How to quit your job

Do you know how to quit your job without ending up on the street? In short, it is necessary to avoid self-employment trap, think like a business, and create multiple streams of passive income.

Avoid self-employment trap

If you quit your job and hang your own shingle, you might work harder for less money. You can enjoy working from home or choose their customers, but you might end up living from client to client, without creating any real wealth.

Many self-employed who know suffer from feast or famine. They spend a lot of time and money to market their services and get lots of customers. They get very busy doing the work and stop marketing and then their prospective client pool dries up.

If you set up your business so that you do everything - marketing, sales, accounting, operations, and implementation, then you are limiting your potential for success from day one. You spend a lot of time non-income generating activities and may get frustrated and burned out quickly.

The real key to successfully creating wealth outside of a workplace is to avoid the mistake of a boss for another boss. You must stop trading your time for dollars. Stop thinking like a wage slave. Looking beyond income.

Think like a business

There are many problems with earned income. The biggest is that you are trading your time for money. If you stop trading your time, the dollars stop. This is a huge problem if you decide to have a baby, get sick, they want to take a long vacation, or are ready to retire.

The IRS penalizes self-employed persons operating as a sole proprietorship with a hefty self-employment tax. How can you avoid this? Well, I'm not an accountant or CPA, so I'm not giving legal advice or accounting, but I learned to think like a business. Before you quit your job, interview local tax advisors to educate yourself on business entities and other tax strategies. Start thinking big.

Building a company with multiple streams of Passive Income

You must build a society that works for you. My best advice on how to quit your job is to build a business that offers multiple streams of passive income in addition to earned income. There are many exciting ways to design your income portfolio. It requires imagination, courage and planning.

Structuring the task so that daily activities are fun and challenging. Identify the things you do not like or are not good to and find other people to do these activities - outside partners, independent contractors or employees.

How to quit your job

My advice for how to quit your job is to avoid thinking that you have to do everything yourself to make your new enterprise run. Think big! Establish systems and structures that work for you so you do not have to work so hard. Integrate and operate the tax system for you. Design your work around multiple passive income streams to support your active work. And finally, enjoy!