WW 202: How To Financially Prepare to Quit Your Job - Solo Show

We’re throwing it back a little bit today to my money coaching advice days because I want to talk about how you can financially prepare to leave your job and take your money coaching business full-time (or even part-time). There can be so much uncertainty and so many questions when it comes to the right time to leave your job, so in this episode I want to answer that for you and help you calculate the right time for you. Loving this episode? Take a screenshot and share it on Instagram! Tag me so I can send you some love (@Tess_Wicks)

Listen to the show:

Listen on Spotify

Listen on iTunes

Listen on Stitcher

Resources FROM THIS EPISODE

Feel frustrated with pricing your services? Grab the Online Coach’s Pricing Workbook to help you start charging the right price!
Want the Online Coach’s Pricing Workbook for free? Leave a review for the podcast on iTunes, take a screenshot and email it to me at tess@wanderwealthy.com and I’ll send you the workbook for free as a thank you!
Apply for the waitlist to be one of the first to get more information about the Wealthy Coach Blueprint program when the next round rolls out.

OTHER GREAT Resources

Tag me on Instagram @tess_wicks to show yourself working through the pricing workbook. DM me your questions, thoughts, and feedback and I’ll send you a voice message with answers and so much love!
Want to work with me in my most exclusive coaching package, yet? Email me!

A Quick Recap from this episode

We’re throwing it back a little bit today to talk about how you can financially prepare to leave your job and take your money coaching business full-time (or even part-time).

I want to start with some mistakes that I see a lot of business owners make. Even though you’re a money coach, you’re not expected to be an expert in all areas of finance. Putting that expectation on yourself keeps you from fully showing up as a coach.

Here are a few of the mistakes I see business owners make:

They don’t know their numbers. - A lot of people don’t know their numbers or have some some of block or fear around it.
They are purely aiming to replace their 9-5 income. - You may not actually need to make the exact same income as you did in your regular job, because owning your own business can lend its advantages. You could also end up needing more than what you were making because you have higher expenses. Simply aiming to replace the income you hadn’t isn’t ever going to work.
They fall into the “vanity” goal trap. - You don’t need to hit $10k months just because everyone else is going after $10k months. Figure out what is is that YOU actually need and aim for that goal.

So these are the mistakes that I constantly see business owners and money coaches making while trying to build their business enough to leave their corporate job. Now that you can avoid the mistakes, let’s talk about some tips.

Tip #1: Build a cash cushion.

It’s always better to have a little extra, just in case. Having a runway of cash, up to 3 months of living expenses, can help you feel ready and secure to take the leap.

Tip #2: Be willing to do things differently.

The lower your month-to-month costs and the simpler your lifestyle, the less money you have to make in your business and the earlier you get to walk away.

Tip #3: Your purpose-driven revenue goals should be based on YOU.

Know how much your lifestyle costs and how much you spend in your business to build out your goals based on YOUR numbers, not someone else's.

Steps to determine your purpose-driven revenue goal:

1. Know your Personal Budget Needs
2. Know your Business Investment Needs
3. Determine a Revenue Percentage for Taxes
4. Determine a Revenue Percentage for Profit

Note that working for yourself is often less expensive than working for someone else in a few different ways:

Low to no commuting
A lot less heading to lunch (or sad take-out desk lunches)
Way less business-appropriate clothing
No more happy hours with colleagues you don’t like that much
Maybe less therapy? Though, entrepreneurs need therapy too!

Let’s calculate!

Know your Personal Budget Needs = PB
Know your Business Investment Needs = BI
Determine a Revenue Percentage for Taxes = T%
Determine a Revenue Percentage for Profit = P%

The Formula

Purpose-Drive Revenue Goal = (PB+BI) / 1-(T%+P%)

Runway

Purpose-Driven Revenue Goal / 12 = Average Monthly Revenue Goal
(Get to the point where you have 3-6 months with your average monthly revenue goal to feel financially prepared to quit your job)

In the meantime…

Continue to build your Cash Cushion
Run your personal and business expenses through the 3 filters:
- Can I eliminate this?
- Can I negotiate this lower?
- Can I swap for a more affordable alternative?
Track your revenue monthly to determine when you've hit your "runway" and say "goodbye" to your 9-to-5!

Don’t forget that if you’re ready to keep your pricing simple and get some help making more sales, then it’s time for you to grab the Online Coach’s Pricing Workbook below!