When your side hustle is something you’re excited about, it’s tempting to go all-in and quit your day job to focus solely on your passion project. While this can be a risky move, it can definitely pay off in some instances. But how can you know that it’s time?
Last updated: May 17, 2021
Your Side Hustle Is Bringing in More Money Than Your Full-Time Job
This may be the clearest sign that it’s time to quit your day job — but there are some things you need to take into consideration before taking the plunge.
“If your side hustle brings in more money than your full-time job, it’s time to start considering making it your primary source of income,” said Forrest McCall, personal finance expert and owner of the entrepreneurship blog Don’t Work Another Day. “You’ll want to consider the other benefits of your job like health insurance and retirement accounts when making this decision. You’ll also want to only include the profits from your side hustle – not just the income it produces.”
You’re Having Trouble Keeping Up With Your Side Gig’s Demands
You’re Truly Passionate About It
“You may not see clear and obvious ‘signs’ flashing in front of your face that scream ‘Quit your job!,’ but if you have an undying belief and passion for the idea and you’re willing to make sacrifices to turn those dreams into reality, then don’t let anyone talk you out of it — do it!” Logan said.
Money Maker: 5 Things To Negotiate at Your Job Other Than Salary
You Would Regret Not Taking Your Side Hustle Full-Time
Becoming a successful entrepreneur often requires trusting your gut and taking a leap of faith.
“Jeff Bezos’ framework, which he used to make the decision to quit his high-paying finance job in New York to start Amazon, is also a good one,” Logan said. “Bezos’s ‘regret minimization’ framework starts with a simple question: ‘In X number of years, will I regret not doing this?'”
You Have a Financial Safety Net in Place
Having an emergency fund is always a good idea, but it’s vital when you work for yourself. If the numbers are adding up in your favor and you have a financial safety net in place, that’s a good sign that you’re ready to take your side gig to the next level.
“It’s key that one has enough savings to weather any potential setbacks,” said Ricardo Pero, CEO of SellersFunding, a financial services solution for sellers on e-commerce platforms. “Most businesses fail because they don’t prepare for a potential downturn, and end up without the adequate capital to survive said downturn.”
More From GOBankingRates