0123 – From Full-Time Job To Full-Time Freelancing w/Josh Doody

Josh and Chris lay out a plan for preparing to transition from a day job to full-time freelancing, including how to cut your expenses, get a raise, and use your paycheck as seed-funding for your freelancing business.

Download MP3

You can find Josh on Twitter, visit his personal website at JoshDoody.com, and see his work online at Fearless Salary Negotiation. Josh also offers 2 free resources:

Highlights:
1) 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 mathematicaly 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