One of the biggest misconceptions that parents who want to quit their job make is in the financial preparations. If it takes at least a year to build a business from home, then logically that would mean you would need to save at least your full annual income to live off of in that year, right? WRONG.
No wonder so many people think it is impossible and remain STUCK in a less than desirable situation.
The good news is that you are NOT STUCK.
The bad news? There are still sacrifices to be made.
Before losing all hope, create a financial spreadsheet. Cut out all of the expenses that go along with working outside of the home, such as daycare expenses, house cleaning, commuting, etc. With your spouse’s income, you should only be in the negative $200-$500 a month. If you are higher than that, go back to the drawing board and see if you can’t cut something else out. Sacrifices will need to be made for a short time.
Once you have gotten your expenses down to no more than -$500, multiply THAT amount by 12 months.
For example: 500 x 12 = $6,000
Now isn’t that a more logical annual goal to save before you quit your job? $6,000 is much more attainable to have saved than $60,000, and should minimize the fear of jumping without that safety net.
Furthermore, this now gives you a new income goal as a first time business owner.
You have enough of a safety net for a year… and that is more than enough time to get your small business up and running. Remember, you don’t have to REPLACE your monthly income. The goal now is to earn $500/ month. Sure, it may take you a few months to get there, but when you do, you won’t have to dip into your safety net anymore… or if you have a down month, your safety net should still be there for you.
Don’t look now, but you are self-employed.
Before you know it, you’ll be thriving as a self-employed career parent. You may even get used to the less expensive way of life. Once business picks up, you’ll need to think about how to scale it up, hire some outsourcing support, or even scale it back for busier times of the year. You got this!
Author: Ally Loprete
A known advocate for parents ever since she became one herself, Ally Loprete founded Our Milk Money, which began as the largest online search directory for parents in the world. Later she transformed the company into a non-profit organization to help women, parents and caregivers transition back into the workforce without the struggle of gendered ageism or work gaps. Nationally recognized as the radio show host of THIS LITTLE PARENT STAYED HOME on iHeart America’s Talk Radio and the host of a television show by the same name, Ally continued to broadcast on both radio and television, with shows like DRAMATIC IMPACT WITH ALLY and WAKE UP. Speaking to many women’s groups across the country with a concentration on family and career balance, Ally published her first book, YOU GOT THIS which earned her rave reviews among her peers. Ally still offers coaching to some select clients. To inquire, visit www.allyloprete.com. Ally lives with her husband and their two sons in the northern suburbs of Los Angeles, in a home filled with lots of laughter.
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