Do you want to take a leap to work for yourself and want to escape from this 9 to 5 grind? Get these powerful ways to plan your finances to start from toady
Do you sometimes wonder if the convention 9-5 job life is not for you?
Do you feel the need to move at your own pace instead of following the rat race?
Most people in their prime working years (17-60 years) think it is important to have a proper schedule and stability that a 9-5 job can provide.
At the outset, it is important to clarify that it is indeed a good thing to have stability and good health in life; however, a 9-5 job is not the only thing that can provide the same.
In popular media and almost all other platforms, a 9-5 job is the only medium to financial stability or stability in general.
The belief that the grind through their lives is the only thing that can manifest into anything valuable financially is flawed.
Most people now, millennials and the other forthcoming generation, are shifting the narrative.
They believe and understand that while the 9-5 work culture is glorified and people preach a work-life balance, it is nothing more than a system that can completely consume a person’s time and energy.
Most professions require individuals to work hours even beyond their stipulated 9-5 hours; however, a transition to contractual jobs has started.
People initially start with taking contractual or freelance work in their free time before making a full transition.
This is usually to get acquainted with the work and the time one would have to work. The most difficult aspect of this is usually the financial aspect.
Breaking away from your 9-5 job will afford you your schedule without being bound to outer structures and times.
But it also comes with certain doubts in the form of financial fears, fear of losing your savings or not saving as much, and the obvious fear of financial insecurity in the future.
This can be compounded by the fear of the times we live in and the fluctuations in the economy.
There are multiple things and habits that you can adopt to manage your finances if you plan to break away from your 9-5 job.
In the beginning, it may seem that it is not possible to live the kind of life you lived or desired without a stable income that everyone thinks only a 9-5 job can provide.
A conventional job and income indeed keep you financially happy, but a job you want to do that doesn’t trap you in duties you did not sign up for will bring peace to you.
It will keep you calm and happy despite the minor concessions that you may have to make initially.
Here are my top suggestions that you can put to practice to manage your finances for breaking away from the 9-5 structure.
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Ways to plan your finances to break away from this 9 to 5 grind:
1. Manage your Expenditure
The most common but worst mistake that several people make when financing their spending is thinking that a low bank balance is a justified punishment for spending too much in the current scenario.
It gives leeway to an all-or-nothing situation, which keeps an individual unprepared for any urgent situation or plans.
With little effort but a good amount of motivation – you can indulge in tracking your spending to manage your expenditure.
On that note, you will also know what your average monthly spending looks like – which can give way to budgeting, cutting costs, and setting; while making sure that you can pay for the fixed expenditures like mortgage, grocery, health care, and more.
2. Open a separate savings account
To avoid running out of money at dire times, a separate savings account will prove to be your dark horse.
If you have one source of income, you must keep a part of your earnings in a savings account with an earmark – which you do not use for stock investments.
This saved amount of money can be as little as you can manage to keep aside, but you need to indulge in saving to have a secure future.
It will help you avoid stress and financial issues that may be forthcoming. At the very least, 12 months of your living expenses should be saved by you for safe usage – below that can pose as a problem.
3. Be sure to make a plan for your insurance coverage
Most 9-5 job employers avail disability, life, and health insurance for the employees – but the disability and life insurance will fail to be put to use if you leave your 9-5 job.
Disability insurance – Disability insurance is difficult to achieve and invest in, but it is one of the most prioritized insurances, which offers ease of worries for the unknown future.
It allows you to indulge in living expenses even after leaving your job if you cannot work due to certain disabilities.
Life insurance – Life insurance is highly important if you have someone that financially depends on you.
It depends on factors such as; how much is your monthly expense that has to remain stable as not to pose a dramatic change on your family, whether you have kids or not, whether the surviving spouse/partner has a source of income or not.
The best plan to get is term insurance, which allows you to have a pre-specified amount of life insurance for a definite period
Health insurance – Health insurance is the most common and sought-after type of insurance. It is included in almost all employer plans, which propels them to pay a significant amount into the lump sum of the monthly premium for the health insurance so that you can afford it.
Your health insurance does not have limited options to that of your employer; you can choose any deductible health insurance that suits you best.
4. Do not meddle with your long-term investments
Your long-term investments are not an alternative for separate savings or runaway accounts. A career leap needs a strong foundation, which is built on financial support.
You cannot depend on loans or other factors when it comes to this. Therefore, it is immensely important that you have a long-term investment to not start from zero when having a career leap.
A long-term investment also saves you from market declines, as you have the option to keep it intact and take it out when desperately needed – at the right time.
- A career leap will put you through tough times, but it will be bountiful at the end of it.
- It will be necessary for you to keep a tight check of how much you spend and budget almost every move of your life.
- Long-term investments will be the foundation for your career leap and give you a financial push at dire times.
- A runaway account is for amendments of issues that are independent of your job work and more of a person matter
- Insurance will be your partner for trying times and give you a stable financial framework.
- Always keep savings aside from monthly expenditure.
- Never forget to make adjustments to your loan repayment plan when you career leap, and there is a change in your income – or if there is zero income.
The final thoughts
Breaking away from the conventional 9-5 job is a risk that most people wish to take, but only a few are truly prepared for. Being chained by a corporate structure and not feeling that your full potential is being used will, at some point, propel you to decide on a career leap.
This is why it is highly important to start managing your expenditure and indulge in a proper framework of finances to be prepared for it.
When the time comes, you will have built your life on sturdy financial support and be free of the burdens of being stuck to a chair 8 hours a day.
Starts planning your life out with the points mentioned above today and enter the new life stage you have always wished for.