Tag Archives: careers

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

Financial Advice for Small Business Owners

As the world of work evolves, more and more individuals are deciding to become small business owners. Of course, there are various motivations behind this decision: some people like the idea of owning an enterprise, others may be in search of higher pay and more lucrative, professional opportunities. Nevertheless, regardless of one’s reason for starting a small business, it is quite a big step.

There are several common and critical elements amongst people who opt to go into business for themselves. The ability to make carefully thought out risks, work well with other, and make solid financial decisions can often make or break a small business. In fact, many entrepreneurs have failed at their professional endeavors due to a lack of financial acumen. Thankfully, that changes right here, right now.

Keep Your Personal and Professional Finances Separate from One Another

A distinct separation between a small business owner’s personal and professional finances is absolutely paramount. According to Fundera, the aforementioned separation is something which many entrepreneurs struggle with. Throughout the beginning phases of launching an enterprise, many small business owners feel emotionally attached and devoted to what they’re building. However, there are a variety of upsides associated with separating personal and professional finances.

First and foremost comes less hassle when it comes time for the business owner to pay taxes. Subtracting applicable business expenses from owed taxes becomes much more complex when professional finances are intertwined with personal ones. Keeping track of the money which comes and goes each month and documenting any and all expenses will pay off in the long run. Moreover, it is simply good business practice.

Additional benefits include greater plausibility as an enterprise and absolution from impacts on personal finances in the event of legal issues or other mishaps. More often than not, people think it won’t happen to them; nevertheless, unforeseen professional issues arise each and every day.

Find Out Whether You Need Insurance

Another important step for small business owners is for them to find out whether or not they need insurance, as affirmed by The Balance. In some cases, entrepreneurs are required by law to secure insurance for their businesses. For instance, any enterprises which have employees are mandated to also obtain liability insurance and workers compensation insurance.

Always Have Money Set Aside for Emergencies

In life and in business, emergencies and unsuspected occurrences take place. This is why all small business owners should take the liberty of putting aside a reasonable percentage of funds into a savings account. This money should not be touched, except in cases of absolute necessity.

Many entrepreneurs often feel the urge to reinvest earnings and funds back into their business. However, a healthy degree of reinvesting and saving can truly help a business flourish, especially in the beginning.

A Final Word

There are many ups and down which come with being a small business owner. Nevertheless, with the right attitude and application of the preceding advice, entrepreneurs will undoubtedly be setting themselves up for lifelong professional success.

 

Authored by Gabrielle Renee Seunagal