At the end of 2013, I handed in my notice for my full-time management position and walked away from traditional employment forever. It was not an easy decision to make and I did struggle with it for many years before I actually took the plunge and quit my job.
Luckily, my husband was fully supportive of my decision and we were able to make the necessary adjustments to our budget to make this a reality for me. It was a huge sacrifice for both of us to give up the income of a well-paying, second job.
One of the things that eased my mind and helped me finally leave my job was evaluating what expenses were directly associated with my employment, what bills I could reduce or eliminate quickly, plus any extra income we could generate.
These are a few of the things we agreed could be changed immediately to help balance our budget on the lower income:
- Get rid of one car.
- Eliminate coffee/eating out for my job.
- No longer needing work clothes.
- Reduce our cable/internet package and get rid of our home phone.
- Allow my husband to work some overtime since we no longer had to worry about not seeing each other because of conflicting work hours.
- Rent out the in-law suite in our basement.
It looked something like this:
Here is the breakdown of how we put $3000 back into our budget every month:
|Car Loan For Second Car||-$400|
|Car Insurance For Second Car||-$150|
|Gas For Second Car||-$400|
|Car Maintenance For Second Car||-$150|
|Coffee/Eating Out At Work||-$200|
|Clothes For Work||-$150|
|Cable/Internet/Home Phone Bill||-$100|
|Extra Overtime Hours From Husband’s Job||+$550|
|TOTAL MONTHLY INCOME SAVED/EARNED||$3000|
The above process eased my mind immensely and I am so thankful that I did quit my job when I did. It allowed me to spend a few years with my mom taking care of her before she passed away in 2016.
Since then, I have been able to start a blog and turn it into a full-time income!
It is absolutely amazing what you can do when you put your mind to it, make a plan and follow through.
If you are thinking about quitting your job and becoming an entrepreneur, please read this post about the qualities you need to possess to successfully transition to non-employment first. It will help you evaluate whether or not you have what it takes to start your own business.
If you are ready to start the process of quitting your job and think money is the only thing standing in your way, here is how to tackle your budget to help you get closer to handing in your final notice.
3 Tips To Help You Find Money In Your Budget
1. Eliminate expenses directly related to job employment
The first items that you need to look at in your budget are all of the expenses directly related to your job employment. These are the things that are incurred monthly in order for you to be employed.
- travel expenses (eg. car or commuter fees)
- clothes (eg. business attire)
- daily expenses (eg. coffees and lunches)
- child care
The first 6 items on my chart above were incurred due to my job. By far, the largest expense was my car. I needed it to get to work. If I was not going to be working anymore, the car would be classified as a luxury and therefore had to go.
We are now a one car family and believe me sometimes it is a huge pain in the butt but a sacrifice that I was willing to make in exchange for my freedom from the corporate world.
2. Other Expenses That Can Be Reduced
Next you have to look at all the items in your budget that are variable and that can be reduced or eliminated. Tackle things that are considered luxury or add-on items first.
- mobile phone
I have listed one example in my chart above as item #7. We reduced our cable/internet bill as well as eliminated the home phone all together.
You may also be able to reduce some of your expenses by taking advantage of discounts. Don’t be embarrassed! It is savvy.
3. Find Alternative Sources Of Income
Probably the most helpful tip on my list is this one. You have to be able to be open to alternative sources of income, especially at the beginning of your unemployment.
Some of you are more than likely considering quitting your job to pursue a dream or build your own business. There are many things that you can do that can fill the gap in your income until your business is generating money.
- rent a room in your house
- contract yourself out
- delivering papers/pizza
In the beginning, I probably did every one of those items on that list. I did deliver pizzas and clean a few houses to bring in some extra money. It really carried us through the lean times.
As well, you will notice item #9 on our list is rental income. We decided to rent out our basement in our house. Though there is the inconvenience of more bodies and sometimes the hassle of being a landlord, but this revenue stream has been extremely lucrative for us.
We were also very fortunate that my husband was able to pick up extra shifts(item #8) at his job to help offset the loss of mine. Because we were both shift workers, we would rarely see each other when we both worked. My husband would turn down extra shifts because it was our day together. Now that I do not work, he is able to pick up extra hours whenever he is asked.
It has been a hard journey at times but I am so glad that I took the leap of faith and quit my job. Becoming a full-time blogger has been a very rewarding experience and I trust that you can see that it is possible to follow your dreams and change your life.
I hope my budget saving chart and 3 tips to find money in your budget can help you achieve your goal of retiring from traditional employment.
If you have any experiences with leaving full-time employment to pursue a dream, please share your successes with us in the comments.