How to Quit Your Job
Do you know how without ending up on the street? In a nutshell, you need to avoid the self-employment trap, think like a business, and create multiple passive revenue streams.
Avoid the Self-Employment Trap
If
you quit your job and hang up your own shingle, you might work harder
for less money. You may enjoy working from home or choosing your own
clients, but you might end up living from client to client without building any real wealth.
Many
self-employed people I know suffer from feast or famine. They spend
lots of time and money marketing their services and get lots of clients.
They get really busy doing the work and stop marketing and then their
prospective client pool dries up.
If you set up your business so
that you do everything - marketing, sales, bookkeeping, operations, and
fulfillment, then you are limiting your success potential from day one.
You will spend lots of time on non-income generating activities and may
get frustrated and burned-out in a short time.
The real key to
successfully creating wealth outside of a job is to avoid the mistake of
trading one boss for another boss. You need to stop trading your time
for dollars. Stop thinking like a wage slave. Look beyond earned income.
Think Like a Business
There are many problems with
earned income. The biggest one is that you are trading your time for
money. If you stop trading your time, the dollars stop coming. This is a
huge problem if you decide to have a baby, get sick, want to take an
extended vacation, or are ready to retire.
The IRS penalizes
self-employed people who operate as a sole proprietorship with a hefty
self-employment tax. How can you avoid this? Well, I am not an
accountant or CPA, so I am not giving legal or accounting advice, but I
have learned to think like a business. Before you quit your job,
interview local tax advisors to educate yourself on different business
entities and tax strategies. Start thinking big.
Build a Company with Multiple Passive Income Streams
You
need to build a company that works for you. My best advice on how to
quit your job is to build a business that offers multiple streams of
passive income in addition to your earned income. There are so many
exciting ways to design your income portfolio. It requires imagination,
courage and planning.
Structure your business so that your daily
activities are fun and challenging. Identify the things that you don’t
enjoy or are not good at and find other people to do these activities –
outside partners, independent contractors, or employees.
How to Quit Your Job
