Author Topic: Stalling Out from Mustachianism  (Read 2557 times)

FatFI2025

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Stalling Out from Mustachianism
« on: February 03, 2018, 07:41:47 AM »
I guess I still am neurotic careerist and mustachianism has me next-step paralyzed. A year ago I left a higher paying field to attain some work-life balance. At my current (comfortable desk) job I make 130k and work 40 hours per week, which is about $63/hr. Now I assume the next mustachian achievement to unlock is an entrepreneurial side-hustle.

The three side hustles I'm considering would take a little upfront investment in time and money then kick back $20/hr. When I run the FIRE numbers it just doesn't make sense to side-hustle versus going back to a more lucrative job with higher hours.

Did I make a mistake to regain 15 hours per week? Should I just coast at my current job until FIRE in a few years?

JJsfr

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Re: Stalling Out from Mustachianism
« Reply #1 on: February 03, 2018, 07:56:36 AM »
Dude, at your income you don't need a side hustle unless it's something that you enjoy doing (AKA a hobby that brings in cash). With those wonderful 15 hours you've recouped go find your calling and start working toward whatever it is one you FIRE.

FatFI2025

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Re: Stalling Out from Mustachianism
« Reply #2 on: February 03, 2018, 08:01:05 AM »
Ha yes, I know I'm coasting for FIRE. I can't imagine "a hobby that brings in cash" - once you start earning doesn't it just turn into a job and you have to do all of the sh*t that makes it not fun? Like if I enjoy flying planes and then start teaching to make $, won't having students turn it into a job?
« Last Edit: February 03, 2018, 08:19:20 AM by RyaninLA »

Capt j-rod

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Re: Stalling Out from Mustachianism
« Reply #3 on: February 03, 2018, 08:12:08 AM »
It all depends on the cost of living in your area. My wife was making huge money last year, but the terms were going to destroy our marriage and family. Something had to give and it wasn't going to be us. She took a 40% cut in pay to do the same thing. 36-42 hours a week and home for dinner. Flexibility to actually take her vacation and make it to the kid's activities and functions. Now... That 40%? well we were saving and investing 60% of our take home pay. It was HUGE. Numbers were exploding off the charts. Now I am able to save about 30%. I took the rather large FU account and bought another rental. This will help to offset some of the loss. Back to the cost of living thing... $130K / year sounds big unless you are in D.C. or New York. We live in a super low COL area which allows me to buy cheap rentals and live a much more comfortable life. Your side hustle needs to be something you enjoy as well as makes money. Do it on your terms. Sometimes you only need to downshift to get over a hill then you will be able to use tenesee overdrive in a few short years LOL.

Blackeagle

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Re: Stalling Out from Mustachianism
« Reply #4 on: February 03, 2018, 08:15:44 AM »
You don't say how much of that $130k you're saving, but assuming an even semi-mustachian level of spending, you don't really need a side hustle for the money.  In your position I think there are two reasons you might consider a side hustle: either because it's something you'd enjoy or something that you might want to downshift into before/when you FIRE.

FatFI2025

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Re: Stalling Out from Mustachianism
« Reply #5 on: February 03, 2018, 08:27:19 AM »
It all depends on the cost of living in your area. My wife was making huge money last year, but the terms were going to destroy our marriage and family. Something had to give and it wasn't going to be us. She took a 40% cut in pay to do the same thing. 36-42 hours a week and home for dinner. Flexibility to actually take her vacation and make it to the kid's activities and functions. Now... That 40%? well we were saving and investing 60% of our take home pay. It was HUGE. Numbers were exploding off the charts. Now I am able to save about 30%. I took the rather large FU account and bought another rental. This will help to offset some of the loss. Back to the cost of living thing... $130K / year sounds big unless you are in D.C. or New York. We live in a super low COL area which allows me to buy cheap rentals and live a much more comfortable life. Your side hustle needs to be something you enjoy as well as makes money. Do it on your terms. Sometimes you only need to downshift to get over a hill then you will be able to use tenesee overdrive in a few short years LOL.

I'm pretty comfortable at $130k even though I'm in LA. Was in DC before then Singapore. The three side hustles are related to hobbies. 1) teaching flying, 2) hand building a cabin, 3) independent CPA work. What worries me is that once I turn these hobbies into businesses, they won't be fun anymore.

FatFI2025

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Re: Stalling Out from Mustachianism
« Reply #6 on: February 03, 2018, 08:31:02 AM »
You don't say how much of that $130k you're saving, but assuming an even semi-mustachian level of spending, you don't really need a side hustle for the money.  In your position I think there are two reasons you might consider a side hustle: either because it's something you'd enjoy or something that you might want to downshift into before/when you FIRE.

I max out my 401(k) and then pour the rest into my rental real estate and student loan debt. So I only save 14% but I tend to increase my net worth by 66% of gross salary.

JJsfr

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Re: Stalling Out from Mustachianism
« Reply #7 on: February 03, 2018, 12:12:45 PM »
You don't have to bring in income once you've saved up however much you need to live. If you haven't saved enough to rent a plane for 10 hr/week, you will have to supplement. If you want to teach, take only enough students to pay for your plane expenses.

You can get paid for the occasional gig without dedicating all your time to it. That's the point, right? Enjoy it without worrying about the money.

BuildingmyFIRE

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Re: Stalling Out from Mustachianism
« Reply #8 on: February 05, 2018, 08:33:20 AM »
It all depends on the cost of living in your area. My wife was making huge money last year, but the terms were going to destroy our marriage and family. Something had to give and it wasn't going to be us. She took a 40% cut in pay to do the same thing. 36-42 hours a week and home for dinner. Flexibility to actually take her vacation and make it to the kid's activities and functions. Now... That 40%? well we were saving and investing 60% of our take home pay. It was HUGE. Numbers were exploding off the charts. Now I am able to save about 30%. I took the rather large FU account and bought another rental. This will help to offset some of the loss. Back to the cost of living thing... $130K / year sounds big unless you are in D.C. or New York. We live in a super low COL area which allows me to buy cheap rentals and live a much more comfortable life. Your side hustle needs to be something you enjoy as well as makes money. Do it on your terms. Sometimes you only need to downshift to get over a hill then you will be able to use tenesee overdrive in a few short years LOL.

I'm pretty comfortable at $130k even though I'm in LA. Was in DC before then Singapore. The three side hustles are related to hobbies. 1) teaching flying, 2) hand building a cabin, 3) independent CPA work. What worries me is that once I turn these hobbies into businesses, they won't be fun anymore.

I would not do CPA work as a side hustle unless you do enough of it to offset the cost of carrying professional liability insurance, which I'm guessing it wont.  It only takes one malpractice suit to wipe you out.  Doesn't matter whether you win or lose, 2 years of uncovered defense costs will eat away whatever savings you have.

JLee

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Re: Stalling Out from Mustachianism
« Reply #9 on: February 05, 2018, 09:22:10 AM »
Don't forget taxes on top of that.  I earned $1200 on a side thing last year and taxes absolutely murdered it.

Rubic

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Re: Stalling Out from Mustachianism
« Reply #10 on: February 06, 2018, 01:52:37 PM »
If you're sitting behind a desk 40 hours a week, you might be better
served to invest in physical fitness to counteract all the time spent in
your chair.  It would be far better than adding an additional 15 hours
of sedentary non-activity.