Man is ready to quit his ‘cushy’ $200,000 job for a low-paying side hustle. Here’s what Dave Ramsey says he should change

He told hosts Dave Ramsey and Ken Coleman he’d been ready to quit two years earlier but held back.

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

His side business involves buying and selling abandoned storage units. The catch is that it only brings in US$2,000 monthly — which is why his wife calls it a “hobby jobby.”

While Ramsey and Coleman shut down Ryan’s plan, they pushed him to find different ways to ease his burnout while protecting his income. Options included freelance software engineering or consulting work in his current field.

Here’s why the hosts recommend changing his mindset rather than his career, and how you can make sure your side hustle is actually viable to replace your full-time employment — without gambling away your earning power.

Side hustles have exploded in Canada

With inflation eating away at budgets, side hustles have become the norm. HRD Canada reports that 53.4% of Canadian workers now have a side hustle, primarily through selling goods online (2).

But not every side hustle can cover the bills. A survey by marketing automation platform Omnisend found that while 25% of workers run a side hustle, 62% earn up to $500 net a month, with only 16% making more than $1,000 monthly (3). That’s nowhere near enough to replace a full salary.

Here’s what Ken Coleman recommends for anyone thinking about ditching their job to pursue a side business full time.

“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.

Doing so creates a financial cushion if your business doesn’t perform as expected and gives you time to prove it can sustain you in the long term.

If you’re considering making the switch, think about:

• The numbers: Do you have enough returning customers, consistent and growing revenue, and proof that there is a real market for what you’re selling?
• The expense: How much do you need to invest in the business and do you have enough to cover personal and business costs for six to 12 months minimum, as Coleman suggests?
• Your business strategy: You have a solid plan outlining your revenue model, growth tactics and operating expenses? Also, it should be reviewed by trusted business owners who can spot potential problems.
• A transition plan: Can you cut your hours at your current job to dedicate more time to your side hustle? This lets you test whether your business can actually generate enough income before you fully commit.

The Ramsey Show’s take on side hustles

Coleman and Ramsey encouraged Ryan to look for other solutions to his burnout and rethink his approach.

“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 controlling your own destiny.”

The hosts pushed Ryan — and anyone else dreaming of entrepreneurship — to invest time in building and validating the business first.

“I’m on your team, but I’m going to give you some tough love,” Coleman said. “I think you need to change your mindset starting today.”

He urged Ryan to spend his time visualizing his ideal future while staying patient and strategic about getting there.