Are You Ready to Quit? Financial Checklist - Part 1
Have you ever thought about quitting your job? What financial considerations should you make, to ensure you reduce the chances of struggle and increase your probability of thriving?
After a decade of being your partner in financial education, this is my final article as I leap from employee to entrepreneur. Here is a checklist I devised for myself, and I invite you to do it too.
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Retirement Preparations |
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2. Do not withdraw money from your pension fund, unless you are business and investment savvy, used to investing large amounts of money and have a track record of outperforming the rate of return of your pension fund. |
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3. Consider creating your own individual retirement plan with JMMB Retirement Solutions and invest up to 20% of your income, you may even transfer your pension from your current employer into this account. |
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4. Define Your "Freedom Number" - Financial Freedom is when your passive income is greater than your expenses. Calculate this figure by doing your annual budget and dividing the amount by 12 to know our monthly expenses. |
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5. Create Multiple Streams of Income - Ensure you have income from investments, rentals, side businesses, or dividends. Never rely on one source. |
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6. Test Your Income Plan for 6–12 Months - Can your business/side hustle sustain you before quitting? Run a trial period while still employed. |
So what are the areas you need to work on before you leap into full-time entrepreneurship? JMMB has excellent investment, banking and insurance advisors who will help to make the financial preparations. Our SME Resource Centre would also be happy to include you on the FREE webinars. Just call 876-998-JMMB.
Written by: Michelle Sinclair-Doyley, Corporate Manager, Group Financial Partnership Support & Financial Education