The Dynamics of Replacing Your Salary with an Online Income
When it comes to generating an income online, most people think about getting rich so they don’t have to work for a boss. while that is definitely possible to do that, it might not be the best approach…
There are two sides to the proverbial coin:
The first reality is that you don’t need to make a fortune online to be able to leave your job.
In fact, it doesn’t make any sense to do that. Why would you want to keep working for a boss if you already make more money in your spare time?
Fair enough, you may want to hang on a while, just to be sure that your online income is stable – you don’t want to leave your job, only to have your online business come crashing down two months later.
All you need to be able to do is to generate more profit than your monthly take-home salary. Anything after that can be grown systematically once you are able to focus on your business.
When you build your business in your spare time, you have a very limited amount of time to spend on it every day. if you are able to make enough money in that short period of time (per day) to replace your salary, how much more will you be able to accomplish if you have the whole day to work on it?
Even if you just end up working 5 hours per day on your internet business (after you left your job), instead of the usual two hours you used to put in, you will be able to a lot more.
But it goes beyond that:
It has been proven – scientifically – that the average person’s peak (intellectual) performance time is around 10AM till noon. That’s why most business executives schedule their meetings during the afternoons – and use the peak time of day for strategic planning and making things happen.
Once you are able to replace your salary with your internet income, and you resign, you don’t only get more hours – you also get the BEST hours of the day to work with.
Considering all of this, it makes sense to leave your job as soon as you can sustain yourself – financially – without it. If you don’t, you will probably be holding yourself back.
The second reality is that your online venture is a business, and should be treated as such. While it is entirely possible to create an internet business without spending a dime, that specific business model doesn’t make sense. As such, you will have a few (relatively minor) expenses.
As your business grows, you should first invest in growing it – before trying to take out any regular amount of money for yourself. These investments can include buying information products, online tools, software, advertising, etc. As with any business, the expenses can quickly get out of hand if left unchecked, so before you spend money on any product or service, ask yourself:
“Will this really bring me closer to my target (disposable) income?”
Keep in mind that, while some expenses will definitely help you to grow your business, there is one – often overlooked – harsh truth when it comes to doing business – whether it’s online or not:
“Business isn’t about how much money you make – it’s about how much money you KEEP.”
If you can keep your expenses down, you need a lower turnover before you show enough profit to leave your job.
Depending on your business model, you may need to spend money on advertising in order to grow – and if you cut that out of the budget, you may very well find yourself back to square one. For many bloggers, doing this isn’t an issue – they use their time to grow their content and social reach – but if you do pay to advertise, don’t cut your marketing expenses to be able to leave your job.
For most people, the only reason they keep on doing a job that ties them down is because they need the income. As such, once you can replace that salary via your internet business, there is no need to continue.
How much you need to make will depend on your personal expectations, how much you take home, and how much your benefits translate into.
But at the end of the day, the REAL growth for your business starts once you are able to devote your best hours of the day to it – without having to tire yourself at work first.
At the end of the day, it still comes back to this:
If you are able to replace your income by working just a few hours per day, after hours when you are tired, how much will you be able to make if you are able to apply your mind for longer periods of time, at a time of day when you are capable of doing more/better?
The bottom line is this:
Leaving your job is not the destination. It’s a stepping stone.