I’m working from home today – I have that luxury. I’m reading through all the materials to write my report, and I’m handling the admin details that an admin should be hired to do. I’m looking at the emails and reading the subtext of what my colleagues are saying to me, about me – no, not about me, about the work they think I do. I’ve always invented my role, at every company I’ve worked in. I’ve always been described as entrepreneurial because of that; at my last job my boss would joke that I was running my own business at my desk – in many ways that was true. I managed $1-1.5million per year in business for that company. I made less than 10% of that for most of the time I worked there. It wasn’t ideal, but at least they understood what I did. This company, for all it’s ‘go-get-’em’ spirit, and refreshing candor, and California-style positive-ness, doesn’t quite get what my role is – so for each person I work with, it has taken on a slightly different permutation. I have to think a little bit about whether I want to establish myself more clearly in the role, or whether I’d rather go with the flow.
At the end of November I would have simply sighed and said, “I’ll go with the flow. Why bother fighting?” But it’s 2010 now, and the whole point of this is to give up less. Besides, if I’m going to do right by the people I bring into this organization to run it after I leave, then I should make sure there’s a framework for them to enter. It’s only right.
I’m thankful that a lot of people are out today, and that they know my plate is full with this report (even if I am taking this 10 minutes to upload a post about it all). It gives me an extra moment to decompress and really focus on what the role ought to be – as far as I can know it. The truth is that the CEO can at any time make her declaration about the role and there it is. I am constantly reminded of the line about Ginger Rogers, dancing backwards and in high heels – I think that’s not just the role of women, it’s the role of being very senior within an organization, but ultimately powerless. Still, she points in the direction she wants to go and I have to figure out how to get there; while I don’t want to do that for much longer, I should still find ways to make it interesting, and more importantly, successful.
I realize I’m being vague about my current role. The world of public & private has certainly blurred, but it’s no good to anyone if the entire world knows my plan just yet. I’m sure you understand.
It’s perhaps the riskiest part of deciding to go out on your own – you need the cushion of the job you have now until you can afford to take the leap. They say six months expenses is what you need to be safe; some say six months income. So how does someone go about getting six months expenses socked away?
I’ve been thinking about that a lot, and here’s what I’m going to try – see if something like it works for you:
- Draw up your budget – include all the things you know you have to have: rent, utilities, mobile phone, internet access, prescription co-pays, student loan payments, etc. What can you live without? Cancel it. For example, I’m canceling Verizon and getting Skype – I can have a phone without the phone company. A year ago I canceled cable, but kept the cable modem – now I get my TV over the air (I’m pretty thankful for that digital changeover – network TV never looked so good!) or via Hulu.com, AppleTV, or Netflix. That’s about $150 less each month that I’m spending – Skype service for the year cost me about $30.
- Ask yourself – what will change when you go out on your own? You’ll have to get your own health insurance, pay your own taxes. How will that impact your monthly expenses? I’m starting to do some research – in New York, we have the Freelancer’s Union, and the Healthy New York website (even if you don’t qualify for HealthyNY, they’ll link you to individual insurance rate comparisons). Each state is different though, so do a search for ‘individual health insurance rates’ plus your state and see what you find. If you have someone who prepares your taxes for you, consider getting them to advise you on how to manage your own withholding; otherwise, check out the IRS’s website. I was audited once for a year I freelanced and filed incorrectly – it was actually incredibly painless and my IRS agent was a very kind, professional man. Don’t be afraid of them – they’re just doing their job.
- Now be realistic – you’re not going to become a monk for the next several months, you’ll want to order in on a night when you’re too tired to cook, you’ll want to enjoy a movie every once in awhile. And besides, you’ll need a little money set aside for schmoozing – taking your contacts to lunch or a drink or dinner. I’m setting aside some cash each week for something fun – that something fun could also be with one of my contacts… who says you can’t mix business with pleasure?
- Make sure there’s one thing in there that is an investment in the future you’ve started to design for yourself and is an outlet that is just for you – maybe it’s your gym membership if getting in shape is part of the image of the New You; maybe it’s a class that will teach you a skill you think you’ll need. I just registered for a writing class – I used to be a copywriter and gave it up for being a strategist… but my true love is creativity. Even if I don’t write the great American novel, I’ll learn some useful skills for the work I really do want to do. And I’m keeping my gym membership – if I get there 3 times a week that’s 3 more hours of “Me Time” than I’ve got in years… and it might just take off some of the stress-induced, sitting on your arse fat I’ve packed on. Plus – and I don’t know about you – but I’m more alert, faster thinking, and buttoned-up when I’m getting some regular cardio.
- Everything else gets put into savings. Now add that up – if you put aside that much money each month, how much will you have in 6 months, 9 months, a year? I’ve set an aggressive timetable for myself – June 30, 2010 – so I will have to take on some side projects to get where I want to go. I’m helped in an odd way: I went from a twice-monthly pay cycle to an ‘every-two-weeks’ cycle. Some months I’ll effectively have an extra paycheck. That paycheck will simply get socked away.
- I should make a note here about credit card debt. I’ve had too much for too long; but last year during my brief period as a contractor I used that money to pay off my credit cards – and my mother’s. It meant I wouldn’t have to pay her bills anymore, and it took about $300 a month out of my outgoings. Really took a load off for me. I suspect you’re better off (and I’d guess Suze Orman would agree!) paying off the credit cards aggressively and then saving. Even if when you hit your date you don’t have much money in the bank but do have loads of contacts lined up and no liabilities – you’re in pretty terrific shape to take the plunge.
But it’s not just about having the money to spend – it’s about having the space you need, both in your head, and in your house. Your home is going to be the headquarters of your new enterprise – at least while you wind down your current job and set yourself up to make the change. There’s a kind of budget for your intellectual energies that you’ll need, too.
As a kid I used to leave things all over the floor and I told my mother that if I kept a layer of clothes and toys everywhere that the monsters under the floor wouldn’t be able to get me. Sometimes I let things get out of control with clutter – I think I’m putting down that protective layer again, keeping the monsters at bay. But this time, the monster is me, my goals, my uncertainty, what I hope will happen and what I fear won’t. In the end, the protective layer just gets in the way of the real thing. Going solo is about taking the full risk, seeing the possibilities and pit falls and meeting them all head-on. You can’t do that when you’re surrounded by a layer of clutter – at least, I can’t. When there’s stuff to be put away or fussed over, then you can always do that instead of the work you need to do to get on with your life.
- Streamline – take a look around you. What do you really need? What motivates you, energizes you, makes you feel good and hopeful? Keep that stuff. Everything that makes you feel burdened, messy, tired, less than – toss it out or give it away. I’m about to edit my closet – stuff I haven’t worn in more than 6 months? Out. Stuff I feel frumpy in or doesn’t fit me well? Out. Good clothes can be tailored later – no need for fat jeans and skinny jeans. What I don’t need can go to Housing Works. The bag of ancient but functional cell phones can go to a participant in Cell Phones for Life.
- Spruce things up. Keep your house in physical order. Get the buttons on that coat reinforced or sewn back on. Have your shoes resoled. Give the place a good cleaning. My indulgence is a housekeeper – it’s fairly inexpensive to have one in NYC, and I only need her every two weeks. The money I spend is worth it to me – I get the time back to spend on building my business or improving my quality of life, and she gets to make a living. I consider this a more than fair trade.
Alright – that’s enough from me today. Time to get some work done – in every sense of the word.
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