When can you quit your job?
I get this question a lot, and I love when I get the quit your job question. That tells me that we have club members who are fighting every day to reach their goal of financial freedom.
We all talk about quitting our jobs, and as someone who did quit my job, I can tell you that it really is as fantastic as it sounds. Unless you are mentally ill, you should be attempting to escape your job. I know there are a rare few who actually love their jobs, let’s ignore them for a moment.
We all know that real estate is the gateway to wealth. Real estate investing has made more millionaires than anything else in American history. So we also know that we are on the right track to creating financial independence. We also know that Pittsburgh has one of the strongest real estate markets in the country. So things look pretty good for Pittsburgh area real estate investors.
Our individual goals may differ a bit but they all gravitate around that wonderful moment where a job is optional. How can you properly identify that moment?
I have read real estate gurus who say that you can quit when you rental income matches your W-2 income. I say that this is too early. I would rather you wait until you are 100% out of debt and you have replaced your job income. When I talk about being out of debt, I don’t mean just credit card and student loan debt, but also car payments and mortgage payments.
Just replacing your job income is not enough. You need to be completely out of debt and have a stash of cash that you can draw upon in case of emergency. THAT is when you are ready to quit your job, that is when you are truly free. That is unless you are stupid enough to start a REIA. Please consult with me before you do something that stupid, lol.