Be Prepared to Quit Your Job
by Steven Lohrenz
Shred Home Office Costs
Savvy Business Start-Ups
I recently left my job to go out on my own for the first time. I've been working towards this point for a while, but here's an overview of how I got to the point where I could become a quitter and how you can do the same.
- Have a low overhead lifestyle. My wife and I have managed to reduce our expenses to the barest of minimums. We've managed to reduce our rent and utilities to zero. Our insurance, petrol and groceries are our largest expenses now and they come in under a grand. It doesn't take much sales from our business in order to cover those bare necessities. Now we are just looking for products that are base hits instead of home runs. Look to reduce by following the one time downside (i.e. moving) with ongoing upsides (1/2 to 1/4 the cost in rent). Avoid doing things with the opposite costs. Avoid clipping coupons because they incur an ongoing downside with a once off upside.
- Make time. I've been spending extra time working on the business leading up to this point. It meant giving up TV and sleeping in. If you can't squeeze a few more hours out of your day by eliminating low priority items (such as TV), you will never succeed. It gave me time to learn the skills I need and set up a basic level of income before going completely on my own.
- Have a backup. I put a simple backup plan in place in case everything goes horribly wrong. I plan to go back to my former employers and ask to sign onto a contract for three to six months. I am able to earn enough to cover my yearly expenses in that short period and then I would go back out on my own. I made sure I didn't burn any bridges and I did quality work until the very end, just to make sure I'm welcome back. The backup plan gave me the confidence to strike out on my own, knowing I could always take care of my family.
Those three things are simple to say, but they can be hard emotionally to do. Addiction to TV or attachment to a high cost area may cause a lot of frustration for those so afflicted. But if going out on your own is your number one priority, those three items will speed along to the day when you can hang out your own shingle.
Visit Steven's blog and learn the art and science of converting your personal computer into an automated personal cash register at Internet Business Automation.
Take the Next Step:
- If working for yourself is something that you dream of doing, now's the time to start making any appropriate changes to your lifestyle. So when the time comes for you to go out on your own, you can enjoy the fact that you have covered the bases.
- Investigate a Dollar Stretcher Recommended system for building your own income producing website.
Share your thoughts about this article with the editor: Click Here
Trending on TDS
- Talking to aging parents about finances Expert Interview
- How are relationships affected by money?
- The emotions behind buying stuff
- Should you create a trust?
- Are hidden fees stealing your retirement?
- How do I make my spouse a tightwad?
- Tips for radical cost cutting
- Control your spending by using cash
- How investing style changes over your lifetime
- 5 poor ways to save (and how to do better)
- What to do if your credit card rate goes up
- 40-something and way behind on saving for retirement
- 5 big bills you can cut fast
- Money-saving secrets of the rich and frugal
- Reduce your debt with this free debt course by The Dollar Stretcher
- Reduce your debt payoff time
- Find a better credit card rate
- Get better savings & MMA rates