Am I Eligible for Coast FIRE?

[nexus]

I've run the numbers and I think I already know the answer, but it's always nice to get some reassurance or a reality check from relatively likeminded and friendly internet strangers.

Question
Are we in a place where I can "safely" attempt Coast FIRE for at least year? Based on the numbers below, I think in about 10 years (at ~$500k with a 7% growth rate) we would have about $1 million in investments/cash, be able to pay off the remaining mortgage balance, and still have enough left over to be fully FI.

Summary
Basically I'm pretty damn burnt out at work to the point where it is requiring medication to keep me functional. Irrationally, I was hoping I could just keep the job until fully FIRE'd because most days it's manageable and borderline enjoyable but there's just a level of randomly recurring toxicity that isn't going to go away.* I know it's only a matter of time until it manifests again. Given our resources, if I quit I'd like to take a year off to decompress and just recover from 7+ years of selling my soul. I haven't had a full two week vacation/10 business days off work since 2016. I just don't think I could jump into another roll with so much baggage and mistrust from my previous one. Ideally after a year off, our finances will still look awesome and I'll be able to just work part-time doing something I enjoy. I think it is pertinent to mention that I'd continue working part-time through my side hustle even if I left my day job.

No plans on having kids, but if it ever happened we agreed that I'd be a stay at home dad. We also have my wife's parents nearby that would undoubtedly kidnap and spoil their first grandbaby, free of charge.

Numbers after taxes
My day job: $6k/mo
Spouse day job: $4.5k-$5k/mo
My side hustle: $1k/mo
Spouse side hustle: $1k/mo
avg monthly income w/ two pay period in a month: $12k-$13k

We had a pretty spendy year last year because we bought our home and moved cross country, but still put away a sizeable amount. Now that all the foreseeable home projects and furnishings are taken care of, a spendy month would be $4k per month if we absolutely splurged -- meaning there's still over 50% of our take home pay to stash.

An example "Worst case" scenario - we'd only have $1k out of $5k left after our spending is covered for the month which includes "fun" or frivolous stuff -- so we'd have a 20% savings rate. By mustachian standards that's not that great, but much better than the national average.

Mortgage: $382k remaining, monthly payment $2k. This is our only debt.
Monthly expenses such as gas, groceries, ultities, netflix, ect: $1-$1.5k
So a frugal month might be $3k, an average month might be no more than $3.5k, and a spendy month might be $4k.

Important details
My spouse is on board with me resigning and we could get health insurance through her employer, which is nice. That would cut into her take home pay, but I would still expect her to average at least $4k per month after taxes. She enjoys what she does, has a very marketable skill set if she were to ever lose her job, and has no interest in stopping in the near future.

With my side hustle, I'm certain I could scale up and earn 2-4x more when I suddenly have 40+ hours of extra time each week.

Another added benefit -- and trust me I've talked her ear off about all of this -- is that I'd most likely be a better and more-present partner. Having a "me" that is more energetic, healthier, and happier is important and if the shoe was on the other foot we would have already had her stop working.

Assets
Cash: $49k -- and the agreed upon rule is that we'll always have at least $50k after expenses are covered. Anything above and beyond goes into investments or paying down the mortgage
Taxable accounts: $255k (was as high as $280k earlier this year)
401k's: $165k
IRAs: $12.5k
HSA: $14k
Approx total assets: $495.5k, not factoring in home equity or mortgage debt (Approx $270k based on market value versus outstanding balance but I don't like factoring in primary residence as an asset )

Incoming additional revenue: tax return, and whatever PTO they'd pay out upon my cessation of work, which is at least another full paycheck.

TLDR: We need at most $4k a month to maintain our current lifestyle. Once the house is paid off, our monthly spending will probably be closer to $2k. We can either make way too much money while I'm miserable, or cut back. We'd still bring in at least $5k a month, and have a better quality of life while patiently waiting for the stash to grow. Heck, maybe at some point it will be so large that we can pay off the mortgage and still have enough left over to be FI.

*Feel free to read my 30's journal if you want a deeper dive into those details, but the TLDR version is that there's enough depression and anxiety that I don't have the gumption to sincerely look for another job either within the same company or externally.

[NorthernIkigai]

It sure sounds like you need to, and can, quit that day job. Regardless of whether what follows after that is Coast FIRE, ramping up the side gig, eventually looking for a new job, or something entirely different.

[Freedomin5]

I say go for it. Your numbers look fine, and your mental and emotional health are more important than a few extra dollars in the bank.

[McStache]

I've said this in your journal and I'll say it again here.  Yes, you can and should absolutely step away from this job and you have plenty of assets and cashflow to take as much time as you want to recover and figure out what you want your life to look like.

[hoodedfalcon]

Just coming to agree with others - go for it. I am in a very similar situation as you - but I resigned 6 months ago and haven't regretted it for a second. Same burnout, similar stash, my partner is still working FT and able to max out all their retirement accounts.

I am calling it my sabbatical year, but I would love to just coast forevermore. Currently bringing in a few hundred each month with side hustles/rental income. Have recently started to explore part-time work, and my former employer has asked me to do some contract work.

Take the break. You have one life. Don't be miserable.

[zolotiyeruki]

Yes, the numbers are promising.  How does your spouse feel about you leaving the workforce?  That is a dynamic that can be hard to predict, and from what I've heard, expectations need to be set pretty clearly in advance.

Also, it's clear that you are dissatisfied with your current job.  But it feels like you're setting up a false choice:  Either stay at the current job or quit and maybe ramp up your side gig.  There's another option: find another job without the toxicity and stress that you're currently facing.  Is that something you have considered?

[StarBright]

If your spouse is on board then your numbers look good.

We are in a similar situation and I'm looking to cut the cord next year as soon as my husband reaches his next salary increase band, and then we will live on my husband's income.

Do it! Your health is worth it.

[scantee]

Just chiming in to join the chorus and say go for it.

Nothing is forever. Perhaps after a year you’ll feel well-rested and ready to find a new full-time job. Or maybe your side hustle will take off. Or you’ll find part-time work you enjoy. Or you find you like not working at all and you can swing that indefinitely.

Your wife’s employment plus your healthy savings mean you have a lot of flexibility and options. No need to stay in a job that is making you miserable. My only advice is to check in with your wife regularly to make sure she is still on board. Look for ways to support her to make her work life as easy as possible.

[nexus]

@NorthernIkigai, @Freedomin5 -- Thanks for the support and encouragement.

@McStache -- Eep, you found me! *fist bump*

@hoodedfalcon -- That sounds awesome and incredibly encouraging.

@zolotiyeruki -- my wife's on board to let me take a year off and see where things stand after that. I get where you're coming from when you say I'm setting up a false choice, but the reality is -at least for now- that I don't want to work at all anyway. The side hustle doesn't feel like work, so that's why I'm open to scaling it up if I have more free time.

@StarBright -- My Plan A was very similar to yours. I wanted to work until March or April of 2023 and then pull the plug anyway. I feel like there is some urgency for me to just hurry up and do it. If I don't, I'll start trying to convince myself to stick it out until my next bonus for "extra security" ... or god forbid they promote me, which has been a dangling carrot for quite some time. So then I'd probably find a way to convince myself to stay a little longer to enjoy the higher pay, or max the 401k one more time, or pay off extra on the mortgage, or stay until I finish whatever project is on my plate. I could see it going on and on... and on and on.

@scantee -- Yeah, I think all of that is well within the realm of possibility. I notice as I've gotten older, it takes a little longer to bounce back from negative stuff especially compared to my teens and 20's, but I'd be surprised if it took an entire year to detox or start feeling ambitious again.

Updates since beginning this thread
I talked to some non-mustachian friends yesterday that are farther along in their careers and have worked for way more companies. They echoed your sentiments that I can definitely find a job that's a better fit. They've offered their help. One offered to help me find a headhunter. I'm not sure what the difference is between a headhunter and recruiter, but I guess I'll find out later today. The other wanted to see my resume to find out if either of the companies he works for has a need for my skill set.

Ideally I'd still like some time off, but any step I take to get out of my current situation is probably a step in the right direction. This article also just popped up on my newsfeed: https://www.inc.com/larry-alton/are-you-on-verge-of-burning-out-7-warning-signs-to-look-for-and-how-to-cope.html . I think it's a very timely reminder that if I took another job in the near future I'd walk into it already burnt out.

[NorthernIkigai]

@NorthernIkigai, @Freedomin5 -- Thanks for the support and encouragement.

@McStache -- Eep, you found me! *fist bump*

@hoodedfalcon -- That sounds awesome and incredibly encouraging.

@zolotiyeruki -- my wife's on board to let me take a year off and see where things stand after that. I get where you're coming from when you say I'm setting up a false choice, but the reality is -at least for now- that I don't want to work at all anyway. The side hustle doesn't feel like work, so that's why I'm open to scaling it up if I have more free time.

@StarBright -- My Plan A was very similar to yours. I wanted to work until March or April of 2023 and then pull the plug anyway. I feel like there is some urgency for me to just hurry up and do it. If I don't, I'll start trying to convince myself to stick it out until my next bonus for "extra security" ... or god forbid they promote me, which has been a dangling carrot for quite some time. So then I'd probably find a way to convince myself to stay a little longer to enjoy the higher pay, or max the 401k one more time, or pay off extra on the mortgage, or stay until I finish whatever project is on my plate. I could see it going on and on... and on and on.

@scantee -- Yeah, I think all of that is well within the realm of possibility. I notice as I've gotten older, it takes a little longer to bounce back from negative stuff especially compared to my teens and 20's, but I'd be surprised if it took an entire year to detox or start feeling ambitious again.

Updates since beginning this thread
I talked to some non-mustachian friends yesterday that are farther along in their careers and have worked for way more companies. They echoed your sentiments that I can definitely find a job that's a better fit. They've offered their help. One offered to help me find a headhunter. I'm not sure what the difference is between a headhunter and recruiter, but I guess I'll find out later today. The other wanted to see my resume to find out if either of the companies he works for has a need for my skill set.

Ideally I'd still like some time off, but any step I take to get out of my current situation is probably a step in the right direction. This article also just popped up on my newsfeed: https://www.inc.com/larry-alton/are-you-on-verge-of-burning-out-7-warning-signs-to-look-for-and-how-to-cope.html . I think it's a very timely reminder that if I took another job in the near future I'd walk into it already burnt out.

If you (and your wife) are ready for you to quit now, go ahead and do so. And if you are then offered another job, don’t be afraid to say you’ll be available to start in, say, 2 months or so. That’s not abnormal at all. So you can absolutely already look into a new job and still get about 3 months off or something, which is not enough if you are actually truly burned out but should certainly help if you were only heading towards it.

[waltworks]

You can both quit and just do your side gigs if you want. You can certainly quit your job.

-W