Today, I’m going to address something that people frequently fail to talk about. This revolves around what to do about your benefits when you leave corporate America. There are things that you have to let go of when this happens, but I want to bring a new perspective on those items.
While I don’t have all the answers, I do think this will make you think differently and can address some of the fears that you have when you consider quitting your 9 to 5.
A tough pill to swallow when you leave your corporate job can be leaving that income. That income is guaranteed, and when you start your own business, that is not necessarily the case. It can be jarring! But remember - that money is replaceable. I know this from experience.
When you’re working in corporate America, your eggs are all in one basket. You have a salary cap and it’s hard to make a considerable amount more. But on the other hand, when you work for yourself, you can sign more clients and give yourself an automatic raise. This will happen regularly and then, you’re tied to the success of each individual client. If one of these clients goes under or leaves, they’re replaceable, so you don’t have to worry too much.
In your own business, you can grow your income to be as comfortable as you want. You really have the power there, which is an amazing thing.
Health insurance is another thing that can be fear-inducing when it comes to leaving your corporate job. I was there, too. But -- there are other options. The first thing to consider is whether you can be added to your spouse’s plan.
If that’s not an option, consider shopping the marketplace to get on your own plan. There are options out there — and you may even be surprised by how affordable some of those options are. Yes, it can be tricky to figure out, but it is feasible.
When this happens and you have options in front of you, figure out how many clients you need to sign to cover the costs. I call this “client math.” It may be more expensive than what you were paying for your insurance through your corporate job, but remember that you also have the added ability to earn more money.
Another common fear people have surrounding leaving their 9 to 5 is losing their retirement plan. This is actually a simple one. You can start your own! Start by maxing out your Roth IRA. As your business grows, you can open up a small business retirement plan. This is totally possible to do for yourself.
I recommend doing this with ADP and getting in touch with them. They can help you walk through your options and allow you to ask questions. When you contribute to your own account, I can tell you it is hugely empowering!
Besides leaving a lot behind with your corporate job, you actually gain SO much. Here are some of the things I’ve gained since starting my own business and kissing my 9 to 5 goodbye:
I know that this can be scary, but know that you can come out on the other side of it with a life that’s better than what you had working in corporate America, as well as a LOT more freedom.
Ready to take action? Apply for the program that's right for you:
If you're looking for more insight on how to become a bookkeeper, and how to say hello to a more confident business model, enroll in Become A Bookkeeper (BABs).
Or to learn more about growing your bookkeeping business and hiring a team, enroll in Life By The Books™ (Libby).
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I'm a licensed CPA with 10 years of tax and accounting experience, fellow entrepreneur, & mama of three little ones.
I'm highly passionate about helping business owners increase their profits so they can live out their purpose long-term and make serious changes in their lives.
I do this by taking your bookkeeping off your plate, helping you plan for taxes, increase your profits, understand what's working in your business, and allowing you to get back to your true zone of genius.
BUT THAT LEADS TO...
💰Getting hit with hefty penalties and interest
⌛️Wasting your valuable time
🤯Stressing out over handling the mishap
🥴Lacking insight on how your business is doing and thus making poor business decisions.