Have you decided to finally quit your job? Making this decision can be exhilarating, as well as frightening. Quitting your job means more flexibility, earning potential and freedom. Going from the dream to the reality, there’s much to do to make sure you are prepared for taking the big step towards this new journey.
Money in the bank is crucial and should be saved to avoid financial concerns.
1. Calculate Your Essentials Budget
What is the total budget of all household monthly expenses? It is important to calculate the bare essentials budget which excludes entertainment, travel and dining out. It is the basic necessities. The bare essentials budget is especially important when there is no source of income. This enables you to give first priority to important bills and not-so-important expenses later.
2. Build up savings
There must be a minimal amount of savings every month in order to take care of the expenses when there is no income. Savings always comes as a cushion, easing your way out of the expenses.
If you save anything in excess, this will also help you cover the bumps in the road during the beginning of new career as a backup plan. There can be any sort of emergency, especially medical emergencies which need to be taken care of promptly.
3. Create a feasible income plan
Considering your budget and savings, you would have a rough diagram of financial requirements before replacing the income. This income plan should be clear and perfect. How many jobs are there for you to consider after leaving the first one? You should leave no stone unturned. These all are very crucial questions that need to be taken care of before considering leaving the job.
4. Research Health Care Options
Health insurance basically covers the health coverage under the power of the law, there might be a tax penalty if there is a lead to current coverage lapse. The best options for health care should be considered whether you find a part-time job or turn to self-employment. Start off by talking with the current health insurance company. Let them know about change of employment plans as this will leave a big impact on health insurance coverage.
5. Rollover Your Retirement Account
You will no longer be able to contribute to the plan after quitting. The money earned through previous jobs belongs to you. However, make sure you are changing the retirement accounts to a new managing service. Look for a financial adviser in the Human Resource Department.