While some may quit their jobs impulsively with a dream of new ventures in their mind, others may look at it as a solution to difficult circumstances. Whatever be the reason for your sudden break, do not take this important decision casually. Below are a few steps you can take to be financially ready in the absence of any regular income.
5 Tips to be Financially Ready Before You Quit Your Job:
- Understand your Current Situation:
Before you quit the job, you should discover answers to the following questions – Do you have alternative work or income to rely upon? To what extent would you be able to get away without an occupation? Why is your present place of employment excruciating? Introspecting these questions and finding their answers would enable you to think of a solid arrangement before leaving your present place of employment. - Evaluate your Contingency Corpus and Expense Load:
A contingency corpus assumes an essential part in supporting you amidst financial crisis. Sustainability to be accommodated must last upto 6 to 8 months of your cost. This is a valid requirement have before you quit. This will help you in paying off your lease, service bills, loan EMIs, etc. Likewise, ensure you have cleaned up all your budgetary commitments towards the organization. - Check the Legal Consequences:
Before you decide, read the terms and conditions specified in your agreement and the related notice time period, information security documents, confinements (if any) identified with exchanging your job, and so more. Any violation of the organizational agreement can leave you stuck in an lousy situation, making it troublesome to find an alternative activity/work/job. - Keep Yourself Debt-free:
Attempt and clean up your debts before you quit your job at the first place. That is applicable only if you don’t have another source of income ready. The weight of EMI repayments could keep you restless under unemployment. In case of irregularities in EMI payments due to the liquidity crunch, your credit score will go dipping down. This will in turn impact your borrowing potential for future. In any money shortage Personal Loan or else short term loan be an good option. Opt Personal Loan as per your need and keep yourself debt-free. - Be Ready with a Plan-B:
You may leave your place of employment either to take up better one or to set up a business. However, better stay doubly sure about the feasibility of your choice. You may need some research work to find out if your competitor companies are conducting comparative work and what the market holds. There’s a bleak chance you wouldn’t end up with concrete results. Try another time to atleast manage a low maintenance/independent work for a short while.
You should have a solid reason before you choose to leave your permanent employment. Keep in mind to consider the effect of changing your job in short & long term financial plans. Continuously work on your money matters in accordance with your new pay & systems.
