Transitioning from wage earning to self-employment/passive income - WickedFire - Affiliate Marketing Forum

Jan · 02-13-2007, 09:20 AM

Before you can think about getting rid of or cutting back on hours at your wage earning job, make sure you know what your really make. Be sure to figure in the following:
Income:

Paid time off
Retirement contribution matching
Health insurance
Life insurance
Misc perks and discounts

Expenses:

Childcare
Wardrobe
Travel costs
Meals
Travel time

Reduce/eliminate all discretionary bills and expenses (credit cards, gift giving, vacations, and “toy" purchases).
Reduce/pay off necessary expenses (car loans, utilities, etc).
Have a savings to fall back on.
Have the monthly income be equal to 5 weeks of pay so that you can save the extra income or if a job falls through, you'll be OK.

To fill save money or supplement income, find temporary/part-time jobs. These are often available. It won't provide big bucks, but it can help:

Deliver flowers around holidays (contact local florists and see if they contract out).
Work at a boy/girl scout camp (great outdoor job and they will provide meals and lodging) for 5-6 weeks during the summer.
Find a job you can be "on call". You can work as little or as much as you want (group homes are always hiring).
Deliver newspapers, its just a few hours early in the morning. Not all routes are 7 days a week.

Know how your natural work cycle and create a skeleton routine around it. For me:

I'm a morning person so I get up early, write, and clean the house.
I'm an outdoor person so I take a break with the kids and go to the park during the day.
The girls are busy 1/2 the time late afternoon/evenings so I work more then.
I do best with short blocks of time so I set one-hour goals and rotate tasks.

When income begins to come in, assign it a bill or expense. When that is covered consistantly add another one. Repeat till all bills are being paid by self-employment/passive income. During this time, take the money from wage earning and save it.Have a plan to consistently generate self-employment/passive income.

NEVER give up you goal to get rid of a wage earning job. A set back may slow you down, but you don't have to let it stop you!

pfgannon · 02-13-2007, 09:36 AM

Very useful info Jan.
I plan to be leaving my wage paying job very soon and this brought up some issues that I haven't considered before.

+rep

Xrproto · 02-13-2007, 09:55 AM

Nice guide!

One goal I have that I must hit before I quit my day job is to save up to take my day job weekly earnings * 5 (weeks) * 3 (months) ~ That's gross earnings, not net, that will give me a nice cushion.

Jan · 02-13-2007, 12:32 PM

Thank you!

Another job to supplement income is to take the classes by H & R Block and get hired for next tax season. It's 4 months work and there is a way to have medical benifits all year. I'm going to call them at the end of April and find out more about it.

[R]DeVore · 02-13-2007, 03:00 PM

I left a wage earning job 4 years ago (well, long story, i didnt actually leave, but, you know lol). and I never thought of any of this. I am now though.

great post

Jenn · 02-13-2007, 05:38 PM

Great points, Jan, especially with regard to insurance. I'm betting there's a wealth of knowledge among WF members about how to find reasonably priced individual insurance - maybe if we pool our tips in this thread it will help more people make the transition to self-employment.

When I left my full time job almost 3 years ago, I was absolutely shocked at the premiums for individual comprehensive health insurance in NY. Most companies wanted to charge $500 or more per month for a healthy woman in her 20s.

Here are the 2 affordable NY group health insurance options I found after doing a ton of research:

Working Today Freelancers Union
Medical, dental, life, & disability insurance for the self-employed working in several industries including technology & advertising. Applicants must demonstrate that they've worked more than 20 paid hours in each of the last 8 weeks or earned more than 10k in the last 6 months.

Healthy NY
Health insurance with or without prescription coverage. A fairly low income is one of the criteria, so this option only works if your monthly household income is less than current threshold. If you don't have any ethical qualms about beating the system, it would probably be pretty easy to be selective about what proof of income you submit.

Anybody have tips for other locations?

jened · 02-13-2007, 05:42 PM

ditton on healthy ny. it's is an awesome choice for people who qualify - i know several people who use it - they even let you pick your insurance company

chris22 · 02-13-2007, 05:58 PM

Quote:

Originally Posted by Jenn

Anybody have tips for other locations?

ehealthinsurance.com

Quote:

Originally Posted by Jenn

Most companies wanted to charge $500 or more per month for a healthy woman in her 20s.

Wow, I'm 24 and only pay $80/month through Aetna.

Jenn · 02-13-2007, 06:57 PM

Quote:

Originally Posted by chris22

Wow, I'm 24 and only pay $80/month through Aetna.

Lucky girl.

Unfortunately, NY has some of the crappiest insurance regulations in the country. Don't even get me started on what I pay for car insurance.

EduardoM3 · 02-13-2007, 07:40 PM

I used to pay over $1k a month in car insurance, so lets not get into insurance. Being a male in the capital of auto thefts AND uninsured motorists is just lethal.

John · 02-13-2007, 07:43 PM

hahaha suckers, I used to pay almost $500/month for auto insurance now I'm at $75/month.

ExEnigma · 02-13-2007, 09:06 PM

21 with a 2006 convertible mustang gt
$350

Ex

Jan · 02-13-2007, 09:36 PM

Older cars/trucks=cheap auto insurance

Blue Cross/Blue Shield has a pretty affordable kids only plan, sucks for adults though. I can't afford it, but it's better than the family plan at my wage earning job.
Insurance is a big issue, just took my daughter to ER last week (uninsured) and am scared to get the bill. She didn't break anything but wanted to be sure after the second day she couldn't use her arm. I need to find something for the girls.

I'm in the group that can't afford insurance and doesn't qualify for assistance.

02-13-2007, 09:20 AM	#1 (permalink)
Jan Resident GILF Join Date: Aug 2006 Location: Arizona, USA Posts: 1,151 iTrader: 13 / 100%	Transitioning from wage earning to self-employment/passive income Before you can think about getting rid of or cutting back on hours at your wage earning job, make sure you know what your really make. Be sure to figure in the following: Income: Paid time off Retirement contribution matching Health insurance Life insurance Misc perks and discounts Expenses: Childcare Wardrobe Travel costs Meals Travel time Reduce/eliminate all discretionary bills and expenses (credit cards, gift giving, vacations, and “toy" purchases). Reduce/pay off necessary expenses (car loans, utilities, etc). Have a savings to fall back on. Have the monthly income be equal to 5 weeks of pay so that you can save the extra income or if a job falls through, you'll be OK. To fill save money or supplement income, find temporary/part-time jobs. These are often available. It won't provide big bucks, but it can help: Deliver flowers around holidays (contact local florists and see if they contract out). Work at a boy/girl scout camp (great outdoor job and they will provide meals and lodging) for 5-6 weeks during the summer. Find a job you can be "on call". You can work as little or as much as you want (group homes are always hiring). Deliver newspapers, its just a few hours early in the morning. Not all routes are 7 days a week. Know how your natural work cycle and create a skeleton routine around it. For me: I'm a morning person so I get up early, write, and clean the house. I'm an outdoor person so I take a break with the kids and go to the park during the day. The girls are busy 1/2 the time late afternoon/evenings so I work more then. I do best with short blocks of time so I set one-hour goals and rotate tasks. When income begins to come in, assign it a bill or expense. When that is covered consistantly add another one. Repeat till all bills are being paid by self-employment/passive income. During this time, take the money from wage earning and save it.Have a plan to consistently generate self-employment/passive income. *NEVER give up you goal to get rid of a wage earning job. A set back may slow you down, but you don't have to let it stop you!* Share Share this post on Digg Del.icio.us Technorati Twitter __________________ Failure is when you stop trying...DON'T STOP TRYING! 24 hour article delivery Jan's Writing Services Jan's Ideas Ways to Save Money

02-13-2007, 09:55 AM	#3 (permalink)
Xrproto Waste of e-space Join Date: Aug 2006 Posts: 1,882 iTrader: 4 / 100%	Nice guide! One goal I have that I must hit before I quit my day job is to save up to take my day job weekly earnings * 5 (weeks) * 3 (months) ~ That's gross earnings, not net, that will give me a nice cushion. Share Share this post on Digg Del.icio.us Technorati Twitter __________________ I can assure you I am as insane as the next man.

02-13-2007, 12:32 PM	#4 (permalink)
Jan Resident GILF Join Date: Aug 2006 Location: Arizona, USA Posts: 1,151 iTrader: 13 / 100%	Thank you! Another job to supplement income is to take the classes by H & R Block and get hired for next tax season. It's 4 months work and there is a way to have medical benifits all year. I'm going to call them at the end of April and find out more about it. Share Share this post on Digg Del.icio.us Technorati Twitter __________________ Failure is when you stop trying...DON'T STOP TRYING! 24 hour article delivery Jan's Writing Services Jan's Ideas Ways to Save Money

02-13-2007, 03:00 PM	#5 (permalink)
[R]DeVore Banned Join Date: Jul 2006 Location: Michigan, USA Posts: 702 iTrader: 0 / 0%	I left a wage earning job 4 years ago (well, long story, i didnt actually leave, but, you know lol). and I never thought of any of this. I am now though. great post Share Share this post on Digg Del.icio.us Technorati Twitter

02-13-2007, 05:38 PM	#6 (permalink)
Jenn Join Date: Nov 2006 Location: NYC Posts: 82 iTrader: 0 / 0%	Finding individual health insurance in NY Great points, Jan, especially with regard to insurance. I'm betting there's a wealth of knowledge among WF members about how to find reasonably priced individual insurance - maybe if we pool our tips in this thread it will help more people make the transition to self-employment. When I left my full time job almost 3 years ago, I was absolutely shocked at the premiums for individual comprehensive health insurance in NY. Most companies wanted to charge $500 or more per month for a healthy woman in her 20s. Here are the 2 affordable NY group health insurance options I found after doing a ton of research: Working Today Freelancers Union Medical, dental, life, & disability insurance for the self-employed working in several industries including technology & advertising. Applicants must demonstrate that they've worked more than 20 paid hours in each of the last 8 weeks or earned more than 10k in the last 6 months. Healthy NY Health insurance with or without prescription coverage. A fairly low income is one of the criteria, so this option only works if your monthly household income is less than current threshold. If you don't have any ethical qualms about beating the system, it would probably be pretty easy to be selective about what proof of income you submit. Anybody have tips for other locations? Share Share this post on Digg Del.icio.us Technorati Twitter

02-13-2007, 05:42 PM	#7 (permalink)
jened Senior Member Join Date: Nov 2006 Location: upstate NY Posts: 983 iTrader: 0 / 0%	ditton on healthy ny. it's is an awesome choice for people who qualify - i know several people who use it - they even let you pick your insurance company Share Share this post on Digg Del.icio.us Technorati Twitter

02-13-2007, 07:40 PM	#10 (permalink)
EduardoM3 Senior Member Join Date: Aug 2006 Posts: 138 iTrader: 0 / 0%	I used to pay over $1k a month in car insurance, so lets not get into insurance. Being a male in the capital of auto thefts AND uninsured motorists is just lethal. Share Share this post on Digg Del.icio.us Technorati Twitter

02-13-2007, 07:43 PM	#11 (permalink)
John Join Date: Jun 2006 Location: Sewageville Posts: 4,929 iTrader: 6 / 100%	hahaha suckers, I used to pay almost $500/month for auto insurance now I'm at $75/month. Share Share this post on Digg Del.icio.us Technorati Twitter __________________ http://i33.tinypic.com/ip3vh1.jpg

02-13-2007, 09:06 PM	#12 (permalink)
ExEnigma Senior Member Join Date: Nov 2006 Posts: 106 iTrader: 0 / 0%	21 with a 2006 convertible mustang gt $350 Ex Share Share this post on Digg Del.icio.us Technorati Twitter

02-13-2007, 09:36 PM	#13 (permalink)
Jan Resident GILF Join Date: Aug 2006 Location: Arizona, USA Posts: 1,151 iTrader: 13 / 100%	Older cars/trucks=cheap auto insurance Blue Cross/Blue Shield has a pretty affordable kids only plan, sucks for adults though. I can't afford it, but it's better than the family plan at my wage earning job. Insurance is a big issue, just took my daughter to ER last week (uninsured) and am scared to get the bill. She didn't break anything but wanted to be sure after the second day she couldn't use her arm. I need to find something for the girls. I'm in the group that can't afford insurance and doesn't qualify for assistance. Share Share this post on Digg Del.icio.us Technorati Twitter __________________ Failure is when you stop trying...DON'T STOP TRYING! 24 hour article delivery Jan's Writing Services Jan's Ideas Ways to Save Money

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