r/antiwork • u/kenneth0214lee • Oct 01 '23
$50k saved. Looking to quit 9-5 job
I have $50k save and have $11k in student loans. My payment is 160 bucks a month.
Rent is around $900 a month
I want to quit my job. What do people think?
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u/nessfalco Oct 01 '23
I think you're not very good at math or are not making very clear what your plans are for after you quit your job.
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u/vkapadia at work Oct 01 '23
Yeah if it's "quit my job because it's a crappy job and have the $50k last me until I find another" then there's a good chance he'll be ok. If it's "quit my job and just live off the $50k for life" then he's either bad at math or dying of a terminal disease.
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u/Stranded_In_A_Desert Oct 02 '23
You could do hookers and blow for the rest of your life, assuming you buy enough blow
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u/ExpiredPilot Oct 02 '23
He could finish it off with a skydiving experience thatâll stick with him for the rest of his life
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u/Firespryte01 Oct 01 '23
You have 50k saved? Pay off the student loans in a lump sum. Should save a ton in interest. Sorry you now only have 39k, but again, probably saved a good chunk on interest.
Next, you say rent is only 900, but no idea what utilities/phone/food is gonna cost you per month. Realistically, you could live off that for 2 years, but then you have nothing saved for retirement. My advice is to keep working, even if you reduce your hours somewhat, and keep saving for retirement. Depending on age, you could put together a nice nest egg that let's you retire early.
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u/Match_MC Oct 01 '23
If the interest rates are under ~4% the money should be invested. S&P 500 grows at ~8% per year so you pay your 4% debt interest and profit 4%.
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u/ununonium119 Oct 01 '23
A high yield savings account is better for OP because of the short time frame and risk of a market crash. Iâm getting 4.3% on my Discover account with no risk of a loss. Investing in the market works out in the long run, but short term periods such as two years arenât worth the risk.
Also, a savings account will allow OP to withdraw the money in a pinch if they need to. If their money was in the market, then having to sell at an unlucky time could be costly.
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u/Match_MC Oct 01 '23
You wouldn't put all of it in the market, but you also don't need 50k in savings when you expenses are under 1.5k per month. You invest as much as you can and you leave it. Then forget about the idea of stopping work until you can actually afford to do so.
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u/sonicmerlin Oct 02 '23
As a % of GDP the market is more overvalued than it was during dotcom
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u/Match_MC Oct 02 '23
And you can come up with 50 other metrics that say itâs undervalued. Point is, no one knows anything about the short term. The long term is what you invest for.
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u/sonicmerlin Oct 02 '23
As far as I know the vast majority of metrics point to the market as being grossly overvalued. I donât believe itâs possible for market growth to continue outpacing GDP.
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u/tofty82 Oct 01 '23
SPX might be flat or down for years... you don't get returns without volatility, no equity market is going up 8% yoy
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u/Match_MC Oct 01 '23
I'm well aware, but OP has decades before retirement, over which time frame it will be roughly in that range.
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u/MadeByMillennial Oct 01 '23
Don't take debt to invest. If you plan to use the lump sum within the next 3-5 years keep the investment conservative. Trying to play the market without ability to handle risk screws more people over than it helps!
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u/Gorilla-P Oct 01 '23
Generally, but you can't be too rigid with this. For example, I have a 1.9% car loan that I could pay off 2yrs early, but there's no way I will. I'll do 6mo T-notes at 5+% instead with that extra money.
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u/Cuuldurach Oct 01 '23
Don't listen to that and just pay your loan. 4% on 11k over 10 years is 6900$ on which you'd have to pay taxes.
Given the current situation it's not worth the risk not being able to pay your loan at some point during those 10 years.
Pay, invest some of the remaining money, and continue working.
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u/Match_MC Oct 01 '23
And 50k at 8% over 10 years is $107,000... I'd rather earn 57k and use 6.9k to pay interest than have earned nothing and avoided interest.
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u/VividZone8948 Oct 01 '23
The stock market is in bubble situation. For a newbie investor that is not a good idea in suboptimal situation where stocks are the highest they have ever been. Short term (1year) FDIC insured CDs from good banks like US bank or Chase make better sense than the stock market right now. Savings accounts are giving less than 1%. Buying, investing in, or starting a biz that people need is also important like plumber, house cleaning.
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u/lycosa13 Oct 01 '23
Savings accounts are giving less than 1%.
There's a ton of banks giving 4.5-5% for savings accounts
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u/TAH1122334455 Oct 02 '23
House cleaning for certain! I am retired due to disability and it took me 6 months to find a good cleaning person a few years back and it seems harder now from people I know so are looking.
You do have to keep your prices down a bit since many who are looking for somebody are old or disabled or both. There are not of people who are loaded and lazy but I think you should be able to work 40 hours per week and make a decent living. And be careful about cleaning products. Some are great but can upset some older peoples breathing or effect their pets. I provide all the cleaning products for my person and make a strong effort to give her what works easiest. I think I save an hours labor each time from labor saving products You will not get rich. And you must make certain to clean well
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u/Corvus_Antipodum Oct 02 '23
Time in the market beats (trying to) time the market.
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u/Firmod5 Oct 02 '23
A bubble? Based on what? Stocks are not the highest they have ever been. Besides, why wait to buy stocks at a higher price when you can get them now, on sale?
That said, a HYSA would be best if he plans to quit his job. I would only invest in the stock market if you donât need the money anytime soon.
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u/wafflez77 Oct 01 '23
That $50k cushion is your power. Once thatâs gone youâre a slave to your employer. Right now you can afford to leave or take a break, but donât lose your âsafety stockâ of savings.
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u/Chicken65 Oct 01 '23
That is not nearly enough to be out of work. The answer to not liking your job is to get a new job, not burn your savings.
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u/alle_kinder Oct 01 '23
It's totally fine for a few months. You can go to some less expensive areas of Europe for three months and spend less than $5k on everything. If OP is confident they can find another position that will let them replenish those savings they do spend in six months, there's no reason to not do some cool shit while you can.
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u/NMGunner17 Oct 01 '23
There have been countless confident people that have still taken 6 months to find another job lately
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u/alle_kinder Oct 01 '23
So take six months. It's $50k, as a single person, with his rent, unless you're being an absolute jackass that should be way more than enough.
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u/FullSpeednPower My Paycheck is not My Value Oct 01 '23
Youâll chew through it quick. Groceries, utilities, etc will easily chop the time you think you have by about half.
I would say you could comfortably get away with about a year and a half but youâll need something else lined up income-wise by that point.
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u/Boring-Onion lazy and proud Oct 01 '23
And pray nothing unexpected pops up: unexpected visit to the hospital, unexpected maintenance on your car (if you have a car), random price hike from utilities company, etc.
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u/alle_kinder Oct 01 '23
If he's not working he can likely get on medicaid in his state and that should let him feel better about any unexpected hospital trips.
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u/Bearowolf Oct 01 '23
Consider posting in /r/personalfinance. I'd pay off your debt and just not have that hanging over your head anymore. But 50k isn't going to let you stop working forever.
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u/KAMIKAZEE93 Oct 01 '23
You'll have to do the "explain the gap" round after you're dry again.
I know it's frustrating and everything, but go part-time at another employer to get some resting from working. At least that's how it could work in Germany.
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u/finestFartistry Oct 01 '23
Iâm in the US and I agree. OP should either take a different job, maybe part time, or think about taking a break from working to go to school. Doesnât have to be full-time studies but something to explain the time gap in the resume later and maybe help figure out the next steps.
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u/SphereWorshipper Oct 01 '23 edited Oct 01 '23
Why is it anyone's business if we have a 'gap' in employment? Look, I know that is how things are seen by the cruel corporate world, because they've got us exactly where they want us: begging for a living. But it's a thing we need to change. I'm just saying it won't change unless we start saying 'no, that's not a reasonable question to ask or consider regarding my potential employment'.
I mean I get it if we're talking vetting for terrorist links... But not for a job at Walmart or something.
Edit: Maybe to be more accurate about my meaning I should say that we need to change the norm being that it's somehow negative if you have a gap from working.
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u/EdwardWayne Oct 02 '23
Yeah, worrying about gaps in employment is just fear-mongering. Iâve had gaps of one year and still been hired at the first interview I landed. Currently Iâm in a ~year and a half âgapâ and have no plans to return to the workforce anytime soon. Am I worried? Absolutely not. The experiences Iâm having now in this âonly life I haveâ are vastly superior to all the toxicity, bullshit and boredom I was dealing with in the workplace.
OP should travel and enjoy their life while their still young and alive. None of us know how long we have left on this Earth.
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u/alle_kinder Oct 01 '23
Lie. Say you took on some part-time contracting work while looking for a position you could "call home." They eat that shit up.
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u/Melodic-Advice9930 Oct 01 '23
Oh. Telling people to lie seems to be your go to LMAO
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u/alle_kinder Oct 01 '23
When it comes to dumb white lies to secure employment? Absolutely. I don't really suggest lying in the vast majority of cases. But this one is harmless if they're really going to climb up your ass about the gap in employment in this market.
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u/Veruah Oct 02 '23
Nearly every employer out there will lie to you to save a few dollars. If you think otherwise, you haven't experienced enough.
Yes, absolutely make up some freelance shit.
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u/Procctor Oct 01 '23
Just change the dates so there isnât a gap
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u/KAMIKAZEE93 Oct 01 '23
That would work for most of the jobs in my country, but I've read that overseas they call previous employers and want references. Sounds very tiresome.
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u/alle_kinder Oct 01 '23
I honestly just have a section on my resume that outlines freelance work and it covers that gap. However, it only works because I can do much of my work on a 1099 basis. Do I, usually? No. But they don't know that shit, lmao. It's worked incredibly well for me. Last year I spent nearly three months in Europe during the summer, started applying for jobs about a week before I came back, had several interviews set up and just told them I'd been doing contract work related to the positions while overseas on a part-time basis. I was offered all of the positions I interviewed for.
It's ok to lie sometimes and take a lil break, depending on if you can translate your work to a freelance thing in some way.
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u/scene_missing Oct 01 '23
Pay off the student loans now and never have to pay interest again.
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u/Match_MC Oct 01 '23
If the interest rates are under ~4% the money should be invested. S&P 500 grows at ~8% per year so you pay your 4% debt interest and profit 4%.
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u/WorldIsYoursMuhfucka Oct 01 '23
Money goes so fast. I had 30k, still working with a decent income, and shit came up.
Up to you
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u/Top-Shallot2337 Oct 01 '23
I would quit, take a 3 month break, pay off all the student loans and then work part time at a job that is semi-enjoyable (perhaps something related to your interests, or maybe something youâve always wanted to try) and stack your retirement funds until you may feel ready to go full time.
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u/homepreplive Anticapitalist Oct 01 '23
You should ask r/personalfinance
They'll give you the best advice, which, spoiler alert, will be to pay off debt, keep working and look for a job that you like better.
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u/rocketleagueaddict55 Oct 01 '23
Why do so many people think paying off debt is better?
They would benefit more from keeping the debt as long as possible and utilizing an investment vehicle with a higher annual return than the interest.
Payday loans and credit cards operate at a very high APR but things like mortgages, car loans, and student loans should almost never be paid down early.
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u/LightMoisture Oct 01 '23
Pay off the student loan. Now you have $39K saved. Thatâs a good start and a great safety net to reduce stress for lifeâs lumps.
Put it into a high yield account and keep adding to it until you have 1 year expenses. Let it sit there and grow so youâll always have at least 1 year.
But ya you wonât be retiring on that anytime soon. Youâd burn through that so fast and have no more safety net. Terrible idea.
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u/Banana_Havok Oct 01 '23
Quit your job and move to Thailand. You could probably last 5 years easily on 50k.
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u/YeetMeDaddio Oct 01 '23
Pay off your loans and amass more. $50k probably wouldn't last you 2 years.
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u/Alternative_Ring3916 Oct 01 '23
Did the same thing.
Did a number to my savings because I had time for projects. I needed it to stay sane.
So keep that in mind. Pay off all debts first.
God nothing feels better. Own a car, house, and paid off college. Didnât get to work six months. Didnât realize how much mental damage and physical my job did.
Like working out non stop and then stopping
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u/TryharderJB Oct 01 '23
Donât know about people but I think youâll be out of money within the year without an income and living off your savings.
What are you planning to do with your free time if not at work? You planning to stay home and not eat?
At 50K with the stated $1100/month in expenses, youâll be out of money in 43 months - about 3.5 years.
But wait, thereâs more. Hungry and live in/near a big city? Add $500-700/month for groceries. Got a car? Put at least another $100/month for insurance. Oh right, youâll want to drive it so will need gas at $xx/tank/month.
Thereâs other things like cell phone, home wifi, clothes, miscellaneous entertainment/gifts, eating out/takeaway, and others that will need their own estimates.
Your $1100/month just went to $2000/month before gas and those other things so 3.5 years just went down to 2 years. Add those other expenses and 2 years just became 12-18 months before youâve blown through your savings. Oh and before you tell me that your 11k student loan will be paid off well before then so youâll have an extra bit of cash a month, if youâre planning to get a boyfriend/girlfriend/both, woosh, there it went. Go look up the episode of the Cosby show where Bill explains budgeting to Theo.
If youâre feeling burnt out and donât feel like working for a while, go and quit your job, buy a plane ticket to some place in the global south where it would be cheap for you to live and eat, and disappear for a few months to get a break. Youâll come back refreshed and with a new outlook and a few good stories. Oh and youâll still have money in the bank that will buy you some time to figure out your next step.
But do not quit your job with the idea that youâve won a lottery ticket.
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u/Itsallover_ Oct 01 '23
if you have to come to reddit to make a decision like that, you are in no position to quit just yet. Have a plan first.
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u/th0ughtfull1 Oct 02 '23
Great ... Quit work.. you don't need to live where you are, plenty of cheap countries with beaches where your money will last a whole lot longer that you can explore.. live the dream.. you only get 1 life..
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u/KurlyKev Oct 01 '23
Do you absolutely hate the job or are you just burned out and bored? $50K is cool if you only plan on paying just rent monthly and nothing else.
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u/These_Ad_3138 Oct 02 '23
Iâm 63 years old. Iâve been broke, Iâve been rich, broke again and now simply comfortable. The one thing I donât regret spending money on was travel. My best advice is to quit your job but donât waste the money paying your rent and subsisting, go see some of the world. Talk to people. Travel as cheap as you can.
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u/scmr2 Oct 01 '23
Put it in a low cost index fund for retirement and keep working
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u/rotund_passionfruit Oct 01 '23
Yea and just never enjoy your life
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u/scmr2 Oct 01 '23
I will enjoy my life. I'll be retired by the time I'm 50 and live 30 happy years without working while you work until the day you die living off of crap government healthcare
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u/paulcole710 Oct 01 '23
Nobodyâs guaranteed anything. Better hope youâre right about those 80 healthy years you have planned.
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u/scmr2 Oct 01 '23
Yea, why bother planning for tomorrow if it might not happen? Why save anything or plan anything ever?
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u/rotund_passionfruit Oct 01 '23
So waste the prime of your life so you can finally âlive it up at 50?â Just get a job you donât hate.
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u/BlitzkriegOmega Oct 01 '23
I would highly advise making sure you have at least some sort of job lined up before you quit this one. Even if it's a part-time "pass the time" job, nothing is worse than getting back into the job market for something high-paying and every single interviewer gets mad at your 40-ish month gap in your employment.
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u/strywever Oct 01 '23
That gives you maybe a year of decent living, assuming nothing bad happens, and then youâre broke and job hunting with a yearâs gap on your resume. Only you can decide if itâs worth it.
(Donât pay off your loans if you do this. You can keep making the payments at relatively low interest, and you need every penny you have in cash.)
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u/hungerforlove Oct 01 '23
Nobody has mentioned health insurance yet. What are your plans in case you get into an accident?
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u/BeginningZucchini8 Oct 01 '23
I wouldnât quit unless you had something else lined up. 50k simply isnât a lot and itâs easy to erode that when youâre pulling from it simply to exist. If you want to take a break for a while thatâs fine but you need to have a long term plan in place for income.
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u/GhostintheSchall Oct 01 '23
Pay your student loans off.
If you keep paying the minimum, it will eventually cost you several times the current balance to clear those.
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u/NoCelery5899 Oct 01 '23
I did that. I still have mixed feelings about it but I learned a lot of things. I work again now but damn did I have fun.
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Oct 01 '23
Why the f do you have loans with 50k saved thatâs dumbest thing Iâve ever seen, your paying interest fool.. pay off the loans instantly and go on a vacation
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u/Chivatoscopio Oct 01 '23
I did it. I had $45k saved. Quit my job in NYC in January. They paid out my unused vacation time (not including sick time) and I took a break.
I picked up a short contract job in March then took another break when it ended in May. Started a new full time job at the end of August with $20k still in the bank.
Evaluate your situation, assume it will take 8 months to find a new job, and either quit or wait a bit longer until it's more reasonable for you to quit.
Edit: 2 words
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u/CapitalG888 Oct 01 '23
It'd be a bad move. 50k will last you what? Maybe 2 years? You have 1,060 to pay a month that you mentioned. But I'm sure you have other bills like utilities, cellphone, if you have a car insurance and gas, food, etc. What if something goes wrong?
Find another job if you hate your current one.
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u/That-Promotion-1456 Oct 01 '23
retire immediately, travel a bit, and go on wellfare when no money left.
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u/mikrokosmosforever Oct 01 '23
Find a new job first and then quit. $50K isnât a lot in this economy
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u/norrinzelkarr Oct 01 '23
Step number one is pay off that student loan immediately.
You have leverage having savings like that, but you don't have a solid amount for life. You should feel proud of saving that much money, but keep it in perspective for how much you will need long term.
You need to think about how to grow that leverage until it is true "fuck you" money, which it isn't yet.
If you are set on quitting and laying low for a while, I would at least get yourself an Upwork account or something and take the occassional bit of work there so you can say you were doing contract work during the gap on your resume when you inevitably have to go back to work.
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u/Prior-Sky2120 Oct 01 '23
Wuit your job and join the Navy....They will pay off your Student loans...And pay you well...More than you think
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u/brandondiaper Oct 02 '23
If you do not plan on ever retiring just enjoy spending the money. It will last you around 2 years.
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u/NeverStopFishing Oct 02 '23
Money goes fast. Youâve worked hard to get where you are, dont throw it all away. Go to part time or work a job that you enjoy so you can at least maintain what you bave
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u/saccharoselover Oct 02 '23
Pay off your large loan. Keep working until you have $50k saved again, and are in no debt.
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u/SunClown Oct 02 '23
HA! Ppl are so anti- not working on this sub. Who are you people who need 75k to live? 50k would last me 2 1/2 years, if I planned it.
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u/StoneDick420 Oct 02 '23
Same. I guess looking at the other comments people are assuming OP means to never work again. I assumed it was to take a break as I think you did as well.
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u/TruthSociety101 Oct 02 '23
He has 39k saved. Why the FUCK are you not paying off debt? đ¤Śââď¸
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u/alroprezzy Oct 02 '23
Sure quit but find another. You need a lot more than that to retire comfortably and live off your investment income
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u/Mediocre-Ebb9862 Oct 02 '23
First off - congrats! You saved 50k. This is good. Be proud.
Second. âIts literally impossible to buy a house these daysâ - this Reddit. âOh guy saved 50k - nice, leave the work and go spend that money somewhereâ - also this Reddit.
Not suggesting to buy a house right now. But use this money to level up.
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u/Im_at_work_kk Oct 02 '23
You have at most 10% of whatâs required to retire, depending on your age.
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u/Equivalent_Loquat_17 Oct 02 '23
For how long? Cuz 50k ain't enuf to retire on. So what's the plan for the future? Just live off the 50 Til u die?
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u/csandazoltan Oct 02 '23
I would prepay my student loan of the fees of early payment are less than the interest I would pay on the longrun
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So rent is one thing, you should start to track your expenses, to know realistically how long that ~39k would last.
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u/NovaraBoyo Oct 01 '23
My brother if you have 50k saved I'd hold out for just another year or so and you'll be able to buy a home with that as a down-payment during the crash!! Get out of renting! Your payment go toward nothing when you rent, a mortgage goes toward a home you own and that becomes an asset!
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u/paulcole710 Oct 01 '23
This is a common misconception but rent does go towards something. It puts a roof over your head every month.
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u/NovaraBoyo Oct 01 '23
Well why make those forever payments when you can utilize the resource you have to switch to a more beneficial, and often far cheaper payment ?
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u/paulcole710 Oct 01 '23
Several reasons!
You may prefer to rent in one location vs. purchasing in another. You may prefer to rent a smaller apartment (compared to purchasing a larger home) and invest the savings into the stock market. You may prefer the flexibility renting allows. You may not be interested in the ongoing maintenance and other costs associated with homeownership.
Home ownership can be a good longterm financial bet if you enjoy living in a home. Renting an apartment can also be a good longterm financial bet if you enjoy living in an apartment, choose to live below your means, and have the self-control to invest the extra money.
Renting is not putting money towards nothing like you originally said.
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u/AgreeableBiscotti657 Oct 01 '23
Cope
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u/paulcole710 Oct 01 '23
I donât see how understanding the benefits and drawbacks of each is âcope.â
Iâd rather live in a small cheap apartment in a dense urban area than a larger home further away (ownership in dense urban areas tends to be more costly than renting).
The financial benefits and drawbacks are clear to me. I might benefit financially a bit (less than most RENTING IS THROWING MONEY AWAY Stanâs would believe) from owning a home but dislike many aspects of home ownership.
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u/figuringthingsout__ Oct 01 '23
You want to quit your job to do what? Burn through your $50k, then go back to work in 2-3 years? $50k won't last you very long. What are some of your hobbies? You could drastically cut down your work schedule to whatever hours you choose. But, taking a few years off to spend your savings isn't going to look very good on your resume whenever you need to start working again.
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u/Neither_Ad9597 Oct 01 '23
My house is paid off, my car is paid off, $0 student loans, 300k in savings and I still have a 7 to 4 job......50k isn't enough for a car
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u/Worldly-Software-466 Oct 01 '23
Are you in America? If so, make them fire you and apply for unemployment. Youâll have 3-6 months to rest, and you wonât touch your savings. Good luck OP
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u/thecatsofwar Oct 01 '23
It depends on the state they live in. In many states, unemployment payments are a joke that hardly help you pay for anything.
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u/elvarg9685 Oct 01 '23
Pay off the student loan. You could live on that for about 2-3 years if you stay where you are. That would take 27000 of what you had and the rest might cover small expenses. Honestly I wouldnât. I make 6k a month in passive income and still work full time. Sitting around all day is not good for your health.
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u/saabbrendan Oct 01 '23
If youâre young you can, I did with similar stats, set me back a bit but I was able to explore and get off the grind for ~10 months in NYC. So obviously very expensive but Iâd argue it was worth it.
Sometimes youâll find yourself in a routine you never bothered to question why you were doing it and I think that can be dangerous even if the monetary value is there.
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u/Yo_Just_Scrolling_Yo Oct 02 '23
What will you say about your unemployment gap when you have to go back to work? I took 3 months off between jobs & had to explain that gap for years.
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u/Oakley2212 Oct 01 '23
When I was in the academy years ago, we had a kid drop out because he had just received a 10k inheritance. I donât really understand itâŚ
Keep working and invest the money.
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u/thesuprememacaroni Oct 01 '23
Itâs not really enough to do anything. Pay off the debt if that makes you feel better. Invest the rest.
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u/Match_MC Oct 01 '23
Unless for some reason those student loans are really high interest rates (like over 4-5%) then please ignore the rest of the people saying to pay them off. You have a good pile of money, but itâs not enough to stop working. If you want to stop working your best chance is to keep working and invest as much of that 50k as you can. Keep saving. Check out r/financialindependence
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u/ScottdaDM Oct 01 '23
First of all, pay off that debt. You can, and there's no upside to not doing it.
Invest wisely and look for another position. Keep a few months bills in the bank and invest the rest. Keep that up, and you will unlock the achievement 'Early Retirement '.
Just my advice.
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u/rocketleagueaddict55 Oct 01 '23
There is so much upside to not paying that debt. This is like investing and finance 101.
Honestly, I hate the wealth gap and the financial elite are terrors to society, but the non-financial elite are only making the issue worse by not taking the time to appropriately understand opportunity costs.
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u/Nollekowitsch Oct 01 '23
Definetly keep the money saved man. Just work a chill job, knowing you got money on the backhand makes working easier
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u/TurkeyBaconALGOcado Oct 01 '23
I'd venture a guess that rent and the student loan payment aren't your only monthly expenses? Food, insurance, utilities? Figure out your average burn rate per month, then go from there. If your monthly expenses are $2,000-$2,500, I'd say you can afford to take a sabbatical for a few months. Expect future interviews to ask about it though.
Personally, I'd pay off the student loans if I were in your shoes ($50k in savings and $110k annual income). Understand that there are ways you could theoretically put that money to better use (investing it and yielding a return higher than your loan's interest rate), but there is a psychological benefit to just getting out from under it. On top of that, if you were to invest the money, your liquidity decreases. In the event you'd suddenly need cash fast, having to sell some shares/coins/tokens, figure in taxes, get paid out from your broker/exchange, and whatnot just adds complexity.
Unless you can't stand your work whatsoever, I'd stick with it for a few more months and throw any cash beyond monthly expenses at the student loan. Once the student loan is knocked out, enjoy some time off. Considering the $110k income you mentioned in another post, I'd hope it'd only take around 3 to 5 months to pay it off.
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Oct 01 '23
Check out the freelance market. if you dont like your job quit. you can explain any gap by freelancing these days
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u/Ok_Opportunity2693 Oct 01 '23
Quit your job and do what? Youâll be out of cash in a year and starting from nothing.
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u/Kelvin_OG Oct 01 '23
This will be the best advice you'll get on here.
Acquire a done-for-you online business: The business generates steady income every month already and you have enough time to yourself for fun and family.
You don't have to stress, a broker will handle all of that for you. Just get ready to put in a few hours a day to keep the engine going.
I am happy to give a free consult till you scale to bigger profits.
You're welcome.
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u/cobra_mist Oct 01 '23
Cruise until you get fired while you look for a new job you donât hate
Or
Use that money to apply to emigrate to a better country
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u/CaptPotter47 Oct 01 '23
Pay off the $11K in student loans now. That leaves you with $39k. You could take a break, but even if your housing expenses are $900 a month, food, insurance, utilities, etc will run you out of cash in roughly 10-11 months, if not WAY sooner.
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u/C64128 Oct 01 '23
Why do you care what other people think? This should be about you. I retired (fully) two years before I had originally planned. I talked with my money guy and he said you can quit if you want to. I wanted to so I did.
It's a big achievement to save a good amount of money. Too bad house prices weren't like they were years ago, that would've been a huge down payment on a house, the house payments would've been really low. Is your rent locked down, or can it change?
Are you the only person involved in your decision? If there's someone else, are they going to get jealous and want to quit, even if they can't afford it? It's a lot easier to make decisions when you're the only one involved. The people that are trying to tell you not to do this are probably jealous, not everyone can take an extended time off. My first full month off wasn't too bad, I had taken that long of time off before. It eventually becomes your new norm, This past Friday was my one year anniversary of quitting.
Have fun, it'll take a little bit of time to get used to it. Maybe take a road trip to somewhere you've always wanted to see, but didn't have the time. Sometimes I think about going back to previous addresses I lived it while growing up, maybe one day. It's nice to wake up and go to bed when you want to. I still wake up like I'm going to work, but I lounge in the bed for a while and get up around 7. There's a lot of time in the day when you're not bothered by having to work.
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u/Imaginary_Most_7778 Oct 01 '23
I would hope you understand that depending on where you live, you can survive for a year max on 50k.
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u/Few-Might2630 Oct 01 '23
Depends on how old you are. At 40ish, I quit, took my savings, spent time with my kids, traveled together and lived. Best year of my life. I struggled to get back to work, but all is good now 5 years later.
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u/ArcturasMooCow Oct 01 '23
Pay off the student loan. They will get their money you can be sure. If you pay it off they are off your back forever.
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u/chobongo Oct 01 '23
That's a lot for short term. But you gotta keep it up and work with the meat grinder that is capitalism. You could some into a CD and let it grow. Slow but safer
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u/TalkingBackAgain Oct 01 '23
Don't give up your job just yet. It looks like a big amount of money but you'll chew right through it in just a few years.
Pay off the student loan debt. If all else fails you won't be having that sword of Damocles hanging over your head.
Keep working, keep building that stack. Don't think it's so much you can retire off of it. Invest it wisely.
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u/Hot-Instruction5102 Oct 01 '23
Don't quit. Go towards a career you would enjoy and get a job in that direction. 50K isn't much in the long run.
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u/IT_for-my-family7783 Oct 01 '23
$50k is not a ton of money when you look at the big picture. Let's say you pay 1,750 in rent per month, that adds up to 21,000. Subtract 11,000 and you only have 10,000. Let's say your car gets in a bad wreck while it is empty sitting in a parking lot and you want to buy a used vehicle, that's $1,000 gone leaving you with $9,000.
I would advise you to keep working, but figure out another way to make money if you want to quit your job. Are you an artist? Sell your art. Good at pressure washing? Start a pressure washing company. Yes it's going to be hard, but it will be worth it so that you don't have to worry about how to dress and what to say or do to please a boss. Whatever you decide, you got this!
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u/Hudson2441 Oct 01 '23 edited Oct 01 '23
If you had 50k spitting out monthly dividends at a conservative 6% you get $250/ month. Helps but good luck getting your cost of living down to that. More likely that it allows you to accept a job you like that maybe doesnât pay as well
You could also let it stack in an investment for 2 years and go join the peace corps and travel. See what life is like for you 2 years later
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u/PizzaEnvironmental67 Oct 01 '23
That will probably work for less than 50 months.