We quit our jobs for many reasons. Usually it is to take on another and better position but in many cases these days, people want to step out on their own and freelance or start a small business. Before doing this, though, you must realize that more than likely in the first year there are going to be struggles while you try to get your name established. And during that first year, one thing will be missing: a steady paycheck.

It would be very wise to have at least a three-month buffer of money in your bank account to cover your fixed expenses prior to quitting your job. One of the problems when you quit your job and head out to work for yourself is that you will be very busy trying to establish clients and build those relationships. You will not have time to be burdened by money worries and trying to pay the bills. And if you think that your first clients will be eager to pay you, guess again once more. In fact, many times your clients have absolutely no concern whatsoever if you succeed or fail in your new venture. Many times your new clients will be slow in paying or may not even pay you after you deliver work.

After you quit your job and start on your new venture, carefully analyze what you are spending your money on within the first month or two. Even though you have that three-month buffer in the bank, you can make it stretch even longer in some cases by just cutting back some of your variable expenses. It would be nice if you could make three months extend into four months as far as your cash on hand is concerned. It is very important to be disciplined during this initial time as not being so could mean the difference between your success and failure.

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