Take (managed) risks
I love a good quit story.
There’s a good thread on the Mr. Money Mustache forums that collect epic “FU money” stories.
The theme is usually that the forum members were mistreated at their job, and because they had enough savings and lived frugally, they were able to quit without having another job lined up, often to the surprise of their (now former) bosses.
I like these stories because it’s a more realistic and practical way of thinking about risk taking.
Taking risks and ending up with your back against the wall is stressful. If you quit a job and didn’t have savings, you might be forced to take an even worse job!
But if you have in-demand skills, a stream of job offers, and savings, quitting is barely a risk (at least financially).
Going 1099 is a managed risk, at least in the way I recommend it.
To manage the risks, you should:
- Accurately assess your market value
- Build up enough savings (minimum 2 months, preferably 6 months)
- Take action while you’re still working at your job (networking, researching, etc.)
- Determine worst case scenarios and decide if you can live with it
- Determine best case scenarios and see if it’s worth it from a financial and lifestyle point of view
Once you do those things you’ll be much comfortable quitting a job to go 1099 or negotiating with your boss to convert your job into a 1099 gig.
So be a managed risk taker and then upload your story to that forum. I look forward to reading it.
Want the full playbook? Check out Going 1099.