If you feel like quitting your job (who doesn’t at some time?), here are the things you should do to make sure you are properly prepared for those first months without a regular job.
Things to consider before you take the big step:
Make a budget
For almost everything in personal finances, this is the first piece of advice. This new budget should include only the essential expenses, those you absolutely need to survive. Housing, food, school expenses, medical insurance should be taken into account. By doing this, you’ll be able to know exactly how much you need every month.
Save at least six months
After calculating how much money it will cost to live each month, you need to save the equivalent to six months of living expenses. You may not find another job right away, or the business you are starting may take some time to generate enough income to provide for you and your family, and this money will cover your expenses for some time and give you peace of mind
Don’t quit if you have no idea how you’ll earn money
Before quitting, you must already know where your income will be coming from. An impulsive, unplanned action can end up irreparably harming your family’s financial future.
If you’re planning your own business, a backup plan is always a good idea.
Take care of medical insurance and retirement
Health insurance is expensive, but it is illegal to not have any, so look into different options. You may qualify for subsidies you never expected, so check out the federal health care website.
Also, bear in mind that your employer-sponsored account will need to be transferred to an account you can manage yourself
Part ways on good terms
Even if you feel like slamming the door on your way out, leaving gracefully is always the smartest option. It is impossible to know what is ahead of us in life. We may need to ask for references, or end up working for the same boss again, so be sure to leave that door open.