Time and again, our inbox pings with a question that many from the GRSC community have been wondering…

“How do I make the switch from being an employee to a business owner?”

If you’re one of those who asked (or is just plain curious), you’re in good company. In this episode, we sit down with Emma Edwards, who’s made that leap herself to start The Broke Generation .

Since founding her platform in 2018, Emma has helped millennials manage their money smarter. She has grown a community of over 50,000 and created podcasts that hook thousands of listeners each week.

Emma is also a Certified Financial Behavior Specialist. She runs workshops and programs designed to help folks reshape their financial behaviour and relationship with money.

In this session, we get together to exchange stories about leaving our jobs to start our own businesses. We also talked about why we made the leap, what we learned, and what we would change if we could it all over again.

While we hope to bring different perspectives to this podcast, remember this isn’t financial or business advice. So, enjoy the tales and takeaways, but always consider your personal circumstances before making big career (or financial) decisions.

How Emma went full-time on The Broke Generation

When the pandemic hit, Emma was a full-time copywriter for an e-commerce brand. Then, as jobs went remote, a LinkedIn connection came through. Someone started an agency and offered her a part-time role as a finance copywriter. It didn't pay as much as her full-time job, but it was close. More importantly, it gave her the flexibility to focus more on her side project, The Broke Generation.

But then, things just didn’t click at this agency. The expectations weren’t clear, and the role didn’t make use of her copywriting skills. She didn’t foresee the impact it would have to her confidence and mental health. And it felt worse with the challenges of working through a lockdown.

Emma had been thinking about leaving the job for her business. She wanted to be in a place where she could use her talents properly and feel good about her work. A close friend had left the company too, which made her feel even less attached to the job. And then she realised that her position was likely on the chopping block anyway.

So, when the office closed for the year-end holidays, Emma saw her chance. She quit her job and went full-time on The Broke Generation.

What it’s like to juggle business and a day job

In the beginning, you'd likely work on your day job while building your own business after hours. That’s exactly what Emma and Tash did. Just to set your expectations, though: it's going to feel a lot like "the worst of both worlds”. They talk about how hard it can be to switch gears between two very different roles.

For Emma, finance copywriting and The Broke Generation should have complemented each other. But even with their similar fields, each job needed a different kind of focus. And flipping that switch all day can wear you out.

Meanwhile, Tash worked in a caring profession while also running her podcast and social media. The two worlds felt miles apart. At work, she had to keep things private… which is tricky when your side hustle relies on being out conspicuous.

Emma also mentioned how she prefers doing things on her own, rather than being part of a team. That’s something many aspiring business owners can understand well. When she’s working in her business, Emma only has herself to report to. But then, when you’re working a day job, suddenly you’re like a cog in a machine. Again, that constant switching can impact anyone’s mental health. You're constantly pulled in different directions. And, some days, it feels like neither job gets the best of you.

The bottom line? The transition from employee to business owner isn't just about getting your business strategy right. Managing where you put your energy is equally important to a business. It makes you ask yourself big questions about how you work best and what makes you happiest.

Financial challenges of transitioning from employee to business owner

Before we go further, a heads up: our summary of Emma’s personal experience only scratches the surface. For richer context and insights, listening in on the full episode would definitely be worth your time.

Now, let’s unpack some of the things we’ve learned from our chat…

The need for safety net

When Emma decided to go full-time for The Broke Generation, she knew she needed a cushion. So, she set aside enough to cover three months of all her costs (personal and business) for a soft landing. In case something comes up, she gets a moment to breathe and assess her options.

Stressing over taxes and an entirely new set of rules

Switching from a sole trader to a company threw Emma for a loop. Suddenly, she had a whole new set of financial rules to play by. Everything from taxes to how she paid herself changed. And it wasn’t straightforward. Emma found herself spending a lot of time just getting her head around these new challenges.

Blurring lines between personal and business finances

At first, every dollar of profit felt like personal money, but Emma quickly learned that’s not how it works. The business's money wasn't really hers to spend freely. It needed to be reinvested or saved for future business expenses.

Staying agile with money decisions

Emma also learned the hard way about flexibility. She paid upfront for a co-working space to try and recreate the office environment she left behind. But when that didn’t work out, it was a lesson in not locking herself into long-term costs without a clear benefit.

Emma’s thoughts for anyone thinking of starting their own business

From the previous section, it might sound that Emma is trying to dampen the spirit of entrepreneurship. But that's not her intent. If it sounds like a tough road ahead, that’s because Emma wishes she had been clued in on these realities sooner.

So, when we asked for her advice, here’s what she had to say:

1. You need at least three to six months of business and living expenses

   
   Emma couldn't stress this enough: an emergency fund is a lifeline for anyone starting a business. She suggests saving up enough to cover three to six months of your expenses. Why? Because unlike a regular job, there’s no redundancy pay or severance if things get rocky. This buffer is your financial parachute.

2. Social media doesn’t tell the whole story

   Social media loves a good success story. People often talk about how "backing yourself" leads to guaranteed success. But for Emma, that wasn’t exactly the case.

   
   In her first year, she made $60k, which sounds decent… but remember, this is all she happened to earn that time. She doesn’t have the safety of a regular and consistent salary. You also have to factor in the sacrifices and opportunity costs of not climbing the corporate ladder.

   
   So, here’s Emma’s advice: it’s great to believe in yourself, but the payoff is never guaranteed. Again, this doesn’t have to be a negative thing when it helps you assume more caution.

3. You need a back-up plan

   
   Not everyone has the option to call home for quick cash, or move back home if times get tough. Emma shares that lacking this kind of support makes entrepreneurship even riskier. So, she had to plan differently. She was aware that without a safety net, each financial decision carried more weight.

4. You’re going to make emotional and financial trade-offs

   
   That said, every decision has a trade-off when you transition from employee to business owner. There are no colleagues or managers to share the load or bounce ideas off. You face major decisions alone, which can be both liberating and scary.

   
   You might save on commuting or office attire. But new costs like co-working spaces or business services can add up quickly. Equally, you may skip the co-working space but also miss the community and potential business opportunities.
   

Where to find Emma and The Broke Generation

Regardless of your takeaway, you’d be hard-pressed to claim that business ownership is the only path toward Financial Independence . Or, for that matter, that everyone should just stick to being an employee.

There’s absolutely nothing wrong with either choice, as long as it plays to your strengths and fits your circumstances. One thing's for sure, though: chasing trends (or investments) because of FOMO can often lead to hasty decisions that hurt financially.

However, if you see bits of your own aspirations in Emma’s experience, let it be a guide and source of inspiration. Growth happens when you learn from both the successes and stumbles of others.

So, if you want more learnings like these from Emma, check out her business podcast: Broke Business . The show is a space to have more conversation about money for business owners, the self-employed, and side hustlers. Emma also hosts The Broke Generation podcast that’s dedicated to money behaviour and psychology. And if you’re a reader, look out for her bright yellow book, Good With Money , in major retailers and bookstores.

We'd love your support too

Lastly, if this episode sparked something in you, consider giving us a five-star rating or sharing with a friend. Your support could go a long way in helping others become confident investors too. You can follow us for more updates and insights at @getrichslowclub . Or, if you have questions you want us to explore, you can reach out to us at @tashinvest and @anakresina on Instagram.

Happy investing!

Tash and Ana