered these questions because you're jeopardizing your family's well-being. Maybe you don't need all the things that you have to live now but you certainly don't need to eat ramen noodles with your family or not have healthcare for a couple of months because you're wanted to go chase your dream. Maybe that's what would come out of it, but it's different than not planning for it and not being aware of it ahead of time.   Make an educated decision. Again, the narrative of going all in and burning the bridges is dangerous, crazy, and exciting for some people. But you need to take a step back. Take a deep breath. Consult with some people. Map it out. Answer the questions mentioned above. And make an educated decision. The decision may be bad down the road. But at least it wasn't blind on going all in. You don't see professional poker players, going all in with their chips, blind. You have to have data and information and be educated. And this is no different.   Books, People, & Resources: I'm researching former professional athletes and how they transition from being an athlete or a new lead athlete into the "real world." I'm interested in hearing about their struggles, their challenges, roadblocks, successes, and everything in between. Sports has always been a big part of my life. I love them. I have a special interest in athletes and specifically the ones that have competed at the highest levels. Do you know anyone like that? If so, I'd love to hear from them or maybe it's even you. Shoot me an email at [email protected].