Maybe you’re ready to move forward with your career goals. Or you might simply be tired of the work environment you’re in.
Whatever the reason, you’re thinking about quitting your job, but you want to be smart about it. There’s no reason to put yourself in a financial bind when you’re trying to get ahead.
Thinking proactively will help you get to the next career path in life without any extra struggles. If you’re living paycheck to paycheck (like millions of people), it can be hard to save up enough to go without an income for a little while.
Difficult isn’t impossible, though!
With these five tips, you can get your finances in order as you prepare to quit your job and move ahead with your plans.
Table of Contents
1. Write Down a Financial Plan
Every successful step forward starts with a plan. This one is kind of like a budget, but your focus will be on the long-term picture instead of one month at a time.
To get started, list your fixed expenses in one column and the rest of your bills in another. Don’t worry about what you need to get rid of or pay off yet. That comes in another step.
For now, let’s get real with what you have.
If nothing changed at all in your list of bills, how much would you need per week/month to cover them all? How long is it likely to be before you have another income (estimated)?
Use those numbers to make your financial plan. Figure out how much you need to cover your current bills for the time you predict you’ll be without an income.
If that seems like it’s going to be hard to do, narrow the numbers down to just your fixed expenses and minimal costs of living.
What do you need to save to meet those goals?
Focus on that number, then work on slicing away your other bills.
2. Start Cutting Back Expenses
The idea of chopping your lifestyle down to the bare minimum can be intimidating for some people. But if you look at it as a temporary way to get to permanent financial stability, it may be easier for you to cut back on your spending habits.
Where is Your Money Really Going?
One of the most effective, immediate strategies to get a wake-up call on where your money is going is to check your bank statements. Print out your transactions for the last two or three months, and go over each debit.
Highlight your non-essential spending using different colors, like:
- Pink for dining out
- Blue for shopping splurges
- Yellow for subscription services
Then separate them by color and total up how much you spent in each category.
Looking at those numbers, where can you start cutting back?
Are you dining out too much, but you don’t want to give it up?
One solution is to stop buying beverages and stick with water or split meals. Only eat at restaurants on BOGO nights or when you have a Goli coupon. You still get to enjoy not cooking, without spending as much.
If you have subscriptions you can live without for a few weeks or months, put them on hold. You might notice you don’t even miss them.
Shop around for better deals for your auto insurance or phone plan. Cancel your cable and switch to a streaming service (or drop TV altogether and find something else to do).
There are lots of ways you can cut back. Remember, it’s only for a short while!
3. Find a Side Gig
In addition to (or instead of) cutting back on spending, you can look for side work while you’re saving. We’re currently in a massive gig economy era, so there are plenty of available jobs.
What are your skills? What are you interested in?
You can look for freelancing work in those areas on sites like Fiverr, Upwork, or Freelancer. These sites connect people in need of help with those who have the talent to do the work. In exchange, they take a commission or charge a flat fee.
Another popular side hustle that some people turn into a full-time job is the delivery gig. Since the pandemic, consumer demand for companies like Uber Eats, DoorDash, and Instacart has skyrocketed. They’re always looking for delivery drivers or grocery shoppers.
Looking for something that doesn’t take up much of your time?
You can earn a couple of hundred dollars a month for driving your car with a wrap on it.
Companies like Wrapify pay you to let them advertise on your personal vehicle. You can agree to one campaign at a time. If you don’t need the money anymore after the contracted period ends, you can remove the wrap.
4. Check Into Your Options
As you’re working on your budget, start checking out your job options. It’s crucial that you have a realistic idea of what you’re getting into by quitting your current position.
What’s the job market currently looking like in your area?
A lot of places in the country are experiencing an employee shortage. It’s almost a job searcher’s dream out there!
But that might not be the case in your location or career field of interest. Check out the classifieds and help wanted sites to see what the market is like for your desired role and how much you can expect to get paid.
While you’re looking, you might see other jobs you’re interested in. Take advantage of your downtime to get your resume tweaked for different industries. Look up the keywords that automated resume scanners look for so yours stands out.
The more options you have, the less likely you’ll be out of work between jobs.
5. Get Your Backup Plan in Place
Having a backup plan is the final piece of your preparation. Before you quit your job, make sure you know what you’re going to do if your next step doesn’t work out as you intended.
What if you can’t get the job you’re aiming for? Will you be willing to settle for something else in the meantime?
If your old job was open, would you want to go back?
Don’t burn the bridge, no matter what you think currently. Make sure you leave on good terms, so you have references.
Once you have your backup plan securely in place and your finances are in order, it’s time to take the next leap out of your comfort zone!
Conclusion
Trying to better yourself financially is a great goal. But you don’t want to get set back as you’re working on moving forward!
Use these tips to prepare for the possible downtime between quitting your current job and getting your next paycheck. By thinking ahead, you’ll make the transition easier. And you might learn some new tips to take with you after you start making an income again!
Author Bio
Adam Marshall is a freelance writer who specializes in all things apartment organization, real estate, and college advice. He currently works with HQ to help them with their online marketing.
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