Am I there?

[clumlee]

Hi,

I need some advice. I have a full-time day job and a full-time business I run. I have two rental properties and a stock portfolio making some monthly dividends. Here are my numbers.

Monthly expenses: 2,700
-This amount covers bills (slightly overestimated to give some cushion) and what I call my daily allowane

Monthly wages: 2,700 take-home from business. This number is on the conservative side.
Rental income: 400 -This amount is estimated and after expenses and set-asides for reserves from rental income.
Stock dividends: 200 -The actual number is closer to 250 but I'm giving myself some room in case of dividend cuts.

Income:    3,300
Expenses: 2,700
Net:          600


If things don't quite work out I have additional stocks that are non-monthly dividend payers that I can tap into. I can also give myself a 5% pay raise at work and still keep the business profitable. Also there are expenses that can be further reduced.

Am I ready to leave the day job and stick to only my business?

[FLBiker]

Personally, if you are really confident in your business income AND you have a decent rainy day fund, I'd say do it.  Another thing to consider is how hard it would be to go back to a similar full-time job if things don't pan out.  For me, a big part of the whole reason the FI lifestyle appeals to me is the freedom to take chances (as opposed to just retiring as quickly as possible).

[zolotiyeruki]

If you quit your day job, will that enable you to grow your own business more?  I.e. will having more time be profitable for you?  How much is your income from your day job?

$400/mo net from two rentals doesn't seem like much to me.  Were they really inexpensive to acquire?

[clumlee]

If you quit your day job, will that enable you to grow your own business more?  I.e. will having more time be profitable for you?  How much is your income from your day job?

$400/mo net from two rentals doesn't seem like much to me.  Were they really inexpensive to acquire?

So here are the numbers for my properties:

$1,694 in rent total
-$152 management fees
-$700 mortgages (this includes additional escrow payments so it won't adjust upwards on me in a year)
-$300 CapEx (typically I'm hearing do 10% per property but I never want to get caught by surprise)
-$140 Vacancy (long-term tenants and inventory turnaround for tenants is quick where my properties are)

I can adjust accordingly but this is generally what I stick with.

[clumlee]

If you quit your day job, will that enable you to grow your own business more?  I.e. will having more time be profitable for you?  How much is your income from your day job?

$400/mo net from two rentals doesn't seem like much to me.  Were they really inexpensive to acquire?

So here are the numbers for my properties:

$1,694 in rent total
-$152 management fees
-$700 mortgages (this includes additional escrow payments so it won't adjust upwards on me in a year)
-$300 CapEx (typically I'm hearing do 10% per property but I never want to get caught by surprise)
-$140 Vacancy (long-term tenants and inventory turnaround for tenants is quick where my properties are)

I can adjust accordingly but this is generally what I stick with.

To your other question about my business. So far we have a client that is profitable and they're a long-term client and I took over from a previous company and I was there for 8 years prior to this and someone else closer to 7 years before me. In the next few months we'll have licensing to do some other things so I can pursue some additional contracts. More time will be helpful for me to not only take care of business things but also just life things in general that I have zero time to address now. The income from the day job is the same as I'm getting from my business give or take a small margin.

[zolotiyeruki]

Where does "saving for retirement" fit in your current budget?

[seemsright]

What about health insurance?

[clumlee]

Where does "saving for retirement" fit in your current budget?

I have that budgeted as an expense. Gotta pay yourself first, right?

[clumlee]

What about health insurance?

I have that budgeted as an expense. I budgeted it at about 10-15% above the cost of what I would currently be charged. This takes into account step-ups along the way.

[ChpBstrd]

If you quit your day job, will that enable you to grow your own business more?

This is the key question. Is your business on the verge of great success and exponential growth, or are you just looking to work fewer hours? If the later, no don't quit the day job. If the former, go for it!

[joe189man]

maybe do a case study?