General Knowledge
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General Knowledge

How To Develop A Plan For Quitting Your 9–5 Job

The 5 most important things you should know on the way from salaried employment to self-employment.

Photo by Jason Hogan on Unsplash

Let’s say it like it is. For many people with regular jobs, work-life won’t improve in 2022.

If you want to quit your 9–5 and do your own thing then this is the right article for you! It will show you how to develop a plan to make the transition possible.

Let’s go!

Setting The Stage

There are many reasons to get out of the 9–5 grind. For me, it was having to spend hours in commute every day. But there also are troublesome bosses and/or colleagues. Too much work and stress. Or simply the fact that you can’t reach your full potential when you use all your time and energy to do things for another person’s business.

But quitting your regular job to do your own thing is not easy. And much depends on your personal circumstances.

  • What industry do you work in?
  • How much work experience do you have?
  • What knowledge and skills do you bring with you to become self-employed?

All of this makes it difficult to give specific advice. For this reason, the following steps are kept very general. Still, they should give you a clear idea of what you need to consider when you decide to step into self-employment.

I also assume that you already have a reasonably concrete idea for how you want to earn a living after quitting your 9–5 job.

1. Analyze Your Actual State And Your Target State

Dreaming about quitting your sucky job is nice.

But seriously. What kind of life do you want to have as someone who is self-employed?

Make a list of all the things you do not like about your current job. Then write down how you want your life to be after you became self-employed. What improvements do you see?

  • Do you want to work less?
  • Do you want to develop and execute your own ideas?
  • Do you want to have more time to spend with your family?
  • Do you want to live in a specific city or area?
  • Do you want to be able to afford certain things such as a nice car or frequent vacations abroad?

Have as clear an idea as possible of what your self-employed life should look like. This is how you will measure the success of your next steps.

Click me.

2. Carefully Plan The Process of Quitting Your 9–5 And How You Will Transition Into Your New Role

This step assumes that you are still in your regular job but planning to become self-employed.

Don’t just quit. Plan every step carefully.

Ask yourself questions such as the following:

  • When would be a good time to quit?
  • Is there enough time to sort out things such as taxes and insurances?
  • Can you immediately start working self-employed?
  • Or do you need to make preparations first?

You should set milestones for when you want to achieve/sort out/organize all things related to this.

For example, 2 weeks for sorting out all the tax stuff, 1 month to quit your job in the best case and 3 months in the worst case, etc.

3. Coordinate The Coming Change With Your Surroundings

Professional changes usually also have a strong impact on family life.

It is therefore important to plan and communicate the new situation in advance so that family members can prepare for it.

  • If, for example, you will no longer work in the office in the future, but rather at home, you have to create the right conditions for this.
  • Your career change may also have an impact on other family aspects such as childcare or household chores.

4. Get An Overview Of Your Expenses And Cut Them Down

(Almost) nothing in life is for free.

You can have the nicest dreams about how you imagine your life after your 9–5 job. However, if you do not have your finances in order, you will not get beyond dreaming.

That’s because transitioning from a fixed job into self-employment in most cases requires that you can do without your previous full income for a certain period of time.

This means knowing where your money goes and (if possible) cutting expenses.

Here’s what you should do. Look at the expenses for the past 12 months and then split them into essential (rent, food, transport, etc.) and non-essential expenses (entertainment, vacations, etc.).

In any way, you should try to cut non-essential stuff. If your plans for your post 9–5 life allow it, also try to see if you can reduce some essential expenses (f.e. renting a cheaper place or owning a less expensive car). However, Don’t sacrifice too much on life quality. Maintaining your physical and mental health should always be a top priority. For example, you should eat healthy instead of eating instant noodles just because you need to save money.

Btw, here’s an article I wrote about economic macro trends for the 2020s and beyond. It offers a good summary of why it’s a good idea to cut down expenses in general. You should go and check it out!

5. Establish Multiple Streams Of Active And Passive Income

However, you want to earn your money in self-employment — you should not be satisfied with a single source of income. The reason: If for whatever reason your main job doesn’t go well, you still have other sources of income as a backup.

Here, a distinction must be made between active and passive income.

  • Active income (coming from your main job) is the money that you earn through active, regular work.
  • Passive income is money that you earn without having to work regularly. Passive income doesn’t need to be monthly. But your goal should be to grow your passive income streams over time. There are plenty of opportunities. For example, invest in assets that can generate a reasonable return.

Here is an overview of 10 ways ow you can earn money with Crypto — short of simply buying and trading. Most of the options I mentioned offer passive income streams:

Final Words

As I said, the points above provide a general overview when it comes to changing from a 9–5 job to self-employment.

What you should take away from this article is that a good plan is the foundation for a successful role change.

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General Knowldege, Art, Science, Technology, Politic, History, Music, Drawing, Finance, Sociology, Psychology

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Ren & Heinrich

Ren & Heinrich

Garbage man turned millionaire 🗑️➡️💰 Teaching you how to research & invest in crypto 🔬🔑📈 Follow me on Twitter: @ren_heinrich

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