How To Quit Your Job Through Investing In Real Estate

[Justin Goodin]

No matter how many jobs you’ve had or how far down the career path you are, facing any workplace transition brings up emotions, fears, and possibly, some sleepless nights. The bittersweet feelings of quitting a job include guilt, worry, anxiety, excitement, adrenaline, and gratefulness.

There are many professionals who want to take the leap and are aware of the freedom they desire, but feel the guilt and fear associated with abandoning a career path, reducing their income, and still being able to afford a life they love. Some of these fears can be because of their need to support a family or because the cost of living in their area is high.

Step 1 – Find Your Freedom Number

The first step toward building a strong financial plan toward quitting your full time job with confidence is finding your freedom number. This number is the amount of money that would more-than-cover your regular monthly expenses based on your current lifestyle.

This is the amount of income you need to earn passively in order to quit working and still cover all your bills worry-free. You can easily find this value by looking at your expenses from the past six months.

Step 2 – Build Passive Income

Some ways to generate passive income include writing a book, creating online courses, or designing products to sell online. My favorite though, the one that requires much less time and effort, is real estate investing.

Passive investments in real estate syndications can earn between 8 - 10% annual cash-on-cash returns, plus additional income upon the sale of the asset after an average of 5 years.

So, as an example, you could invest $100,000 and earn about $9,000 in passive income per year while doing very little work.

Step 3 – Track Your Progress

As you build each stream of income, it’s actually quite fun to track your progress and see that passive income number increase over time. Whether you’re an excel nerd or not, you’ll want to establish a way so you can easily see how much passive income you’re earning each month and which investments are out-performing others.