How to Financially Prepare for a Job Resignation

One of the starkest realities regarding the professional world is that people often quit, or resign from, their jobs. This can happen for many reasons; sometimes people have to relocate, move across country, or a new opportunity presents itself. In other scenarios, the employee may be displeased with new management, the workplace environment, protocols, customers, etc. Regardless of the associated reasons, job resignations are simply inevitable parts of life.

However, there are right and wrong ways to go about resigning from a current position of employment. Job resignations furthermore require considerable financial preparations. These are very critical factors which working people should be aware of before telling their employers “I quit.”

Cover Your Bases

Despite the reasons tied to a job resignation, having one’s own bases covered is absolutely paramount, as affirmed by The Penny Hoarder. The individual who is going to resign should ideally have another job lined up, run a side business, or otherwise maintain income to replace their soon-to-be-gone revenue stream.

In addition to ongoing streams of income, people who are preparing to quit their jobs should also have a considerable amount of funds in their savings accounts. Financial experts generally recommend having at least three to six months of living expenses saved up, although some specialists are now advising individuals to put aside six months to one year’s worth of living costs.

Settle All Debts

One of the most common sources of financial hardship is unpaid debt. These debts can become especially problematic when someone leaves their job, thus cutting off a stream of income. For this reason, Mint advises that people completely pay off any and all debts which they may have incurred before going forth and exiting from their current jobs.

Try to Exit on Good Terms

Not everyone exits their jobs on amicable terms. In many cases, conflict with management, undesirable professional circumstances, and other related factors are determining motivators behind a person’s decision to quit their job. Even under the aforementioned circumstances, The Balance still advises individuals against badmouthing their soon-to-be former employers or otherwise burning professional bridges.

In many cases, new employers consult the former bosses of potential hires. For this reason, blasting a manager can easily backfire and even halt potential, forthcoming employment.

Try to Cut Back on Expenses

Even with a sizeable amount of saved funds and additional revenue streams, cutting back on incurred expenses is advisable, if at all possible. Ideally, people should not be dipping into their savings unless it’s absolutely necessary. However, not everyone has the means or flexibility to reduce their ongoing expenses. The cost of living is not cheap, by any means.

A Final Word

At the end of the day, each individual has to determine whether or not they are in a comfortable and financially safe position to quit their job. If a work environment is truly toxic or unhealthy, an employee should definitely escape and seek out financial prospects of a higher quality; the negative offshoots of a destructive work environment are well documented. However, most individuals will ultimately benefit from saving money, settling debts, leaving their jobs on good terms, and reducing current expenses, if at all possible.

 

Authored by Gabrielle Seunagal

Leave a Reply

Your email address will not be published. Required fields are marked *