Time for a career change? Spot the red flags before itās too late.
The dream of leaving the 9-to-5 grind can feel as enticing as sipping piƱa coladas on a beach except your bills are a tidal wave waiting to hit you. But how do you know if your side hustle is ready to be more than just a passion project?
This is a crucial decision, and getting it wrong could put you back on the hamster wheel. Donāt worry youāre not alone. If youāre wondering whether nowās the time to jump ship, weāve got the decision frameworks and financial checkpoints you need to make a smart move.
So, grab a coffee (or that third energy drink no judgment), and letās talk about how you can shift from employee to entrepreneur with confidence.
The Income Test: Are the Numbers Telling You Itās Time?
Before anything else, letās address the elephant in the room: money. Romanticizing the hustle is easy, but letās face itāāāyour rent wonāt pay itself. A simple way to determine if your side hustle is sustainable is by tracking your earnings over the last 6 to 12 months. Hereās what to check:
1. Does Your Side Hustle Consistently Generate 75ā100% of Your Monthly Salary?
One of the biggest indicators that youāre ready to quit your 9-to-5 is income stability. If your side hustle regularly brings in at least 75ā100% of what you earn from your full-time job, itās a strong sign that your venture can sustain your lifestyle.
This percentage acts as a buffer, giving you peace of mind during the transition period. Even with fluctuations, if your side business hits this benchmark consistently for at least 6ā12 months, it shows that youāre not relying on āone good monthā or random luck. Stability is crucial because entrepreneurship can have ups and downs.
š” Reality check: If your current salary covers bills, groceries, insurance, and savings contributions, your side hustleās income should do the same without causing major sacrifices.
This percentage acts as a buffer, giving you peace of mind during the transition period. Even with fluctuations, if your side business hits this benchmark consistently for at least 6ā12 months, it shows that youāre not relying on āone good monthā or random luck. Stability is crucial because entrepreneurship can have ups and downs.
š” Reality check: If your current salary covers bills, groceries, insurance, and savings contributions, your side hustleās income should do the same without causing major sacrifices.
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