Before you quit your daytime job, there are some things you may want to think about.
The thought of quitting your
daytime job and starting your
own business sounds like a very exciting idea. Well, it is! With all the comforts and luxuries that successful businesses can provide, not to mention the chance to attain financial independence, who wouldn't want to join the business bandwagon! But before you decide to quit your job, let me just share some things I learned from my own journey and from Robert Kiyosaki's book,
The Business School.
For the past few years, I have been having the dream of starting my own business. I have this belief that employment just causes people to work all their life and not really achieve financial independence. I believe that having a business is the only way to financial freedom. Financial freedom, for me, is not really about having lots and lots of money. It's about being free from financial concerns wherein the amount of money flowing into my pocket is greater than the amount of money flowing out. It's about having options on where to spend my time and not be constrained with working for money.
In my mind back then, I can just quit my job and start my own business. But that is a very risky path to take. It is tempting to think that giving your business your full attention by quitting your job will increase your likelihood for success. But that's far from reality! It is good to start your own business but it doesn't mean you have to quit your job, especially while your business is still in its infancy.
People mostly work for 2 types of income -
earned income and
passive income. People who want to attain financial freedom should work for passive income. Earned income refers to the money you receive for the effort you've given (i.e. working for a company, offering professional services). In essence, money is exchanged for your time and effort. On the other hand, passive income refers to money you receive even if you don’t put in any additional effort. There is no magic in passive income! You also have to work for it! However, passive income has the capability to generate money for you after some time even if you are no longer actively working for it. Businesses have the capability to generate passive income if built correctly. Do note that not all businesses can!
If you want financial freedom, work for
PASSIVE INCOME, but don’t just quit your daytime job! Employment is not bad. They are a good source of professional fulfillment and will definitely ensure that you have money coming every month. They can provide the cash to fuel your business. But don’t be content with just being employed either, or just being a professional (ie lawyer, doctor, and the like)!
Here’s a suggestion I got from
The Business School. If you have a daytime job, keep it and do a great job at it! Use your spare time to build your part time business which can generate passive income for you. The passive income generated may be small at the start but that’s okay as long as it has the potential to grow over time. Use the money generated by your passive income to grow your business or to invest in things which appreciate in value (i.e. real estate). Once your passive income goes beyond your financial needs, you can now explore quitting your job. But if you love your job, don't quit! Keep your job! But this time, you’re doing it because you love the work, not because you have to.
As you are getting busy building your pipeline, don't forget to keep your life in balance! You know -- the
5 Fs - Faith, Family, Finance, Fitness, Fun. What is money if you don't have anyone to share it with! Or worse, what is money if your health is already in bad shape! Building passive income is a journey.
Earn to Live! Do NOT Live to Earn!!!Start building your PIPELINE TODAY!!!
So before you quit your daytime job, think about these things first.