Financial Secrets Every Job Quitter Should Know

You hate your job so much that you want to quit. You even hate it so much that you want to quit today. Of course, this can happen. However, are you prepared for this? Have you factored in your everyday expenses?

While it is your personal choice to decide when to quit a position, it is also important to realize this decision has to be owned. If quitting your job will put you in a bad financial situation, it may be best to hold on. You may have to sit and think twice about this.

Many Canadian families rely on both partners working. This means if one person decides to quit, there must be a strategy in place. Let's examine some thoughts.

If you're going to quit your job, you need to have a financial backup plan. Let's face it. No one can just up and quit work without dealing with some kind of financial distress.

So, to begin, you have to analyze your financial circumstances and determine if this is really the right year for you to quit. If you've been preparing for this for some time, then this is great. But if you have not, you need to make sure you have enough to sustain yourself for several months. This will alleviate a great deal of financial stress.

Right now, 47% of Canadians are committed to staying on track financially, which is great. This means that fewer people are making hasty work decisions, but of course, things still happen. So, if you intend to find a career that will help you gain a foothold over debt and assist you in meeting financial goals, right now may not be the best time.

The following 5 tips will prove helpful to Canadians who are unsure where to start, what they should be doing, and what needs should be in order when quitting.

The Importance of Cutting Expenses When Quitting Your Job

Of course, it makes rational sense to cut back on your expenses when you quit your job. Even if you have a nest egg put aside, this can go fast with no income coming in. Once you've made that step into new territory, you have to itemize and make priorities.

You have to be willing to cut back on excessive items concerning food. You also have to be willing to go with generic brands on some items. But, of course, this is until you find that position you've been searching for. The below list will help you stay on task and keep the important things in order.

1. Make sure you have your mortgage in order- Banks don't care about why you left your job, they only care about ensuring they get paid. You have to make certain you can pay your mortgage and keep a roof over your head. This is when you have to know where to cut back and what is most important to pay on time. Also, if you don't own a home yet, quitting your job could really hurt your chances down the road. Banks frown on those who just up and quit. This could impact your chances for more than three years.
2. Don't let tax time catch you unprepared- If you quit your job to start out on self-employment, you need to have an idea of what end-of-the-year taxes are going to be like. It might not be the wisest decision to run your own freelance business at this time. Decide if you'll be doing better financially while working on your own and choose wisely. This has to be sustainable for the long term. There is no way to skirt around taxes.
3. Don't take out loans and don't borrow from anyone- You have to stand on your own two feet, so forget about taking out a loan. The last thing you want to be doing without a source of income is paying the vig on loan. Once you decide to quit your job, you have to own it and accept the consequences. Be mentally prepared.
4. Create consistent income- If you're going to work for yourself, then you're going to have to develop a plan to guarantee the same amount of income weekly or monthly. There can be no variation if you're going to meet all financial goals and save money too. Be smart here and know what you're getting into. This is even more important if you have ongoing bills like a monthly car insurance payment.
5. Don't just count on willpower- If you don't devise a way to save money before you even see it, willpower alone won't help you much. Most people always find an excuse to spend, but if you can have money taken from your pay before you even get it, you can be guaranteed to save and have some money when you need it the most.