Money Facts You Should Consider Before Quitting Your 9 To 5 Job
Many of us must have fantasized about leaving the 9-to-5 grind in order to be independent. The beauty of life can surely be enjoyed when you are not bound by the rules of others and are free to transform your idea into something meaningful and big.
The desire to go beyond what is known is part of human nature, and it is this spirit that gets us going. However, if you decide to take the road less traveled, there are some financial considerations you should be aware of.?
The first thing you need to ask yourself is, "Why do you want to quit your job?" It is easy to get influenced by someone else’s dream, as it looks glamorous. But you should have a plan before you decide to make the move. And the plan should be concrete enough to help you fight through the situations waiting for you ahead.
Let’s take a look at all the financial points you should consider before quitting your job.
That depends on whether you have a plan. Not just a strategy, but an unbiased analysis of your current financial standing and how things might pan out in the future.
Put the numbers down on paper before you take the big step of quitting your job. When you have a clear understanding of your financial health, you can actually go into the decision with more confidence and clarity.
Questions like "How will you manage your day-to-day expenses?" "What if you face an emergency?" “How you will provide for those dependent on you?” are crucial, and you should have clear answers to them before you quit your job.
Debts are not the kind of companions we want to walk the road with. So if you are dealing with any kind of debt, pay it off before you quit your job.
Assess the minimum amount you need to clear all your existing debts. Then, figure out a plan for how you will pay them off. You can always look for side income along with your day job to make ends meet fast and easy.
Also, if you are looking to quit your job to start your own business, why not start it now as a side hustle? Not only will you find out great insights, but you could also make some money out of it.
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This is essential for those who are looking to step out of the regular and do something different. Learning how to spend is an art, and mastering it will help you save more for the future. A lifestyle change will seriously give you some benefits when it comes to finances. Go a few months without any entertainment subscriptions, avoid eating out, and cut your shopping list. These might seem like small changes, but the impact they have on your wallet is rewarding.
Once you have decided to make the move, it’s time to analyze how much you have in your savings and how much of it you could use to get through the initial days. A savings account is always one of the handiest tools and a good way to get liquid money when you need it. Use the funds saved in a FD or SIP investments.
While you should let your savings help you, try not to take a slice of your emergency fund; you will need it another day.
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A good way to venture into commercial possibilities is to look for a different professional role. It’s time to nurture your talent and hobbies and make them earn you money.
Your talent is a gift, and when you decide to share it with others, you expand your skill set while also earning money. When you put your talent or hobby to work, they provide you with the financial cushioning you need to leave your 9 to 5 schedule without worrying too much about how you will make ends meet.
Reach out and talk to people who have already walked the path. You might come across some valuable tips on how to manage your finances while hustling for your thing. Apart from financial tips, you might also get some motivation and positive vibes. Someone who has already been in your shoes will have experience, and you can use it for good.
Before you go ahead and put down your papers, make sure to keep a five- to six-month income and expense plan ready.
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.