Make Money And Quit Your Job – Is quitting your day job really necessary? Can’t you just keep plodding along and maintaining both?
Grinding out the 9-to-5 hours while pursuing your side hustle is a nice entrepreneur journey at first, but it starts to take a toll as days, months, and years pass by. Holding on to both commitments is a great risk-free strategy in the early days, but it’s not sustainable.
Eventually, you’ll have to make a choice:
Quit your job and go all-in on your side hustle
Ditch the side hustle and go back to focusing on your 9-to-5 hours.
OK, It’s fine, you’re leaving the job.
Steps to take before quitting your job.
Do a financial checkup first.
The safest route is to have another business or job lined up before you quit — and many people can’t do it any other way. But if you plan on jumping without knowing where you’ll land, you should start by figuring out how much it costs you to survive without your job.
Make a list of your nonnegotiable monthly expenses such as:
- car payments,
- other debt,
- child care,
- personal care.
Make a list of what you can do without. Save emergency fund If you don’t already have an emergency fund. You should save at least three to six months’ worth of expenses. Even if your job search doesn’t take that long, that sum doesn’t account for costs you can’t anticipate.
SEE: Make Money On Amazon
Get enough money or all the money you can from your job before quitting it.
Dana Sitar is a personal finance writer who founded Healthy Rich to publish stories that illuminate the diversity of our relationships with work and money. She says it’s important to know what your current employee benefits are before walking away from them.
“Take advantage of resources in your day job before you leave,” Sitar says. “Get access to training and assessments, as well as on-the-job opportunities that can help set up your next move. Even if your current job isn’t everything you want, you can mine for the gold you can take with you when you leave.”
In addition to using paid time off or leave without pay to your advantage, it is also important to understand your retirement savings or pension benefits. After resignation, you may be able to retain some, but others you may need to transfer or forgo.
Use your day job pay to fund your start-up.
Delyanne Barros is a money expert and former employment attorney who has left full-time corporate employment. She is now on track to retire in Portugal by the time she turns 45. When she coaches aspiring entrepreneurs on how to leave their day jobs, she suggests they start their business while still working.
“Think about it as using your day job to fund your own startup,” Barros advises. “You’ll be in a much better position to price yourself and negotiate offers if you’re not stressing about paying your rent or mortgage that month. It’ll give you the power to walk away from deals that may compromise your integrity or values.”
Also, this gives you time to work through the kinks in your business: hiring an accountant, opening a business bank account, making sure your idea is really viable. “Keep all your business expenses separate from your personal expenses,” says Barro. “This will keep you and your accountant from torturing each other during tax season,” she laughs. This separation will also help you know when to time your departure. When the earnings from your business compete with those from your day job, it’s time to prepare a grand exit.
Negotiate for severance pay.
From her own experience, Barros says it is vital to “talk to an employment attorney before quitting and before starting a business. An employment attorney isn’t just for suing an employer. Many will help you negotiate and even ghostwrite documents to help you exit your job in an amicable way,” she says. For those who leave before full retirement age, a lawyer might be able to help secure severance pay.
And for those who plan to start a business or work for another office doing similar work, a lawyer can make sure that you know the rules about intellectual property rights or the fine print on non-compete clauses in your field. This is especially important for folks leaving academia, tech product development, and start-ups. Last, a lawyer certainly can have your back if your employer is likely to hit you with any fees, fines, or penalties for resigning earlier than contractually planned.
Leave the door open.
The day has finally arrived, and the resignation letter is in your hand. Be sure to resign in compliance with any required rules and timeframes. Most employers require at least 30 days notice, but every field is different. It is common for some businesses to ask that you leave immediately, although the company will continue to pay your salary until your resignation date. Be prepared for this, and don’t take offence.
Instead, be gracious. Have thank-you cards ready for the people who you care about most. Share your personal contact info with beloved office mates, and write down any emails or phone numbers you may need in your life after this role. Show gratitude for all the things you learned and were able to do during your time there, and—most of all—try to leave on good terms. You may never want to work there again, but you never know who might. As a mentor or friend, you may still be able to refer others to their dream job. Or you may need a reference. Even entrepreneurs might find themselves in consulting or contracting positions in the same circles.
Have a goal in mind
Everyone chooses to quit their job and go freelance for different reasons. After making a timetable of when you plan on leaving your job, figure out the big goal you want to achieve in that time frame.
Carrie Smith, a freelance expert, did this before leaving her bookkeeping/business account job.
I wanted to replace my day job income while having the freedom and flexibility of taking time off work whenever I wanted. No more asking for permission!
And in three months’ time, she was able to achieve her big goal!
Having a big goal not only helps you keep focused, but it also increases your motivation and achievement.
When you start working for yourself, you’re not going to have someone else tell you what to do. So, by making a big goal and sticking to it early on, it’ll only help give you the skill set you need to succeed once you make the leap into solopreneurship.
Plan it out
By figuring out what your goal is and how long you think it will take to achieve, the next part is laying out the steps you’re going to take to actually reach your end goal.
The first soon-to-be freelancers should incorporate into their plan:
Research what you want to do
The fastest way to achieve your goal – if it’s an income goal – is to leverage your previous work experience.
Alexa Mason, a freelance writer, used her past work history to quickly land quality writing gigs when she first made the transition to solopreneurship.
The first few decent paying freelance blogging jobs I got were insurance related. Not because I loved writing about insurance, but because I was an insurance agent at the time and understood the terminology.
While many freelancers use knowledge acquired from their trained profession to make a smoother transition to freelancing, still others might use their passion to kickstart their freelance journey.
Ashlea Wheeler, a travel blogger and creative, was sick and tired of her receptionist job. She bounced around from one job to the other until she had enough.
She decided to take the reigns and start an Etsy shop selling DIY printables.
Once you figure out what you want to offer, start researching the industry and looking at other businesses in the space to make sure it’s a viable option and that you can make a living from it.
The renowned idea of making money in your spare time has now become a source of generating mainstream revenue and shall continue to rise. A good deal of effort, skill, and passion are required for earning enough profit to achieve success and pay off your bills.
Whatever you plan to be—an entrepreneur, freelancer, artist, film maker, dealer or home maker—you will have to discover yourself before you wave off your job. In order to have a good start, it is wise to know if you have secured any backups or savings and a decent spending plan, that can let you survive through the transitional period, and also, in case a sudden decline in overall income jeopardises your plans.
Any potential side business ideas, even after passing the trial and errors session, can carry certain risks; therefore, it depends on how innovative your idea is. Here are some brainy self-employment ideas to give you a head start in case you have an itch to say goodbye to your 9-to-5 job. These ideas are surely going to provide you financial security and a happier life, but remember, the secret of success hides in the statement: “Make the process your goal and you’ll succeed no matter the ultimate outcome.” —Corbett Barr.
Here are ways to make money and quit your job.
1. Online Marketing
Online marketing is a set of tools and methodologies used for promoting products and services through the internet. Online marketing includes a wider range of marketing elements than traditional business marketing due to the extra channels and marketing mechanisms available on the internet – According to Techopedia.
- Growth in potential
- Reduced expenses
- Elegant communications
- Better control
- Improved customer service
- Competitive advantage
Online marketing is also known as internet marketing, web marketing, or digital marketing. It includes several branches such as social media marketing (SMM), search engine optimization (SEO), pay-per-click advertising (PPC), and search engine marketing (SEM).
Online marketing combines the internet’s creative and technical tools, including design, development, sales and advertising, while focusing on the following primary business models:
- Lead-based websites.
- Affiliate marketing.
- Local search.
- Social media.
Internet marketing or digital marketing is an attractive yet easy way to market or sell various products and services merely with the use of digital world assets, entailing social media, search engine marketing, or even online advertisement.
Create a professional account on social media websites and start offering your services in a way that attracts major brands, big companies, and known organisations. The more followers you will have, the greater the chance to earn will be.
2. Investing in the Stock Market
Investing is an act of setting aside money while you are busy with life and have that money work for you so that you can fully reap the rewards of your labour in the future.
Investing in stocks means buying shares of ownership in a public company. Those small shares are known as the company’s stock, and by investing in that stock, you’re hoping the company grows and performs well over time. When that happens, your shares may become more valuable, and other investors may be willing to buy them from you for more than you paid for them. That means you could earn a profit if you decide to sell them.
Historically, the stock market has delivered generous returns to investors over time, but it also goes down, presenting investors with the possibility of both profits and loss, for risk and return.
Different Stock Types by spendmenot.com
The different types of stocks each have their own benefits and drawbacks. That is why you should learn more about them before investing your money.
Let’s take a closer look at the types of stock you can put money into and the way it all works.
The most popular type of stock is common stock. It’s what most people invest in, and it’s a reliable source of income. These shares of stock represent only partial ownership in a company. In theory, common shares offer unlimited potential.
However, these stock types also come with the risk of losing the entire investment if the company folds and has no assets left.
Should the company dissolve, the shareholders have to hope there is enough money left for them. They will receive part of any remaining assets’ equity.
This type of stock is slightly different in that it gives preferred shareholders priority over common shareholders. This means that if the company dissolves, these shareholders will be on top of the list to get back some of their money.
A preferred shareholder may also receive dividend payments before the common shareholders do. As such, preferred stocks are closer in investment to fixed income bond investment than to standard stock investment.
Finding companies that sell preferred stock is a bit more difficult because the demand for common stock is much higher.
Stocks can be categorised by location as well. To distinguish stocks from each other in this manner, the investor just has to look at where the company’s headquarters are located.
However, the geographical category isn’t always clear. A company can be located within the United States but does business with foreign markets, for example.
Domestic US stocks can be identified by their symbol. Stock symbols usually consist of three to five letters. For example, Netflix’s symbol on NASDAQ (National Association of Securities Dealers Automated Quotation system) is NFLX.
International stocks are found on the international stock market. Here, international companies sell stocks from their domestic companies. Investors can buy stocks from various markets such as the American market, the Japanese market, the British market, and more.
When investing in this type of stock trading, the value of stocks can fluctuate quite a lot. Investors can sometimes earn higher returns because of currency differences. However, international stocks can be riskier because of these differences.
These types of stocks can provide the investor with a consistent return but can be just as risky as any other stock type.
There are many stocks classes that payout dividend payments to shareholders. The payouts are made regularly, and as such, dividend stocks are seen as more valuable.
This kind of stock is very popular, especially among investors who want to see consistent returns that feel more secure.
However, it should be noted that not all dividend stocks pay out significant amounts. A share can pay only $0.01 and still qualify as a dividend stock company.
Not all companies offer dividend stocks, but non-dividend stocks can still be suitable for investments. Some of the world’s biggest companies do not pay dividends.
Although it can seem pointless to invest in these types of stocks if there will be no payout, it can be highly profitable. When a company does not pay out dividends, more money can be pushed back into the company.
As a result, the stocks’ value can rise, so selling will see the investor with more profit.
Income stocks are actually the same as dividend stocks as they pay out in the form of dividends.
However, income stocks can also refer to stocks from companies with more mature business models. These companies don’t have as many long-term opportunities for growth and are suitable for conservative investors.
This type of stock is very popular among investors who are retired or close to retiring.
These stocks are somewhat different from standard ones and have to meet specific criteria. ESG (Environmental, Social, and Governance) stocks are bought by investors who are less concerned with profit and more with the company’s environmental impact.
Of course, positive returns are necessary as well, but they often take the back seat. An example of investment in this type of stock is when an investor buys stock from a company that aims to boost sustainable agriculture.
The investor will still receive income, but the most critical factor is the good that the company does for its environment and community.
Safe stocks have share prices that make reasonably small up and down movements on the stock market. They can also be called low-volatility stocks and operate in industries not as affected by changes in economic conditions.
Companies with these types of stocks do often pay out dividends, which can make up for falling share prices if times get tough.
Small-Cap, Mid-Cap, and Large-Cap Stocks
Stocks can be categorised by the total equity of all their shares, and this is referred to as market capitalization. Companies can fall into one of three related categories: small-cap, mid-cap, and large-cap.
Generally, small-cap stocks come from companies with market caps that fall below $2 billion. They are viewed as being riskier than large-cap stocks but come with much higher growth potential.
Companies with market caps between $10 billion and $2 billion fall into the mid-cap category. Like their small-cap counterparts, they are riskier investments but offer more capacity for future growth.
Any company with a market capitalization of $10 billion and above falls under the large-cap category. These stock types are considered safer and more on the conservative side.
Growth stocks are found with companies that are showing a quick rise in their sales and profits. Investors in this kind of stock will often look out for growing companies that have inexpensive shares.
These stocks are riskier, but the potential returns are much higher than with many other stocks. Successful growth stocks come from businesses that tap into high-demand industries.
However, the competition can be fierce, and the value of these stocks can be disrupted quite easily.
Value stocks are some of the less-risky investment options. Investors buy this class of stocks from well-known, mature companies that have already grown into leaders in their respective industries.
These companies don’t have much more room for growth as they are already at the top and are more reliable. As such, they are good choices when looking for dependable investments.
Cyclical stocks are stocks from businesses in industries that sell products or services in demand when the economy performs well. This can include airlines, restaurants, hotels, and high-end retailers.
When people stop supporting these companies, their stock equity decreases, so these stock types can be quite risky.
As the name suggests, non-cyclical stocks (also called defensive or secular stocks) are from companies that do not have such fluctuations in demand.
Grocery stores are an example of a company with non-cyclical stocks because the shares will perform well regardless of the state of the economy.
This is one of the stock categories where judgments are made based on perceived quality. Penny stocks fall into this category. They come from low-quality companies with low stock prices — as little as $1 per share.
Penny stocks have speculative business models, which are seen as highly risky and can wipe out an investor’s entire investment very easily.
Companies that recently went public have IPO (Initial Public Offering) stocks. This is basically a fundraising method for new companies. Compared to other types of stock trading, IPO investing can be unstable but also very profitable.
IPOs can often create a lot of excitement amongst investors who want to invest in new companies. It’s important to note that the price of shares on offer is determined by investment banks.
Blue-chip stocks are often described as the ‘cream of the crop’ in the investment and business world. These stocks are available from companies that are industry leaders with strong, reliable reputations. Like penny stocks, blue-chip stocks are judged on perceived quality.
Returns from blue-chip stocks aren’t necessarily very high, but they are stable. As a result, these stocks are popular with investors who don’t like taking risks.
Stock Investing Pros and Cons
- It’s easy to buy
- Don’t need a lot of money to start investing
- Income from price appreciation and dividends
- Grow with economy
- Stay ahead of inflation
- It takes time to research
- It’s taxes on profitable stock sales
- It has emotional ups and downs
- It’s risk
- The stockholders of broke companies get paid last
- Competing with institutional and professional investors
According to research, Investing in the stock market may seem quite simple when it comes to maximising returns. Investing in bank stocks and the stock exchange is relatively easy and safe for earning a profit, and the price-to-book ratios are normally very low.
Investment in major banks is safe as well, as these banks are too crucial for the government, so the chances of them failing are extremely low. This means that your investment will likely remain safe. You can expect rising profits and good price-earning ratios. Investing in the stock exchange, though it requires a bit of skill, can very effectively help you gain a profit, if you know how to move your positions.
3. Gig Economy
A gig economy is a free market system in which temporary positions are common and organisations hire independent workers for short-term commitments. The term “gig” is a slang word for a job that lasts a specified period of time. Traditionally, the term was used by musicians to define a performance engagement.
Examples of gig workers include freelancers, independent contractors, project-based workers and temporary or part-time hires. Gig apps and digital technology are often used to connect customers and gig workers.
The gig economy is a recent trend, with a number of factors contributing to its rise. The two most important factors are the following:
- The workforce has become more mobile.
- Work is increasingly done remotely via digital platforms.
As a result, jobs and locations are being decoupled. That means freelancers can take a job or project with an employer anywhere in the world. At the same time, employers can select the best person for a specific project from a larger pool than is available in any given area.
Who is part of the gig economy?
The gig economy is made up of companies, workers and consumers. All gig workers aren’t the same. They include the following:
- freelancers who get paid per task;
- independent contractors who perform work and get paid on a contract-to-contract basis;
- project-based workers who get paid by the project;
- temporary hires who are employed for a fixed amount of time; and
- part-time workers who work less than full-time hours.
Common gig economy jobs and industries
Gig economy jobs include familiar positions found in diverse industries, including the following:
- Accounting and finance: Independent consultants and mortgage representatives.
- Administration: Administrative assistants.
- Art and design: Musicians or graphic designers.
- Construction: Carpenters and other construction trades.
- Education: Substitute instructors and tutors.
- Freelance writing: Content writers and copywriter jobs.
- Information technology: Various jobs, such as information security engineers and network analysts.
- Media and communications: Technical writers and photographers.
- Project management: Project or office manager jobs.
- Software development: DevOps engineers and user experience.
- Transportation: Ride-hailing drivers.
Gig economy, the Internet is one of the blooming economic engines of our time which has fulfilled the ultimate specialised consumer demands in lesser time and with much more efficiency.
One can easily afford his living by relying on what once was only a known feature of web developing, photography, or journalism freelancing. Not confined to high computer or English skill, the Gig economy has now expanded amazingly in all other sectors of life. Working as a taxi driver for Uber or selling your art online can help anyone earn reliable income.
4. Franchise and Multi-Level Marketing Opportunities
Multi Level Marketing Vs. Franchising By Stacy Zeiger
Franchising and Multi-Level Marketing provide two ways for individuals to start a small business. Both types of businesses offer the opportunity to work with an established brand and business model. When choosing which type of business to pursue, research multiple multilevel companies and franchises to see how they operate. Consider upfront costs and your personality when choosing which direction to take.
What is Franchising?
Franchising involves purchasing a unit from an already established company. When you purchase a franchise, you have access to the company’s business model, advertising and product. In addition, you often receive support and training from the company. In addition to the franchise purchase cost, most franchises require royalty payments for using their brand name and resources. Franchise opportunities exist in multiple industries, including fast food, automotive care, salon services, travel and home-based cleaning services.
Pros and Cons of Franchising
Franchises typically have high start-up costs, although the exact amount varies by company. In addition, franchise owners must adhere to the company’s business practices and standards. Instead of focusing on growing your business, as a franchise owner you must also focus on growing the brand. Gaining access to a brand and a company’s marketing techniques means you also tap into a company’s loyal customer base and familiarity in the market. The building of the business has already been done and you have the opportunity to run a successful business from the beginning, rather than building a business with multi level marketing.
What is Multilevel Franchising?
Multi Level marketing involves recruiting individuals to work for a company. In this type of marketing, you generate income from the products you sell and from the sales of those you recruit. Other terms for multilevel marketing include affiliate marketing, pyramid marketing and network marketing. Individuals with strong people skills and outgoing personalities may fare well with multi level marketing because it involves a lot of one-on-one selling and presentations of the product.
Pros and Cons of Multi Level Marketing
Multi Level marketing is often connected to pyramid schemes. Because multi level marketing focuses equally on selling products and recruiting new salespeople, thereby offering legitimate ways for individuals to earn an income without recruiting new members, it is not a pyramid scheme. Compared to a franchise, multi level marketing requires minimal upfront costs and allows you to schedule your time flexibly. However, even though you are often working with an established product, with access to the company’s promotional materials, it may be difficult to generate income if you do not have a lot of connections. Additionally, some multilevel marketing companies require a minimum purchase each month, which may result in higher costs if you do not sell enough merchandise.
If you have a bit of capital, investing in the world of franchise companies is a very sound idea. The franchise businesses are all around us, from McDonald’s to 7-Eleven stores. Owning a franchise of any business can be a highly profitable work, especially if you have a passion for the type of franchise you purchase.
Many of the kinks have been sorted out as the brand name has already been established and a consistent customer following can be expected in most of the cases. The parent companies also offer their valued support, including marketing strategies, technical help and sourcing.
On the other hand, MLM or Multi-Level Marketing can prove to be an effective source of income, especially in the times of cut-backs or when launching a new business. However MLM does have its fair share of disadvantages, including neglecting the customers and over-selling the idea.
5. Online Teaching
What is Online Teaching?
Online teaching is the process of educating others via the internet. Various methods can be used, such as one-on-one video calls, group video calls, and webinars.
You can start teaching from any location (home, coffee shop, co-working space) and enrol students from various backgrounds and geographical areas.
Virtually any topic or skill can be taught online, but popular subjects include languages, maths, sciences, and business.
How Online Teaching Works.
To teach online, you need to be reasonably comfortable with computers and the internet.
This is because interactions with students will take place through messaging platforms, email, and video calls. Also, many online teachers need to create digital resources to share with their students, such as PowerPoint presentations, videos, audio lectures, and pdf guides.
The best thing about teaching online is that it’s accessible to so many people. As the education expert Elliot Masie said, “We need to bring learning to people instead of people to learning.”
So, how much can you earn teaching online?
How much you get paid depends on several factors, such as which online teaching platform you use and how experienced you are.
That said, according to PayScale, most people teaching online earn between $10.16 and $40.31 per hour.
The most important thing is to identify and pick the best idea that you feel most passionate about and do with it.