How to Decide When to Quit Your Job and Work at Home

by WorkFromHome on October 9, 2011

One of the biggest decisions that you can make is to quit your job and to start working for yourself. Because this is such a huge decision, it can be quite nerve-wrecking. There are a lot of factors to take into consideration, and it can be hard to determine which factors are more important than others in the grand scheme of things. To help you make this important decision, we have developed a list of points for you to consider. While you might not have thought about all of the points that follow, rest assured that they will all affect your decision one way or another.

Considering Income Levels

Suppose that you work some job where you put in 40 hour weeks and make about $3000 each month. Once you start making the same amount of money each month from your home business, you are immediately going to be tempted to quit your job. While income is definitely something that matters when making the decision to work from home, you are going to need to make a lot more money each month from home than you make at your job to get the same sense of security. Even if the income you get working from home is steady, taxes alone will mean that you’ll need to make more from home than you do at your job if you want to have the same amount of money to spend.

Your Cushion of Savings

Before you quit your job to work from home, you’re going to need quite a bit of savings. In general, you should have a few months worth of income saved up in a special emergency account in case something goes wrong and you have to find another job. This might sound like a lot, but the truth of the matter is that your savings could end up being the only way you can pay your bills if something unexpected happens with your home business. Even if things work out great, then you already have a nice emergency fund aside which should be a part of your long-term financial plan to begin with. If you don’t have your savings in place, then stop thinking about quitting your job until you do.

Benefits From Your Job

Depending on what kind of job you have, you might receive some sort of monetary benefits like insurance or money for retirement. These benefits have to be factored into the equation when you’re deciding if you’re ready to quit your job and work from home, and they are a major reason why you need to make more money from home than at your job before it’s time to make the big jump.

People Who Depend on You

If you’re single and have no dependents, then you only have to worry about yourself when you’re deliberating. However, if you’re trying to make the decision to work at home when you have children or a spouse depending on you to provide, then the decision instantly becomes much more difficult to make. The best solution in these types of scenarios is to continue to grow your home business as much as you can and to save as much money as it takes for the switch to working at home to make sense. Your significant other will have a much greater chance of taking you seriously if you can put food on the table and a roof over your head for a prolonged period of time without having to touch the money that you make from your regular job.

Dealing With Friends and Extended Family

You might have a lot of family and friends who would judge you if you quit your job, and this could have an impact on your decision. Some people might blow them off and suggest that you shouldn’t care what they think, but whether you like it or not, your interactions with these people will suffer if you don’t handle the situation properly. We don’t want your social life to suffer just for your business life to prosper. Instead, prepare your financial situation so that you can justify your decision beyond a reasonable doubt to friends and family members if you ever need to. The main way to do this is to have a year or more of making a lot more money than your job when working from home. It also helps to have a lot of savings set aside so that you can show that you will be secure if something bad does happen.

In Summary

All in all, there are a lot of things that go into making the decision to start working at home. This is one of the most important decisions that you will ever make in your lifetime, and it takes a lot of courage to do it. However, if you prepare properly according to the nature of your own personal situation, then you will drastically increase your chances of success.

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