You may be tempted to quit your full time job as soon as your residual income home business starts to make money. There may be daydreams of working whenever you want while you are still wearing your pajamas. Making the switch can be risky because working online is so sporadic & the money can stop at anytime. However, if you are laid off, need to stay home with the kids, or are chronically ill you might not have any other choice but to live off your residuals. Whether you make money writing, running websites or blogging here is how to stretch those pennies so you can live off your residual income.
Be realistic. First off you need to do a lot of research instead of just believing all the hype out there. You need to know if you individually with your time and skill set can make a full time living online. You also need to ensure that there is really a future and that you aren't just grasping for straws because you really hate your day job. You also need to take into account your living situation. If your house is noisy during the day time you might find it difficult to concentrate or work. You will also need to consider your own personal motivation and how good you are at staying on task.
Understand the risks. There is no such thing as a sure thing & that is especially true of any online job. The company that you are making your residuals with could pack up & leave over night. Your ad company may change, or your information may become outdated. Discuss these dangers with your spouse & anyone else it might affect.
Make a new budget. Your online income may not seem like enough to live off of. Factor in savings like a work wardrobe, a second vehicle to get to your job, wear & tear on the car, eating out everyday & all the other expenses that you had at your day job. You also need to take into account your new expenses, some of which may be tax deductible. You'll need a computer, and you might want to upgrade to a higher speed internet connection. Your utility bills will also go up slightly.
Try it part time for awhile. Be careful making the switch to a full time income. Wait for a few months until your online business is consistently making money. Sure, this means that at first you'll really be working two jobs instead of just one. Plus, you won't have a lot of time to devote to your residual income home based business. The security will be worth it in the end. This will also give you an idea of whether or not you can really make a full time income online before you make a decision that could be a serious financial setback.
Keep ties open. Don't burn bridges at your old job. Leave on good terms & maintain those relationships whenever possible. You never know when you might end up back in the office. You don't want to be known as the guy who chased a pipe dream and failed.
Diversify. Avoid putting all your eggs in one basket. Work for several companies. If you are running your own online business, make sure that you have several suppliers. If you depend on ad revenue, sign up with three or four companies so you always have a stream of income to depend on if another one fails. This may seem like it's three or four times the work which it definitely is. However, it also ensures that you have a cushion because things on the internet are constantly changing so this gives you time and space to learn about what the next big thing is or what you need to tweak on your older sites or blogs.
Save. When the money starts rolling in it's so easy to think that you can buy a new car or a boat. After all, most work from home sites have pictures of someone sitting in a boat with a fistful of money. You may get there, but fill up your savings account first. You also need to save for taxes which probably aren't taken out of your checks. You also never know when the money is going to run out so spend it responsibly.
Try to put away what you would need to live on for a few months. Online income comes & goes so you will need something to sustain you when times are tough or if you need to find a new job. There are also certain parts of the year that are more prosperous then others because the advertising rates and demand increases. The earlier parts of the year may be slower so it is not really accurate to say that what you make one month you will make every month. You might want to keep a graph of your earnings every week or month so after a few months you'll know what to be prepared for.
Have a back up plan. Your online residual income could disappear at any minute. Keep a current resume on hand in case you need it. You can update your resume with your new knowledge or skill set. Once your business gets going you can use it as a catalyst for career advancement. It will give you the option of going back to school or figure out what you really want to do with your life.
A residual income home business can give you the chance to spend time with your kids or pursue your dreams. It isn't an end all solution, it takes a lot of planning and hard work to be able to live off this money full time. You may even find that you spend more time working now then you did at the office but at least you will be building your own business instead of someone else's. You might not get everything you want all at once so it takes constant work and persistence.