The 10 Steps I Took to Quit My Job to Start My Business
If you are a regular reader of Monday Night Finance, you know that we often talk about side hustles. A side hustle is a way to earn income outside of your traditional 9-5 job. The side hustle could take many forms, from driving Uber to starting a blog or other online business. Side hustles can be a way to pay for some unexpected expenses that come up. Or if your income from your day job covers your expenses, you can side hustle to pay down debt or grow your savings/investments. If you are a successful side hustler, your side hustle might grow big enough that it could cover your living expenses or maybe even surpass your income from your day job. In that case, you might want to quit your day job and move into self-employment. If you’re thinking about quitting your day job for your side hustle, you’ll want to check out this case study.
One year ago I decided to quit my job and work on my small business full-time. After 15 years of working as an event marketing professional, I decided that I was ready for a new chapter in my life. ~Andy Hill, Marriage, Kids, and Money
Andy Hill has run the Marriage, Kids, and Money podcast since 2016. In 2020, he decided to step away from his 6-figure marketing job to focus on his online business full time. In this article, Andy talks about the steps he took to make this the reality. The first steps involve laying a solid financial foundation so that he can take risks. Their family has no debt and they have paid off their entire mortgage. They also have a solid plan for retirement investments, with plenty of money in their IRAs, 401(k)s, and money in a taxable account from an employee stock options plan. Beyond that, they spent quite a bit of time researching healthcare options. (They get their health insurance through the ACA exchange.) Finally, they are in-tune with their budget (Interested in budgeting? Try CountAbout) have a year’s worth of cash in a high interest savings account to help them in case they hit a rough patch.
5 Financial Goals To Prosper In 2021
Did you reach your financial goals in 2020? Chances are you didn’t; a recent study stated that over 50% of people did not reach their financial goals in 2020. Now that 2020 is in the rearview mirror, it’s time to look to the future. Did you set financial goals for 2021? Do you have a plan for how you are going to reach those goals?
Spend some time reviewing hits and misses from 2020. Hits are financials goals you met or exceeded, and misses are areas where you need improvement. Then move on with a targeted financial plan using the following 5 smart financial goals for 2021. ~Beyond Pennies
The first step is to take stock of your finances. Do you have credit card debt? If so, paying that off should be a top priority. Can you set a course to pay off your credit card debt this year? You may want to spend some time with a budgeting app (like CountAbout) to help you look at your spending and saving patterns. Every little bit you can find to put towards paying off credit cards will save you money over time in reduced interest payments. Already free of credit card debt? Then it’s time to set savings and investing goals. Can you set an amount of money that you want to save by the end of 2021? Once you’re regularly setting money aside, you’ll want to invest the money so that inflation won’t erode its value. If you’re unsure of where to start with investments, the article suggests some good resources for beginners. Finally, if you want to supercharge your savings goals for 2021, you might want to consider starting a side hustle. This extra income can really help accelerate wealth.
How To Invest In Real Estate With Little Or No Money
Real estate can be a great way to build wealth. Theodore Roosevelt said, “Everyone who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.” These words are still true today. Unfortunately, most forms of real estate investing require a large initial investment. For example, rental properties typically require a 25%-30% down payment. If you don’t have access to that amount of cash (or you don’t want to tie up all your assets in a single investment) it might seem like you can never invest in real estate. However, you can still invest in real estate with limited capital if you know the right techniques.
Investing in real estate usually requires money. Typically, you need at least a 25% down payment for buying a rental property. ~Financial Freedom Countdown
This article by Financial Freedom Countdown presents 20 different ways to invest in real estate with little to no money. No matter what your financial situation is, there will surely be one opportunity that would fit you. If you are handy and interested in flipping houses, the article presents about five different ways to get short term financing to flip the house, including living in the house while you flip it. If you’re not handy, maybe you’d like to run an AirBnb or have a long term lease to rent out rooms in your own house (i.e. house-hacking). If you feel more comfortable with pooling money with other people, you could invest in a Real Estate Investment Trust (REIT) or crowd-funded real estate. Check out the article for the perfect fit for your situation.
