How To Quit Your Job And Follow Your Dreams Without Going Broke
Many people grow up with great aspirations. Their dreams are usually planned out with a perfect ending, where they are completely fulfilled in life and truly happy. But as much as we’ve the power to dream, we end up having to work with whatever life throws at us, which is usually completely different from what we envisaged.
Pursuing our dreams always seems a lot harder than perceived, especially when we’re caught up in a job that gives us little to no time to discover our true selfs and follow the path we’re meant to be on. The issue of financial security outside a job also sends cold chills running through our spines because, the possible outcome of whatever business or passion we set to pursue is never always guaranteed.
If you’re caught up in this trap and are looking for smart ways to make your transition to an entrepreneurial life a far-less regrettable one, here’s how to quit your job and follow your dreams without going broke:
1). Start A Business Before You Quit Your Job:
The first thing to do before quitting your job to start a business, is to run a pilot of the business on the side, while you’re still earning a decent monthly income. Running a side business first, helps you know if the venture is going to be worth quitting your job over, and what prospects it has for you on the long run.
When the business shows great promise on a small scale, you can then quit your job to use the power of the multiplier effect to grow your business as a full time entrepreneur.
2). Don’t Invest More Than 30% Of Your Savings:
When you quit your job to follow your dreams, it’s important that you have enough cash saved up to help you through your early months of trials. You have to ensure that a financial lack won’t keep you constantly worried and looking towards the comfort of another job.
The best way to handle this is to start the business before you quit your job, then invest not more than 30% of your savings after you have left the job. This ensures that you’re trying out something that has already proven itself and has some financial backing, without you going broke.
3). Register A Company, Not Just An Enterprise:
One of the worst things an entrepreneur can experience is to allow a law suit have direct access to their personal finance, and not just their company’s. When your business is a registered company and not just an enterprise, it separates your personal liabilities from your company’s liabilities, and so, makes it extremely difficult for a law suit to get to your personal assets.
For example, if a business that’s worth $100,000 dollars gets sued for $250,000, the limitation of the liabilities end with the business. And even if the owner has a personal net worth outside of the business worth $300,000, his personal assets would not be affected; only that of the business would.
4). Get Insurance:
Getting insurance guarantees a certain degree of security for both you and your business, especially when you deal in commodities. By insuring your products, health, cars, properties, and more, you save yourself and your business a major cost if anything grave were to go wrong with them.
To follow your dreams is one thing, but to survive the process is another. If you want to scale through any hurdle that may spring up in the process of running a business, insurance is critical to your survival.
5). Remember Your Retirement:
Ensure you’re building up great retirement benefits by remitting a certain percentage of your monthly income to reputable pension bodies. This ensures that you’re not just trying to grow a successful business, but also securing your future in the event that anything goes wrong before or after you get old.
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