We’re seeing a number of clients who’ve ‘had it with their employer, of being someone else’s lackey, so they want to go it alone. Great, but it often means a pay cut and for a whole lot of people, they are spending everything they are earning so how can they make it work on less income? Often their spouse is relying on them to bring in a certain level of income and the idea of earning less is scary and puts strain on personal relationships too.
Whether you’re becoming self-employed or whether you’re taking a cut in income, you’ve got to get your ducks in a row.
While many people spend everything they earn, they often spend it not because they have to, but because they either haven’t had a reason not to, or they are just frittering a lot of money which for most people is 10-15% of earnings. You need to find this wastage, but in a way you don’t create friction in your relationship. Normally that gets too hard, so people just keep spending.
Often when you’re self-employed, the money comes in but it’s getting spent faster than it’s getting earned, and so people end up draining the business or your partner starts to get nervous. This creates pressure on you because the money isn’t coming in at the rate that it should.
Ultimately, there’s just a whole lot of wasted energy and inefficiencies that just means people give up sooner than they should or they continue to waste money. Simply they don’t get the opportunity to realise their dream.
If you had everything in order and if you were starting to work to a plan and had boundaries around how much money you could actually give to this project and for how long, it gives clarity for everyone.
If you are contemplating a career change, which may not be paying as much or you want to start working for yourself, you need to get a financial Warrant of Fitness and get your house in order. Speak to a professional who has the time and experience to help you navigate these waters.
You need to get your financial house in order, get a plan, get clarity and start achieving your goals.