Things to consider before quitting

 Things to consider before quitting

Redefine the real reason you want to leave and review your salary and debt situation before quitting.

No matter what the reason you quit your job - fatigue, need more flexible hours, a higher salary, or a change to a whole new field - it can have a big financial impact. "Before you leave your job, there's a lot to prepare. And after you leave, you'll have to assess the short-, medium- and long-term effects," said Isabel Barrow, director of financial planning at Edelman. Financial Engines commented.

Redefining the reason for wanting to leave

Leaving a job is a decision that needs careful financial consideration before making. Photo: Reuters

Leaving a job is a decision that needs careful financial consideration before making. Photo: Reuters

Make sure you quit your job for the right reason. "It's not always better to be in a new place," says Tami Simon, business leadership consultant at Segal. "Take the time to think about your true motivation, not the trend."

If you want to leave because you need more flexible time, because of income, responsibilities, or want to learn a new skill, talk to your boss again. “We have seen many companies that know how to be flexible and adaptable,” says Simon, “If you want to pursue a new direction in your career and want to learn more, your leadership may be inspired. enjoy and even support you financially."

Find a counselor, or someone with experience, to discuss the changes you want and get advice on the decision. "Talk to someone you trust, support you and give you the best advice," says Simon.

Review the terms of the employment contract

Do you remember those papers you received when you started work? This may include information about money when leaving a job. Many companies offer seniority bonuses, or incentives, for early retirement. For example, you may get paid if you don't use up all your accrued paid leave days.

Besides, there are often more bonuses at the end of the year. Even if you want to change jobs as soon as possible, think about how your total income will be affected. This will help you make the right decision.

Evaluate your budget

“Think of the worst case scenario,” says Barrow. “In six to nine months after you retire, you have no idea how the job market will change.”

So, before you take a break, plan a detailed budget for your cash flow and monthly expenses. Include all expenses, from housing, cars, food, taxes, utilities, and debts.

Experts recommend that you have at least 3 - 6 months of living expenses in addition to your salary and savings. Barrow even recommends 12-24 months of prophylaxis.

"You really need to have a large cash reserve before you jump jobs," says Barrow. "Maybe when you haven't found a new job, your refrigerator breaks down, or your car breaks down, or you have a toothache." If you plan for big expenses, like traveling to Europe, Barrow says it's a good idea to keep that money in reserve.