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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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How to stay productive when you’re self employed

If you’re self employed or have your own business like I do, staying on track can be tough! Especially if you’re used to having a conventional job with a boss, or the fear of being fired motivating you to keep on track. But really, being self employed isn’t that much different. In a sense you still have a “boss” in the form of your clients, your family, and yourself. Not to mention an obligation to stay on track so you can keep earning money and maintaining the freedom and flexibility that comes with self employment!

I’ve been self employed for a couple of years now, and self discipline is still something that I struggle with, but here are my top tips for staying productive when you’re self employed:

1. Have a designated work area ONLY for work

20140801_162257It’s important to have a designed area just for doing work (and only work!) as it trains your brain to go into “work mode” when you enter the room, and it helps to avoid distractions . If you work from home, it also helps to keep some separation between your work and leisure time. If space is a problem, you might like to consider renting or bartering an office or desk.

2. Have a set morning ritual

This helps to keep you on track and trains your brain to go into “work mode” as well. It could be as simple as shower, breakfast, and at your desk by 9am. Other people who work from home physically leave their house in the morning so that they can simulate going to work. For me, getting showered and dressed in “work clothes” really helps to boost my productivity. I’d love to be able to work in my fluffy pink dressing gown, but I just can’t take myself seriously when I try!

3. Make a timetable and stick to it

Sticking to a timetable is challenging, but it’s a great way to keep yourself on track. Tailor-make a timetable that suits your lifestyle and your job so that you’re more likely to stick to it. For me, my work changes everyday, so on my timetable I allocate time for high priority, medium priority and low priority tasks, and I then grade everything on my to do list accordingly. I also have an hour break in the middle of the day so I can have lunch and take my dogs for a walk.

4. Development great time management skills

Developing great time management skills is a key factoring in maximising your productivity. I constantly have a notebook next to me with a running to do list on it, and I have both work and personal tasks on there because I find that keeping everything in the one place works best for me. I use a highlighter to colour code items by order of priority, and I cross things off as I finish them (which feels really, really good!). You can read more about my secret time management weapon here.

5. Embrace your freedom (sometimes)

I know that this contradicts my other points, but being self-employed gives you the freedom and flexibility to manage your own time, and there is nothing wrong with embracing that (s0metimes). So if you’re just not feeling productive, why not take the morning off and work in the evening to make up for it? If you want to spending the day working from the couch while you watch TV – go for it! Just don’t do this everyday because I can assure you, if you’re anything like me, your productivity will take a hit.

Personally I find that as long as I spend the majority of my time sticking to the above points, having the occasional “cheat” day is actually really beneficial because it reminds me of how lucky I am to have so much freedom, and makes me realise that it is worth all the self discipline that is required.

4. Develop a routine that suits your unique self

Don’t feel you have to be at your desk by 9am and schedule your timetable 9-5. If you’re more productive at night and you prefer to sleep in, there is nothing wrong with creating a routine that reflects this. Of course, if you have clients who work 9-5, you’re going to have to at least be available on phone and email during this time. The key is to create a routine that works for you, and allows for maximum productivity, and then stick to it!

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