The Make Money Online (MMO) niche is packed with people who built up a passive income on the side, and eventually quit their jobs, often after years of hard work.
Well, for better of worse, I just didn’t have the patience for that. I am not typically the impulsive type, but if I have an idea firmly set in my mind, I will pursue it relentlessly. And that is what I have done over the past few months.
It was just a few months ago, perhaps October, where I decided that whilst passive income is great in principle, it does take time to build up – especially when your capital outlay is low. And by that time, I was positive that I wanted to leave work behind – as soon as possible.
People often email me with their plans for leaving work behind – in 2013, or even 2014. They are planning years in advance for the big move. Now I am not judging those guys and girls – some of whom I am sure are reading this. Everyone has their own methods, and who am I to say that mine is the “right” one? However, I could not do what they are doing. Late last year I decided that I needed to quit, and I needed to do it as soon as possible.
Enter My Savior
Which is when I stumbled onto freelance writing – a whole industry that had previously been hidden to me. The reality is that I have still only seen the tip of the iceberg. However, I am making a reasonable income from that tip.
Freelance writing gave me the freedom to quit my job – and although it isn’t yet covering my outgoings fully, it will in time – with just a few hours work a day. It is the enabler; the catalyst. For everyone who is building their passive income dream on the side whilst still slaving away at their full time jobs, I beg you to consider how much more you could do if you freelance. It doesn’t have to be writing – pretty much anyone can freelance. You would be amazed at what skills can be monetized – just check out some of the listings over at oDesk and Elance.
I honestly believe that the vast majority of people have a skill set that is suitable for making money online. I honestly believe that given the right level of drive and determination, most of you could be running your own online business within months. The biggest problem is mindset. And it is my intention in this post to right your mindset, and get you thinking in a way that will open doors of opportunity in your mind.
So let’s take a look at why quitting your job is awesome (or, why you should be in business).
1. It Changes Everything
When I was in my job, Leaving Work Behind and my MMO efforts often felt like a distraction. The majority of my attention was still with my job. And from a practical perspective, that makes perfect sense. I was of the mind that my side endeavour was a hopeful stab in the dark – something that probably wouldn’t pay off, but was worth a try.
As long as I had that attitude, I was never going to get as much out of my business as I could. And that attitude remained with me – right up until the day I quit my job.
Until you get to the point where there is no security to fall back on, you will never have as much desire for your online business as you could do. Believe me. When you quit your job and there is only your wits and whatever safety net you have in place separating you from bankruptcy, you will see everything in a new light.
2. It Gives You Ownership
Plenty of people have (politely) asked me what the point is in quitting a job just to get another one. They are alluding to the fact that my income is currently derived from freelance writing – and they just see that as another job. But in reality, nothing could be further from the truth.
For me, the defining feature of a “job” is that you lack control. Yes, you can work hard, and then maybe you will get a promotion and a raise, but your entire potential for success is ultimately in the hands of a 3rd party.
That is simply not the case when you run your own business. You decide who you work with. You set your rates. You decide how many hours you want to work. You are in the driving seat, and you have a direct impact on how much you earn. Work more hours – earn more money. Increase your hourly rate – earn more money. Don’t like a client – drop them. No problem. It’s all you.
3. You Are Working Towards Something
How many of you feel like your career is going nowhere? You’re dissatisfied, dejected, and feel like you’re at a dead end. You feel like there is nothing you can do about it. Well under the right circumstances, you should never feel that way when you are in business.
Even if you feel like your current direction isn’t where you want to be heading, if you have a suitably-sized safety net, you can always change your course. And if business is going well, you will find yourself waking up every morning with great enthusiasm – ready to spend another day pushing your business forward. It is hard to replicate that feeling with a job.
4. It Gives You Flexibility
I created and manage my default diary. I decide what I am doing, and when. I can utilize my “peak hours” (i.e. the hours at which I am most productive) as I see fit. Moreover, I can work as little or as much as I want (within reason).
Say you are a husband and a father, and you want to spend more time with your family. If you’re in business, that is possible.
When it comes to establishing a lifestyle where your work doesn’t run your life, there is this awful disconnect in most people between outgoings and income. The simple fact is, if you want to work less, you need to do one of two things (or both):
- Increase your income per hour worked
- Decrease your outgoings
Option 1 can take time to achieve. For most of us, option 2 is so easy. It really is a matter of considering how much you value your time. If the finance on your beautiful car, the expensive cable package, and the $300 you spend a month eating out is worth it, then fine. But if you stop and assess how much you value your time, you might reconsider. Your business doesn’t necessarily have to match your current outgoings. Just reduce them.
Earning six figures is overrated, unless that is your main drive in life. If instead you are happy to just work a few hours a day and spend more time on the things that are most important to you, why not do that? Money will never make you as happy as quality time spent doing the things you love, with the people you love.
5. It Gives You Control
I mentioned above that as long as you have a job, your destiny is always in the hands of a third party. But when you run your own business, your destiny is in your hands. Yes, markets can shift and the economy can tank, but there is nothing anyone can do about that. As much as it is possible, running your own business gives you the power (and the responsibility) to create success.
Whether I succeed or fail over the coming months depends entirely upon how I perform. It is all on me. What position would you rather be in:
- In control of a situation where you could fail
- In a situation over which you have no control (but you could still fail)
Think about it.
What Is Holding You Back?
Let me make something perfectly clear at this stage – I am not saying that you should walk into your boss’ office tomorrow and hand in your notice. I advocate strongly that you should only ever quit your job under the correct circumstances. But speaking in the present, leaving work behind has been one of the best decisions I have ever made – better than I could have possibly imagined.
When I was in my job, my future was to a large extent preordained. I would have earned more and more money, my stature and reputation would have grown, and I would have been unhappy. Those things were almost a given. But now, my future is an absolute mystery. And I love it.
A Challenge
I want you to do something for me. I want you to give me just one reason why you can’t leave work behind. If you have a good reason, then you can continue to work towards getting rid of it. If you don’t have a good reason, maybe now is the time to reconsider your options.
Creative Commons image courtesy of Stuck in Customs
You’re dead-on that most people have a skill they can use to earn money online. Not only that, but I know some fantastic writers, designers, and others that are amazing at what they do and would be great at earning money freelancing if they just put their minds to it.
I keep finding ways to justify leaving my job sooner than May of this year, but I know I have good reasons not to (I made a commitment to my boss to stay, and I have a concrete goal to save the money before I make the leap). My job does stand in the way of my MMO opportunities for now, as it’s hard to concentrate on them and get a real for for what a typical day or week will feel like. I look forward to experiencing that, but, for now, it’s about preparing as best as possible for that time.
Hey Jeff,
Putting your mind to it is typically the key – there is a lot of wasted potential out there.
Sounds like you’ve got a sound plan to me – a solid date in mind and a specific financial safety net goal.
Cheers,
Tom
I’m quitting in June. Thanks for the timely post I the date of June 6th approaches.
No problem Craig – best of luck to you!
Awesome Tom, I think you might have touched on this in an earlier post (I just can’t remember which one), but how did you first start looking around for freelance writing gigs?
Hey Greg,
I found both of my current freelancing gigs via the ProBlogger jobs board. Couldn’t believe how easy it was. I haven’t looked beyond that yet (although I may well do in the future).
Cheers,
Tom
What’s holding me back today? Mortgage and health insurance. What motivates me today? Wife and 2 kids.
I don’t hate my current job, so it can be hard sometimes to be motivated when I lose focus on the long goal.
I think you’re very right about most people have skills that can translate into making money online somehow whether through outsourcing yourself or creating your own products to sell.
I feel the big issue is that can the compensation for these skills equate to a full time income. Making an extra $1000 or even $10,000 online would be great, but I’d still have to work.
The main thing that keeps me going is that most people bounce around from method to method and stop before they see any return. If I just power through and continue the course, I will eventually get there. It just may not be until 2014 :).
Hey Jason,
Hating your job can be a very strong motivator! 😉
When it comes to making enough money to replace your full time income, my usual argument is this: are you saying that with an extra 8 hours available in your day to commit to your online business, you wouldn’t be able to generate a full time income, given time? I think most people do themselves a disservice by thinking that not to be a possible outcome.
The only thing to consider then is whether you consider the risk worthy (because it is of course a risk), and if you have a big enough safety net to give it a proper effort.
Cheers,
Tom
Even an extra 5 hours a day would be sufficient (which I have). I’m just lazy. I am 100% to blame for not having a full time online income.
Where some people will squeeze a 20 twenty project into a weekend and get it done, I tend to space it out over the course of a month. I guess the silver lining is that I do eventually get things done, where many give up.
health insurance, mortgage, financial commitments and two kids. And I’m not sure I agree that everyone has skills that can make money online. I’m not a writer, not internet savvy or a creative… What else makes money online?
Freedom is a lovely thought, but security is very important when others rely on you for everything.
Hey Paula,
I said the vast majority – not everyone 😉 But I don’t hesitate for a second in thinking that you have a suitably-developed skill set to create a successful online business. Maybe not writing or something creative, but there are certainly many more opportunities out there! For instance, you could build any number of your highly-developed skills as a service. Marketing consultancy perhaps?
There are many examples of people who are not internet savvy that have managed to make a success of themselves online. Check out Marcus Sheridan at The Sales Lion – he took his (offline) business from the brink of failure to considerable success by harnessing the power of content marketing. He would be the first to admit that he was far from internet-savvy when first starting out.
And to be honest, going from internet-savvy to internet-competent is not difficult, so I hardly see that as a barrier.
Security is extremely important, and there is no doubt that your position is more challenging than many. Like you say, mortgage, health insurance, kids…there’s a lot at risk. I like to think that there is a “sliding scale” of risk – a kid fresh out of college and still living with their parents is right at the bottom, and a single mother with a few kids is at the top (for instance). I’m closer to the bottom of the scale, and you’re closer to the top. No doubting that the risk is lower for me (although I do have the mortgage), and I don’t try to pretend otherwise.
But regardless of that, the whole thing still comes down to a few key considerations. You might want to read this:
http://www.leavingworkbehind.com/why-you-can-quit-your-job-today/
Cheers,
Tom
As a full time freelance copywriter, and someone who left her job almost a year ago…I concur!
I would urge you Tom to look beyond Elance and other job sites – set your standards higher. Reach out directly to Fortune 500 companies and establish higher rates (mine is $125/hour). My freelance income is approaching six figures (I’m close!) and especially now that you have a track record and a portfolio, yours can be as well.
Pick a lucrative niche market, don’t settle and keep hustling business!
My issue is that my freelancing work (which indeed offers all of the benefits that you’ve outlined) leaves little time for blogging and passive income pursuits.
Hey Ruth,
I don’t actually use Elance and the like – I just use it to demonstrate that the barriers of entry are very low.
From what I see, you are steadily working towards establishing a passive income. Besides, you control your workload, so you can always make time! 😉
Cheers,
Tom
P.S. When are we going to have that call?
I’d really like to quit my job before summer this year. I’m working super hard right now to create a passive income from multiple niche websites. I’m spending money to make money, and I’m outsourcing everything out like crazy. I’ll be interested to see what my income is like in a few months.
Hi Mike,
When it comes to niche site building, spending money to make money and outsourcing are absolutely key to growing a sizable income. Took me a long while to figure that out. The key is to be spending money you can afford to lose, and spending it wisely!
Cheers,
Tom
The benefit of a 9-5 job is the guaranteed cheque at the end of the month and knowing that your budget is covered for mortgage bills etc.
But this predictability is also something that stifles creativity, and I agree that if I left my job tomorrow I would have more time to work on my niche site income, and also that I would put 100% effort into doing this. I know I could earn more money and have the potential to earn more than I currently do in my 9-5 but I can’t take the risk at the moment.
That doesn’t mean Iwon’t do it later on down the line though…
Hi Adem,
I have to say – a 9-5 job does not guarantee a cheque at the end of the month, especially in the current climate.
What is stopping you from taking the risk at this time?
Cheers,
Tom
At the moment I’m guaranteed my monthly salary 🙂 And I do think that if I was made redundant then I would be doing my niche sites full time.
As for what’s stopping me. I’m getting married in July and am saving for that, and then I’ll be buying a new house too, and need regular income for the mortgage. And then we’ll be trying for kids too, so lots of stuff going on.
Wedding, new house, kids in the future…okay – I’ll let you off! 😉
You’re sadly mistaken, a 9-5 will NEVER guarantee you a cheque at the end of the month, every heard of surprise layoffs, firings etc. With the way the economy is, you are putting ALL your eggs in one basket!
Indeed, I enjoy my 9 to 5 and love the paid check and benefits. However, there is no job security in the US and we had laid off in the past.
Owning an online business is fun, but a lot of thinking, hard work and dedication. Sometimes, I just hate sitting in the front of computers after all day work on weekends.
Self Discipline and Success Mindset is the key to succeed to have own business full time. There are a lot of opportunities, but risks involved as well.
Tom, it’s a nice write-up. Thanks!
Hey Kent,
You’ve pretty much laid it all out there – agree with everything you say. Thanks for your thoughts!
Tom
I make about $45,000 a year, including benefits. That’s not a fortune, but my family is accustomed to the lifestyle it affords us. If I knew for a fact that I could replace that income in less than six months, I would go for it. (I say six months because I don’t have a big enough nest egg to last longer than that.)
Do you think I could replace my current income in half a year? Here’s what I have going for me: I know how to set up a nice looking WordPress site, I make a few hundred dollars a year from Adsense on a hobby site, and I’m a decent writer.
Hi Russell,
Being accustomed to a lifestyle can be a barrier to quitting your job, for sure. But if that comfort is worth more to you than quitting your job, it makes perfect sense to stick with it.
Obviously, there is no way of “knowing” that you can replace your income within six months – but does that mean you are forever waiting for a guarantee, or will you take the plunge where you are reasonably confident and able to stomach the risk?
Clearly, I can’t give you a guarantee, but on the face of it, I don’t see why you couldn’t be earning $3,750 per month in six month’s time. I certainly hope I am! However, I would get a firmer idea of how that would come together before doing anything. I would never recommend someone quit their job until they have a good idea of (a) how they plan to make the money and (b) what they have to fall back on.
For instance, when I quit, I planned to make money from a mixture of freelance writing and niche sites. I knew I could make money freelancing (as I was already doing so), and I had a bit of experience in niche sites. Therefore, the leap was relatively low-risk for me. Worst case scenario, I could cut the niche site investment, focus on freelance writing full time, and live frugally. That’s my fall back. Have you got a similar plan in mind?
One thing’s for sure – a six month nest egg is a GREAT start.
Cheers,
Tom
Hi Tom, I just discovered your blog and have found a number of helpful, well-written articles here, but am especially fond of this one. I am quitting my full-time job no later than Oct 1, less than 5 months from now. I am now spending my limited free time trying to make the transition to a part-time freelance writing income (I wrote some magazine articles 5 years ago so I know I can do it) on a part time basis while I am still employed. The goal is to have a financial safety net of cash saved (4-6 months of expenses in a cheap locale), which you’ve written on the importance of, but additionally, to have some established part-time freelance writing gigs with predictable built-in income by that time, so I can stretch the safety net beyond 4-6 months and hopefully be able to build on that freelance income with the extra time, and not need to dip too much into my savings. So I’m definitely “leaving (employed) work behind” and focusing on moving to more rewarding work, in a path roughly similar to yours, except I’ll be focusing more on the paid writing side and less on the profitable web sites for now. I look forward to reading more of your excellent writing on your experiences. Cheers, Jason
Hi Jason,
Thanks for your kind words!
Your path sounds very similar to mine. I too built up a financial safety net and looked to establish some regular freelance work before quitting. The internet marketing side of things hasn’t come to fruition yet, so it is almost solely the freelance work that has sustained me so far during these first 4 months or so.
Cheers,
Tom
@tomewer In 2011, I learned the hard way that I.M. is a tough nut to crack, and I may give it a shot again, but first thing’s first–personal freedom and location independence, and you’ve set a great example to follow with the writing gigs. I’m glad you’ve experienced and highlighted this very appealing choice. Keep it up!
Thanks Jason, I really appreciate it! I was going mad with IM before I stumbled upon freelance writing, but haven’t looked back since. Whilst I am certainly still looking to set up sizable “passive” income streams, it is great to have the relative security of my freelance writing income to fall back on.
I’m sure it is great–and it’s been helpful to read from you that it can b done. I’m trying to get there myself. Check your inbox when you have a chance. Thanks for a lot of great posts!
Will do Jason – thanks! 🙂
Couldn’t agree more! I quit my 9 – 5 a month ago and wish I’d done it sooner. I feel like I’m finally living the life I was meant to live. There are different stresses but I feel like I’m in control, rather than being controlled by a horrible boss—the catalyst to go on my own! Yes, please.
Your comments reflect exactly how I feel Corey – liberating, isn’t it? 🙂
I quit my job six years ago at a top mobile company and I have never looked back ever since. I remember getting ordered around and working 8 hours a day used to stress me a great deal.
Today, I work like 2 hours a day on my blog and earning more money and freedom. This has always been my dream.
Can’t be bad, can it? 🙂
Hi Tom,
I share your thoughts wholeheartedly! I left my job two months ago now, and am starting to see a pick up in my other income (I contract myself as a mountain bike skills instructor, so much fun, and am starting to build small income streams from niche sites).
I’m interested in this idea of freelance writing – can you give me some pointers as to where to start looking/what sort of places hire freelance writers?
Thanks so much, I love your blog and your ideas.
Jacqui
Hey Jacqui,
A mountain bike skills instructor – what an awesome job! And I bet it’s a real passion of yours too?
Best place to start is to search for “freelance writing” in the search bar in the sidebar – that’ll turn up a variety of related articles!
Cheers,
Tom
So true! It’s just another way of valuing yourself.
People stick in jobs they hate because they feel tied by responsibility.
I think it’s important to recognise that people don’t quit jobs, they quit their boss. This is a major problem for everyone involved because whether you quit or stay, your level of interest in what you’re doing is almost zero.
Bored, stressed-out people who hate their job cost their employers a huge amount in losses caused by disinterest, time off and lack of energy. If you want to quit, or your job is going nowhere, you begin to lose not just your self-esteem and drive, you lose trust in yourself. When Trust goes, everything positive goes.
Quitting your job allows you to let go of self-suspicion. You not only free yourself to prosper, you free your company from the cost of workers who hate their jobs. You owe it to yourself, people close to you – and your employer to quit.
Think of the jobs you’ll create by quitting. Someone can fill the one you’ve vacated for them, and the ones you’ll create by starting up in business for yourself.
If you can’t quit now, and don’t want to lose trust in yourself, then reframe what your job means to you.
I now see my job as a means of financing my start-up. By staying in it, I am able to start my business the best way there is: Build a platform of clients ready and able to invest in my skills when I do quit.
The job I hate is a stop-gap. By changing how I view its purpose has changed how it makes me feel.
Of course, I realise not everyone is willing, or able, to make use of their job like this. And I’m single and don’t have kids which makes it easier.
In general though, I think people can be happier when they realise they are not tied to a job.
Hey Tom,
Thank you for adding such valuable comments — couldn’t have put it better myself.
Cheers,
Tom
Thanks Tom, appreciate the compliment. Good to hear from you. Admire your success and what you’re doing for others to give them the incentive to pursue their true potential.
Thanks again.
Tom
May I offer one suggestion to everyone?
Please never quit your job, get laid off instead. I managed to engineer my layoff and get 6 years worth of living expenses as part of my severance.
This 6 year runway goes a long way to allowing me to do something else on my own without stress.
Please consider this path folks.
Hey Tom!
I left work behind last year August and at the moment I have a hosting company and the odd web development project every once in a while that keep things afloat.
Now I’ve decided to go with writing, freelance writing, something I’ve never considered besides the normal info products one can create, which of course I believe both you and I believe strongly in for that passive income stream for years to come.
I am setting up my writer’s site, in fact I just designed my logo last night. I hope to be up and running soon. I have a number of guest posts written all over the place which should serve as good reference to potential clients, don’t you think?
To me it’s finding the jobs to apply for and then competing against others. I guess I am heavily relying on someone hiring a couple of writers at the same time and given a trial run, which I’m sure will give me the break I need as I have no lack in my ability as a writer, I’m sure.
Love to read your road trip so far, man!
Glad you’re enjoying it Ruan 🙂