One of the essential steps in my journey to financial freedom would be the transition from being an employee to an entrepreneur.
This transition would mean quitting my stable government job for the freedom to pursue my dreams. However, it is the risk and price that I will have to pay if I want to achieve one million within 5 years.
At the present moment, I plan on quitting my job near the end of 2015 but I will go into more details later on in this post. In the meantime, I would first like to outline my new job exit plan.
The Revised Job Exit Plan
In a previous post, I have proposed the smooth transition from active income into passive income. However, that transition does not make much sense to me anymore.
The longer I stay at my job, the harder it will be for me to leave. Additionally, I find that there is absolutely no work-life balance at this job. In other words, there is no time for me to build up a passive income portfolio rendering my initial plan flawed.
Upon realizing this, I have developed a new and more realistic plan that will get me moving towards my financial goals much faster.
As opposed to just quitting immediately, these are the criteria I have set myself up with in the transition out of my job. Once I have satisfied all the components of my three phase plan, I will hand in my resignation letter to my employer.
- Maximize my TFSA and RRSP account
- Save up $5000 & find part-time employment
- Fundraise $10,000 for my “Turn $10,000 to $100,000 Project”
Maximize my TFSA and RRSP account
The first thing that I would like to do before quitting my job is to optimize my TFSA and RRSP account for the 2014 contribution room. Optimizing my TFSA and RRSP would place me at exactly where I want to be on my millionaire timeline.
At the present moment, the maximum TFSA contribution limit is $31,000 and is expected to increase to $36,500 by 2015. I have contributed just over 50% of my 2015 limit and I plan on making regular monthly contributions from now on until it is maximized.
In terms of my RRSP contributions, I have crunched my 2015 limit to be roughly around $15,000. I have yet to make any contributions but I will begin to starting next month. My employer also provides match RRSP contributions in which I plan to utilize.
Save up $5000 & find part-time employment
As for the second phase of my plan, I intend to save up $5000 in cash just for an emergency or any other purchases during my time of unemployment.
I will also be actively seeking for a part-time job where I will only have to work 9 to 5, 3 to 4 days a week. A part time job will free up more of my time and will get me back into a regular routine again. The part-time employment will serve as my income while I invest more time into becoming an entrepreneur and developing my business plans.
Turn $10,000 to $100,000 Projects
In order to tap into my inner entrepreneur, I have challenged myself to turn $10,000 into $100,000. I already have a few business ideas in mind but I will go more into it after I work out the little details. Be rest assured, I intend to keep you guys updated every step of the way right here on my blog.
The phase 3 of my plan would be saving up for this $10,000.
Deadline for resignation
In order to keep myself accountable to this plan, I have already arranged to have $500 transferred into my TFSA every week. This should be a good start to implementing my goals and I will adjust whenever necessary throughout the entire process.
If everything goes according to plan, I should be able to knock off all three phases before my 26th birthday. However, I am hopeful that this will all be done before then.
Do you have an elaborate plan to quitting your job before you embark on your passion? If so, I would love to hear from you in the comments below!
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