Quit job? My plan... (employment, debt, consulting, 401k)
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To sum it up, I have much higher ambitions in my life. I currently work as a software developer making $70K. I have a B.S. degree and over 4 years of experience. I don't fit in the office type environment and prefer to do freelancing/contract work in my field instead. For the last few months, I have been getting my feet wet with this idea and have pursued this type of work during the evenings and weekends. Last month, by searching for this work on a part time basis, I ended up making close to $500. Right now, I have 3 potential freelancing projects lined up. All of them will last at the very least a few weeks if not longer term. Some of the clients insisted that more work would follow after the project.
So, having said all of that, I analyzed my financial situation and figured that I have about a year's worth of savings to live off of while I pursue the type of work I desire to do. This is after factoring in unexpected expenses, paying for my own health care, and contributing to my own IRA. Currently, I have $24K in savings (not counting my 401K). Right now, my monthly expenses add up to about $1650, but I can dramatically reduce them by moving in to a cheaper apartment (down to $900). So, realistically, I would probably be paying close to $1000 a month if I spend extremely conservatively (which I already do anyway). I have absolutely no debt to pay (I paid off my car already). So, I figure with the new circumstances, I would have a year to live off of. Maybe more if I am already going to be making at least some income initially after quitting.
Also, I am not married and have no kids to take care of. Just me. I just know I would be so much happier not going to a stressful and stiff corporate environment every morning. I would free up 40 hours of my time (excluding the commute) and I could really start working on achieving a bigger client base. My goals are to build up a client base, start focusing on taking care of myself again both physically and mentally, and just getting out more and experiencing life. I've been putting off these things for a very long time and I believe it's because of the soul-draining job I have.
Is there any way you could possibly get yourself laid off so you'd have unemployment income while trying this new venture. If not that, can you line up a part time job -- maybe just 2 days a week -- to supplement yourself with at least a core cash flow? Have you talked to contract companies about part time work? That way you would have free time to develop your business, too.
Is there any way you could possibly get yourself laid off so you'd have unemployment income while trying this new venture. If not that, can you line up a part time job -- maybe just 2 days a week -- to supplement yourself with at least a core cash flow? Have you talked to contract companies about part time work? That way you would have free time to develop your business, too.
Probably not. And yes I had the same idea. Have some sort of core cash flow even if it's not that big. That's why I'm also look for part time work in the field.
Probably not. And yes I had the same idea. Have some sort of core cash flow even if it's not that big. That's why I'm also look for part time work in the field.
If you can get a supplementary income source that would at least pay your rent I think you should give it a shot. I have worked for myself for 8 years now and have had some great years. I have never earned the same as in my corporate jobs but I have also worked less hours and been able to control my schedule and life. One exception I have over my counterparts who do the same kinds of consulting work as I do.... They spend as much time marketing their services and developing proposals (which of course does not pay). I do none of that. I would rather work full time than be on a continuous marketing effort. I charge about 30 percent less than my counterparts and have two anchor clients that keep me engaged about ten months out of each year. I also help my counterparts on their projects when they get in a bind. However I began my practice after 25 plus years and a few higher level jobs in my field. So you will have a different situation. You will need to develop a marketing plan that includes networking. Many of us who enjoy working for ourselves are terrible at self promoting. If I were young and wanted to do this, I'd try to find or hire a mentor. I would also join some professional groups....some specific to my specialty and maybe a couple of others to help me get in the groove of self employment. Groups like Toastmasters or just general networking groups you might find on meet up.com
If you can get a supplementary income source that would at least pay your rent I think you should give it a shot. I have worked for myself for 8 years now and have had some great years. I have never earned the same as in my corporate jobs but I have also worked less hours and been able to control my schedule and life. One exception I have over my counterparts who do the same kinds of consulting work as I do.... They spend as much time marketing their services and developing proposals (which of course does not pay). I do none of that. I would rather work full time than be on a continuous marketing effort. I charge about 30 percent less than my counterparts and have two anchor clients that keep me engaged about ten months out of each year. I also help my counterparts on their projects when they get in a bind. However I began my practice after 25 plus years and a few higher level jobs in my field. So you will have a different situation. You will need to develop a marketing plan that includes networking. Many of us who enjoy working for ourselves are terrible at self promoting. If I were young and wanted to do this, I'd try to find or hire a mentor. I would also join some professional groups....some specific to my specialty and maybe a couple of others to help me get in the groove of self employment. Groups like Toastmasters or just general networking groups you might find on meet up.com
You're absolutely right. I figure that if I can win at least a few part time gigs, then it's my ticket out and start working really hard with the extra time I'll have towards a bigger portfolio and networking.
Personally I wouldn't jump ship on a 70K a year job unless you have something else lined up. We're all very ambitious and want to advance in our fields but that's a a lot of money to walk away from.
I would start working on obtaining clients. You want to make at least enough to money each month so you're not dipping into savings. Take vacations days to attend client meeting etc... Once you have a few clients setup then walk away from the job..
To sum it up, I have much higher ambitions in my life. I currently work as a software developer making $70K. I have a B.S. degree and over 4 years of experience. I don't fit in the office type environment and prefer to do freelancing/contract work in my field instead. For the last few months, I have been getting my feet wet with this idea and have pursued this type of work during the evenings and weekends. Last month, by searching for this work on a part time basis, I ended up making close to $500. Right now, I have 3 potential freelancing projects lined up. All of them will last at the very least a few weeks if not longer term. Some of the clients insisted that more work would follow after the project.
So, having said all of that, I analyzed my financial situation and figured that I have about a year's worth of savings to live off of while I pursue the type of work I desire to do. This is after factoring in unexpected expenses, paying for my own health care, and contributing to my own IRA. Currently, I have $24K in savings (not counting my 401K). Right now, my monthly expenses add up to about $1650, but I can dramatically reduce them by moving in to a cheaper apartment (down to $900). So, realistically, I would probably be paying close to $1000 a month if I spend extremely conservatively (which I already do anyway). I have absolutely no debt to pay (I paid off my car already). So, I figure with the new circumstances, I would have a year to live off of. Maybe more if I am already going to be making at least some income initially after quitting.
Also, I am not married and have no kids to take care of. Just me. I just know I would be so much happier not going to a stressful and stiff corporate environment every morning. I would free up 40 hours of my time (excluding the commute) and I could really start working on achieving a bigger client base. My goals are to build up a client base, start focusing on taking care of myself again both physically and mentally, and just getting out more and experiencing life. I've been putting off these things for a very long time and I believe it's because of the soul-draining job I have.
What are you thoughts?
How about moving into a cheaper accommodations now, save money feverishly for a year to pad your savings a bit more, and spend the next year ironing out your plans?? Or are you ready to call it quits like now?
I hear you BIGTIME on the corporate environment. Profits, bottomlines, number crunching...... leaves me feeling empty at the end of each day. I actually wish there was some way I could become a career volunteer and donate my days to various charities. But, got a family, mortgage, and bills upon bills. You know how it is......
It sounds like you are ready to freelance and that you are disciplined enough to make it work. However, I don't think freelancing is the only alternative to your so called soul-draining corporate job when it comes to software development. I know lots of people in full-time software development positions who don't work in a corporate environment, have the option of working from home whenever they want and make really decent money. If you want the freedom that comes from freelance work it's totally fine but you shouldn't think all salaried positions are corporate.
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