How to Quit Your Job

How to Quit Your Job

by: E.SAUNDERS

Do you to know without ending up on the street? In a nutshell, you need to avoid
the self-employment trap, think like a business, and create multiple passive
revenue streams.

Avoid the Self-Employment Trap

If you quit your job and hang up your own shingle, you might work harder for
less money. You may enjoy working from home or choosing your own clients, but
you might end up living from client to client without building any real wealth.
Many self-employed people I know suffer from feast or famine. They spend lots of
time and money marketing their services and get lots of clients. They get really
busy doing the work and stop marketing and then their prospective client pool
dries up.

If you set up your business so that you do everything - marketing, sales,
bookkeeping, operations, and fulfillment, then you are limiting your success
potential from day one. You will spend lots of time on non-income generating
activities and may get frustrated and burned-out in a short time.

The real key to successfully creating wealth outside of a job is to avoid the
mistake of trading one boss for another boss. You need to stop trading your time
for dollars. Stop thinking like a wage slave. Look beyond earned income.

Think Like a Business

There are many problems with earned income. The biggest one is that you are
trading your time for money. If you stop trading your time, the dollars stop
coming. This is a huge problem if you decide to have a baby, get sick, want to
take an extended vacation, or are ready to retire.

The IRS penalizes self-employed people who operate as a sole proprietorship with
a hefty self-employment tax. How can you avoid this? Well, I am not an
accountant or CPA, so I am not giving legal or accounting advice, but I have
learned to think like a business. Before you quit your job, interview local tax
advisors to educate yourself on different business entities and tax strategies.
Start thinking big.

Build a Company with Multiple Passive Income Streams

You need to build a company that works for you. My best advice on how to quit
your job is to build a business that offers multiple streams of passive income
in addition to your earned income. There are so many exciting ways to design
your income portfolio. It requires imagination, courage and planning.

Structure your business so that your daily activities are fun and challenging.
Identify the things that you don’t enjoy or are not good at and find other
people to do these activities – outside partners, independent contractors, or
employees.

How to Quit Your Job

My advice for how to quit your job is to avoid thinking that you have to do
everything yourself to make your new enterprise run. Think big! Set up systems
and structures that work for you so you don’t have to work so hard. Incorporate
and make the tax system work for you. Design your work around multiple passive
income streams to support your active work. And finally, have fun!