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How to get financially ready to quit your day job

Quitting your day job isn’t going to stop your bills from coming in, so before you hand in your resignation you need to know how you’re going to be able to cope financially!

1. Start earning money on your own

Before you even begin to start thinking about quitting your day job, you need to figure out what you’re going to do to earn money once you quit. And once you’ve figured that out – START DOING IT RIGHT AWAY. Do not fall into the trap of daydreaming about all the wonderful, glorious things you will do once you’re free from the shackles of the 9 to 5. You need to get started right away. It means you’ll start earning extra income that you can put towards savings or paying off debt, and you’ll be able to start gauging whether or not your idea is actually going to work as a substitute for your day job.

Do not, I repeat, do not say that you don’t have time. Start doing it on your lunch break. Start doing it at 5am. If you can’t or won’t make time, self-employment probably isn’t for you. I worked as a freelance graphic designer while working full time at a design agency. If I had to work back until 7pm at my day job and then come home and do 6 hours of freelance work, then so be it. If you want something badly enough you will make it work. And if not, maybe self-employment isn’t the right choice for you.

1. Know exactly how much you money you NEED to spend each week

Write out a list of all your weekly expenses. Calculate the weekly cost of any other expenses that are coming up in next year and add those too. Write down essential expenses only. But when I say essential, I mean things that are essential to you. Be honest with yourself. If you lost your job tomorrow, what would you viva video app  keep spending money on no matter what? If you know that there is just no way to you could give up your nightly glass (or bottle) of red wine, it has to go on the list. It’s better to be honest with yourself now than go and quit your job and realise you’re spending a lot more than you thought you would be.

3. Wipe out your debt and dramatically cut down on your expenses

If you’re like most people, your list of weekly expenses from step 1 is probably very long and very expensive. Essentials like rent/mortgage, car repayments, credit card repayments, food, fuel, and insurance. And then the not-essential-but-essential-to-me expenses like take away coffees, hairdressing appointments, clothes, takeaway, wine, etc. These types of expenses are all pretty typical, but unfortunately all these “essential” expenses play a major role in keeping people trapped in their 9-5 jobs, and most of these expenses aren’t even “essential” at all.

I’m not going to go into depth on how to wipe out your debt and drastically cut down on your expenses, because there is already plenty of great literature on the subject. Here are a couple of great books that I highly recommend:

2. Save enough money to cover your essential expenses for 6 months OR already be earning at least that amount of money through self employment

By the time you’ve finished with step 2, this goal should be pretty achievable. If for example you’ve followed the above steps and you’re feeling confident that you can survive on $500 a week, you should be looking to have at least $12,000 in a high-interest savings account before you go and hand in your resignation. This is a very, very conservative estimate. It’s assuming that no major expenses are going to come up in the next 6 months,  It implies your router dlink login administrator board administration address. These days all organizations occupied with the assembling of gadgets and it’s assuming that it is only going to take you 6 months to consistently start earning this amount of money each week. Ideally you should have a combination of the two – be earning enough money to cover your expenses, and have a good chunk of money in a high interest savings account as well.

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How to let go of the limiting beliefs that are preventing you from quiting your day job

Quitting your job is SCARY! And there are so many limiting beliefs that keep you chained to your desk (trust me I’ve experienced them all!) but it doesn’t have to be this way! Here are my 5 steps to letting go of the limiting beliefs that are preventing you from quitting your day job:

1. Accept that a 9-5 does NOT give you financial security

You could be fired from your job tomorrow. You employer could go into liquidation. Your entire life could fall apart. I’m not trying to scare you, but the reality is that most people hold onto their 9-5 jobs because they believe that it gives them financial security. But in reality, self employment is going to give you the same amount of financial security (or lack thereof depending on how you want to look at it).

Once you stop believe that you have financial security, you’ll likely start to realise that finances are NOT holding you back, because the fact is that the thing that normally holds people back is fear, which leads us to our next step:

2. Make peace with fear

Fear of the unknown, fear of judgement, fear of failure, fear of complete financial dissolution. I get it, quitting your job is terrifying. So how do you make peace with fear? Well…

3. Accept that you CAN earn an income by yourself (and have fun while you’re doing it!)

From an early age most of us are trained to believe that the only way to earn a living or be a respectable member of society is to be an employee. We’re told that we have to work long hours for minimal reward because that’s just how life works. But it doesn’t have to be that way!

Think about it this way. If a company is paying you money, that means that you are making them a lot more money. They aren’t paying you out of the goodness of their hearts. They invest money in you, and you give them a return on their investment. So if a company is prepared to invest in you, why aren’t you prepared to invest in yourself?

4. Realise that you have marketable skills that you can use to generate an income

If you have a day job, you have skills. You probably underestimate how valuable and knowledgeable your skills really are. Or if you don’t have a day job, maybe you’re an amazing stay-at-home mum with parenting skills that you can use to help others, or maybe you’re a great cook. Stop devaluing yourself and start to realise that you an amazing person with a unique set of skills that only you can offer the world.

Once you let go of your limiting beliefs, you can starting working towards quitting your day job.

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