Don’t quit your day job, wait what? 2

They tell you, over and over again, not to quit your day job when considering writing a Blog. With “they” I mean everybody and with “over and over again” I mean over and over and over again. I like to think of myself as someone who pays attention but oops, I did quit my day job….

It’s coming up on a year now since I quit and I have no regrets. Am I retired now? No. As financially sound as my situation is, it is not enough to retire at 44. Sooner or later I will go back to work and build a portfolio that allows me to retire early. I  have a few options. I could go back to what I was doing, either as contractor or employee. I’ve heard you can make $200 an hour doling out advise on Ether but I suggest you read thepennyhoarder’s article: Can You Really Make $100 per Hour on the Phone? Here’s the Scoop on Ether . You be the judge as to whether that might work for you.

Are you thinking of quitting your job? If so consider the following:

Are you quitting for good or do you need a break? There is a huge difference between the two. If it is a break you need talk you your HR rep. When I put in my notice I was offered a 6 months sabbatical. A sabbatical maybe just what you need and it comes with some advantages. You can keep your company health plan in many cases, your 401(k) can remain where it is (although in most cases it can even if you quit). It will also be much easier to rejoin the workforce when you’re all rested and ready to get back.

If you pass on the sabbatical make sure you can afford it. Personally I would make sure you have enough cash in the bank to cover your break. You can potentially dip in your after-tax stock accounts but you run the risk of a down market, having to sell stock at not-so-optimal prices.

Will you be able to afford healthcare? If you quit and have no income you must purchase private insurance which can easily run up to or over $900 a month. You may be eligible for Medicaid with all of its pros and cons, you may be eligible for the Affordable Care Act but it requires a certain minimum income (possibly from your investments), or you may live in that state where there’s a gap between Medicaid and ACA and you are not eligible for either (forcing you to go with that private pricey first option). Upwards of $900 will put a serious strain on your budget.

Do the math: If you’re quitting for good (retiring early), I must assume you have accumulated enough to support you for the long run. That means, your investments are yielding more annually than you spend (taking into account inflation).

Don’t count on that book you write or that blog you maintain to support you. Trust me, you’ll be in for a rude awakening. If it’s about that, listen to the old adage: Don’t quit your day job. Enjoy writing your book and blog in your spare time. Get it published or publish it yourself and see what it does.

Maybe you’re one of the incredibly good and/or lucky ones and it will bring in money. If that happens and the income exceeds your expenses, go ahead and quit your job!!

If you do decide to quit. This one is very important. I know many of you would like to tell your boss exactly where to shove it: DON’T.

I personally had no reason to, I’ve always considered my job a beneficial relationship between my employer and myself. Don’t forget, my financial well-being was made possible by the years of support and income I received. When I go back to work I hope my former employer will consider me again.

For those of you that didn’t have mutually agreeable relationship with your employer: still DON’T tell them what’s really on your mind. Don’t burn any bridges; you never know when you might need to cross them again. Be polite, and courteous. If possible give the proper notice,  so your boss and especially your colleagues are not left in a bind.

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My my break is almost to an end I’ve really enjoyed it. I hope you’ll be able to do the same.  My break now seems indefinite. I’m enjoying it too much. I hope some day you can too.

Good luck reaching your financial goals.