A 4-Step Plan to Replace Your Full-Time Income

That feeling of waking up in a panic is the worst. Wasn’t I supposed to be doing something? Do I need to be somewhere? Did I just make a huge mistake and leave a secure, well-paying job for… this?

I remember scrambling over to my computer and logging into my Airbnb account. The numbers on the screen told a different story. My four listings were set to bring in about $1,200 that day alone—more than I used to take home in an entire week. I had a virtual team handling guest messages and cleanings, keeping my little business humming along without my constant attention. The life I’d built for myself was incredible, and I could finally take a deep breath.

It almost felt illegal. Who gets paid not to work? But I had to remind myself of the hard work that got me here. The time, effort, and sheer grit I poured into building this system were all so that one day, it wouldn't need me to survive.

Years later, I’ve helped thousands of people on this same journey to shut off their own alarm clocks for good. They’ve told me about that feeling on "day zero"—the day they wake up completely free. It’s an amazing place to be, but getting there doesn’t happen by accident. It’s a practical roadmap, and for most of us, it won’t be easy. It might mean working harder for a while, with less freedom, until you finally reach the point where you can walk away from your job for good.

Finding the Fuel for Your Freedom

Before you can think about leaving your job, you need to keep that income source stable. Your first move is to tighten your belt to fund your first real side income business. The sooner you cut back, the sooner you’ll be in a position to work less and live more.

Think of your money like a bag of seeds. You can grind those seeds into flour and bake a delicious loaf of bread. But once you eat it, the seeds are gone. You get to enjoy it once, and that's it. What if, instead, you planted those seeds? The next season, you’d have an entire field of wheat—enough bread for a lifetime.

So why do most of us eat our seeds? Because fresh bread today feels a lot easier than becoming a farmer tomorrow. One of the biggest hurdles keeping people from building wealth is never having enough extra capital to invest. You might need to get creative to find that money. I recommend saving at least 20% of your take-home pay for your startup fund.

Here’s a simplified way to look at your budget and find that cash.

Housing (35% of Budget): This is your biggest expense, so it’s the first place to look for savings. If you’re single, get a roommate. I listed my spare room on Airbnb and made enough to cover my entire rent and utilities. If you own your home, look into refinancing to lower your payment and shop around for a better homeowners insurance rate.
Recurring (50% of Budget): These are your predictable, essential expenses like car payments, insurance, food, and debt. You can’t eliminate them, but you can trim them. Eat at home exclusively. Make your meals boring for a while; it’s a great motivator. Skip the daily Starbucks run and shop for better rates on all your insurance policies.
Discretionary (15% of Budget): This is where you’ll make up serious ground. This is the money that just seems to disappear on wants, not needs. Cut the cable and streaming services. Cancel the non-essential subscriptions. Stop spending on cocktails, new clothes, and expensive dates. This might seem extreme, but if you want radically different results, you need to get radical. Every dollar you save is another signal to your brain that this time is different.

Putting Your Money to Work: 3 Paths to Take

Once you’ve set aside some money, it’s time to turn that earned income into passive income ideas that work. You’re going to turn cash into cash flow. There are three main paths you can take.

1. The DIY Method

Doing it yourself feels like you’re in complete control, which is both the best and worst part. The problem is, you’re likely operating in a niche you’ve never been in before. Building a business by searching on Google can work, but it’s inefficient. When I first tried to make money online, I bought a new laptop, a domain, and marketing software I didn't need. Most of it was a waste of time and money because I had no real strategy. For every person who succeeds with DIY, ninety-nine others run out of cash first.

2. The Learn and Earn Model

Imagine spending less time and money on an education while earning money in the process. That's the idea behind "learn and earn." It’s about choosing a path with a built-in framework for earning as you go. I have a coaching program that helps people launch an Airbnb business without owning property. If they follow the plan, they are typically making money and turning a profit within 60 days. They get an almost immediate return on their investment while learning valuable skills. This is a great way to self-fund your education while you earn passive income.

3. The Follow the Leader Approach

This is the ultimate shortcut. It involves finding someone who has already achieved the exact result you’re after and is willing to teach you. When I created my first online course about Airbnb, I hit a wall—nobody was buying it. I was stumped.

Then I remembered a key lesson: when you face an unsolvable problem, the answer is always "who," not "what" or "how." Who has done this before?

I went to a marketing conference and met a guy named Akbar who had generated millions online. He listened to my problem and told me, "I think I know how to fix your problem. Once you do, I truly believe you’re going to go home and make millions of dollars." I asked what it would take to work with him. "Ten grand, up front," he said. I countered with $5,000 that day and a promise to implement everything he told me. He agreed.

Over the next month, I worked tirelessly to apply his advice. Then, another marketer reached out and offered to help me run my first live webinar. That night, I generated $64,342.93 in sales—nearly my old annual salary. The only reason it happened was that I followed the leaders. They were so much further down the trail that my huge obstacle was a simple fix for them. This is the best investment you can make, as it helps you avoid the inevitable pitfalls of inexperience.

A 4-Step Plan to Go from Full-Time to Freedom

Now that you have the right mindset, here are the four steps to making the transition from a side business with job to full-time freedom. This is the path for anyone seriously considering starting a side hustle while working full time.

Step 1: Calculate Your Walk-Away Number (WAN). This is the amount of monthly passive income you need to quit your job. Take your current monthly take-home pay and multiply it by 1.5. That 50% cushion provides financial and psychological security, giving you the confidence to know you’re making a smart move. My last job paid me $5,765 a month, so my WAN was $8,674.50.
Step 2: Select Your Vehicle (PIV). A Passive Income Vehicle (PIV) is an asset you own, create, or control that generates income without constant effort. Choose one. Not two, not six. One. Focus on scalable side hustles with the potential to hit your WAN in 6 to 12 months.
Step 3: Scale the PIV Until You Reach Your WAN. Scaling means increasing the income from your PIV while decreasing the time required to maintain it. Your PIV must be scalable in both directions—up on income, down on hours. Buying a single rental property that nets $300 a month isn’t a good PIV because it’s not scalable on the income side. A franchise where you’re the operator isn’t scalable on the time side. This isn't about finding a second job; it's about building a side hustle to full time freedom.
Step 4: Stack Additional PIVs to Build Wealth. Once you hit your WAN and have your time back, it’s time to stack. This means adding more PIVs to create redundant income sources and build long-term wealth. After my Airbnb business was automated, I created an online course, which became my second PIV. Then I added digital tools, memberships, and book royalties. All these PIVs continue to work for me with minimal involvement.

The Side Hustle Warning

A few months ago, my Uber driver, Jason, told me he left his 9-to-5 office job for the freedom of driving. I asked him, "Jason, would it be possible for you to make ten times more next year driving for Uber?" He laughed and said no, but he could maybe make $70,000 if he worked around the clock.

I tried to explain that there was a bigger world he could be playing in if he focused on building passive income instead of just hustling. But he seemed more concerned with the next ride request on his phone.

That’s the problem with the gig economy. By definition, a side hustle is just a fancy way of saying "second job." It's fully reliant on you doing the work, it’s not scalable, and it can’t be automated. It’s the illusion of freedom, not the real thing. It should be a brief stopover on your way to building real passive income, not the final destination. In a world of side hustles, stop working so hard and start stacking assets instead.