Say you make 50k salary, how much more would you need to be making from side gig to quit the 9-5? Salary is a guarantee, how much extra do you account for the risk of giving up the guarantee? 60k? 70?
Of course this doesn’t account for self employment tax, health insurance, retirement benefits included.
Heyo! This question is an important one and one that I often chat with other freelancers about.
It can be hard to “know your number”. But once you do it keeps you informed.
Your situation is different than everyone elses.
- What are your other responsibilities? (partner, kids, mortgage, etc)
- How confident are you in your abilities to make it work?
- How much do you have saved for runway?
In general I would suggest saving 6 months of
salaryexpenses as a minimum. Figure out your bare minimum to make each month and make sure you have enough to cover your butt for 6 months.I actually am writing a newsletter issue right now literally called “how to find your number”. It is not finished but it will be published on November 7th, you can join here so you do not miss it!
I am also working on a Notion template and mini course to help people work through this number. I believe it is super important to understand and once you do it will empower you to take the leap!
I’d do both. I wouldn’t quit until I was sure the income was steady. That might be after a year or two.