Author Topic: Job Prospects. What would you do?  (Read 3057 times)


  • 5 O'Clock Shadow
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  • Posts: 14
  • Age: 38
  • Location: MN
Job Prospects. What would you do?
« on: July 12, 2014, 05:08:17 PM »
I am a Web Developer by trade and after coming across MMM about a year ago I decided to start side hustling for extra cash. This side hustling has now created new opportunities should I choose to take them.

About a month ago one of the clients I side hustle for offered me a full time job whenever they were ready to bring me on. Last week he gave me a hard offer and wants me to start ASAP. He doesn't care if I work for him full time as a salaried employee or if I work as an independent contractor, as long as I can guarantee 30 hours of work a week for 6 months. It's a small company with a lot of potential growth with an owner that really care about his employees.

Now I'm in a pickle. I'm not very happy at my current job. The work isn't interesting and morale there isn't very good. I put my 2 weeks notice in last Thursday, and they have since offered me an extra week of vacation, a substantial salary hike, and are going to work with me on the issues I have with a current project (one of the main reasons I decided to leave).

I have to let both employers know my decision come this Monday. I spent a couple hours this morning crunching numbers and here's what it looks like for each option.

Option 1 - Stay at current job w/ new salary and continue side hustling
Vacation: 4 weeks plus 7 holidays.
Take home income after taxes and health insurance: $40,775
Money that will be invested: $40,125
Total income: $80,900
Savings rate: 49.6%

Option 2 - Take salaried job at new employer and continue side hustling
Vacation: Unregulated. Take it as you need it, don't abuse it.
Take home income after taxes and health insurance: $40,480
Money that will be invested: $29,875
Total income: $70,355
Savings rate: 42.5%

Option 3 - Become an Independent Contractor
Vacation: As much as I want, but unpaid. Budgeting for 3 weeks.
Take home income after taxes and health insurance: $35,510
Money I that will be invested: $38,971 (gotta love solo 401Ks)
Total income: $74,481
Savings rate: 52.3%
Side note: I currently have 3 clients that I would be able to get a combined 40 hours billable work from each for the next 6+ months.

A quick snapshot of our finances:
Ages: 28 and 32
Minimum income required per year after taxes: $30,000
Minimum income required per year for current standard of living: $36,000 (vacations, eating out, technology, etc)
Checking: $5,000 (stashing cash until I figure out my employment situation)
Savings: $6,000
Taxable investments (back up ER fund): $16,700
Tax deferred investments: $63,300 (will lose 5,000 if I leave my current employer before March 2015)
Mortgage: $111,500 @ 3.125% with 60K equity.
Car loan: $5,800 @ 2.5% (will be paid off in full next month if I switch jobs)
Student loan: $1,200 @ 2%. No reason to pay this off early.

Wife brings in about $15,000 per year after benefits and 401k contribution. I am not accounting for her income since we are trying to have a kid and she will likely stop working when we have one.

Given all of that, here's where I stand.

Option 1 Pros/Cons
Pros: Stability, will pay the most short term, will not lose $5,000 in 401k matching, higher ups now willing to work with me on work environment issues.
Cons: 20 minute commute, the work isn't interesting, not much fun.

Option 2 Pros/Cons
Pros: Can bike/walk to work, laid back atmosphere, flexible work schedule, bonus structure, profit sharing, a lot of potential upside.
Cons: Risk -it's a small business and could tank in a couple years, lowest income of the 3.

Option 3 Pros/Cons
Pros: I'm my own master - get to choose what jobs I want to do, more opportunity to learn different technologies, get to learn more about running your own business, something I've wanted to do for a couple years now, almost no commute, huge potential upside.
Cons: Risk - jobs will come and go, revenue will be inconsistent, might flop after a year.

So that's where I'm at. I'm on leaning taking the risk and becoming an independent contractor, but the stability at my current job is very enticing.

I'm having a hard time making a decision and would love to hear input from my fellow mustachians. What would you do in my situation?


  • Pencil Stache
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  • Location: Texas
Re: Job Prospects. What would you do?
« Reply #1 on: July 12, 2014, 05:19:26 PM »
I think you're in a great spot with your savings, spending, and options.  Based on that post you appear to have a very good handle on your situation.  The money of all three is similar enough to where I'm choosing based on risk, quality of life, and upside.  Something about option #2 plus maintain side hustle sounds good to me.  But I've never ran my own thing so option 3 is unfamiliar to me.  I ruled out option #1.


  • 5 O'Clock Shadow
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  • Posts: 10
Re: Job Prospects. What would you do?
« Reply #2 on: July 13, 2014, 12:25:27 PM »
You must have given this a lot of thought before handing in your notice. While the offer of more money and promises of a better work environment have made you rethink things (and it's always nice to feel wanted), I'd stick to your initial plans. Whether that was option 2 or 3.

You've built a great side hustle in only a year which shows you get up and go as well as clearly being very employable. If this new firm doesn't work out, you sound like you'll quickly get something else in place.

Sounds very exciting. Well done and go for it!


  • Bristles
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Re: Job Prospects. What would you do?
« Reply #3 on: July 13, 2014, 05:01:29 PM »
I second option 2... If you have a good rapport with current peeps can you offer them some consulting as a side hustle?  Once you've handed notice the vibes tend to change anyway so staying full time may not feel great, and you'll wonder what if you're missing an exciting opportunity by staying...


  • 5 O'Clock Shadow
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  • Posts: 14
  • Age: 38
  • Location: MN
Re: Job Prospects. What would you do?
« Reply #4 on: July 13, 2014, 09:05:33 PM »
@babybug - I offered to do consulting on the side for my current employer after I leave, but they didn't seem very receptive. Maybe they will entertain the idea once I actually leave.

Thanks for the feedback everyone. It's encouraging to hear others are thinking what I'm thinking :)

After much thought (probably too much) I've decided to quit my current job and become an independent contractor. This is an opportunity that won't likely happen again and the timing is almost perfect. When I'm old and looking back on my life I know I'll regret not taking a chance at starting my own consulting business in exchange for security and a little more money. There are no guarantees in this life after all. Might as will live it up and learn something while your at it!


Wow, a phone plan for fifteen bucks!