Financing a jump: 5 steps to get ready to pursue your dream

For almost everyone, the thought of taking the chance to pursue a dream begins with overcoming a major obstacle: money. Lack of cash may be the best motivation for not jumping.

“Well, I need $ X, and I only have $ 12 of $ X, so there’s no way I’m jumping.” “I can not jump until I get to A, B and C,” or “I will never figure out A, B and C.” So instead, I stay in my closet and read Tumblr.” Is this ringing a bell?

Unfortunately, I can not give you an answer that suits everyone or a get-rich-quick strategy that ensures your success. But based on my study and the stories and content offered by our global When to Jump community, the following five steps can help you prepare for a successful jump:


  1. Set aside a certain amount of money each month.

Set aside a certain amount of money from each paycheck, and it can be as little as $ 100, but try to put as much money into a separate savings account as you can. Call it the “jump fund”, and do not touch it until you have jumped.

  1. Plan for the worst-case scenario.

Think about the worst situation for your leap and prepare a budget for it. Consider the following expenses:

  • Staying alive means things like paying rent, food and health insurance.
  • Working capital is money used to start a new company, for example, hiring staff.
  • Everything else, such as travel and entertainment, is included in the sink price.
  • Then combine these fees and multiply by 1.5 to get the total amount you need to save.
  1. Buy only what you need at a lower cost.

Before you jump, find out what you need to buy. Put on your detective hat and search for the most cost-effective option.

For products, online scouts and distributors; for part-time work, use Craigslist; and look in the ads for equipment. The earlier you start, the more likely you will find excellent bargains before you jump.

  1. Borrow, beg and exchange.

Play the classic bootstrap game by never paying full price or buying anything until needed. Use all existing relationships, such as fourth cousins, a neighbour’s friend’s sister or an old job – anyone who can help you get started.

Expertise, a few more hands and a friendly legal review – everything goes together if you find the right people who believe in your case. And, if possible, switch to avoid having to spend your hard-earned money right away.

  1. Plan ahead and then hope for the best.

Have a clear, detailed, but realistic picture of how you will fare after your jump. Although you can not plan every detail of a great career or life move, you should have a basic idea of ​​how to cope when making the transition.

Do not say things like “My app will be bought by Google”, “My music will go viral”, or “I’m just going to Bali, and everything will be fine.” Usually, it does not.

Talk to people familiar with the career or industry you want to pursue. Take them out for coffee (yes, you should spend your hard-earned money here!) And choose their brains. Ask about five other people they suggest you talk to it.

It’s finally time for J-U-M-P! Financially or otherwise, you will not get everything ready. But if you follow these five steps, you will have some money and careful thoughts behind your belt, and you will almost certainly face luck on the other side.