The Inverse Relationship Between Salary and Self Employment
What stops anyone from pursuing what they actually want to do, and trying to make money doing it? Well for many people, it's not necessary that the salary they make in their current job is "too good to give up," but it simply isn't too low to give up on.
Well, then, what is too low to give up on? What number would your boss have to throw out for you as a pay cut for you to say, "You know what, I have 90% confidence I can make more money working for myself and only for myself." Maybe it's a percentage of your current income. Maybe it's a flat number. I know for certain that if I were to throw in the towel due to a pay cut, I'd be confident that could make $30,000 a year doing nothing but exactly what I want - some consulting here and there when I find short term clients, but mostly flipping cars and other random crap I can find on Craigslist and at yard sales. Not a bad life - but a good deal less money than I currently make. This is my baseline - and I intend to cultivate my skills and mold my ideas and let that baseline crawl upward.
This makes me ask myself, "Well, how and when can I increase the dollar number that I think I can make, as well as increase my confidence that I will be able to make it?" Which inspired this post. The objective of a side hustle should be to maximize the increase of those two figures until they meet or exceed your current income and confidence levels in your own job. I work for a start-up that's struggling a little right now, so I have about 70% confidence that I'll be employed by the same company at this time next year (how's that for job security? I was never laughing). Now most people in more stable positions and deeper in their careers might be closer to 90%. Or 95%. Or 99%. So for those people, the confidence that they can succeed in starting their own business or doing a side hustle full time is going to need to far exceed mine for them to ever throw in the towel. Me, on the other hand, just need to increase how much money I think I can reasonably make to closer to my actual current salary - and only have about a 75% confidence in my success (in order to exceed the 70% probability of employment next year). The idea of just going off and doing my own thing isn't so scary when the probability of lay-offs or unemployment due to a company shutdown is looming.
With this in mind, there is about a 0.1% chance that I would ever take on a minimum wage job again, no matter what happened, because I have near certainty that I could employ myself doing something I actually want to do.
So what stops minimum wage working folks from doing exactly what I myself am considering at a higher income level? Well, my hope is that it simply never crossed their minds - it's actually really easy to make a little money. We have means at our disposal today to rake in dollars with just a little effort up front. There are some fairly rich people that took a product that is readily available in manufacture in China, and then they simply find a new market - Amazon, Jet, or eBay, and boom - 20,000 a year in profit for selling ceramic decorative golf ball trophies. When you are in your own employ, the sky is the limit in terms of building your skills and the business into what you want it to be.
We've been talking a lot about side hustles in the most recent posts - and for good reason - they're simply the fastest and most effective path to financial independence, abundance, with the TRIPLE WHAMMY of happiness on top of it all! You finally get to do what you want, and not what you have to.
How many signs do you need that the best time to start a side hustle is NOW! When the number you think you can make and your confidence that you can make it crosses the magic threshold, you get to quit your job. It's what we're all working towards here!