On this episode of Financial Freedom Friday, learn 5 things to do before you quit your day job. Matt Theriault shares key questions to ask yourself before you quit, how much money you should have saved up, the differences between being an entrepreneur and an employee, and much more!
What You Will Learn About Before You Quit Your Day Job:
- The right way and the wrong way to quit your day job
- 5 things to do before you pull the trigger
- Key questions to ask yourself before you quit your day job
- How to leave a job with proper expectations
- The difference between being an entrepreneur and being an employee
- How to maximize your money and credit when the time comes
- The importance of getting on the same page as your spouse
- How much money to have saved up before you quit your day job
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- Also, check these out:
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Speaker 1: This is Theriault Media.
Matt Theriault: Hi, I’m Matt Theriault. This is The Epic Real Estate Investing Show, glad you found us. And today we’re going to discuss a few things to consider and do before quitting your day job. We’re doing that right now on this episode of Financial Freedom Friday.
Okay. Recently, due to the growing successes that we’ve had here of helping more and more people escape the rat race with real estate, people like Russell in Columbus, Josh in Nebraska, Jill and Pasadena, I’ve introduced you to a lot of them. Jack in Fargo, Catalina in San Pedro, and the list is getting bigger and bigger. There are many others. What they’ve all been able to do is they’ve all been able to escape the rat race by building enough passive income from their real estate to cover their basic monthly living expenses. And once they got there, quitting their day job was at the top of the list for most of them to do.
If this is your situation, or you want it to be, understand that there’s a wrong way and a right way to do it. Because if you do it wrong, if you get this part wrong, you’re going to miss out on some invaluable opportunities. It’s going to cost you some money. And or even worse, you’re going to find yourself jumping out of that proverbial frying pan into the fire. But if you get it right, escaping the rat race and quitting that nine to five so that you never have to answer to anyone ever again, that can be your reality. Alrighty, so before you quit, before you quit the day job, there are some key questions to ask yourself, okay?
These are important, the key questions, like what about your current situation, is really frustrating you, and why are you quitting? Pinpointing that issue is the first steps towards solving it. Are the people a problem? Is it the environment? Or is it the work itself? Is it solvable? Or, is going out on your own the only solution? Are you at all responsible for those frustrations? If so, acknowledge it. It’s okay. But just keep it in mind not to recreate those frustrations when you’re out on your own.
Second, are you willing and able to forgo benefits like health insurance and retirement contributions? Consider that. Research the cost of purchasing health insurance. A lot has changed out there, especially if there are others in your family depending on you. And at the very least, make those last doctor and dentist appointments before you quit. Walk out being healthy with good teeth.
Third, have you time this appropriately? Timing is important. Consider the timing of your decision to quit, because firstly, are you in the midst of, say, the busiest season around your industry or your business? Or are you working on a big project? Because you may want to honor your commitments so that your team isn’t left in a bind. And so, you’re able to leave on good terms. I’m telling you, it’s a small world. You never know where you may cross paths with people again. And really, it’s just not cool to break your word and break your commitments. Next, you’re going to want to maximize the money because if you’d like to get your quarterly bonus or the holiday vacation, it might be smart to wait a few months before you quit, okay?
Next, I want you to walk out with proper expectations. Proper expectations. Now, understand that you’ve been trained your entire life to be an employee who looks for jobs, rather than being an entrepreneur who creates jobs and who builds a business. You likely have the skills to be a good employee, but understand that they are not the same skills required to be a good entrepreneur. Even with the appropriate entrepreneurial skills, many fail to ever build a business. Instead, what they do is they go out and they work hard building a job that they own, they become self-employed rather than business owners. It’s okay for a while, it can be pretty good for a while, as long as you do have your eye on eventually creating a business, alright?
Next, most entrepreneurs, they work longer hours and are paid less per hour than their employees, hence they quit out of exhaustion. Most people when first venturing into the world of entrepreneurship, they don’t understand the concept of working for free, because you have to do that a lot. They expect to get paid for everything that they do and it’s just not the case. This expectation is a substantial reason as to why the failure rate is really so high. They continue to think like employees. They want that steady paycheck. So, it’s not going to come unless you get good at this. So, be prepared to fail, yet don’t look at your failures as a failure, but look at them as lessons. Look at failure as opportunities to practice your performance. As opportunities to perfect your technique. Embrace your failures.
I understand that you’re in the middle of a learning process and it might be a little bump in the beginning. And the process, it requires that you make many mistakes, and you just want to make sure that you learn from those mistakes. The faster that you make those mistakes, the faster you get through the process, and you come out on the other side doing well. Or, you can quit and then the process spits you out on the other side not doing so good, okay?
Next, you want to maximize the money and credits. You want to maximize your money and your credit, you know. If you have a 401k or other money coming to you as you part ways, understand how that payout or transition needs to work before you go and goof anything up and you lose out there. Your ability to build your business and your overall wealth is going to be in direct proportion to your ability to access other people’s money. Inside of The Epic Pro Academy, I demonstrate more than 10 ways to access other people’s money for your real estate investing. But the one thing I can’t help you with after you have left your job is your ability to access institutional money. That’s like really the cheapest money today, so you don’t want to count that out. Like banks and credit unions and savings and loans and credit cards, all that stuff.
Because once you’re officially out on your own as a real estate entrepreneur, it’s going to be some considerable time before banks will consider you for loans and lines of credit. So, before you quit, you’re going to want to make an appointment with your local banker or a broker, maybe a few of them, shop around because you want to see what you qualify for. With regard to purchasing loans, you want to use as many of those as the banks will approve you for, and you’ll have to do that before you quit. It would also make sense to maximize your credit lines. For example, call up all of your credit card companies. Call them up and ask for a credit limit increase, and or apply for some new cards.
One of the easier ways to do all of that, in really one swoop, is to apply at epicfastfunding.com while you’re still working. I’ll put it up here, epicfastfunding.com. The credit lines there, they’re up to $150,000. They’re based on your credit score and your job income. It’s only 60 seconds to apply online, and they do the rest. But you can go to epicfastfunding.com, and you want to do that before you quit, okay?
Next is you want to get support from your family and spouse. Get family support. Get family support because quitting your job is going to affect others in your life. So, it’s critical that you have an honest conversation with your family first yourself. Your spouse or children, they may need to help or at least participate in some of your cost-cutting plans and need to be involved in your new venture from the beginning. You don’t want to pull any unnecessary surprises with them.
A common denominator of past coaching clients that have failed to meet their expectations, something that they’ve all had in common, as well as prospective clients for our turnkey investments over at Cash Flow Savvy, what they’ve all had in common is their inability to get on the same page financially with their spouse. It’s a big roadblock for a lot of people. After at least 100 of these types of conversations, what I consistently find is, and this is the typical scenario, that they’re taking on a full-time career in real estate investing. This isn’t the first attempt that the spouse in question has made at freeing themselves from their job. This isn’t the first rodeo. In fact, this decision has almost always and almost certainly been preceded by many other failed attempts.
What happens is that the other spouse views this latest idea as just another one of those things. So, you want to get on the same page with a spouse and let them know that this is not one of those things, and then you have to follow through. You’ve got to do your part. So, don’t quit the day job until you know you’re going to do it. Your family, they’re depending on you, alright?
Next, reserves. You want to save up some reserves. I recommend 12 months. I’m going to recommend 12 months. You need some cash in the bank, you need some security, you need something to fall back on because you might not get the results you’re looking for right away. So, before you quit, I want you to commit to saving 12 months of reserves in the bank. To not only support you and your family but also your business. You see, when going out on your own, you’re going to have an entirely new set of expenses to consider. Expenses that you’ve never really had before and those were called business expenses, alright?
So, those are some of the things. I got five things up here to consider prior to quitting your day job, and these are the types of things that we cover inside of our REI ace program. We’ve been so successful at freeing people from the rat race over the last, I don’t know, the last 18 months. We’ve had a real shift in our business, that I created a wall of fame, so to speak, to celebrate their achievements. It’s my goal for every person that I work with to get them up on this wall. And the stories there, they’re pretty extraordinary by most people’s standards. But they’re becoming more and more ordinary and more and more common for us here at Epic. And so, you can take a look when it’s convenient. I’ll the domain name up here for you. It’s wallofprofits.com, wallofprofits.com.
Whenever you’re ready to become the healthy, wealthy beast of an investor that God designed you to be, when you go to wallofprofits.com, you’ll see there are on that wall a few different ways that I can help. But, when you’re ready, alrighty?
So, that’s it for today. I’ll see you next week on The Epic Real Estate Investing Show for another episode of Financial Freedom Friday. Take care.