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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. How to Fix Antimalware Service Executable virus 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.


How I escaped the 9-5 and created a life and job I love!

Untitled-43Growing up, my parents were always business owners, and I thought it was awful. They worked 7 days a week so they were hardly ever home and holidays were out of the question. I saw them working so hard and decided I never wanted to be self employed.

Meanwhile, my friend’s parents had conventional 9-5 jobs. They had weekends free and took regular holidays, so as I child, a 9-5 job seemed like a dream come true. Of course, I wasn’t aware of all the negative things that they had to deal with such as lack of freedom, and little hope of financial advancement. In reality, my friend’s parents had to commute 2hrs to and from work every day, they also had to work long hours during the week, and they’re probably still working even though they’d be in their 60s by now (meanwhile, my parents retired in their early 50s).

But it took me a long to time and realise this, and an even longer time to realise that this wasn’t the way it had to be!

After I finished studying, I was determined to get a 9-5 job. But that wasn’t so easy. I ended up landing a job as a makeup artist, which I know sounds pretty glamorous, but it was a lot of long hours, traveling and hard work. Because it was a commission based job, it taught me something very important:

How much work you put in can and should be reflected in how much you earn!

I didn’t mind working long hours, and I loved the fact that I was being rewarded with lots of money! From that point forward, I routinely worked 2-3 jobs at a time. I worked in offices, retail stores, restaurants, and nightclubs. I loved working hard and I loved earning money. I was also very quick to quit jobs and/or be fired, so I ended up working at a lot of different jobs, but each job taught me something valuable. I also spent time being unemployed and collecting the dole, which I found incredibly soul destroying.

At 21 I landed an entry level job in the Accounts Receivable department at a food wholesaler. I was promoted within the company and ended up with a promising career in accounts ahead of me. I moved onto another company (and other 9-5 job) where I continued my career in accounts. But I hated accounting so ended up going back to school and studying design. There were a few hiccups along the way, but eventually I became a graphic designer.

At 25 I was working full time at a graphic design agency – and I loved it! But I was still trapped in the 9-5. As a junior, the pay was terrible, and I never made more than my base salary, regardless of how much overtime I did or how hard I worked. I was also working Saturday nights and at night club and doing freelance graphic design in my spare time, so that I could earn enough money to pay my mortgage.

After a couple of years, I was offered another job with better pay and shorter hours so I decided to take it. But that job was TERRIBLE and I walked out after three weeks. I started job hunting again but my prospects weren’t too good. Unemployment rates were pretty high at the time, and there were a lot of unemployed graphic designers out there. I couldn’t believe that I’d quit two design jobs and now I was unemployed. I was so mad at myself!

I heard that my design skills might enable me to get a job in marketing, so I started to apply for every marketing job that I could find, and was lucky enough to get a job. But it was only two days a week, so my wage, along with the freelance work that I was doing, was only just enough to cover my bills. I was still focusing most of my energy on getting a full time design job. Not only because I wanted to earn more money, but also because I was still stuck in the limiting mindset that I “needed” a 9-5 job.

Miss Flik in NepalMeanwhile, I had the opportunity to spend a couple of months doing volunteer work in Nepal, and then visit Europe with my family. And thanks to a surprisingly large tax refund, I was actually able to afford to go, and I was able to take the time off from my marketing job. If I’d been working for a design agency at the time, it’s unlikely I would have been able to take time off, so even thought I feel like my professional life was in shambles, it actually allowed me to take advantage of a great opportunity.

The time away allowed me to relax and made me realise that I loved working 2 days a week and doing freelance work. I just spent so much time worrying and job hunting, I never had any time to enjoy it! But when I returned to Australia, I was determined that things would be different! I was going to keep working at my marketing and build up my freelance business so I could freelance full time!

And then I lost my job.

But almost immediately I was offered two freelance contracts with two different agencies. I couldn’t believe it! Just like that I was freelancing full time (and this was after I’d been looking for work for 12 months!). For a while everything was great. Financially things were fine, and I was continuing to build up my freelance business. But then I lost one of my contracts and work with with the other contractor was beginning to dry up. I panicked and started to apply for full time design jobs again.

Surprising, I landed a job almost immediately. It was a great paying design job at an agency only a 10 minute drive from my house. I couldn’t believe how lucky I was! I loved the financial security, but going back to a 9-5 job (which in reality was 8.30-5pm plus lots of overtime) after I’d experienced the freedom of freelancing was not fun. I’d look out the window on a beautiful sunny day and wonder why on earth I was a sacrificing my freedom just for a bit of financial security.

Most days, I had to stay in the office at all times, so I couldn’t even go out for lunch or go to a doctor’s appointment and taking a day off work was almost completely out of the question. I questioned why I was holding onto this job when I was in the very fortunate position to be able to freelance instead. I told myself I’d go back to freelancing once I’d built up my freelance business some more. At this point, I was working 42hrs+ at my job, plus doing 10-20hrs of freelance work during evenings and weekends, and my volunteer work and my social was starting to suffer. I desperately wanted to quit so that I could freelance full time, but I didn’t have enough freelance work. I knew I had the capacity to get more work if I was able to answer my phone during business hours and spend more time going to networking events and promoting myself. But a little part of me still believed that I “needed” a 9-5 job, and quitting my job was just SO SCARY.

For me, the turning point came when work at the agency started to dry up and I started to get sent home early without pay. It made me learn firsthand a very important lesson:

A 9-5 job does not automatically mean financial security or job security.

But even once I stopped holding onto the false illusion of financial security, I still didn’t quit my job. I just needed another little push, which the universe sent to me in the form of a job offer. I was offered a trial at a prestigious advertising agency, that would lead to a permanent job if I made a good impression. This was a dream come true. For a long time I’d wanted to break into advertising. But making the leap from graphic design agency to advertising agency was extremely difficult. I was so overjoyed just to have the opportunity to spend even at day a the advertising agency! I wasn’t allowed to take the day off work, and I figured my days at my current job were numbered anyway, so I quit my job so that I could attend the trial.

But the advertising agency was AWFUL. The other designers were miserable and spent the entire day loudly complaining about how much they hated their jobs. Meanwhile, the job itself turned out to be an entry level job (with an entry level salary), when at that point of I’d been in industry for 5 years. I ended up getting offered the job, but even thought it was supposed to be my dream job, I decided not to take it.

Since that day I’ve been a freelance graphic designer and I can honestly say it is THE BEST JOB IN THE WORLD!