I remember dreading coming to work every morning. Like, it had started to become physically draining. Spending 40-plus hours a week contributing to a company that could replace me faster than Trump’s Twitter fingers simply was not cutting it anymore. I felt like my hard work was under-appreciated and there was seldom room for reward and (cough) a salary increase. Having 10 years’ experience in the finance world, I was beyond afraid to quit the comfort of a steady salary and leave the home where I had honed my skills. Starting a business, becoming my own boss sounded like a great idea, but what happens when your best idea frightens you the most?
Many of us sit behind a desk in the comfort of our 9-to-5 set-salary-paying jobs. Waiting for Fridays to arrive and dreading the arrival of Mondays. Everywhere you turn there are constant reminders of your corporate allegiance, whether they’re the countless memes saturating your social media timeline or small talks had during happy hours. We’ve all thought about it, you know … the “Q word.” Quitting a corporate job. Having a really cool business idea is not the determining factor for making such a risky move. Money is ultimately the scariest component we tend to focus on when we think of leaving the security of a job.
There are many articles online that will convince you to take the leap, that your life will never be complete working for someone else, that you will never make as much money as you want unless you become your own boss, but what no one ever tells you is how much money you should save before quitting your corporate job to start your new business. For starters, let’s focus on the word “comfort.” Though in the long run, staying in your comfort zone will hinder growth, just to begin you need to have a certain comfort level where money is concerned. Everyone’s situation is different. Some people may be married with kids, while others may live alone. The important thing is to get fluent quickly with your monthly expenses.
This is when you acknowledge areas you can cut back on. The goal is to invest in you, so you must make some sacrifices. The easiest thing to attack would be unnecessary recurring payments coming directly out of your bank account(s). After this is done, be sure to give yourself a personal goal and/or timeline for exactly when you expect to see monetary gain from your new business venture. This may change throughout your journey, but for now you will use it as a sticker. With this answer, you can make a more solid calculation.
You should cover the basics when you’re calculating your savings goal. Shelter, food, and communications expenses (such as your phone bill) must all be at the top of the list. Realistically, the average adult has more monthly expenses than just these three things, but let’s just treat this as a beginner’s guide. Depending on what industry your new business belongs to, you have to understand there also will be some start-up fees. Some of those start-up fees can be anything from website development to marketing and promotion. Be sure to add these expenses to your savings goal.
Now, depending on the timeline you set forth for yourself, you should be able to take care of your basic needs for that amount of time. The amount you’ll need for those basic needs should be based on your current income and the cost of your needs. Remember, this is mainly to allow yourself some mental comfort with the beginning steps of letting go of your corporate job. The honest and harsh truth is that this decision is the scariest thing in the world. Most people do not reach their saving goal before taking the leap. There is no one-size-fits-all answer for when is the right time monetarily to leave your job. What you have full control over is your level of preparedness.
What you have to keep reminding yourself is that there will be unexpected bumps in the road. A lot can happen without anticipation. When you are no longer a slave to the 9-to-5 workweek, you’ll be free to be able to strategize contingency plans. Keep in mind that the reward is always greater when you invest in yourself.
