Failing to plan is planning to fail

2
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.

2 comments:

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.