Episode Summary

Josh and Chris lay out a plan for preparing to transition from a day job to full-time freelancing, using your paycheck as seed-funding. We cover how to cut your expenses, how to get a raise, and why you need to keep your job longer than you think you do.

Episode Notes

Josh and Chris lay out a plan for preparing to transition from a day job to full-time freelancing, using your paycheck as seed-funding. We cover how to cut your expenses, how to get a raise, and why you need to keep your job longer than you think you do.

How can I make this day job last, to build the longest possible runway?

  • I quit too soon
  • 3 months too early
  • almost quit 9 months too early

If you jump now without a plan:

  • you'll burn your savings
  • crawl back to a day job

1) Don't quit right now:

  • be intentional about building a runway

Freelance on the side RIGHT NOW:

  • stack chips
  • start courting clients
  • build credibility
  • start networking
  • give yourself a gentle ramp, not a cliff
  • Josh started 18 months out, building money & contacts

2) Build that runway until the job is getting in the way of the freelancing:

  • don't fall prey to shiny object syndrome
  • there's no honor in burning your ships too soon

3) Even before you get the idea, start working on your burn rate:

  • get rid of debt! credit card debt, auto, mortgage, student, etc
  • focus on payoff
  • spend less money* make a few sacrifices
  • if you lost your job tomorrow, would you be in big trouble?
  • Managed to bank 70% of my take-home pay
  • do not expand your spending as your income increases
  • Shark Tank
  • biggest reaction is when the Sharks ask about debt and it's sky-high
  • debt can block you from growing your business
  • it's easier if you're goal-oriented
  • pay off debt incrementally
  • don't try to go straight to the big payoff
  • figure out how you're wired
  • Dave Ramsey approach (not mathematically best, but sustainable and gives you quick wins)
  • Optimize for what you can pay off faster and at lower interest rates
  • Quick wins

Other half: * pulling in money * Big gains from increasing your salary * Day jobs are NOT a meritocracy * Managers are busy; keeping up with what you should be making is up to you * Pro-actively bring your outstanding work * asking them to adjust to reflect the additional value you've been providing since last time * salary is not a gift, it's a business deal; an exchange of value

2 tracks: how to make your paycheck bigger?

1) Get a raise

2) Get a promotion

It may be that you need to pursue a promotion instead* you may be at the top of your band in your current job

About the Show

$100K Freelancing is a show for freelancers, by freelancers. We cover solutions to the real challenges that you and I face day-in and day-out as freelancers and consultants, building client service businesses.