Many have dreamed of storming off and quitting your job altogether. For some, they want to quit to spend more time at home with their family. For others, it’s because their situation at their workplace has become unbearable. But before you tell your boss what you really think, heed these 5 tips on what you need to do before quitting.
Make A Current & Post-Employment Budget
Sure, you might want to quit because your significant other is doing okay financially. When you combine both incomes it leads to a false sense of financial security. Have you thought about what would happen financially if there was only one person bringing home the bacon?
Create a budget showing how much you currently spend and currently make. In this budget you should be seeing a surplus every month. All this extra money should be going into your savings account if you’re serious about quitting your job.
Next, make a future budget showing how much you plan to spend in the future. You’ll spend a bit less money since you won’t have to waste money on gas or other work related expenses. Compare this total with what just one of your incomes brings in. Do you have a surplus or a deficit? If you have a deficit, find ways to trim your budget by making some difficult sacrifices that will surely impact your quality of life.
Understand Your Savings Account Situation
If you will have a deficit in your budget if one income is lost – do not despair. First, there’s unemployment benefits you’re going to get. Depending on where you live you may qualify for benefits for about one year. This should lessen the impact of your job loss – at least temporarily.
You should also have money in your savings account. If you’ve been planning your departure from work for a while then you should have been pumping as much money into your savings account as possible. If you’re short $500 every month on your budget and you have $5,000 in your emergency savings account then you have 10 months after unemployment benefits cease.
Look At Your Health Insurance Situation
Before you quit make sure your health insurance situation is taken care of. Don’t leave your job until you have a plan in place – either insurance with your spouse’s employment or private insurance.
Do your research beforehand because you don’t want a nasty surprise when you realize just how expensive health insurance is elsewhere. Getting a private insurance plan for your family might just bust your budget wide open.
Research Your Future Job Prospects
If you’re feeling under appreciated at work perhaps it’s time to explore other career options. There’s nothing wrong with that. But please do so before you lose your temper and quit your job on a whim. Leaving your job is something that you should carefully consider and discuss with your significant other.
Before leaving your work research what other opportunities are available to you. Are there many open positions in your area for your specialty? Are you confident that you have the experience and qualifications to land another job reasonably quickly?
Here’s a good rule of thumb: on average it will take one month to get re-hired for every $10k you make per year. So a $40k per year job will take you 4 months to get while you can expect a $90k position will have you looking for 9 months. But do keep in mind that this varies depending on the current economy and the type of job you’re after.
Discuss Your Options With Your Family
If you’re living alone and are single it’s much easier to quit your job because your actions will only affect you. But if you have children the decision you make will impact others who are your responsibility to support.
Before you make the big step of leaving your employer discuss all options and make a plan for the future. Will you become a stay at home mom/dad? Are you moving to a less costly residence? Plan your future income, future expenses and retirement options and only make the decision to quit if it’s financially feasible to do so.