Financial Stability

Before you quit your day job, take a close look at your finances.
1 min read
Opinions expressed by Entrepreneur contributors are their own.

If you are a part-time entrepreneur who is still employed by someone else, and if you expect to receive a year-end bonus or other additional compensation, you may want to defer receipt until the forthcoming year, especially if you will be in a lower tax bracket in the following year. This is often the case with first-time entrepreneurs who quit their jobs without securing the steady sources of income they need until their new businesses break even. You may also want to negotiate an agreement with your employer whereby part of your earnings will be deferred and paid in either one or several future years.

Excerpted from Starting a Home-based Business

More from Entrepreneur

Grow Your Business at Entrepreneur LIVE! Join us on Nov. 16 in Brooklyn, NY, to learn from legends like Danica Patrick and Maria Sharapova, pitch our editors, meet with investors, and potentially walk away with funding!
Register here

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.