Are you TOO risk averse?

I met with a friend a few weeks ago who has a salaried day job that he mostly likes, but comes with its share of headaches.

The thing is, he is also a successful writer with a few side business activities that make him 2-3x his current salary at his day job. I estimate he makes between $400k - $600k from those activities.

He is exploring the idea of quitting the day job but is worried the business side of the house could fall apart at any moment.

For me, it seems like an easy decision. Quit the day job!

My friend might seem crazy purely because he makes so much.

But I’d take a step back and assess your own risk tolerance.

If you could get a guaranteed 1099 gig for one year where you make 50% more, but without a guarantee that you’d have another one lined up afterwards, would you take it?

What if you were single? What if you had a year’s worth of savings? What if you had a family?

In my book I detail the risks you should think about and how to assess them.

For example:

• Is your skillset in demand?
• Do you have 3-6 months of emergency savings?
• Could you get a job easily if everything goes south?
• Is your security clearance about to lapse?
• Does the idea of not making money for several months freak you out?

Going 1099 is not for everyone, but once you understand what the risks are, you can decide if it’s worth it to you.

Want the full playbook? Check out Going 1099.