Quit Your Job to Pursue Your Passion with Rachel Cruze

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 discovered her passion for public speaking early on as a teenager while watching her dad and hearing his principles, live on less than you make, avoid debt, budget wisely, be generous, and save for the things you want. “Just common-sense principles with money,” she says.

As Rachel got older, she realized that many young people had no idea how to handle money, and she wanted to speak into the next generation about managing finances and getting ahead financially, faster than their parents did. Her journey was shaped by learning to avoid the financial mistakes her parents made and by handling money wisely.

Over time, her message has grown as she’s gotten married and now has three kids. Rachel is passionate about teaching people how to manage their finances effectively and even learning from her journey. “A lot of trial and error, a lot of mistakes,” she confesses.

Related: You’ve Identified a Passion to Monetize Now What?

Rachel’s Practical Advice Before Quitting Your Job to Take the Leap 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. These are the basic blocks of your budget.

When setting up your monthly budget, start by listing your income. Then prioritize giving and saving. 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. Every dollar coming in should be assigned to a category.

By focusing on the Four Walls, you can distinguish between needs and wants while keeping your financial priorities in check.

2. Make Sure Your New Income Is Consistent

Don’t be too quick to leave your job. “I’m probably more conservative,” Rachel says. She suggests tracking your new income for at least nine months to make sure it’s consistent and not just a seasonal spike. Something might seem promising for two or three months, but it could be temporary, or you might even lose passion for it over time.

Having that stability will give you confidence before making the leap. While the nine-month rule isn’t set in stone, Rachel leans toward a cautious approach. She prefers to see people play it safe before leaving a full-time job to pursue something new.

3. Build an Emergency Fund

If you do decide to take that risk sooner rather than later, Rachel recommends saving up an emergency fund of 3-6 months of expenses. This creates some padding so you’re not putting your life in a risky position.

“There are some people I know who say, ‘God told me, God told me He was going to do it,’ and they’re following Him. If there’s a spiritual component, Rachel won’t get in the way of that.” Still, before leaving a job, having 3–6 months’ worth of living expenses in savings acts as a safety net, giving you peace of mind as you transition into your new venture.

4. Start a Side Hustle

“There are a lot of great side hustles that create a lot of money for people,” Rachel says. She recommends starting a side hustle that goes directly to the end user, as these are often more lucrative. When you can go straight to your client without a middleman, you’ll make more money in the long run. Examples include dog sitting, tutoring, house sitting, and piano teaching. Direct-to-client work is a great way to maximize your earnings.

Listen to the podcast episode below for more of Rachel’s tips!