Every Monday morning is a drag. Whether it’s because you can’t stand your boss or you detest your work environment, it’s not uncommon for Americans to dislike their jobs. In fact, a Gallup Poll in 2017 found that roughly 85 percent of people hate their jobs. It’s safe to say that you’re not alone in your sentiments.
Before you call it quits at your current company, think about how the decision will impact you financially. There are a handful of steps you can take to minimize the blow to your savings and leave you in a secure position.
1. Give Yourself a Substantial Emergency Fund
If you’re planning to quit your terrible job without another gig lined up, you’ll need to live off your savings for a bit. That means your savings need to be substantial. According to experts at The Balance, you should have a minimum of three months’ of living expenses socked away. I personally recommend hoarding six months’ worth of living expenses before exiting.
This will give you the peace of mind you need to choose your next job without desperately leaping at the first paying opportunity you stumble across. Plus, you’ll be equipped to handle any unexpected financial emergencies that pop up in the next few months.
2. Determine What Your Unemployment Budget Will Look Like
When you’re going without a paycheck, you’ll need to live differently than you do now. Don’t wait until you give your two-weeks notice to decide how you’ll survive. Plan ahead; determine what your budget will look like once you’re not employed. What unnecessary expenses can you cut? Where will you need to start saving more?
3. Take Care of Your Medical Needs While You Still Have Insurance
Depending on when you quit, your insurance may cover you for up to a month after you leave the company. Still, you should take care of as many medical procedures and appointments as possible before quitting. Go to the dentist, schedule your annual checkup, and refill your prescriptions. It’s better to be safe than sorry when it comes to medical expenses.
You may also want to look into your next insurance company if you plan to be unemployed for more than a couple of weeks. You never know when your health can take a turn. Prepare for the worst by doing your research before you’re in a sticky situation.
4. Start a Side Hustle That Can Keep You Afloat
Just because you don’t have another full-time job lined up doesn’t mean you have to go without any income after you quit. Before you officially leave, begin building a side gig that can provide you with a little bit of extra cash each month. That way, when you finally do quit, you’ll know that you can keep yourself afloat with your side hustle until you can find your next source of employment.
5. Tackle Your Outstanding Debt
Unfortunately, if you’re waist-deep in personal debt, quitting right now might not be in the cards for you. People usually acquire more debt, not less, when they’re unemployed. Get your current debt to a manageable place before quitting. If that means suffering through another few months with your current workplace, so be it. You certainly don’t want to jump ship if it’ll cost you your financial security, unless the situation is dire.
The Bottom Line
Even if there’s a part of you that wants to make a scene and quit your job today, think ahead. How will the decision impact your financial future? What can do you do before leaving to soften the blow to your bank account and mental health? These tips will help you establish a bit of a safety net before you enter the unknown world of unemployment.