What You Need to Know About Starting a Business Before You Quit Your Job

Learn how to manage your finances before starting a business. Plus: what's next for the rapidly growing prediction markets. What should you have in place financially before leaving your job to start a business? Hosts Sean Pyles, CFP®, and Elizabeth Ayoola bring on small business Nerd Rosalie Murphy to answer a question from listener Blake, who is 27 and on the verge of walking away from a steady paycheck to launch their own company. Together, they examine how much cash you really need before going months without income, what to do about existing high-interest debt before you launch, how to handle taxes when your employer is no longer withholding them for you, which retirement accounts could make sense when you're self-employed, and how separating your business and personal finances from day one could protect your personal assets if things go wrong. Then, what are prediction markets, and what happens when billions of dollars start trading on election outcomes? Senior news writer Anna Helhoski interviews Aaron Klein, a senior fellow at the Center on Regulation and Markets at the Brookings Institution, about the booming prediction market industry. They discuss how platforms like Kalshi and Polymarket differ from both stock trading and gambling, whether the legal distinction between a "swap" and a "wager" actually matters for everyday users, how these platforms are navigating state gambling laws, and what it could mean when millions of dollars are wagered on whether a political party wins control of Congress. Resources discussed in this episode: Best Business Checking Accounts of August 2026 Best Business Credit Cards of August 2026 How to Open a Business Bank Account How to Incorporate a Business How to Get Business Insurance: What You Need, Where to Buy It Subscribe to our podcast’s free email newsletter for bonus content and more from our hosts at https://smartmoney-nerdwallet.beehiiv.com/  Want us to review your budget? Fill out this form — completely anonymously if you want — and we might feature your budget in a future segment! https://docs.google.com/forms/d/e/1FAIpQLScK53yAufsc4v5UpghhVfxtk2MoyooHzlSIRBnRxUPl3hKBig/viewform?usp=header Smart Money’s YouTube Channel: https://youtube.com/@nerdwalletsmartmoney To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]. Like what you hear? Please leave us a review and tell a friend. *The show notes were created with the assistance of AI. They have been reviewed by our editorial team for accuracy and quality. Learn more about your ad choices. Visit megaphone.fm/adchoices