What to Know Before You Quit Your Job to Pursue Your Passion
Before you take the leap to leave your job and focus on your side passion, there are important steps you should take to prepare for success. Financial expert Rachel Cruze has the answers to help guide your journey!
Rachel Cruze is a two-time #1 national bestselling author and has been helping people win with money at Ramsey Solutions since 2010. As the host of The Rachel Cruze Show and co-host of Smart Money Happy Hour, Rachel has been inspiring audiences alongside her father, Dave Ramsey, since she was 15!
Rachel offers practical advice for taking a leap of faith into entrepreneurship.
1. Know the Four Walls of a Budget
The Four Walls represent the essential expenses you need to cover to keep your family secure: food, utilities, shelter, and transportation.
When setting up your monthly budget, start by listing your income. Then prioritize giving and saving (depending on the Baby Step you’re on). Afterward, allocate funds for the Four Walls first. Once these are covered, you can budget for other necessities like insurance, debt, and childcare—and finally, discretionary spending like entertainment and dining out.
By focusing on the Four Walls, you can distinguish between needs and wants while keeping your financial priorities in check.
2. Ensure Your New Income Is Consistent
Rachel advises tracking your new income for at least 9 months to identify a consistent pattern. This stability will give you confidence in your ability to sustain your finances before leaving your current job.
3. Build an Emergency Fund
Before making the leap, save 3–6 months’ worth of living expenses. An emergency fund acts as a safety net, giving you peace of mind as you transition into your new venture.
Listen to the podcast episode below for more of Rachel’s tips!
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