I have given myself six months to make the switch from a low paying day job to self-employment. It’s looking like August is going to be a great month for me. I am on the road to making close to what I make from my day job (which isn’t a whole lot). This makes me believe my plan is completely doable!
I have a lot of preparations to make within the next few months to ensure my transition goes smoothly.
Increase My Savings
My emergency fund has taken a couple hits lately.
I hate touching my savings……it almost makes me sick to do so. But, I’ve had no choice other than to use my emergency fund recently to cover some bills and other unforeseen expenses.
I am hoping that after I rope in the rest of the payments I have coming in for the month that I can bump my emergency fund back up close to where it was before.
It’s very important for me to have adequate savings before making the switch. Ideally I would like to have somewhere around $10,000 saved.
To reach the $10,000 mark in the near future I am going to have to stick to a tight budget…..
Tighten My Budget
I have been living on a pretty constraining budget for the past year but occasionally I catch the spend bug and buy useless items I don’t need. (I’ve been on a nail polish kick here lately.)
I would like to keep my monthly budget at around $1,600. In the perfect world it would look like this:
Fixed Expenses: $900
This includes my trailer payment, babysitting, car insurance, utilities, and internet.
Variable Expenses $650
This includes gas, household items, entertainment, and food.
This is a realistic budget for me. Ideally I would like to find ways to cut this amount back a couple hundred dollars. With this budget I can almost get by on the money from my day job and save everything else.
Keep Consistent Work
As of right now I have a few weekly blog post assignments. If the job that I got last week works out I should be set. I am going to test the waters the next couple of weeks and see how busy I stay.
I said I am at the point that I don’t need to look for jobs now, but if I was to write full time I would have many more hours to devote to freelance assignments. So, I may just go ahead and apply to any jobs that seem to have good potential.
I am excited! This is starting to feel more real to me and I am definitely gaining the confidence to give self-employment my all. Over the span of the next six months I am going to be hardcore hustlin’. Wish me luck!!
I am missing anything? What else should I be preparing for before making the switch?
One thing you didn’t mention in your budget, although I’m sure you’ve planned for it, is private health insurance. Good luck. I’m rooting for you girl.
I have never had health insurance. My job doesn’t offer any benefits. I am definitely looking forward to the day when I can afford it on my own though. It would be so nice for the girls and I to have finally have health insurance!!
I second Taynia! NOT having health insurance (at least basic emergency) could leave you bankrupt should something bad happen. It would be a HUGE financial hit.
See about getting your girls on medicaid or CHIP. The income limits are usually incredibly generous for children. I bet they could be covered already! It’s surprising and a relief at how many kids can be covered.
I highly recommend Jon Scuff’s book Quitter. Then read Start. I think they would be great in terms of practical application and inspiration.
I actually have that book. I haven’t read it in awhile though. A reread may be in order.
All the best and stick to your budget till you get your emergency fund accumulated. It is very important. Wish you all the best and reach $10K soon. Just keep saving and don’t miss it… You will be good !
Thank you, Rita!
How exciting, I really want to make the switch, but I have a massive fear of the unknown 🙁
I don’t have much on the line by taking the chance. If it doesn’t work out I am pretty confident I can find a job making what I was before.
Good for you and your decision to do this! I think being a freelancer would probably give you a lot more flexibility and payout return than a regular job anyways.
My advice would be to continue to develop the income opportunities with this site and your niche site efforts. If you could make one that does well with affiliate income, that would be a huge boost to your revenue each month!
I definitely want to put more into my niche sites. First I am focusing on making a consistent amount of freelance income and when I meet that I am gonna focus on the niches sites. You keep doing so great with them that it’s tempting me to put more effort into the niche sites now!!
Congrats it seems like things are really gearing up for you! I am always excited to hear about other taking that leap of faith and working hard towards their goals in life. The only advice I have it to keep pushing! Things may look down and difficult but they get better and set goals like you have with the 10k for emergency funds. I think its best to find as many jobs as you can so you can stay busy and make money.
Thanks, Thomas! I am going to keep making goals and pushing on!
No, sounds like you’ve thought of everything! Once you quit your job, I’m sure you’ll find a lot more freelancing work. That’s what happened to me.
Maybe I should quit sooner than I planned 😉 I’ve been thinking about this since your last comment about it. I am getting pretty busy now but I am also working a 9-5 and caring for two preschoolers.
If I had everyday open to me I could take on so much more. It’s so tempting to put my two weeks in now.
It sounds like you are progressing well with your plan to be self-employed. I would say just keep trying to get as much work as you can. It may seem like a lot of work while you are also working full-time, but like you said you will have many more hours once you are doing freelance full-time.
Yeah, that’s kind of the issue now. I will need more work when I go full time it’s just balancing it all now.
It looks like you’re doing great and that you’re on track to make the switch in 6 months. How are things with your niche site…haven’t heard much about it since you mentioned it awhile back.
I was trying to do so much at once that I had to scale back a bit. It’s doing very well in the search engines just not very well monetized. As soon as I hit my freelance income goals I am going to work on niche sites more.
You sound like you’re doing all you can and also you’re really focused. I agree on having the biggest e-fun you can possibly have. It will just give you peace of mind.
10,000 will cover a little over six months of expenses for me so it makes me feel pretty comfortable.
Great post! We would like our emergency fund to have 12 months of expenses in it, just in case anything happens.
I would like to get to 12 months also. I will continue to work on that but as soon as I hit 10k I am going out on my own! Yay!
Congrats! Sounds like you are getting very close! And once you make the change, you’ll have a lot more time on your hands to focus on freelance gigs.
Thanks, Connie!
Well done Alexa. You have a solid plan and foundation to not only go after your dreams, but live them as well. As Holly points out, once you go out on your own, your spirit and energy will attract what you need. I realize that may sound a tad New-Agey but I truly believe that the universe will provide for you because it is what you want, what you are working so hard for. That does not go unnoticed by the powers that be 🙂
Take care and all the best.
Lyle
I like the new aged advice Lyle 😉 It’s funny you say this because I feel like the more I work on spirituality the more things seem to go my way.
Precisely Alexa. The more you recognize and open yourself up to the possibilities and opportunities that come before you, there’s no telling how great your life can be 🙂 Let the goodness wash over you, you deserve it! Peace out!
Lyle
Good luck! It sounds like you’re really prepared to make the switch. When you do make the switch, will you be able to cut out babysitting expenses?
I may be able to cut them back some but definitely not all together. There is no way I could get work done with the girls as home. They demand my constant attention. I don’t start working at night until after they have gone to bed. Working with them at home would be a battle I’d lose.
I wish you luck! It sounds like you are doing very well. I hope you are able to make the switch to self-employment soon.
Thank you!
I’m so happy for you! Having one source of income entirely for savings is a cool way to make sure you get savings goals accomplished. My wife and I did this back when I was earning very little as a teacher, and it works. I hope your hustlin’ keeps on growing…and I have a feeling it will.
Thanks so much! I like the idea of being able to save the majority of my extra income. It will definitely make saving much simpler.
You work for an insurance agent that does not provide health insurance ?
The world is a weird place.
~ Christie
Right?? The last time I went to urgent care the doctor knew where I worked and was in absolute awe that I didn’t have health insurance!! You’d think working for an insurance broker/financial planning business that I’d have benefits but I don’t have a single one!
I admire your motivation. I have no doubt you’ll hit the $10K. I’m looking forward to the “I quit my day job” post!
You’re all set! A bit of advice before you start.
The first couple of months will be extremely lonely. I work alone, and when I first started doing so (used to work at a bank), I wanted to call someone every day. It’s just so lonely, but you’ll get used to it. 😀
Another thing. Working for yourself is a lot different (emotionally speaking) than having a job. With a job, you have the safe feeling knowing that you have a steady source of income. As an investor, I can go months without making any money. That used to irk me a lot, but not so much now.
But above all, it’s one hell of a ride! And it’s absolutely worth it!
Good luck Alexa!
I helped a buddy quit. The most important thing is money saved and a plan for life after-work. What my friend didn’t consider is that he had no ideas or self-discipline. He spent all of his time doing nothing. He eventually went back to work because he realized that he couldn’t do anything on his own.
You’re in the right mindset,once you work for yourself I don’t think you would want a boss again.
Who knows… you might actually be able to make so much from blogging that you can quit sooner! Good luck with everything, you can totally do it!
Wow! Great job setting a date to swtich to self employment! You’re ready to make it happen, good luck. I look forward to reading about your journey to self employment.
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