3 Things to Consider Before Leaving Your 9-to-5 Job

Everyone dreams of self-employment at some point of time or the other. The only issue lies in having to wait until your side income grows to be enough so as to support your monthly expenses.

If you are planning to leave your 9-to-5 position to start a small business, it is important to note that only half of these businesses ever make it.

Keeping this in mind, here are 3 things to consider before leaving your 9-to-5 job:

#1: Emergency Fund

Emergency funds are vital to have if you are planning to move away from the security of your day job. This will come in handy just in case the new venture does not work out either. While three to six months of emergency expenses should be saved, for those starting a business of their own, they might need much more.

#2: Health Insurance

Even though open enrollment is over for 2015, Obamacare still allows for you to enroll if you’ve had to deal with a change of job. Since the latter applies here, you can still apply for health insurance this way and avoid a penalty for not having it. In the case where your spouse has a plan, just check to see how much it might cost for him or her to add you to their plan. As always, compare your options and see which plan works out best for you.

#3: A Backup Plan

While starting a business of your own might seem wonderful at first, there’s a 50% chance of it not working out. In this case, you might have to get back to your old job sooner than you can imagine. So, if you are licensed to work in a particular field, make sure that you keep that license just in case your new career doesn’t work out. This could include attending seminars or taking up new courses.