How Much to Save Before Quitting for Real Estate

The 9-5 Exit Playbook

✍️By Debbie Balfour | WBN News | June 3, 2025 | Click HERE for your FREE Subscription to WBN News and/or to be a Contributor.

Quitting a full-time job to become a real estate investor may sound like the fast track to freedom, but experts warn that without financial preparation, it can lead to serious stress.

The number one rule before resigning? Build a financial cushion that covers at least 12 months of personal living expenses.

This cushion is meant to cover essential bills—mortgage or rent, utilities, groceries, transportation, insurance, and debt payments—without relying on income from an unproven business. Many new investors underestimate how long it takes for a real estate business to become profitable.

To calculate your 12-month cushion, experts recommend reviewing the last 3–6 months of spending across all accounts and credit cards. “Be honest about your lifestyle,” says one financial advisor. “Don’t forget travel, subscriptions, kids’ activities, and inflation.”

That last point—inflation—can be a hidden threat. Rising prices for fuel, groceries, and interest rates can quickly erode savings that once felt safe. It’s also wise to factor in unexpected costs, like property repairs or longer-than-expected vacancies.

Some investors reduce risk by cutting non-essential spending, selling underperforming assets, or tapping into retirement savings strategically. Others use the sale of a profitable rental property to create a year of breathing room.

A financial runway not only reduces stress, but also creates decision-making space. Instead of scrambling for quick wins, full-time investors can build their portfolios intentionally and sustainably.

The message is clear: passion and purpose are powerful—but preparation pays the bills. Before trading a steady paycheck for the promise of passive income, be sure your finances are ready for the transition.

Debbie Balfour | Real Estate Investing Success Coach + Podcast Host
📍 Website: www.DebbieBalfour.com
📧 Email: Debbie@DebbieBalfour.com
🔗 LinkedIn: Debbie Balfour
▶️ YouTube Channel: youtube.com/@DebbieBalfour

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