I have savings sufficient for 5 years living expenses. Outside my day job, I already have a consulting firm that gives me income double that of my job pay. Is this sufficient FU money to enable me to quit my job and the rat race for good?
Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
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Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#2how much is it in dollars? if my side gig is making double of my salary , i would definitely quit my job as i value freedom of being able to manage my time and my attention on what i want to do.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#3how much is it in dollars? if my side gig is making double of my salary , i would definitely quit my job as i value freedom of being able to manage my time and my attention on what i want to do.
It doesn't matter. I know my cost of living / monthly expense. My monthly expense has been budgeted to help me live a comfortable life (not just a surviving existence), with occasional luxuries.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#4how much is it in dollars? if my side gig is making double of my salary , i would definitely quit my job as i value freedom of being able to manage my time and my attention on what i want to do.
It doesn't matter. I know my cost of living / monthly expense. My monthly expense has been budgeted to help me live a comfortable life (not just a surviving existence), with occasional luxuries.
It is great that you're in that position. You must be a very risk averse person as you're still asking this question even if you're already in a very enviable position. Quit your job now and focus on what you want to do (assuming if the job is not what you want to do if money is not a problem)
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#5Only you can answer that. Depending on how risk-averse you are, you would look at the worst case scenario where you quit your day job, all of your consulting firm income dries up the next day, and you get hit by a bus, survive, but can no longer ply your trade. Would your 5 years of living expenses cover that?
Alternatively, if you're confident that you could have no income for 5 years and go back to the rat race without any difficulty, then sure, go for it.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#6My understanding is "FU money" doesn't mean you don't work again: it means you can quit a job you don't care for, and not worry about finances before finding a new job.
And that's what I'd recommend. Nobody knows what the future will hold so I'd be a bit worried relying on money I've already saved up for the rest of my life. Plus, not working may cause stagnation and motivation issues. But you seem to have enough money where you can push back on your company without worrying about being fired, and search for an easier, more flexible job even if it pays less.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#7If you spend less than or equal to 2/3 of your current income right now you should be able to quit with 0 years living expenses covered. If you spend all of your current income right now, and your 5 years living expenses assume 0 income than you essentially have 15 years of runway. Seems fine to me if your math is right
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#8Only you can answer that. Depending on how risk-averse you are, you would look at the worst case scenario where you quit your day job, all of your consulting firm income dries up the next day, and you get hit by a bus, survive, but can no longer ply your trade. Would your 5 years of living expenses cover that? Alternatively, if you're confident that you could have no income for 5 years and go back to the rat race wit…
if the worst happened, the job won't matter much anyway.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#9how much is it in dollars? if my side gig is making double of my salary , i would definitely quit my job as i value freedom of being able to manage my time and my attention on what i want to do.
It doesn't matter. I know my cost of living / monthly expense. My monthly expense has been budgeted to help me live a comfortable life (not just a surviving existence), with occasional luxuries.
there is not enough context. Money is only one part of the puzzle. The other important parts are what you're gonna do after you quit your job? how eager you want to do it? Do you enjoy or hate your current job? Are you learning and growing at your current job.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#10Earlier quoted context omitted.
It doesn't matter. I know my cost of living / monthly expense. My monthly expense has been budgeted to help me live a comfortable life (not just a surviving existence), with occasional luxuries.
It is great that you're in that position. You must be a very risk averse person as you're still asking this question even if you're already in a very enviable position. Quit your job now and focus on what you want to do (assuming if the job is not what you want to do if money is not a problem)
That's a good point. I am very, very, very risk averse, as I am both a lawyer and finance guy (risk management).