A lot of people are looking to escape a grind of a full-time job. Here are some strategies for leaving your day job while remaining financially stable.
1. Save up
To leave your day job, you’ll need to rack up some savings. It’s not something to do without planning, and starting a few years in advance can help. Cutting down on your cost of living can be done through simple steps such as seeking out the least expensive entertainments, opting for less expensive cars, etc.
2. Passive income
You may switch to a passive or part-time income after you leave your day job. It’s not a bad idea to set something up in advance, whether it be a blog you’re monetizing or an e-book or even owning a vending machine. Starting early will help with tip #1, saving up.
3. Pay off debts
You can’t leave your day job while saddled with debt. Therefore, it’s important to be sure to pay off credit cards and anything high-interest. Try consolidations as a way of paying less interest. Then, create a budget calculating how much you have to pay each month to do away with all debt. Apply any savings to this, then make a strategy for cutting back. It shouldn’t take long to get them all paid off, then you can save up as mentioned above.
4. Create a network
Before you leave your current job for a part-time career or semi-retirement, be sure to have a good network set up. This network can help you find resources for life without a fulltime income; they may be customers or colleagues for a passive-income business you may run; and they are important to keep in touch with.
5. Don’t burn bridges
It’s important to be sure to have really good relationships with your boss and your co-workers before you depart. The more you are interested in running any kind of business, the more this is true. While these folks may be initially frustrated at having to replace you, they generally are more than happy to serve as references or as part of your network in the future.
You’ll know when you’re ready to leave your day job when you feel confident you’ve done your homework. While you may not need many thousands of dollars saved up, if you have a few thousand saved up with some passive income and a means for living inexpensively, you’ll do fine.