Category Archives: Money

5 Money Moves to Make Before You Quit the Job You Hate

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.

Don’t Believe Everything the Papers Say About Millennial Finances

If we all listened to the spew of anti-millennial stories being published by the media, we’d all assume that people in their twenties and thirties spend their lives wallowing on couches and living in their parents’ basement. After all, student debt is at an all-time high, so how could millenials afford to be successful?

I might be sharing an unpopular opinion here, but I’m going to climb out on a limb to say that millennials are more successful than most magazines and newspapers would want you to believe. Here’s why.

Many Millennials Are Long-Term Planners

Young people might be buying houses later than their parents did, but that doesn’t mean they’re shirking their goal planning. Nearly 31 percent of millennials say they have set financial goals and a written plan, according to Modern Wealth Index. In contrast, only 22 percent of baby boomers and 20 percent of Generation X can say the same.

Millennials Are Spending Less on Entertainment and Brand-Name Goods

Whether it’s because entertainment is more readily available in today’s modern times or it’s a real lifestyle choice, millennials are spending two thirds less on entertainment than Generation Xers and Baby Boomers. Additionally, millennials aren’t too stuffy to purchase non-brand-name goods. Roughly 60 percent prefer to purchase generic brands in an effort to save money.

Saving for Retirement Isn’t a Problem

You might be surprised to hear that 71 percent of millennial workers are saving for retirement, and the median start age is 24. That’s much earlier than Generation X’s median starting age (30). Additionally, about 39 percent of millennials are defined as super savers, meaning they save 10 percent of their salary.

Millennials Aren’t Afraid of Leadership Roles

In the last several years, 87 percent of millennial workers took on management roles. Compare that to the 38 percent of Gen X and 19 percent of Baby Boomers that did the same. Even more impressive is the fact that over half of millennials either want to start a business or already have started one.

They Aren’t Afraid to Ask for Higher Salaries

Nearly a third of millennials say they will be chasing higher salaries with a different employer five years from now. Some people say this is because millennials hop from job to job too often, but that’s not really true. Research has found that many Generation X workers stay at their jobs for an even shorter amount of time than millennials, and both age groups are willing to seek higher salaries after five years.

Millennials Track Their Expenses Like Nobody’s Business

According to a survey of over 1,500 millennials a couple of years ago, roughly 75 percent track their expenses on a regular basis. Another 67 percent stick to a budget, so don’t take any news stories about how reckless millennials are when it comes to spending at face value. Of course not everyone is so diligent, but a large percentage of people born in the ‘80s and ‘90s are actually on top of their spending habits.

My Hot Take

Sure, I know that financial literacy is down in many millennials and that millions of people are swimming in debt. I also know that I excluded many negatives, like the fact that most millennials can’t come up with the money for an unexpected expense over $400.

I’m just tired of hearing everyone say that millennials across the board have no sense of financial planning or success. From now on, take those anti-millennial articles with a grain of salt. Instead, talk to the 20 and 30-year-olds around you to see how they’re doing financially and what we, as a society, can do to improve their standing.

Why Everyone Should Have a Side Hustle, Even If You’re Employed Full-Time

If you pay any attention to the world of personal finance, you know that the phrase “side hustle” is thrown around like a glorified weapon against debt and low savings. The question is, are side hustles really worth the extra effort? Are they for everyone, or just those struggling with money?

Although walking dogs on the weekend or starting a small freelance gig isn’t going to pay all of your bills, working on an additional source of income is a smart idea no matter how old or financially-stable you may be. Here’s why.

A Side Hustle Makes for a Great Backup Plan

Regardless of your career field, you’ll hit bumps in the road eventually. Economic recessions, company changes, or even societal trends can all impact your stability at your current job. Because you never want to leave a position without some sort of backup plan to help cover expenses, side hustles can help you transition between jobs with minimal worry.

Whether you’re already looking for your next job or you’re secure at your current place of employment, you’ll feel much safer knowing you have some way to bring in an income if you were to suddenly find yourself unemployed. Even if your side hustle just brings in a couple hundred dollars a month, it’ll still give you some peace of mind.

You’ll End up Networking With Minimal Effort

When you’ve been at one company or position for a long period of time, networking often falls on the backburner. That’s a personal finance no-no. You should always work on fostering new relationships with valuable people. After all, it’s not what you know but who you know that will help you succeed. 

It doesn’t matter what your side job is; as long as it involves working with other people in some capacity (even online), you’ll expand your network. For all you know, one of the people you meet from your side hustle could have a lasting impact on your career in the future.

Extra Gigs Come With Flexibility

Everyone encounters an unexpected expense at some point; medical bills, car accidents, house repairs, etc. You can’t always budget for the future. For instance, I went to the dentist last year and found out I need to have a whopping $1,000 worth of work done on my teeth. Of course, that expense was coming out of pocket, and I hadn’t planned for it.

Because I had a side hustle, I was able to come up with an extra $600 almost immediately. By the time my credit card bill came in next month, I had completely made up for the expense with my side job alone, which meant I didn’t have to dip into my savings.

New Skills Are Never a Bad Investment

Even if you barely make a dime from your side gig, obtaining new skills and knowledge is never a waste of time, especially if those things can translate into your full-time career. If you speak multiple languages, become a translator on the side to boost your fluency. Are you a teacher? Take up some hours at the local tutoring center so you can expand your knowledge of teaching techniques. Not only will you learn, but you’ll bring in money while you do it.

Working on a side hustle isn’t just a move for people living paycheck to paycheck. In fact, it’s one of the most financially savvy moves you can make, especially if you work in a field that fluctuates regularly. Start working on your extra income sources today. You’ll thank yourself later.