When to Leave Your Job to Work-At-Home Full-time

While some people work at home just to supplement income from a job, many hope that their work-at-home endeavor will eventually allow them to earn all the income they need from home. The trick is knowing the right time to quit the job to work-at-home full time.

It would seem easy enough to determine the right time to quit your job to work-at-home…when you make enough money, right? But there’s more to it than that. Here are the things you need to consider before quitting your job to work-at-home full-time.

1. Are you making enough to quit? Okay so the obvious one is first. But working at home is usually different than a job. You don’t always have the same income each month. Some times you’ll be flush with money and others times you’re be watching your bank account minute by minute to see what checks are clearing. So by making enough what I really mean is; could you support yourself with the income you make in your slow months?

2. Do you have an emergency fund? Sometimes there are months aren’t just low…they’re downright empty. Or maybe a big repair is needed? Or even worse, you get sick and can’t work. Stuff happens and you need to be ready to support yourself if the income isn’t coming. Many experts suggest having six-months worth of savings. This is a good rule of thumb, but how much you save also depends on what you do (are you the only one who can do it?) and the situation.

3. Are you covered? You’d be surprised at how few people have insurance…health or otherwise. Recently I requested work-at-home stories from single work-at-home parents and almost none had health insurance. I know that some people think its not a big deal to pay for doctor visits or the occasional prescription, but I think they’re playing roulette with their financial lives. Even non-life threatening illnesses can take a toll. My son’s appendectomy was over $15,000! My daughter broke her wrist and my husband broke his ankle. In both cases, the costs were thousands of dollars. But insurance minimized those costs. Insurance is important particularly if you have children. So if you won’t be covered by a spouse, research and obtain health insurance for yourself. While you’re at it make sure you have enough home owner or renters insurance to cover business losses you’d have if something happen to your home.

4. Do you have enough work? This is especially true for people who provide a service. Do you have enough regular customers or a consistent flow of new customers to support you? If most of your business comes from one client, you may want to think twice about making the leap home. If that one customer decides not to use you anymore, you don’t want to lose significant income.

5. Do you have a history of success? Some people have success right out of the starting block and within a month are quitting their job. The next month after that, they’re wondering if they made the right decision. While fast success is great, you also need experience. You need to work out the kinks, problem solve issues, and feel confident about what you’re doing. Before quitting, make sure have some experience under your belt so you’ll be prepared for whatever may happen.

6. Are you equipped to handle the change? I once worked with a woman who worked part-time outside the home, but wanted to build her business to the point she could be home full time. When she finally quit, she all of a sudden had no time to work on her business? Building a business along side a job requires planning and scheduling that sometimes gets thrown aside when quit your job and you think you have all day to work at home. But working at home full time still requires routine and planning, and even more discipline. Being equipped also means being prepared to handle more work, as well as having the space and equipment to get it done.