Most people think you are ‘lucky’ when you tell them you quit your job to start your entrepreneurship journey. It sure is comfortable and a lot better to work from home at your own pace and leisure, avoiding the traffic and 8 hours of being on your toes; but what people do not realise is there is a lot more you are trading off in order to get this ‘self-employed’ tag.

The pinch in your feet is not that of a formal heel or shoes, but that of pennies that you make are sometimes not even up to the break even point to pay the bills or afford the business expenses. Let alone keeping the ‘saving for future’ goal be even mentioned about.

So before you leave your job, wear a practical hat and read this article on real talk that you need to have with yourself. Be prepared before making such a big leap, otherwise you'll end up in debt or have to return to the 9 to 5 life you were so eager to leave behind.

1. Make a budget - and stick to it

Budgets must reflect your lifestyle and be strictly adhered to without a steady paycheck. Keeping track of your spending and how your money is being spent is easy with a spreadsheet, according to financial planning expert Deborah L. Meyer. There are five main categories you can divide your budget spreadsheet into: income, needed expenses, discretionary expenses, annual expenses, and surplus.

2. Be upbeat about adjusting to your new lifestyle

Once you cut out some discretionary expenses and create a retirement and savings plan that works for you, it may seem like there is little left over to spend on the finer things. Work with that goal.

3. Buying from stores with more reasonable prices

Whenever possible, wait until there is a sales event or a discount event before you make a big purchase. Put your savings, retirement, and bill payment on auto-pilot so that you can focus on other tasks. If you live in a large home, consider downsizing. Make new activities a part of your daily routine to keep you motivated

4. Keeping your personal expenses under control

When you have a 9-5 job and an income coming in every month, there is always security to keep you afloat. But with the fresh entrepreneurship journey come new challenges. What this means is cutting down all of your expenses will never be more vital than now. So, you have to make a concerted effort to stop going to brunch/clubbing/drink and dine out every weekend, make more meals at home, refrain from driving and Ubering when walking or taking transit is an option, and budget your money diligently.

5. One last piece of advice

The benefits of self-employment / entrepreneurship can outweigh the challenges. If you want to be your own boss, if you want to start your own business, if you wish to achieve your dreams, you must be diligent with your money.

Preparation is key, tracking everything is key, being careful with your spending is key, and no matter what, saving more and earning more must be your top priority.

Do you wish to discuss your financial planning with us? Feel free to contact us!