Ah, if there were one thing that we all dread most, it would be quitting our job. However, why is that? After all, we usually dread going in to work. We hate the time away from our families, and we definitely hate the way we’re treated. Even the best employees can end up feeling like they’re just another cog in the machine, and they don’t call it the “rat race” for nothing — even if you win, you’re still a rat. Of course, you could be in the minority that actually loves their job and can’t see a day where they just wouldn’t want to go to work. Everyone is different, and if you’re actually one of the people that like their job, then you should be happy. There does come a point through where you’ll probably get tired of everything, and that’s where this guide comes in. It’s not just enough to want to quit your job — you need to take financial steps to actually make it happen. This way you will have the best chances of keeping your financial future intact. Too much time out of your career path can be detrimental to your net worth in the long run, so you want to make sure that you plan your moves well.
First and foremost, you need to understand why you’re actually quitting your job. If it’s to start a business, you definitely want to have a full business plan worked out before you even quit your job. Is this business going to be able to support you quickly, before your savings run out? It’s important to be as conservative as possible so you don’t end up losing your home and having to be out on the streets. It might sound glamorous, but there’s nothing romantic about traveling from place to place and having to sleep in your car. That’s just something that can end up getting you in a world of pain, and who wants to deal with that? It’s also a lot easier to make a business plan that’s done right from the beginning, because this means that you will be able to approach banks and other conservative lending institutions for money. Even if you’re rejected by the banks, a good business plan can inspire people in social lending channels to give you the money by funding your proposal. Nothing is guaranteed though, so you will need to make sure that you actually push forward as soon as you feel confident of pushing forward.
This will depend on your budget. A lot people don’t like to think about their budgets at all, but the reality is that you’re going to have to think about your budget if you really want to get things done. You can’t just skip forward to the part where you quit your job, but you have all of these expenses out. A lot of people that live in high cost living areas have to think very carefully on the type of lifestyle they’re going to have, because if they make any type of mistake their whole life could changer in the blink of an eye. You can’t just quit your job if you know that you have a lot of bills at home. Since you’re planning this out, you need to give yourself at least enough time to look at your income sources as well as your expenses. Maybe you can start your business as you enter the last stage of your job — working part time can help you do this. Of course, you’ll need to make sure that you tweak your budget to be able to go part time.
As you can see, there really are a lot of things that you’re going to need to consider in order to know whether or not you’re ready to quit. Of course, when all of the signs on paper point to quitting, you will still want to double-check everything. Are you really going to be covered in case of an emergency? Can you handle those high cost COBRA insurance payments if you were to quit your job? Things like that are definitely going to be an issue, so make sure that you give them the space and consideration they deserve! Good luck!