A couple of weeks ago, I quit my part-time job. What drove me to this decision? When COVID-19 was at its peak, businesses were shut down and movement restricted to curb the rise of infections. As a healthcare worker, I thought that my job was stable. The number of patients admitted at the hospital decreased and my hours at my part-time job were cut. Though I admit I was fortunate to have a full time job to lean on. It made it clear that as an employee, I’m dispensable.

Fortunately, my hours were later reinstated after about a month and a half but I felt insecure. This feeling was compounded when a friend from college informed me that she had lost her job. She had just started her new job, that was out of state and away from her family, after almost a whole year of searching. Despite being well qualified, the market was tight. I heard similar stories shared by colleagues, of people they knew that were out of work.

I had become comfortable, thinking that the two jobs would get me to financial independence. Now I was not so sure. In fact, I needed to change my whole strategy. I needed to diversify my sources of income. Not just relying on my employer. I decided to pursue three options:

• Start an online business that was related to my profession to increase my income
• Rental income
• Increase contributions toward my taxable accounts (already maxing out my 403b and Roth IRA)

I work the night shift, one week on and one week off. This schedule allows me to focus on my online business on the weeks off. I began my project and enjoy every moment of it, though it has its challenges. Despite the fact that my online business will not be profitable any time soon, I decided to quit my part-time job. Initially I had mixed feelings, both exciting and scary. For the first time since I started working, I now only had one job. I always held two jobs as security, but my employer has the power to lay me off. 

I’m fortunate to have a job that allows me to live way below my means, save and invest a significant portion of my earnings. Despite this, my current savings and investments are not enough to sustain me for long in the event I lose my full time job. Thus, while working on building my online business, I need to cut my largest expense-rent. How could I do this? I was able to narrow down to two options:

• Save and buy a home cash: I would be debt free but it would take a long time to save up plus the house prices will continue to rise. No guarantee that the online business will be profitable by that time. Even so, the money may not be enough to purchase in cash.
• Get a mortgage to purchase property and house hack: live in one room and rent out the others. The rental proceeds will go toward paying the mortgage and other housing expenses. I’m currently renting out a basement from my landlord who is doing exactly that. She rents out a room and a basement to professionals that work nearby. 

I’m leaning toward the 2nd option with the hope that the rental income plus the money saved from not renting will be used to accelerate my mortgage payments. Freeing up money to invest toward my taxable accounts.