Many people are interested in quitting their day jobs and making money doing something they love. Most people just do the “extra” in their spare time. But some find that they are making enough that they could consider quitting their day jobs. However, it is important to make sure that, financially, you are covered.

Do you have enough saved to quit?

Switching from doing your money making hobby a few hours a week to doing it full time takes up a lot of time and energy. And you may not make as much money at first. This means that you have to be able to meet your current financial obligations until you get going. Does your life partner have a job that will help? More importantly, do you have enough in savings?

Building up savings is an important part of getting ready to quit your day job. If you haven’t saved up enough to meet your obligations for six to eight months while you get things started, wait a little longer to quit your regular job. Put any money you earn from your money making hobby aside until you have what you need.

Tags: quitting day job, personal finance, financial planning, finances,
financial goals, money making hobby, saving money, building savings