Thinking Of Quitting Your Job, Get Your Finances In Order First

For many people, burn out with either their job or profession is not a matter of if, but when. If you ever decide it is time to walk away from your job, or even your profession, there are some things you should plan for and consider. Preparing ahead of time is key, versus making a rash decision fueled by emotion. I myself have made this mistake, a mistake I often regret. If you have decided that now is the time to get away from either your job or profession, take some time to consider if right now is the right time, or if you can wait until you have all of your ducks in a row, so to speak. You never want to leave your job with no plan B to cover yourself. Lets examine the steps you need to take.

Examine your finances

You need to consider your current income versus your current expenses. When considering this, you should include your spouses income or any alternate income, such as free lancing that you can come by. Your goal here is to see if you can get by without your main income. if you cannot, you need to see if you can get by if you cut back. If you find that you cannot get by without this income, or without cutting back, you may need to bite the bullet and hang onto your current job until this changes. You can always start saving for an “exit plan” where you save up for 6 months to 12 months of expenses, and then make your exit plan.

Adjust your habits

After leaving a job, if your income does not match, you should adjust your spending habits. You should work on going out to eat less, not doing big vacations, and work on finding new income. This is basic finances, but can be sobering to someone used to a certain life style. If you do leave your job, until you can replace that income, sacrifices need to be made. Can you cut back? Be honest with yourself when deciding weather or not to leave that job, your finances may well depend upon it.

Plan for the worst

As humans, we never want to picture the worst happening, yet it often does. Do not let instinct cloud your judgement. Prepare for all possible what if scenarios as far as your finances are concerned. You do not want to have to rely on loans, or worse the kindness of family and friends should your finances take a dive during your transition period. Being prepared for the worst will ensure that you can push through the worst, should the worst come to pass.

Think about retirement

If you are about to leave a job with a good retirement plan, you need to think about how you will shore up that retirement plan. Unless you die early, retirement will happen. The choices you make today will define how you live in days to come. Do not let emotion ruin your future. If you can replace your retirement income, by all means jump ship. If you cannot replace it, or do not yet know how to replace it, you may want to hold off on the choice to leave that job. No one is forcing you to change jobs, you do deserve a new profession or job today, but not at the cost of your life in the future.

Save for quitting

If you do plan to leave this job or profession, I would advise holding off, and saving. If you cannot save while making the money you are making now, can you really handle making much less income? Many people who have left their job or profession wished they had followed this advice, especially in today’s very competitive job market. On average you should have 6 months of expenses saved before you make this move.

Stay tuned to the financial writers from QCPL for the top financing, lending and money savings tips heading into 2016.