Lauren’s Lesson: 5 things to do after I quit my 9-5 without another one
Today is March 8th - it’s International Women’s Day. I didn’t purposefully write this article to publish on IWD, however it does feel fitting.
I’m 29 and quit my 9-5 job without another one lined up to pursue self-employment. Boomers think I’m taking on too much risk and fellow millennials are envious. I am 29, single and dependent-less (unless you count my foster kitties) which brings equal challenge and opportunity. Keep reading below for 5 steps I took after quitting my job…
1. Take a deep breath and relax
I took a risk that I have the immense privilege and gratitude to take. I don’t have a steady paycheck for the first time in my adult life, but I also have the freedom to build my business and my life with more independence than before.
I need to remind myself that I have a plan and it’s also okay to slow down.
2. Set a new routine and simple schedule
Now, I spend more time journaling, reading, creating new content and learning even more about the personal finance space. I’m already working more hours per week, though I am in control of my schedule and can work when I’m at my best. Below is my schedule/guideline:
Morning
Spend 30 minutes reading a non-fiction book with a cup of coffee in my favorite chair. Currently, I’m reading about digital marketing, freelancing & different perspectives on personal finance.
Afterwards, I write drafts, review posts, create new ideas, and explore social media platforms. I love Instagram, but I’m trying out TikTok and Pinterest to learn and explore a different audience.
Afternoon
Cook a homemade, warm lunch from my Trader Joe’s groceries
Schedule and attend networking meetings - I do my best work in the morning and like to meet with humans in the afternoon
Respond to LinkedIn messages & e-mails
Work out or walk - there is nothing like attending a 2pm yoga class on a weekday afternoon
Early evening
Slow down by 5 or 6pm and try to read for 30 minutes again
Go out for happy hour with a friend and find a great deal
Again, this is a rough estimate of my daily plan, but it can go in different directions. I enjoy the consistency of each day being different!
3. Readjust my budget
Back to the finances - most of my fixed costs like housing, utilities and day to day expenses for living in New York will stay the same. Therefore, I needed to decrease my fun budget if I wanted to make leaving 9-5 a reality.
A few initial budget steps I took were:
Decrease monthly restaurant spend by $250 per month
Stop using Instacart for grocery delivery and only shop at Trader Joe’s for groceries
Use Uber and Lyft sparingly
Decrease concert/events/museum budget by $50 per month
The main reason I made these decreases is because of health insurance premiums - insert eyeroll about the American healthcare system here.
As a single person I need to start paying for my own health insurance. I looked at my employer-sponsored health plan and confirmed costs for my current plan. It will cost approximately $700 per month in health insurance premiums. Another option is to consider a new plan via the NY State health marketplace. I investigated this and most plans were ~$580 per month in health insurance premiums.
Change comes with new costs, but that’s life right?
4. Rollover my 401(k) to an IRA
I did this once before when I left my other company in 2019 and it was a hassle. Now, there is an awesome startup called Capitalize that removes the monotony of an outdated process and is completely free for you as a customer. 401(k) plans can have expensive fees and fewer investment options, plus if you leave it at your old company you might forget it.
According to Capitalize,
“As of May 2021, we estimate that there 24.3 million forgotten 401(k)s holding approximately $1.35 trillion in assets, with another 2.8 million left behind annually.”
“Leaving behind a forgotten 401(k) account has the potential to cost an individual almost $700,000 in foregone retirement savings over a lifetime.” Read their full article here.
Overall, do not forget about your previous 401(k) accounts and keep them in one place by using Capitalize to remove the hassle.
P.S. This is not sponsored. I love saving time, hate waiting on hold and losing track of my hard-earned money!
5. Create an income replacement plan
I would be naive to think I could replace my income overnight or even in a few months. That said, it is my long term goal.
Below are the questions I asked myself about the short-term:
How can I set up a side hustle quickly, ideally related to my hobbies?
Am I willing to take on freelance work? What companies would I want to work for?
Below are the questions I asked myself about the long-term:
How do I plan to monetize Points for Change?
Can I create a business plan for the next 3 months, 6 months? A full year?
If you are thinking about quitting your 9-5 to pursue freelancing or self-employment remember that it’s not impossible.
Follow me @pointsforchange on Instagram & TikTok for more posts and content coming soon.
Disclaimer: I am not a financial advisor. My suggestions are simply suggestions and not financial advice. You should always consider your personal financial situation and what works best for you prior to making financial decisions because personal finance is… well… personal.