Dave Ramsey says: Save up to comfortably quit your day job
I make about $25,000 a year in my day job, but I have side jobs as a personal trainer and a DJ. I’ll make about $10,000 this year as a trainer, and $25,000 to $30,000 working events as a DJ.
I’ve almost got all my debts paid off, and I love both of my side jobs. I was wondering how to tell when I’m ready to leave my day job and concentrate on personal training and my DJ work.
I always tell people to first get to a point where their side hustle is generating almost as much money as their day job. I want the boat pulled as close to the dock as you can get it, so that when you make the jump from the dock to the boat you don’t hit the water.
In your case, I would want the $10,000 you earn from personal training to look more like $20,000. When you reach that level, combined with what you’re making as a DJ, it would create a pretty safe situation for you to quit your day job.
Maybe you could cheat a little on the personal trainer money, because you’re making as much or more as a DJ as you are in your day job. Otherwise, you’re giving up $25,000 for $10,000 and only hoping the personal training gig will grow. That’s not a good idea. I’d like to see that hope proven a little bit more before you walk away from a day job.
Good luck, Steve!
Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 13 million listeners each week on 585 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.