What would it take for you to leave your current job?

In the September issue of More magazine, women were asked how much money it would take for them to leave their current jobs and pursue their passion. 60% said $1 million.

Is that enough?

Well, let’s start with a desired retirement age for many-55 and assume a 12% avg return on your money. If the money is in a 401k, you can’t touch it until 59 &1/2. Poo!

What do you do?

How do you fill that 41/2 year gap?

Let’s say you were an excellent saver (15%) and had the 15% of this money in good growth mutual fund investments ($150,000). Could you live off this and it’s return for 41/2 years?

In year 1, you need something to live on. The average for 1 person in the US is half that of a family, say $31,000. $150,000-$31,000 is $129,000 left working for you in that mutual fund.

Let’s say that you planned for this gap and had
“follow your passion”.
$2196/mo. In year 1.
Let’s assume all your debts are paid off.
Here’s what your budget looks like:

$40 for clothes? I’m dyin here. Notice you could put some housing aside from maintenance and insurance and taxes here. Transportation might be down as well. Food-$100? Really? No way. Not unless you grow it yourself prolly.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s