A Salt Lake City man is ready to quit his 'cushy' $200,000 job for a low-paying side hustle. Here’s what The Ramsey Show says he should change

He told co-hosts Dave Ramsey and Ken Coleman that he was ready to quit two years ago but held off.

“I was burnt out and I still am,” the 44-year-old said. “I found something that I could gravitate towards and something that I loved and was passionate about.”

His side hustle is buying and selling abandoned storage units. The challenge is that it only nets $2,000 a month, which is why his wife describes it as a “hobby jobby.”

While Ramsey and Coleman put the kibosh on Ryan’s idea, they encouraged him to find other ways to alleviate his burnout while keeping his income close to what it is now, including taking on freelance work as a software engineer, his current career, or consulting.

Here’s why the hosts recommend a mindset shift instead of a career shift, and how you can ensure your side hustle is ready to become your full-time gig, without taking a major risk to your earning power.

Side hustle nation

With housing costs and rising inflation, side hustles are becoming more common. In fact, Bankrate reports that as of 2024, 36% of Americans had one (2).

But not all side hustles are created equal. Only 1% of respondents in a recent Self.inc survey said they earned more than $4,000 a month from their side hustle.

The majority (51.4%), said their side hustles represented 0 to 20% of their monthly earnings, with 26.1% earning $1 to $50 a month and 32.1% earning $51 to $250 a month (3). That’s not a sustainable income.

Here’s what Ken Coleman advises for anyone contemplating quitting a job and turning a side hustle into a full-time venture.

“I would want a minimum of six to 12 months of my income … in the side hustle’s bank account before I even thought about moving out,” he told Ryan.

This not only provides a financial cushion if your business turns out not to be as profitable as you hoped but is a chance to confirm that your side hustle may be sustainable long term.

If you’re contemplating making the jump, consider:

• The data: Do you have repeat customers, a track record of consistent and growing sales, and a proven market for your services?
• The cost: How much do you need to invest in your business, and do you have enough to cover personal and business costs for at least six to twelve months, as Coleman recommends?
• Your business plan: You should have a roadmap that outlines your revenue model, growth strategy, and operating costs, and have it reviewed by other business owners that you trust.
• A half-way plan: Can you reduce your hours at your current role to devote more hours to your side hustle? This can help you test the waters to earn more income and ensure your business is viable.

Ramsey’s take on side hustles

Coleman and Ramsey encouraged Ryan to look for other ways to manage his burnout and reframe his mindset.

“I'm a little bit afraid — no, I'm a lot afraid — that you've confused the freedom that you feel doing this business with an actual passion for the business,” Ramsey said.

“The passion comes from your independence and you're controlling your own destiny.”

The hosts encouraged Ryan — and other would-be entrepreneurs — to devote time to building and proving the viability of his business.