Financial Steps to Take Before Quitting Your Job

No matter why you want to quit, be sure that you are financially secure before giving your two weeks notice.

If you want to explore different career options or are not satisfied in your current position, quitting your job may feel like the best option. Maybe you have an unbearable boss or want to spend more time at home with your kids, but no matter why you want to quit, you need to be sure that you are financially secure before giving your two weeks notice.
Discuss Your Plans
If you are single and without children, you won’t have to worry about how quitting your job will impact others, but if you are married or in a relationship, you need to talk about your choices with your partner before quitting.
Your conversation should include creating plans that cover your most important financial bases, including retirement, income and insurance. Discuss a timeframe, considering how long you plan to be out of work, when you plan on returning if you want to be a stay-at-home parent, or how long training for a different career will take.
Plan for Loss of Income
Coping with less income is one of the first concerns when you quit your job. Do you plan on using your savings to get by while you are on the job hunt? Think about how long those savings will last if you don’t have any other source of income. You may need to postpone your quit date to become more financially secure and build up your savings, but you will feel better about leaving your position if you have more money in the bank.
Give yourself time to find a new job, allowing for about one month of job hunting for every $10,000 you make. This means that if you are bringing in $70,000 each year, you can anticipate searching for a job for an average of seven months. That’s in a good job market, so account for more time if your market is tougher.
If you are in a relationship, can both of you get by on just one source of income? For some couples, it is possible, for others it is not.
Review Your Budget
You have to reassess your budget before quitting to figure out how living on savings or switching to one income will work. The goal is to keep up your standard of living, but you should be prepared to make some sacrifices. Remember that if you find a job you love, those sacrifices will be worth it, and you will soon be able to resume your old standard of living.