• Saturday, May 18, 2024
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BusinessDay

Are you prepared for the job quit?

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The tendency to quit your job might be borne out of the desire for more challenges, lack of job satisfaction, questionable company policies or the desire to explore other career opportunities. Whatever might have compelled you to quit your job, ensure you plan effectively so you do not regret your actions after a short while.

If you are married or do have dependants, you certainly have to consider your spouse, kids or dependant before quitting your job. Preferably, discuss your decision with them so that they prepare their mind for the possible implication, especially if you do not have another source of income for the time being.

However if you are single, then it is a much more simple task, as your decision will rarely affect anybody except you.

“Do not plan on dipping into your retirement savings to support yourself while you look for a new job” say Kelly Anderson, personal finance expert.

However if that is your only source, it is advisable you save at least three months worth of money needed before quitting the job. This is a total sum of your expenses; debt (if any), fixed, and variable for one month multiplied by three. However, if you feel you are not financially secure yet, then it is obvious you need to postpone your quit date, says Martin Dasko, publisher Studenomics.

Financial experts advice you evaluate your budget before quitting your job. This enables you know how to switch to a single source of income which likely might be your savings.

Although the goal is to maintain your standard of living, you might have to make some sacrifices when you quit your job these include cutting down your spending drastically and paying more attention to your budget, experts say.

Anderson maintained that insurance is a big issue when you quit work. Don’t leave your current job until you have a plan for replacing your health insurance, especially if your previous employer offered you one.

It is advisable you review several private insurance policies, so you can pick one that meets your needs without busting your budget, say Anderson.

According to Dasko it is important you remember you need to pay your debts (student loans, home, auto) If you have any. If you can not pay your debts then you will get yourself into some serious trouble. You might get forced into bankruptcy or you might get stuck with paying more interest on your debt.

As you plan on quitting your job you need to take your current debt into consideration

Depending on your situation, you might need to find a new home for your retirement savings. Figure out the best solution for your retirement savings before you leave your job and be proactive about any rollovers.

However, experts advise do you plan on contributing to your retirement plan while not working.

But, if you planned in advance and saved sufficiently, you may have enough in your retirement account to make up for any time you aren’t contributing.

According to Anderson, voluntarily leaving a job should never be a snap decision. Even if you are very unhappy at work, take the time to carefully plan your finances before your exit. You don’t want to quit your job only to end up finding a new job with less pay, less satisfaction and less challenges than your former. 

 

ODINAKA MBONU