Dormtainments Mike Damn: Cashing In My 401(k) And Quitting My Job At 22

Would you quit your job if you didnt have another one lined up? Most people would say that was irresponsible, even though 70% of American employees hate their jobs.

Mike Damn chose the irresponsible route. He quit his job, cashed in his 401(k), and pursued his creative passion at only 22.

Spoiler alert: His decision definitely paid off.

Over the past seven years, Mike has grown Dormtainment, the comedy YouTube channel he started with five friends, to nearly one million subscribers.

But even though Mike is living off his art now, he started with much less.

Now, Im offering you a peek into his finances and how he quit his job to follow his passion.

On quitting his 9-to-5

I used to cry before going to work. And Im not ashamed to say that, he says. At the time, he was a year into Dormtainment. Having quit Georgia State University when the channel started gaining popularity, he was working at Publix full-time. And although he received promotions, he didnt feel fulfilled.

I think we can all relate. I remember crying over my coffee shop job. I struggled finding a writing job after finishing my Bachelors, and grumpy coffee-deprived customers didnt help.

Mike knew he wanted to quit, but he was worried about the timing.

How long would I be able to eat? Would I be able to pay rent?

One day, hed had enough. He prayed: God, if Im meant to do this, let me know.

That same day, a friend asked if he wanted to DJ a wedding. He took that as a sign and handed in his shirt the next day.

The lesson: Know what you want. Ask. Receive.

Although at first his friends and family didnt support his decision, he figured, If I failed, Id just go and ask for my job back.

To this day, hes grateful that his mother convinced him to contribute to his 401(k). Although he was penalized for cashing in his retirement fund before retiring, he was left with $10,000, which he lived off until he figured things out.

Note to all employees: If your company offers a match for your 401(k), please take advantage of it. Its free money, and the sooner you start saving for retirement, the better.

On what he did with his money

He invested in himself. He loved DJing, and hed been using his laptop for gigs. To look more professional, he used some of his savings to buy equipment. For two months, he practiced, locked away in his room.

When I felt good about my skills, I started dropping mixes.

He would invite promoters to his house for small listening parties, and some of them would book him or refer him to other people. He started making money, even if it was only a few hundred dollars here and there.

On scaling up his business

What helped him to survive with his DJing was assessing the market, asking:

What are all DJs doing and what are they not doing?

He noticed that other DJs werent taking advantage of the online space, even though people spend so much time online.

So, he decided to create a mix show and broadcast it through Ustream. He promoted it through Twitter and Facebook . 100 people tuned in the first time. The second time, more people tuned in. When he decided to broadcast at his Dormtainment friends house (they had better lighting), numbers skyrocketed. Thousands of people started tuning in; after a show, hed check Twitter to find hundreds of tweets waiting for him.

On building a thriving DJ business

With the success of his Ustream shows, more people started booking him. He booked schools like Wesleyan College, Agnes Scott, and Georgia State University, charging $600$700. Then, he bumped his price to $1,000, and kept pushing it. If someone said no, hed adjust his rate.

The lesson: Dont be afraid to quote high. You can always negotiate down.

On what money means to him

Growing up, I probably held money on a high pedestal, because it was so rare. Coming from immigrant parents, I saw my mom working hard for it. I saw it go fast. So, I was always like, I cant wait to get it. It was my main motivation. But the more I do business, the more I learn about myself. So yes, I make money, but if thats my only focus, its not going to come to me the way I want it.

He puts less pressure on himself when it comes to moneyhis emphasis is on building value.

Mike doesnt set money goals for himself. Instead, he sets project goals. Right now, he feels good about what hes doing. The projects hes working on will bring in money.

On being self-employed

Why would I spend all of my moments building something for someone else, when I can take some time and come up with great ideas while still maintaining my sanity. It may take me longer to make that money, but itll be worth it. If youre confident in what you do and what you know, youll never be broke.

On making money

Position yourself right so that whatever youre doing can be sustained. Youre always going to be shifting and pivoting to figure out new ways to make more money. When I look at the best businesses, theyre always doing something bigger and different and evolving. They make people excited.

On financial education

We should be taught about taxes in school, he says.

I didnt learn about taxes, saving for retirement, or even self-employment in high school. Did you?`

Were all in debt. Honestly, I dont know anyone who isnt, Mike explains.

Too many Americans spend their lives paying off a student loan in a field theyre not even interested in. A 2013 study conducted by the Government Accountability Office revealed that 70,000 US senior citizens owe $18 billion in student loans, and student debt has been increasing since 2005.

On how he makes money now

Dormtainment makes money through their channel, they have a subscription service for premium content, and they sell merchandise and albums.

As for Mike, hes currently working on an albummultiple streams of income is a must for any entrepreneur.

On his past and future goals

The initial goal for Dormtainment was to entertain and make money from being onscreen. He still wants that, but he wants to have his own business, too. He wants to build a coalition of people who believe in themselves, take risks, and know that they have to find themselves and know what they want.

To see Mike in his element, check out Dormtainment s hilarious skits.

To find out how you can save thousands a year so you can quit your 9-to-5, enroll in my FREE course .