Talking Financial Freedom to Gain Professional Freedom Outside the 9-5: 5 Questions Answered
Sort it out: what is your financial status?
When I was laid off in May of 2020, due to Covid, I was blessed to be 49, have a savings account and the ability to take a step back and evaluate what I wanted to do next.
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I read the 4-Hour Workweek and when I put my blog out there, budget was a topic I hit early on because you must know where you stand financially if you want professional freedom outside the 9-5. I was definitely inspired by the book, which shared a simple way to sort out expenses, goals, and your accessible funds, both on paper and in your brain.
Many entrepreneurs think they can “do it all” on their own. But no doubt, pulling in some tips from others can be valuable when your goal is to get out of working for others and into creating your next chapter as a business owner.
5 Questions, 12 Experts
The 5 questions below were constructed to share the mindset, practical tips, and processes to reach the goal of professional freedom, keeping the financial aspect of it in mind.
How do I define an expert? Simple, someone who has walked the path, created financial freedom and/or works with money every day.
Image by Arek Socha from Pixabay
Question 1: What is the driver that inspired you to start your blog supporting people in getting to financial freedom outside the 9-5?
Based on my experience, society encourages us to follow the conventional
path of building a career and working for 40+ years until retirement.
Although there isn’t necessarily anything wrong with this path -
especially if you enjoy your job - I believe many people would choose
otherwise if they didn’t need to work for money.
The good news is, there’s plenty of ways to make money work for you instead - most people just don't know it yet!
Photo by Isabella and Zsa Fischer on Unsplash
Because school doesn't teach us enough about financial literacy, never
mind about financial freedom, I was inspired to start a blog to raise
awareness of financial freedom, passive income, and alternative income
My aim is to support people in making smart money moves that lead to more freedom. Freedom to make your own life decisions and dreams happen without having to worry about money.
About Roosa: Born and raised in Finland, now in living the U.K., Roosa got excited about finance through investing and, ultimately, passive income.
Reach Roosa: Money Marshmallow
Photo by Colin Watts on Unsplash
Growing up, I saw my immigrant parents work long and hard hours in order to save money so that my brother and I could live an easier life. Even though they worked hard, they didn't invest a lot of their money until much later.
As I grew older, I started learning about how much they could have been making if they invested early on. I started teaching my friends about the basics of personal finance such as investing, your credit score, having side hustles, and spending your money wisely.
With my blog, I want to teach others that simply working your 9-5 job won't cut it if you want to achieve financial freedom. Work side hustles and diversify your investments as early as possible. I write about all the different ways you can make more money and make your money work for you, check it out!
Read more about Chloe and reach her at the Off Hour Hustle blog.
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Erin King Edwards
My blog started from a simple question in a Facebook group- "Why isn't there a website for personal finance just for women?" So many websites don't speak to the unique challenges that women face in their personal finance journey. And most personal finance websites are full of jargon and written at a level that anyone new to personal finance can't easily understand.
I was in that place 5 years ago, and I had to dig and guess and figure it out all on my own- and it was hard! My goal is to make Level Up the place where anyone can go on their journey to financial freedom and find a straightforward, accessible path to reach their goals.
About Erin: She has a fast-growing blog, is active on Instagram and is truly building a brand around personal finance. Erin has even created a 7-day money mindset challenge she is running in June of 2021. Watch more from her on FreeAt50!
Reach Erin (where you can also sign up for the challenge): Level Up Personal Finance.
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Question 2: How did you determine what business you would pursue to eventually leave your 9-5?
I’ve always loved admin work, nearly all of my previous jobs were admin roles of some kind. I toyed with the idea of becoming a VA for a couple of years. Thanks to Covid-19 and another lockdown, I did just that in January this year.
What I didn’t realise until I had a chat with my coach, was how much I love Instagram. It’s my fave platform by far, so I decided to concentrate on Instagram management alongside VA stuff. So here I am, and I LOVE it!
About Steff: I met Steffie Anne in a Facebook group and was drawn to her excitement and motivated approach to engaging in the group so I joined hers- reach her on it here, where she supports use of Instagram to push our businesses forward.
Photo by Arnel Hasanovic on Unsplash
I have been working as a professional photographer for 15 years in many genres. A few years ago, I got the opportunity to teach underwater photography to customers of a dive shop where I was the in-house photographer. I instantly fell in love with sharing my photography knowledge and seeing others improve their skills to create stand out photos.
When Covid hit, I knew it was time to start my own business, but with no tourists, teaching underwater photography was not a viable business option so I did market research which led me to small business owners’ needs. I started creating my “Take Stand Out Product Photos” program to educate these small business owners on the everything from planning a photo shoot, to the basic skills needed to capture their products in the best light.
A couple of months ago I took the leap and left my 9-5 as an underwater photographer to work in my business full time. Having the extra time to work on my passion has been amazing and gave me the push I needed to make my first sale.
Photo by alan bajura on Unsplash
I always had a passion for writing, but I didn't think you could make much money. I moved to Thailand to teach English and I wanted to make extra money on the side.
I Googled online job platforms and discovered UpWork. I applied to blog post writing jobs. I got hired for a very low paying job, but it led me to a well-paying job as a copywriter for a digital marketing agency.
After I was laid off due to lack of work, I decided to start my own digital marketing agency specializing in the real estate industry since that's my other passion.
About Jess: She lives in Montreal and offers services for editing, publishing, and copyrighting. Her focus is helping people with a credible and recognizable online presence, setting up online businesses for success.
Reach Jess on her website: Copy Fox.
Photo by Aaron Burden on Unsplash
Question 3: What tip would you give someone planning for professional (and of course financial) freedom?
Be tax smart! We always think about funding our 401(k)s, IRAs, or other pre-tax accounts, figuring we will pay taxes when we retire. We probably have our ROTHs funded as well, knowing that we will be able to use those monies tax-free in retirement.
The thing that sometimes gets overlooked is to have an account that can grow and is accessible without penalty before you reach the age of 59 ½. Invest these dollars smartly in tax-efficient vehicles that will either pay tax-favored “qualified dividends” or will incur preferential capital gains tax treatment when you decide to sell them.
Photo by Emilio Takas on Unsplash
There are a few other types of preferential incomes you should consider with your trusted advisor. Remember, it’s not what you make, it’s what you keep!
About Sara: She is actually my personal financial advisor and a CFP® professional. She works with people who want and need help: those that are not exactly where they want to be. She enjoys helping people understand their options, being their partner, and choosing their own adventure in life!
Reach Sara and get all her disclosure information on her Linked In profile.
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Self-employment can be quite fulfilling – and you’ll find it even more rewarding when you make the right financial moves.
First, establish a budget – when you’re starting out on your own, you need to keep tight control over where your money is growing. Also, set up a retirement plan, such as a SEP-IRA or an owner-only 401(k). But while you’re saving for tomorrow, you can’t forget your needs for today, which is why you should gradually build an emergency fund containing a few months’ worth of living expenses. And, as soon as possible, try to whittle down any outstanding, high-interest debts.
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One more suggestion: Consider the need for the appropriate amounts of insurance. Depending on your line of work, you may or may not need business insurance, but if you have anyone depending on you, you should certainly consider the need for life insurance.
About Danielle: Danielle is a professional financial advisor with Edward Jones focused on supporting women with their goals.
Reach Danielle: https://www.edwardjones.com/danielle-hines
Photo by Karim MANJRA on Unsplash
Question 4: What part of being a solopreneur/starting a new business is important to understand and work with a tax professional on?
Most startup businesses can't afford to consult with a tax professional very often, so when is it most important they work with one?
It's definitely most important to consult with a tax professional at the very initial phase of starting up a business. One of the very first things you should prepare when starting a business is a business plan. Have a draft prepared before you visit with your financial professional.
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At your first meeting, you should expect your professional advisor to review the business plan with you and point out strengths and weaknesses within it, and also advise on the choice of business entity for your new venture. Your advisor will review your financial projections with you and help you develop a cash-flow forecast so that you can determine the feasibility of the venture. Your advisor can also at this stage assist you to identify possible sources of financing for your business, and advice on tax consequences of various courses of action.
I find it so important to start your business on the correct path, it's so much easier (and less costly) than fixing mistakes at a later date.
Learn more about Carolyn, a believer and follower of the FIRE (Financial Independence, Retire Early) movement and reach her using her website: Tucan Dream.
Photo by Basil James on Unsplash
There are many daunting tasks for entrepreneurs when starting or managing a Small Business, but none seems more daunting than navigating one’s way through the world of Tax.
As a new business, the first step is to decide what type of business entity you want to establish and if it is a legal entity, you first register your business for Income Tax. Working with a tax professional will help you to understand the different business entities for taxation purposes, the different tax compliance legislations, entity tax deadlines and how to properly prepare for a corporate tax season.
Image by Steve Buissinne from Pixabay
Tax obligations for small businesses starts from the date of registration. Whether you make a profit or a loss, it is compulsory to submit Tax Returns and declare any income and expenses your business had over a financial period. Tax Professionals assist with the preparation of tax-deductible expenses, calculating business profits, tax profits and guide entrepreneurs on how to avoid unnecessary taxes.
Working with a tax professional will not only help you manage your business more efficiently, but it will assist in saving valuable time, money and bring you peace of mind knowing that all your tax obligations are taken care of by a tax specialist.
Photo by Samantha Gades on Unsplash
Question 5: What is the most valuable tip you can offer about getting in the correct mindset to build the income you need outside of a 9-5 job?
People looking to build income needed outside of their 9-5 job should surround themselves with people who share the same goals. Those who share the same goals will have a growth mindset when it comes to building wealth. They do not regress when it comes to challenges.
Instead, they embrace challenges and look for solutions. They do not dwell on their problems and do not live for other people. Rather than focusing on a dollar amount, they focus on gaining more time to do what they want to do.
About Jonathon: Real estate investor and personal finance blogger, he and wife Jacqueline have created a brand around helping parents move forward into financial freedom and have the ability to focus on family time. They have two kids and share tips and resources on their website.
Reach Jonathon: The Parent Portfolio
When transitioning from the corporate world, where we feel "safe" in terms of we know we get paid, when we get paid, how much we get paid, going into being your own boss will bring its ups and downs with it. And that includes your finances.
The income you'll bring in can and will fluctuate. So start getting comfortable about the thought that you won't always know how much comes in. A very important aspect also is to make sure you feel safe.
That there's no fear and worry about making it on your own. Maybe feeling safe for you means having some savings or having a partner who can support you or simply you just know without a doubt that you'll be fine!
Photo by Charles Deluvio on Unsplash
Being in the "needy" energy to pay bills, feed yourself or keep the roof over your head is an energy that will drive your buyers away. So think about feeling safe, step into your big vision mentally and do everything you can to make your dreams come true.
About Anita: Founder of the Champagne Universe, Anita is a mindset coach who motivates people and encourages them to grow their businesses. With her Facebook group, she shares tips and implementable processes to move forward.
Reach Anita: Champagne Universe Facebook group
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Call to Action: Take Action.
I will continue to share tips, tools, and resources on financial freedom (stuff I find as well as information directly shared on the blog by experts) but start now, don’t wait for more. What actions can you take?
· Get the 4 Hour Workweek and start laying out your finances.
· Click the links provided for any of the experts above to learn more or connect with them directly.
· Join the Ditching the 9-5 Facebook group and engage in the community.
Which action are you taking to move forward?
Share in the comments below or on the Ditching the 9-5 Facebook group!