Quitting your job is difficult. Taking the leap to start your own business or accepting to join a startup is even more difficult. You’ll probably earn less and work more. You have a car, a house, kids, a pension plan, etc, what to do?

Chances are, you probably need less than you think. A comfortable job inflated your cost of living.

One of the most reassuring things I did before launching my business was to calculate my minimum cost of living. Here’s the maths:

House + Food + Car + … + Buffer = Minimum Cost of Living ($)

You can even add money for Extras like trips!

House + Food + Car + … + Extras + Buffer = Minimum Cost of Living ($)

This amount is your first business objective.

Earn (borrow, save, etc) enough to cover your fixed costs. If you reduce your fixed costs you reduce your financial worries. Easy no? ;)