“Be bold and courageous. When you look back at your life, you’ll regret the things you didn’t do more than the ones you did.” – H. Jackson Brown
I quit my great $200,000/year job with passive income.
How did I do it?
Why did I do it?
How can you do the same?
A lot of people do the time for money trade and I had a revelation!
Life is too short.
Even if you’re getting paid really well to grind through a job, that doesn’t mean much.
Especially when you have other things you’re put on this earth to do.
I’m going to go over three things that helped me quit my $200,000/year job.
1. I Grew Tired of the Time/Money Trade
I can’t emphasize enough how hard it was to quit.
But one thing that really pushed me was how tired I was of the time for money trade.
I was working really hard in the medical field.
I was doing high-end medical sales.
Sales professional is one of the best paid and most secure jobs there is.
I was probably working 25 to 30 hours a week and had a very desirable salary.
Eventually, the job became golden handcuffs.
How could someone leave a job when it’s that good?
I saw physicians working over 80 hours a week and making over $2 million a year.
Without any disrespect to the important work they do, I started to have some revelations.
These guys were not really experiencing financial freedom.
No matter how much you make, you’re doing the time for money trade.
That’s never going to work out well.
You can always make more money, but you can’t make more time.
I was in a sales position where the company praised my sales, but every quarter they changed their tune.
I had to sell more stuff.
Nothing seemed like enough.
One thing that was really helpful for me was my involvement in some passive and active investing in multifamily apartments.
I saw there was some opportunity to get some freedom of time back.
There are ways you can make more time and actually change the way this equation works.
A job is great, but a job is an addiction that keeps us comfortable enough.
I realized time is more important than money for that reason.
My friend Russell Gray says wealth is the essence of freedom.
When you have money, it allows you to have freedom, go places, do things, and manage your schedule.
For me, I needed a very strong reason to quit my $200,000/year job.
It really came down to creating content where I could teach people about financial freedom.
That was really meaningful to me.
A secondary thing was my love of traveling.
Travel is a great educational experience.
The last thing, for me, is my biggest reason:
Fighting human slavery in the world.
You may not know this, but there are 20-40 million human slaves in the world today.
That is more than there’s ever been in any time throughout history.
Having financial freedom allows me to fight for this cause to the best of my ability.
Your reasons for achieving financial freedom may be very different.
If you want to leave your job, you need to have a strong reason.
In the beginning, you may not make as much money as you were before.
Are you willing to keep your expenses down?
What is the reason you want to do that?
What are you going to do with this extra time?
If you don’t have a big reason, maybe you don’t need the extra time.
There’s a great book by Simon Sinek called Start with Why.
He says if you start with the why of your goals, it will drive everything else in your life.
That’s some great advice!
2. I Amped Up My Education
As Brian Tracy would say: If you want to earn more, you have to learn more.
Just because you’ve never done it doesn’t mean there’s not a way to do it.
That’s why you’re reading this blog!
You want to see if there’s some nugget to help you make that choice and retire with passive income.
Let’s help you do that!
The first thing that’s going to get you there is amping up your education.
I used to do single family houses.
I know a lot of people who do single family investing.
I was getting about $200 a month based on the four or five houses we had.
It was a very, very long-term play.
It didn’t lead me to financial freedom.
Eventually, I had a mentor come along who started talking about multifamily investing.
I told him I would love to try it, but I didn’t have any money at the time.
He told me that I could raise the money.
He told me: “Raise the money, raise the roof!”
I got the message.
I bought the books.
I went to the conferences.
I started my own local meetup.
At that meetup, I actually met my first investor.
That was the beginning of everything for me.
Now, I’m someone who’s in the arena.
That’s so crazy to think about!
If you’re not familiar with multifamily investing, I want to say something to you:
I really believe that multifamily investing is the single best way for people to generate wealth.
Whether you have money or you are in a place where you can create more wealth for people…
I think it is absolutely exceptional, and there are a few reasons why:
1. Higher returns than the stock market
2. Lower risk profile and less volatile
3. It’s an inflation hedge
4. There are many tax benefits
5. It’s scalable
I won’t go into too much detail about these, but I do want to clarify the scalability:
Once you get to a certain point, you can’t own any more houses.
You don’t have the capital.
Multifamily is scalable.
So really when it comes down to it, there are two paths.
My path involved time.
I was very, very focused on using my time.
This allowed me to 10x my net worth in three to four years.
That’s one of the reasons that I love multifamily!
It allows you to help solve people’s problems when it comes to investing.
I finally had more time than I had money.
Now you may be somebody who has money, but you don’t have time.
Maybe you’re trying to figure out how you can use your money for one or the other.
Let’s say you’ve got $500,000 or more.
As Warren Buffett would say: Just don’t lose money.
Aim for doubling your money every 5-7 years.
That might sound super ambitious but we see this very commonly in multifamily.
We’ve seen it commonly in the last 5-10 years.
These are not outrageous numbers.
Some don’t do as well, some do phenomenally better.
In general, if we could double every 5-7 years, that’s pretty great!
It’s important for you to determine how much you actually need to live on.
This is where it got kind of magical.
I realized I didn’t need to make $200,000/year to be able to live a pretty comfortable life.
All I needed to do is cut spending in some areas and lean into the tax benefits that go with real estate.
3. When is the Right Time to Leave Your Job?
This is a hard question to answer.
Everybody has a different sense of what this should look like, right?
Some might click out of this article, call their boss, and say they’re done.
There have been people that have done this very successfully!
The approach definitely has some risks if it doesn’t work.
People might take out debt to do coaching programs and the like.
Some people would prefer to wait until there’s no risk or until they’re retired.
I found something in the middle that I was comfortable with.
I thought about leaving before COVID-19 hit, but decided to hold on.
I wanted to make sure I had enough savings to give me an extra level of comfort.
A mentor of mine told me this was the right call, so I held off.
I’m so glad I did!
It gave me a lot more savings and flexibility.
Like we talked about before, you really need to figure out how much money you need to live if you quit your job.
For me, I realized the number was not as high as I thought it would be.
I’m a pretty frugal guy.
I do live in Los Angeles, but I found that I could still live okay at $50,000-$60,000/year.
I did want to have more than that, but those were the amounts to live well enough.
After that, I could really ramp things up.
Maybe this number is higher for you, maybe it’s lower.
The important thing is to figure it out and then set your goals from there.
By not paying taxes on a lot of real estate income, I also don’t need to make as much money on the other side.
If you have a job that has some flexibility, that’s very helpful.
If you’re having to work 80-90 hours per week, it will be harder to find time.
If you don’t have any time or money, you might simply do what you can to make things work.
I had a flexible job.
My performance did suffer a bit and that was hard for me personally.
But I came back to my reasoning for making this leap and it was more important.
I was also really good at multi-family investing.
I kept the vision in front of me of where I wanted to go rather than just where I had been.
That’s going to be really important as you look to transition out of your job as well.
Again, I cannot stress enough:
It is really important to figure out how much money you need make for you to leave your job.
That’s a very, very important number.
If you are looking at this in terms of steps, this is step number one.
This is the first step to take after reading this post.
Remember: Life has an action bias.
Meaning if you take action, your life will begin to change.
I think leaving your job is a spiritual journey.
It’s about more than just money; it’s about purpose.
Now, I want to hear from you!
What are ways you are looking to grow so you’re able to leave your job?
What are tools you found that have helped you on your journey?
If you have left your job, how did you go about it?
Let’s start a conversation in the comments below!
Before you leave, make sure to check out our special report about investing. It compares the stock market to real estate, and it also includes how the pandemic affects your investment future.
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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.