“You should fire yourself before you get fired.” — Alkarim Nasser
Recently, I left my $200,000 a year job.
I break down how I did this in my book, Fire Yourself.
The main reason I left was that I wanted more control over my time.
I wanted to travel more and write a book—both of which I have done now!
Firing myself gave me that freedom.
70% of people say they’re not engaged at their work.
Maybe you’re feeling like it’s time to move on.
Today, I’m gonna give you some tips on how to leave your job and do it quickly.
Let’s jump into it!
Before you leave your job, you need to find your rat race number.
1. What is Your Rat Race Number?
A rat race number is the salary you need to cover living expenses.
Your rat race number is similar to your income, if you want to think of it that way.
I used to make $200,000 per year when I worked in medical sales.
I enjoyed the job, but I didn’t have freedom of time.
Eventually, I realized I didn’t need $200,000 to live.
If I lived simply, I could get by on about $60,000 to $70,000 per year.
With that amount, I could pay for my housing, food, and other life expenses.
Once you cover your rat race number with your investments, you’re free.
Finding the money to cover life expenses is a skill.
To start this journey, we can break the equation into two parts.
The first is earning more than your current income.
You can find ways to earn where you’re covering your baseline.
The second part is spending less.
If you’re spending $20,000 per month on your lifestyle, cut it down to $10,000.
You may not need to leave your job right away, but this equation gives you the ability to leave if you want to.
Simply having the flexibility not to work can be a huge benefit for many reasons.
Life changes could throw you for a loop or emergencies could happen.
Having freedom of time in those instances is truly amazing.
Personally, I love being able to travel, because I know my expenses are covered and what I do is not dependent on my location.
This is especially true as a passive investor.
2. Start Investing Passively
If you have $1 million or more in retirement, you should consider starting to passively invest.
That may sound kind of weird if you’re used to stocks and bonds.
I’ve had over 1,500 one-on-one phone calls with high-net-worth investors.
One was a physician worth over $5 million who only invests in stocks and bonds and had a financial advisor.
Private deals felt weird to him.
I do Spartan races and cold plunging.
When you do those the first time, they feel really weird and uncomfortable.
But then, after you get used to it, you may even feel better than when you started!
Passive investing is very similar.
Take deep breaths, get used to doing something different, and embrace the change.
Over time, the investment becomes more comfortable.
After investors get involved, they really like the cash flow.
Sometimes they’ll put in more capital or go into a different deal.
A good rule of thumb is to give yourself 30 days.
Don’t try to do everything at once.
You should also join some deal investor clubs.
Investor deal clubs will help you find the best deals for your investment style.
When browsing, look at five to ten deals, but only invest in one or two.
The most important thing you can do is learn.
Learn as much as you can.
Every bit of new information will help you with investing.
But don’t wait too long!
A lot of people get stuck in analysis paralysis.
I know someone who was into mobile home parks.
He had multiple mobile home parks under contract.
But every time, he would get cold feet and walk away from the deal.
How much better off would he have been had he continued forward?
Learn from that cautionary tale.
Give yourself time and you’ll set yourself up for success.
3. Scale Up Your Investing
If you work out, you can build up weaker muscles over time.
When you double down on that training, you can create real strength and definition.
You can apply the same logic to investing.
I spoken to many single family investors.
A lot of people think investing in single family will make you financially free.
But it doesn’t work.
The process takes too long.
It’s all appreciation and no cash flow.
If you can’t 10x your current strategy, then you’re not passively investing.
The income is not scalable.
If you have three rental houses where you’re getting a little cash flow, could you go up to 30?
When I ask that question, people’s eyes typically bug out of their head!
There’s no way they’d go to 30.
At that point, the investment becomes another job.
Even with a manager, you’re getting calls about property issues.
That’s an example of not passively investing.
Passive investing is when you invest in a deal and get statements about your passive cash flow.
I named my podcast after this: the Mailbox Money Show.
When money turns up in your mailbox or a direct deposit into your bank, that’s the ideal passive investment.
A lot of people don’t understand that you can scale up investing.
If you’re stuck in your investment journey, consider finding a way to become more passive in your investments.
Being passive will allow you to scale up.
First, you need to vet a deal or a team.
Give yourself a timeline.
Then, if all goes well, scale it up!
Over time, you’re looking for around a 15% average return per year.
If you’re able to do that, your money will double every 5 to 7 years.
The goal is to replace your income.
In order to do that, ramp up your one or two deals to upwards of 10 to 15 deals.
I know someone in 70 passive deals!
Personally, I think that’s far too many, but everyone’s top number is different.
When you increase the number of deals, you also increase your allocations.
Instead of putting in $100,000 per deal, maybe you put in $400,000.
When you invest that amount, you can also have fewer deals.
You don’t need diverse investments to make the cash flow work.
In summary: Find out what your rat race number is, start investing passively, and work on that investment muscle.
Now I want to hear from you!
How do you plan to fire yourself?
What will you do with your freedom of time?
Let us know in the comments.
Before you leave, make sure to check out our special report about inflation investing. It shares the best choices to invest during an inflationary environment.
If you are interested in investing with us, we are happy to answer any questions that you may have. Join our investment club today and we will be in touch.
Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.