So, you hate your job and want to quit? Are you really ready to do something like this? Don't forget the everyday costs you have! While it is your personal choice to decide when to quit a position, it is also important to realize that decision has to be owned. If this is going to put you in a bad financial situation then you should wait. It's smart to be wise and think twice! Let's discuss some options and tricks that might help you make that smarter decision today! Many Canadian families rely on both partners working, so if one ups and decides to just quit--there has to be a strategy. Let's examine some thoughts.
If you're going to quit your job you really have to have some kind of financial backup plan. Let's face it. No one can just up and quit work without dealing with some kind of financial distress--that is, if they have no plan in place. Just to begin, you have to analyze your financial circumstances very well and determine if this is really the year that is right for quitting your job. Only you know if it is the right time for attempting to start over somewhere else. If you've been preparing for such a move, then that is great. If you have not then you need to make certain you have enough to sustain you and your family 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. With this in mind, it is pretty certain hasty work decisions are minimal, but of course, things can happen too. When you're resolved to be financially ready to leave your job, then you have a step up. This is a good thing. However, if you are intent on finding a career position that is going to help you gain a foot hold over debt and assist you in meeting financial goals--right now might be the best time.
The following tips and strategic advice might be helpful to Canadians who are unsure where to start, what they should be doing, and what needs should be in order. Hopefully those leaving their current positions have started banking resources and have a starting plan. Let's now turn to some helpful advice and tips now.
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 back, 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 and with regard to food, you have to be more willing to go with no name brands on some items. Of course, this isn't forever, but it 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!
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 you and your family's 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 3 years, so once again--have a plan!
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 those end of 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 working on your own and choose wisely! This has to be sustainable for the long-term. There is no skirting taxes.
Don't take out loans and don't borrow from anyone--
You have to stand on your own two feet, so forget a loan or borrowing--even if this is from family. Once you make the decision to quit your job you have to own it and accept the consequences. Be prepared and ready!
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 week to week and month to month. 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!
Don't just count on will-power--
If you don't devise a way to save money before you even see it, will power 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, that guarantees saving and having when you need it the most!