Jul
What would it take to quit my job?
A lot of people start web development as an escape route from the corporate work. They want to leave the doldrums of a 9-5 job and have the freedom of being their own boss. I am one of those people. Some day I would love to leave my cubicle and run my own business. Eventually I want to use online earnings to fuel a brick and mortar business.
So what would it take for me to quit my job? How much money do I have to make online in order to survive?
For a single guy maybe 18 years old or so, it wouldn’t take much money to survive online. If you can make $115/day for 365 days a year, you will gross nearly $42,000. Subtract 30% for taxes and that leaves you with about $30k. Some of you might think $30k isn’t a lot, but for a single person with modest spending habits, $30k could do just fine… that is unless you live San Francisco or New York City. It would be hard to save depending on your rent situation and insurance, but it could be done.
I am not single though. I’ll be getting married in like 8 months (ya the time is flying by). That means I have more responsibilites. I can’t just quit my job the second I start making $115/day online like an 18 year old could do.. $115/day won’t cover it in my situation. After sitting down and crunching some numbers, I’ve determined that I would really need $160 or more/day in order to survive without my current 9-5 job.
$160/day for 365 days a year is $58,400 a year. Whoa that seems like a lot…but after taxes you’re looking at only $40k left. Well you say “Hey, $40k ain’t bad either”. Well no it’s not, until you take out something like $2000/yr for health, dental, and eye insurance. So now you have $38k. Cough up another $1k for life insurance…down to $37k.
By the time your done subtracting everything from your gross, let’s say your left with $34,000. That’s a solid net income, but would still not a high income. Although the happiness you get from being your own boss and working on your own business is WELL worth a paycut in my opinion. Lucky for me, when I’m married we’ll have a nice double income household. These are the power earning years for a young couple…that is until kids come along.
So $160/day is my target income so I can quit my everday 9-5 job. A lot of you are definitely making $160/day and more, so I know it can be done. It will take a lot of work, and a lot of smart investing to reach that level, but it can be done…especially if I buy a couple of big earning sites.
How close am I to that $160/day you ask? Well, I’m not giving out specific numbers anymore, but let’s just say I’m on my way to achieving my goals.



After writing this post, do you still wonder why i titled you “the prodigy”?
Knowing you, you’ll probably flip a few sites and keep the gem that makes that $45 a day you need to quit.
Fortunately, we don’t have income tax in Florida ;).
My only drawback from blogging as a career is how sustainable it is.
Plus, you’re not factoring in an employer’s health insurance… 401k options… etc. Once you start a family, these will become more important.
Hello David, I found your blog via my blog log when you visited mine
Anyway, I like this post as it’s something I often wonder about myself. Since you are getting married though, perhaps you won’t need to make the $160 a day if your wife is working as well. I know that often times the fiscal advantage of “splitting” the bills with a spouse is something that’s overlooked. Best of luck to you though, a lot of us are in that boat. Keep counting the clicks
David, I really don’t see any ads on your blog these days. I remember you used to have adsense ads on here but I never see them anymore. Is your income coming from other sites?
[...] My buddy David Lithman, asks his readers and himself, what would it take to quit my job?. I believe most struggling entrepreneurs have asked themselves this question and the answer is not always 100% clear, but with Davids calcualtions it all somehow make sense. [...]
@ Make Money Blogging - Yes my income comes from other sites. I do make some money from this blog selling sponsored blog posts, featured links, and I have TLA on here.
@ Dennis - We don’t have state income tax, but we still have to pay federal income tax
Really?
I have blog http://pieva.info/ What i can get money?
This is one interesting post! The best part will be to come over and settle in India where you will need about 1000$ a month for you and your family and still have a health policy and some savings every month! I always love making money in $$ and spending it in Rupees.
David, you are a smart man. You graduated from the university of florida. At this stage in your life, you are not old at all. If you do not think you like the golf industry, find a different job that might teach you to start your own business. Maybe you want to get a law degree. $160 dollars a day is very low for a u of F graduate. All you are doing is tinkering with wp. THINK LONG-TERM do you think you can support a FAMILY on your adsense check??????
One thing that relates very well to this, especially for those who start their own web development shop, is that you also need to be prepared to handle the swings that come with a new business. For example, some weeks you will land a few big jobs, and other’s you’ll be left scrounging. I think starting your own business from scratch requires much more financial discipline than people expect, and as a result, most end up giving it up to go back to work, no matter how much the loathe doing so.
DevDad
you’re getting there dude … i’m pretty much envious. hope to emulate you. keep up the good postings
[...] Two weeks ago I posted about what it would take to quit my job. After crunching some numbers, I figured I could afford to quit my job if I could make $160/day online consistently. $160/day comes to $58,400 a year before taxes. Matt suggested I write a follow up post on what my day might look like if I didn’t have to go to work in an office and could stay at home and work online. So let’s take a look. [...]
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