All right, so you're ready to ditch that nine to five
and chase that dream project you've always wanted to do.
That's incredible.
It takes a lot of courage to make a leap like that.
But we know you're not just looking to scrape by, right?
You wanna thrive while doing what you love.
And luckily for you, we found this podcast episode
called The Unmatched Blueprint
for Building Financial Security
Before Leaving a Steady Job.
So let's dive into that and figure out
how to build a rock solid financial foundation
before you take that leap.
You know, I think a lot of times people just focus
on the excitement of starting something new,
which is great.
But having a solid plan in place beforehand
can really make a world of difference.
It's like having a map encompass
when you're exploring uncharted territory.
Okay, I'm all about having a map.
So where do we even begin with this?
Well, the first stage of our blueprint
is all about facing reality.
We need to take a clear and honest look
at where you stand financially right now.
It might feel a little daunting,
but it's absolutely essential.
Yeah, I can see that.
You know, I think I'm definitely guilty
of maybe avoiding looking too closely
at my finances sometimes.
But if this is about building a foundation,
I guess there's no way around it.
So what's the first step then?
Well, we start by figuring out your net worth.
Basically, it's a snapshot of your financial health.
Imagine your assets, everything you own
are like points you've earned in a game.
And your liabilities, everything you owe
are like points deducted.
Your net worth is basically like your final score.
Okay, that makes sense.
So we're adding up everything from bank accounts
to investments, maybe even that vintage record collection
I have that I'm convinced will be worth a fortune one day.
Exactly.
And then on the other side,
we're looking at any debts you might have.
Like student loans, credit card balances,
or even that car payment.
Getting this clear picture will help us figure out
what we need to build on.
Okay, so we have our score.
What do we do with it?
Next, we wanna track your cash flow.
Basically, where your money is going each month.
You know, it can be really eye-opening.
You know, I once helped someone track their spending
and they were shocked to discover
they were spending over like $80 a month
on just buying coffee.
Oh, wow.
Yeah, I think I need to track my spending
a little more closely.
It's easy to lose track of those little expenses
that can really add up.
It happens to the best of us.
But once you've got a handle on your spending patterns,
we can move on to one of the most crucial steps.
Yeah.
Building your emergency fund.
Right, the rainy day fund.
It's always felt a little like admitting defeat, you know?
Like saving for something bad to happen.
I think it's actually the opposite.
Think of it as a safety net.
A way to embrace risk without being reckless.
When you're venturing into the unknown,
like starting your own business,
having, you know, three to six months
of living expenses tucked away
can make all the difference.
Yeah, that's a good point.
It's not about like expecting the worst.
It's about being prepared
so you can confidently pursue your dreams.
It's like that saying, hope for the best,
prepare for the worst.
Exactly.
An emergency fund can actually reduce anxiety
and boot your creativity
because you know you have a cushion to fall back on.
It's a powerful tool for peace of mind.
It sounds like having that safety net
can actually make you bolder
and more willing to try new things.
Absolutely.
Knowing you can weather unexpected storms
frees you up to focus on the exciting stuff.
Like building the next stage of your blueprint.
And that's where things start to get really interesting.
Okay, so we face those financial facts
and started building our safety net.
What's the next stage in our blueprint
for leaving our job?
So now we shift gears a little bit
from the practical to the inspiring.
Setting goals that go beyond just dollars and cents.
Ooh, this sounds more my speed.
So we're talking about more than just like
hitting a certain number in our savings account.
Right.
Think of it this way.
Money is just a tool.
It's what you can do with it.
Yeah. It truly matters.
This stage is all about figuring out
how this financial freedom
is gonna support the life that you want to build.
Okay, I like that.
But how do we turn that vague idea
of like living the dream into concrete goals?
Well, it's all about connecting with your why.
Why are you leaving your job?
What do you hope to achieve?
You know, if money were no object,
what would your ideal day look like?
That's a great question.
I've always fantasized about having the flexibility
to travel, maybe take a pottery class
or just spend more time with family
without feeling tethered to a schedule.
There you go.
Those are great starting points.
Now think about how those desires translate
into financial goals.
Maybe it's having enough savings
to cover a few months of travel
or the ability to take a pay cut
without stressing about bills.
Yeah, I see what you mean.
It's about aligning our finances
with the experiences and lifestyle we're after.
It definitely feels a lot more motivating
than just like saving for saving sick.
Exactly.
And remember, this is your unique vision.
There's no right or wrong answer here.
It's about designing a life
that brings you joy and fulfillment.
Okay, I'm getting fired up about this,
but let's be real.
Even with a clear vision,
ditching a steady paycheck can be scary.
Is there anything we can do
to ease that financial anxiety?
Absolutely.
That's where stage three of our blueprint comes in.
Diversifying your income streams.
Think of it like building multiple bridges
to support you during this transition.
Oh, that's a great analogy.
So I've heard a lot about side hustles,
but honestly, it just sounds like more work.
I hear you, but it doesn't have to be a grind.
The key is to choose something you actually enjoy.
Maybe even something that's related
to your dream project.
Could be freelancing, selling handmade crafts online,
or even teaching a skill that you're passionate about.
So it's not about becoming a workaholic.
It's more about creating a safety net
while exploring new possibilities.
Precisely.
And here's a pro tip from the podcast episode.
Start that side hustle before you leave your job.
It gives you a chance to test the waters,
build some momentum,
and maybe even start generating some income.
That's smart.
Yeah, it takes some of the pressure off
and allows for a smoother transition.
And who knows, that side hustle
could even blossom into your main gig down the line.
It happens more often than you think.
Okay, I'm definitely feeling more confident about this.
So we've got our financial foundation,
our inspiring goals,
and now some backup bridges in place.
What's next on the blueprint?
Now it's time to put your money to work for you.
Let's talk about investing.
Investing, I always thought that was something
for people with serious money and fancy advisors.
Not at all.
Investing is for anyone who wants to grow their money
over time no matter how much you have to start with.
Think of it like planting seeds.
The earlier you plant,
the more time those seeds have to grow and flourish.
Okay, I'm intrigued,
but the world of investing feels a little intimidating.
Where do we even begin?
While you're still employed,
make sure you're maxing out those 401k contributions.
Yeah, I'd grab that free money while I can.
Exactly.
Now for other investments,
there are plenty of accessible options.
One simple approach is a high yield savings account.
It's like a regular savings account,
but it pays a higher interest rate
so your money grows a bit faster.
Oh, so it's low risk,
but still helps my money work harder for me.
Yeah, exactly.
Then there are short-term bonds,
which are also relatively low risk,
and offer a fixed return over a set period.
Got it.
So less risk, more stability.
Sounds good for someone about to make a big life change.
Right.
Now if you're feeling a bit more adventurous
and have a longer time horizon,
you could consider index funds.
Index funds, what are those?
Imagine buying a tiny piece of all the companies
in the stock market.
That's basically what an index fund does.
It spreads your investment across a wide range of companies
which reduces your risk
while still giving you exposure
to the growth potential of the market.
Interesting.
So less risky than picking individual stocks,
but still the potential for growth.
Exactly.
And there are even target date funds
which automatically adjust your investments
as you get closer to retirement.
Okay, so lots of options to explore.
This is a lot to take in,
but I'm starting to see how investing can be a powerful tool
for building long-term financial security.
It is.
And the best part is you don't have to be
a financial expert to get started.
There are tons of resources available to help you learn
and make informed decisions.
All right, so we've got our safety net,
our goals, our side hustles,
and now we're planting those investment seeds.
Is there anything else we need to consider
before making our big move?
There are a few often overlooked details
that can trip people up.
For instance, have you thought about what you'll do
about health insurance?
Oh yeah, health insurance, that's a good point.
You know, it's easy to forget about that
when you're caught up in the excitement of going solo.
Yeah, it's one of those things
that we often take for granted until it's gone, you know?
And losing that employer provided coverage
can be a real wake-up call,
both financially and emotionally.
Definitely.
You know, no one wants to think about getting sick,
but it's part of life and medical bills
can be a huge setback,
especially when you're just starting out.
So what's the best way to kind of approach this?
Well, I think research is key, you know?
Start by exploring individual health plans.
Healthcare.gov is a great resource for comparing options
and finding something that fits your budget and your needs.
And don't be afraid to ask for help navigating the system.
There are often resources available
to kind of guide you through the process.
Okay, good to know.
Yeah, it sounds like it could be a bit of a headache,
but definitely worth tackling early on.
Absolutely.
And while we're on the topic of protecting yourself,
the podcast episode also mentioned
life and disability insurance.
To be honest,
those have always felt a bit morbid to think about.
I understand.
But you know, think of it this way.
It's about taking care of yourself and your loved ones.
Life insurance can provide financial security
for your family, you know,
if something were to happen to you.
And disability insurance can help replace
a portion of your income
if you're unable to work due to an illness or injury.
Okay, yeah, that makes sense.
It's like having a plan in place
to navigate those unexpected twists and turns
that life throws our way.
It's all starting to feel a bit less daunting now
that we're like breaking it down step by step.
That's the power of a good blueprint.
But there's one more crucial piece
that we need to add to our foundation.
And this is where a lot of people I think get tripped up.
It's time to talk about budgeting.
Ugh, budgeting, it always sounds so restrictive.
Like I'm giving up all the fun in life.
I know it gets a bad rap,
but it doesn't have to be that way.
Think of it less as deprivation
and more as conscious spending.
You know, making sure your money is aligned
with your goals and values.
Remember that Marie Kondo for your finances analogy
from the podcast episode.
Right, only keep what sparks joy.
So I guess it's about figuring out
what truly matters to me and cutting out the rest.
Exactly, it's not about denying yourself everything.
It's about being intentional with your spending.
Do you really need that daily latte
or would you be just as happy with a less expensive coffee
you know, a few times a week?
Could you swap that expensive gym membership
for online workout videos or outdoor activities?
Yeah, it's about finding creative ways to save
without sacrificing the things that make life enjoyable.
Precisely. Yeah.
And you know what, sometimes making those adjustments
can lead to unexpected benefits.
You might discover new hobbies,
find joy in simpler pleasures,
or even strengthen your relationships
by spending more quality time with loved ones
instead of focusing on material things.
Oh, I love that.
So budgeting is not just about saving money,
it's about creating a more mindful and fulfilling life.
Exactly.
It's about designing a lifestyle
that supports your dreams both financially and emotionally.
Okay, I'm officially convinced.
Budgeting check.
So we've got all the pieces
of our financial foundation in place.
What's the final step in our blueprint?
It's time to set a timeline.
When do you envision yourself leaving your job
and diving headfirst into your dream project?
Ooh, that's the big question.
I'm definitely feeling a lot more confident
now that I have a plan.
But you know, part of me still wants to cling
to the security of a steady paycheck.
That's completely understandable.
But remember, this timeline is just a guide,
not a rigid deadline.
It's about creating a roadmap with milestones
to keep you motivated and on track.
Maybe you aim to launch your side hustle
within the next six months,
hit a certain savings target by the end of the year,
or secure those insurance policies before making the leap.
Right, it's like breaking down
a seemingly impossible goal
into smaller, more manageable steps.
Exactly.
And the best part is you get to celebrate
those wins along the way.
Maybe you hit a financial milestone sooner than expected
or your side hustle takes off faster than you anticipated.
Embrace those successes and let them fuel your momentum.
It sounds like flexibility is key here.
You know, life rarely goes exactly according to plan.
So being able to adapt is essential.
You got it.
And remember, you don't have to do this alone.
There are communities of like-minded entrepreneurs,
online resources, and even financial advisors
who can offer support and guidance along the way.
This has been such an insightful journey.
We went from feeling kind of overwhelmed
to having a clear roadmap for building financial security
before leaving a steady job.
And it's not about denying ourselves or living in fear,
it's about being intentional with our resources
and aligning them with our dreams.
Beautifully said.
And remember, you're capable of achieving this.
With careful planning, a clear vision
and a little bit of courage, that leap of faith
becomes less of a free fall and more of an exhilarating flight
towards a life on your own terms.
I love that analogy.
An exhilarating flight towards a life on my own terms.
That's exactly what I'm after.
Thanks for helping me build my wings.
Anytime.
Don't go out there and soar.