Quitting my day job. Is it time?

[DoctorOctagon]

Hey guys.  I'll keep this simple and to the point.  Thinking about quitting my 40 hour a week day job which pays $32k plus benefits to work less and/or build my computer repair side business.  Side business currently brings in about 12k (with an office and aggressive advertising this would grow), plus misc. income of $6k.  I have $13k in living expenses.  I currently have about $128k in assets ($106k in a taxable investment account and $17k in an IRA, and a $5,000 antique investment-grade violin bow).  I'm dating an ultra-frugal minimalist who refuses me paying for anything, and that relationship is likely to last for a very long time in its current state (live in nearby towns and are happy with being separated).

My current plan is to work until I turn 30, which is about another 6 months, and grow my mustache about another $10k between now and then (I currently have zero cash and 100% stocks with no plans to sell anything, and would like a $10,000 cash emergency fund).

I could be a wuss and work another year, but I just seem to be making more than I need with my side jobs alone (and could easily double or triple my side job income over time and work for myself).  I wouldn't need to touch the principal on any of my assets and might still be able to put some money away on the first year out of the 9-5 swing.

Thoughts?  I started saving around age 24, it would be cool to do at age 30 what most people can't afford to until their 60s...

[Thegoblinchief]

It's never going to be un-scary to pull the plug. If you're already covering living expenses, do it.

Common Sense Millenial has a few recent posts on her blog about switching from the day job to the side hustle.

The only grey area would be insurance. Have you researched options via ACA yet? We're past open enrollment for this year, so not sure how that all works.

[CarDude]

Looks like you're in a good position to do it from a finances perspective, but I'm not seeing anything about health insurance here. That needs to be addressed.

[DoctorOctagon]

Thanks for the replies!

I will have to read up more on insurance options; I would take enough of an income hit to need to be subsidized.  I am in pretty good shape with no family health issues, I do a lot of 20+ mile hikes and lift weights a lot.  The main purpose of getting rid of the 9-5 is to free up more time to do both hiking and weights, and only work a few hours each day.

The finances at my parent company are catastrophic, so I may not have a choice in the matter in the next year.

[deborah]

Being rather conservative, I would work for a few more months. Is your business steady, or does it have busy periods? If so, I would work until just before a busy period, and then ask if I could go part time at work. Work for another few months part time, then quit.

Reasons:

• All the business advice I have seen says that you shouldn't count on your side business growing when you quit your job - it doesn't quite cover your expenses at the moment. If you have the chance to work at it for longer by going part time, you can test whether it will cover your expenses completely.
• You have a small nest egg. Even though I had tracked my expenses for 5 years prior to retiring, and they had always been the same, I had a big hit this year. A big hit takes more from a small nest egg than a bigger one. A few more months will make your nest egg that much bigger (and you said you were willing to work for another year)
• Giving yourself more time during your busy period would give you a better chance to grow the business quickly, and more confidence that it is the right way to go. Conversely, if it doesn't grow in a busy period, it gives you a chance to re-evaluate your options and work out plan B while you still have a job.

[Mortgage Free Mike]

I say do it. You're young and financially responsible. You can find a 32K a year job (hopefully) if it doesn't work out after a trial period, which perhaps you could decide before you get into it. 1 year? 2 years? Good luck.

[bugbaby]

I'd do it since your business already covers your living expenses and you're creating a good cushion. I'm personally planning a similar move next year.

The only thing though is depending on how market-driven the business is, I'd create a larger cushion or a couple different streams of income,  i.e. an economic downturn likely could be a bit hit to the stocks, many small businesses and the general job market all at once.

But again you're young and enterprising you'd still come out fine.

[bobmarley9993]

Go for it.  I suspect you will surprise yourself with how well you do.  It always seems it is hard to find quality businesses that you can trust.   If you work dilligently at it you will likely succeed.  Worst case you just get another job.