For those of you starting your own business, you might be wondering how to quit your job. Or more importantly, you will want to have the details figured out and a plan to know when it is possible to quit your job and go fire your boss!
Simply put, you will need to have a good understanding of your financial situation with the new business.
The first thing you will want to look at when determining if you have enough money to quit your job is how much you need to live comfortably to pay your bills and your financial obligations.
Take out a sheet of paper and add up all of your monthly bills, including everything from housing to transportation, and also include your food and miscellaneous expenses. If you haven’t done this in awhile, it is also a good idea to look at your financial situation and re-audit your lifestyle!
For example, (and this is obviously a simplified example – but you get the point) here is a sample monthly expenses breakdown:
- Mortgage or Rent: $750
- Auto payments: $300
- Food: $150
- Entertainment: $200
- Utilities: $75
So if you want go all-out and learn how to quit your job, you know that you will need about $1,600-$2,000 per month as cash-in-hand income to be able to do so. I gave some extra cushion there, as you will then be able to put it into your traffic and business expenses. Or perhaps you can still save it using this example.
Monthly Income for Your Business
The second thing you want to do is assess how much take home pay you are bringing in after your expenses. For instance, if you have an online business, take your net profits after deducting all of your business expenses and advertising/marketing costs.
After you get both of these figures, take the Monthly Expenses number and divide by how many days there are in a month – say 30 for example. Then divide your monthly income by 30 to get your daily income number.
“Learning the math of your finances is integral in figuring out how to quit your job.”
From here, you can determine how much income you need to be hitting each month in order to quit your job! This is exciting!
Many people get overwhelmed and think that they never will have enough money to quit their jobs; however the number is often lower than most people think. Also, it is a good idea to give yourself a little cushion in the event of emergencies and savings, etc.
Above in the video, I explain my own personal situation and how I uncovered my personal business expenses.
Sit down today and figure this stuff out. As I mentioned earlier, even if you haven’t started your business yet, this will give you a lot of inspiration to get started and focus on your business goals!
>> Nate Rio earns a full time income leveraging the internet and coaching people to do the same. Want some help getting an online business started? Visit PartnerWithNateRio.com and Download Nate’s Free Guide and Watch the Training videos on how to use the internet to make a full-time income online!
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