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When your alarm goes off every morning, you wonder, &#8220;Should I quit my 9 to 5 job to start my own business?&#8221;
It’s a valid question. And if you find yourself questioning your career choice, there’s a good chance you already know your answer.
But not so fast.
Auditing your current financial situation is essential to see if you’re ready to quit your job. Because the more financially stable you are going into the decision to quit your job, the better you’ll feel when putting in your two week’s notice.
So, let’s talk about how you can set yourself up for financial success before you quit your job.
<h2 id="chapter-1">Why creators leave their jobs to pursue their dream</h2>
You’re in good company if you want to quit your job for a pay raise: According to our <a href="https://kit.com/reports/creator-economy-2024" target="_blank" rel="noopener">State of the Creator Economy Report</a>, the main reason people leave their jobs is because they expect to earn more.
<img class="aligncenter wp-image-55295 size-full lazy" data-src="https://media.kit.com/post/quit-9-5-01.jpg?fm=pjpg" alt="Why creators quit their 9 to 5 jobs: they expect to earn more, and they make money faster." width="1600" height="692" srcset="https://media.kit.com/post/quit-9-5-01.jpg?fit=scale&amp;fm=pjpg&amp;h=260&amp;w=600 600w, https://media.kit.com/post/quit-9-5-01.jpg?fit=scale&amp;fm=pjpg&amp;h=443&amp;w=1024 1024w, https://media.kit.com/post/quit-9-5-01.jpg?fit=scale&amp;fm=pjpg&amp;h=332&amp;w=768 768w, https://media.kit.com/post/quit-9-5-01.jpg?fit=scale&amp;fm=pjpg&amp;h=664&amp;w=1536 1536w, https://media.kit.com/post/quit-9-5-01.jpg?fit=scale&amp;fm=pjpg&amp;h=886&amp;w=2048 2048w, https://media.kit.com/post/quit-9-5-01.jpg?fit=scale&amp;fm=pjpg&amp;h=255&amp;w=590 590w, https://media.kit.com/post/quit-9-5-01.jpg?fit=scale&amp;fm=pjpg&amp;h=169&amp;w=390 390w, https://media.kit.com/post/quit-9-5-01.jpg?fm=pjpg 1600w" sizes="(max-width: 1600px) 100vw, 1600px" />
But money isn’t the only reason creators are leaving their 9 to 5s:
<ul>
<li>Have more control over your time: Prefer working nights? Get inspired before dawn? You choose when you work (and when you don’t).</li>
<li>Explore new ideas and opportunities: You don’t need permission from anybody to test new ideas—like a new product. You run the show and can explore a range of opportunities without permission from higher-ups.</li>
<li>Gain valuable experience: You’ll get to dip your toes into a variety of disciplines like running ads, copywriting, branding, management, and accounting. You’re unlikely to get this type of experience through your job since specific teams usually handle specific tasks.</li>
<li>Find greater fulfillment and passion: Choose which projects you invest your time and energy into and feel more fulfilled by working on projects that give you joy.</li>
<li>Pivot as needed: If you don’t like your job, you need to go through the stress of finding a new one. But if you don’t like something in your business, you can pivot to something you do.</li>
<li>Have control over your tasks: Don’t like a certain task within your business? Outsource it (as long as it’s within budget). This way, you can focus your energy on the things you love.</li>
</ul>
<h2 id="chapter-2">The 3 steps to take before quitting your 9 to 5</h2>
Quitting your job is a big (and often scary) step. You might worry about financial instability or overall uncertainty.
These feelings are normal. And in most cases, outlining the steps before quitting can put you at ease.
We recommend following these three steps before retiring from your 9 to 5:
<ol>
<li><a href="#plan">Make a detailed transition plan</a></li>
<li><a href="#ready">Know when you&#8217;re financially ready</a></li>
<li><a href="#scale">Understand how to scale</a></li>
</ol>
<h3 id="plan">Step #1: Make a detailed transition plan</h3>
First, do you have a plan?
No, not just a strategic business and marketing plan (although that’s important too). I’m talking about a full, unbiased analysis of your current financial situation.
It’s easy to get caught up in the fantasy of taking the leap and starting your own creator business, but looking at the hard numbers will serve you well.
Once you put the numbers down on paper (or within a <a href="https://kit.com/resources/blog/goal-trackers" target="_blank" rel="noopener">goal tracker</a>), you’ll see a clear picture of what needs to happen before you quit your job. And how long it will take you to get there.
<h3 id="ready">Step #2: Know when you’re financially ready to quit your job</h3>
<h4>1. Pay off existing debt</h4>
Does reading the word “debt” make your palms sweat a bit? Don’t worry; you aren’t the only one.
Here are some of the most common forms of debt to consider:
<ul>
<li>Student loans: Education can be an incredible investment in yourself, but it comes at a price. And a pretty hefty one at that.</li>
<li>House/mortgage: Maybe you recently purchased a home that puts you in a tight financial situation. Luckily, there are alternatives for alleviating costs, like downsizing or renting out your home (or a portion of it) to make mortgage payments.</li>
<li>Medical debt: If you had an unexpected injury or diagnosis, medical bills may affect your current financial situation. Starting an emergency fund now is important to save you from unplanned costs.</li>
<li>Consumer debt: This term acts as a “catch-all” for nearly all other debt, but the most common form we see is credit card debt. And this debt adds up (think large purchases like a car or daily coffee runs). Tweaking your lifestyle little by little can make a big difference.</li>
</ul>
Your 9 to 5 job may keep you afloat as you pay off your debt in bite-sized increments, but what will it look like once you quit your job?
That may be a tough question to answer right now, but first, compare your day job salary to what your business is estimated to bring in. 
Then, ask yourself how much of your current income is dedicated toward paying off debt. This answer brings me to the next point.
<h5>Best practice: Calculate the biz income you need to cover debt payments</h5>
When you quit your job, you don’t want to stress every time a bill arrives from places like your credit card or mortgage lender.
So, work out how much money you need to cover all your debts (not just the minimum). Only paying your minimum payments can result in interest charges and <a href="https://www.cnbc.com/select/what-happens-if-you-only-pay-the-minimum-on-your-credit-card/" target="_blank" rel="noopener">increase your debt</a>. Which puts even more financial strain on your business.
<h4>2. Reduce your business expenses</h4>
If you have a side hustle, figure out how you can cut down on your expenses. And if not, plan to keep your expenses lean while you start your business.
First, take a look at how much your business is earning or will potentially earn (revenue).
Then, figure out how much of that will be your profit after subtracting expenses (profit = revenue &#8211; expenses).
By keeping expenses low, you could be closer to quitting your day job with the same income you had before.
Here are a few ways you can cut back on expenses:
<ul>
<li>Decide between DIY vs. outsourcing: If you want to save on cash, take time to learn how to DIY your next business project instead of outsourcing it to <a href="https://kit.com/resources/blog/virtual-assistants" target="_blank" rel="noopener">virtual assistants</a> or hiring employees. You may also gain a new skill by investing time in doing it yourself. You can watch YouTube tutorials, enroll in free courses, or take a free seminar.</li>
<li>Adjust personal expenses: Could you go a few months without TV or movie streaming? Could you eat out with friends twice a month instead of twice a week? Could you refrain from buying new clothing for a full season? These small changes can make a big impact on your wallet.</li>
<li>Lower operating costs: While some operating costs are necessities for your online business (like your computer, internet, etc.), you may have other operating costs you can cut. Do you need a big office space? Do you use every tool in your <a href="https://kit.com/resources/blog/creator-tech-stack" target="_blank" rel="noopener">tech stack</a> on a regular basis? Take a hard look at your expenses and only keep what’s necessary. And if possible, find <a href="https://kit.com/features" target="_blank" rel="noopener">multi-purpose marketing tools</a> to help you with multiple activities so you get more bang for your buck.</li>
</ul>
<h5>Best practice: Save at least six months of personal and business expenses before quitting</h5>
The biggest question people ask before quitting their 9 to 5 is, “How much money do I need to quit my job?”
It’s the same question newsletter creator <a href="https://kit.com/resources/creator-stories/khe-hy" target="_blank" rel="noopener">Khe Hy</a> asked himself when he was contemplating quitting his 9-5. In the end, he and his wife decided on two years of savings.
And storyteller <a href="https://kit.com/resources/creator-stories/lawrence-yeo" target="_blank" rel="noopener">Lawrence Yeo</a> settled on six months of savings.
The amount of money you choose to save will differ from Khe and Lawrence (and from every other creator). But a good rule of thumb is at least six months.
Knowing you’re covered for six months will help you free your mind to think, “What can I do to grow my business?” rather than “What can I do to pay my next bill?”
<h4>3. Do your business finance homework</h4>
Part of running a healthy business is understanding where each penny comes and goes.
Map out your estimated expenses against realistic earnings to understand how much you need to earn to cover your costs.
Take into consideration these items:
<h5>Dig into your accounting</h5>
I know, I know. Numbers aren’t the sexiest part of running a business, but they’re essential when quitting your job.
Some creators use software programs to help them balance their books. Others may use a simple spreadsheet.
No matter your preference, it’s important to keep a record of everything that goes in and out of your business. This information is not only necessary for deciding when to quit your job, but also for tax purposes.
<h5>Learn about business taxes and bookkeeping</h5>
Speaking of accounting, you’ll want to make sure your bookkeeping is up to date when tax time rolls around. Set aside time every week or every month (depending on the volume of your business revenue and expenses) to update your records.
In addition to helping you understand how much your business is earning, consistent bookkeeping efforts will outline what taxes you need to pay. It can turn hair-pulling stress into quick, painless updates before tax time.
Here are a few types of taxes to keep in mind:
<ul>
<li>Income tax: If you’re a sole proprietor, you’ll pay different income taxes than someone who has an LLC. It’s important to know the differences so you can choose the best business classification for you.</li>
<li>Sales tax: These taxes can depend on the location of goods sold, the type of goods sold, selling goods online vs. in-person, and beyond. This can get a little tricky, so if you have any additional questions, look into your local Department of Revenue website.</li>
<li>Property tax: Are you hoping to upgrade to a dedicated office space for your team? If so, you’ll want to look into property taxes that are specific to small businesses. Again, your local Department of Revenue website will have more information on this.</li>
</ul>
<h5>Research and choose the ideal insurance for your business</h5>
Coordinating (and paying for) insurance is often perceived as one of the biggest roadblocks to self-employment. It seems like there are insurance payments for everything under the sun.
Luckily, you have the power to decide which insurance plan is right for you. This will depend on a few things:
<ul>
<li>Relationship status: Are you single or married? Do you have children? All of these factors will change your insurance.</li>
<li>Age: Someone at 28 looking for health insurance will most likely be looking at different coverage than someone who is 50+ years old. Keep this in mind when researching insurance.</li>
<li>Gender: Yes, even your gender will influence your insurance.</li>
<li>Location: Insurance rates are often influenced by your geographical location.</li>
</ul>
Use this time before you take the leap to research different insurance companies and plans so you can make the best-informed decision. Your future self will thank you!
<h4>4. Save money for a financial cushion</h4>
You should already have at least six months of expenses saved up, but it’s good to put some extra money aside for a rainy day.
This money should be for unexpected expenses, and the amount you put aside will differ depending on your financial situation.
Someone who has low expenses and isn’t easily stressed by money may feel comfortable with a few thousand dollars.
Whereas someone else might want more so they don’t need to fear their bank’s balance.
There’s no hard and fast rule for this one. Take a look into your financial situation and come up with a realistic financial cushion.
<h3 id="scale">Step #3: Understand how to scale your creator business</h3>
Lastly, map out how you plan to grow and scale your business.
<h4>Start with a side hustle</h4>
Good news: You don’t need to wait to start your business before quitting your 9 to 5.
By testing the waters with <a href="https://kit.com/resources/blog/101-side-hustle-ideas" target="_blank" rel="noopener">different side hustles</a> and experimenting while you still have a day job, you’re able to take bigger risks and build a dedicated audience.
Designer <a href="https://kit.com/resources/creator-stories/kelsey-baldwin" target="_blank" rel="noopener">Kelsey Baldwin</a> took this approach when she quit her 9-5 to become a creator and has no regrets.
<blockquote class="blockquote-sm">[Quitting your job] doesn’t have to be this big dramatic, ‘Quit my job and now the next day I’m going to create this huge business empire.’ That’s a lot of pressure. I am really thankful for my journey of slowly phasing out a day job and slowly phasing in my own creative endeavors. &#8211; Kelsey Baldwin</blockquote>
This way, your job becomes the means to pursue your passions rather than something that prevents you from doing so. How? By giving you the security of a consistent paycheck so you can focus your energy on doing what you love during your off time.
<h4>Move on to offering professional services full-time</h4>
<a href="https://kit.com/resources/blog/start-with-services" target="_blank" rel="noopener">Offering services</a> can give you a steady income to fund other areas of your business—like product creation. In fact, most creators earn their first dollar through professional services.
<img class="aligncenter wp-image-55296 size-full lazy" data-src="https://media.kit.com/post/quit-9-5-02.jpg?fm=pjpg" alt="Most full-time creators earn their first dollar offering professional services" width="1600" height="1143" srcset="https://media.kit.com/post/quit-9-5-02.jpg?fit=scale&amp;fm=pjpg&amp;h=429&amp;w=600 600w, https://media.kit.com/post/quit-9-5-02.jpg?fit=scale&amp;fm=pjpg&amp;h=732&amp;w=1024 1024w, https://media.kit.com/post/quit-9-5-02.jpg?fit=scale&amp;fm=pjpg&amp;h=549&amp;w=768 768w, https://media.kit.com/post/quit-9-5-02.jpg?fit=scale&amp;fm=pjpg&amp;h=1097&amp;w=1536 1536w, https://media.kit.com/post/quit-9-5-02.jpg?fit=scale&amp;fm=pjpg&amp;h=1463&amp;w=2048 2048w, https://media.kit.com/post/quit-9-5-02.jpg?fit=scale&amp;fm=pjpg&amp;h=421&amp;w=590 590w, https://media.kit.com/post/quit-9-5-02.jpg?fm=pjpg 1600w" sizes="(max-width: 1600px) 100vw, 1600px" />
Plus, your clients can open doors for you by recommending you to others and connecting you with people who can help your business grow.
<h4>Diversify and pivot your income with digital products</h4>
Full-time creators have <a href="https://kit.com/resources/blog/creator-monetization" target="_blank" rel="noopener">six or more streams of income</a>. This level of diversification can even out the ebbs and flows that come with running a business.
That way, you won’t need to fret if an area of your business slows down (like your services), as your other sources of income will keep chugging along.
<img class="aligncenter wp-image-55297 size-full lazy" data-src="https://media.kit.com/post/quit-9-5-03.jpg?fm=pjpg" alt="Part-timers usually have 1-2 income streams, while full-timers have 6 and more." width="1600" height="403" srcset="https://media.kit.com/post/quit-9-5-03.jpg?fit=scale&amp;fm=pjpg&amp;h=151&amp;w=600 600w, https://media.kit.com/post/quit-9-5-03.jpg?fit=scale&amp;fm=pjpg&amp;h=258&amp;w=1024 1024w, https://media.kit.com/post/quit-9-5-03.jpg?fit=scale&amp;fm=pjpg&amp;h=193&amp;w=768 768w, https://media.kit.com/post/quit-9-5-03.jpg?fit=scale&amp;fm=pjpg&amp;h=387&amp;w=1536 1536w, https://media.kit.com/post/quit-9-5-03.jpg?fit=scale&amp;fm=pjpg&amp;h=516&amp;w=2048 2048w, https://media.kit.com/post/quit-9-5-03.jpg?fit=scale&amp;fm=pjpg&amp;h=149&amp;w=590 590w, https://media.kit.com/post/quit-9-5-03.jpg?fit=scale&amp;fm=pjpg&amp;h=98&amp;w=390 390w, https://media.kit.com/post/quit-9-5-03.jpg?fm=pjpg 1600w" sizes="(max-width: 1600px) 100vw, 1600px" />
Creators often turn to digital products to diversify their income. Unlike <a href="https://kit.com/resources/blog/product-ideas" target="_blank" rel="noopener">physical products</a>, digital ones are usually easier to scale and don’t require a hefty initial investment.
Consider creating a <a href="https://kit.com/resources/blog/digital-product-ideas" target="_blank" rel="noopener">range of digital products</a> like:
<ul>
<li>Ebooks</li>
<li>Templates</li>
<li>Courses</li>
<li>Patterns</li>
<li>Files</li>
<li>Tutorials</li>
<li>Email courses</li>
<li>Artwork</li>
</ul>
And more.
<h2>Start, grow, and pivot your creator business with Kit</h2>
Quitting a 9 to 5 job might feel daunting at first, but a little planning can give you enough confidence to leave your job behind and start a thriving career as a creator.
And Kit has all the <a href="https://kit.com/features" target="_blank" rel="noopener">tools</a> you need to start a business you love.
Ready to take the first step?
<a href="https://app.kit.com/users/signup?plan=1k" target="_blank" rel="noopener">Sign up with Kit for free</a> and start your creator journey.

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