Could You Quit Work?

HOW MUCH WOULD YOU NEED TO NEVER WORK AGAIN?

Retirement planning, generally, focuses on saving money today so that you will have it when you no longer can or want to work. Most financial planners operate with the expectation that whatever you save today will be worth more in the future. They also look for ways to reduce your expenses, at retirement, so that you can achieve your desired lifestyle. But I want to look at the question from another point of view. How much monthly passive income would you need in order to never have to work in a conventional job again? How can you “quit work” and still enjoy a great lifestyle?

Work Realities

Passive income, broadly defined, is revenue you earn even when you aren’t actively working (in a conventional job). Another name for passive income is residual income.  Active income, on the other hand, is money you earn during your work week. In traditional careers, you work 40 hours a week, get paid, are then everything restarts the following pay period. Once you leave that job, your income stops. Hopefully you have saved enough to make the transition.

Can you afford retirement. Do you have enough money to make it through each month.Financial planners tend to look at passive income in traditional ways. Investment strategies and interest on investments is the primary avenue for wealth generation. They generally do not consider how to create additional streams of passive income once your career is over. Wealth generation really occurs through your work. In retirement, the basic strategy is wealth management, keeping what you have for the longest period of time possible.

So the question becomes two fold. What would it take to quit work and continue to generate wealth, that is, generate the lifestyle that we desire. How can we continue to make money when our career is over so that our money continues to grow.

Quit work with passive income

Passive income focuses on you getting paid whether or not you do any meaningful work. Well, sort of. You will do a lot of work up front to get the ball rolling, but eventually you reach a point where the passive income stream kicks into gear. Passive income doesn’t mean permanent income. Some types of passive income may last a few years. Other forms may keep going for decades or even for centuries across multiple generations. But all forms of income eventually cease for one reason or another.

The traditional stock market, mutual fund and retirement portfolios, have already been alluded to, and are excellent methods for creating passive income. Real estate investment, especially fix and flip models, or fix and rent models are surprisingly low cost strategies. Selling a service, teaching, consulting or a product is another effective method. Home based businesses, particularly in the direct sales, multi level marketing industry offer meaningful financial opportunities.  Do the work once and get paid over and over.

two years is not a long time to succeed in starting a home based business.The calculation for quitting work is pretty simple. The calculation is pretty simple. Ask yourself this question: How can you replace that income? If you earn $5,000 per month, then what else can you do to replace that money?

Quit Work and Can I do it?

What would it take? A vital question. What do I truly love doing and am I willing to do what it takes to get there. The energy it takes to stay the same is not much different from the energy it takes to change. But let me assure you, once you make that decision life will never be the same.

Can you make it grow? Let’s go back to my question about earning $5,000 per month. Several factors impinge on that calculation, including rising costs of health coverage, health services, and the overall cost of living. No one really wants to stay put earning what they are earning. Everyone should want their income and lifestyle to improve. Multiple streams of income are critical as well as at least one strategy where money continues to work for you, that continues to grow. It may take a little while to get there, but I can assure you that the effort is worth it.

I hope that you found value in this article. Love to hear your thoughts. Let’s connect. Click the photo below and/or leave your contact information in the comments section.

 

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