Failing to plan is planning to fail

This quote is often used by insurance agents/advisors. I first read this quote on the namecard of the insurance agent from whom I bought my first policy at age 16.

I may have surprised some people with my announcement (that I had quit my job) yesterday. My boss and colleagues were shocked by the news. One (internet) friend even said I was being impulsive. But friends who know me in person are not surprised. I had been planning this for a year.

Planning what to write
A year ago, I knew I wanted to write but I didn't know whether anyone would like what I write or whether I would still love writing after a year. Within a month of starting my blog, I started my fanpage in Facebook and invited people to join. From the start, I had planned for the success of my blog. I also took readers' feedback by including the checkboxes for "funny", "interesting", or "lame" at the end of each article. I do look at those and read all your comments! Those have helped me decide on the type of books I plan to write.

Financial planning
Before I quit my job, I had to be sure that my finances were in place.
- I got my insurance coverage reviewed. My first life insurance policy which I bought at age 16 only covered me for 70+k which isn't alot of money in today's terms. I bought another policy to increase my coverage. I already have hospitalisation/health insurance with a rider to cover hospitalisation expenses from the first cent (no deductible and no co-payment). I also have accident insurance and women's health insurance.
- I calculated how much I saved/spent in the past 12 months. I set aside more than 6 months' living expenses in cash. (I went on a number of overseas trips last year but I am still a BIG saver. In 2008, I only went out of Singapore once.)
- I was also advised to sign up for a credit line before quitting just in case I needed money urgently. Borrowing from a credit line is better than borrowing on a credit card. I already have 2 credit lines so this part was settled.

Although I say that to be a millionaire, you must quit your job, I must emphasize that you must also plan and prepare before you quit your job.


Anonymous said...

There is always risk in watever we do. But make sure all the risks are mitigated. Good luck and look forward to your new book...

Yu-Kym said...

I believe in no risk, no gain. If there's something that guarantees success without risk, it just means that the person has already lost out without realising what the loss is.