Learn more about how to prepare financially before you quit

Staying in a job that makes you unhappy isn't just painful and uncomfortable. It can wreak havoc on your mental health, reduce your productivity, and make you doubt your ability. The same goes for staying in a field that no longer serves your passion.

So when the need arises to jump ship, go back to school, or change industries, it's very important to dive in. Unfortunately, most of us cannot afford to quit our jobs and have no income for an indefinite period of time. here is how prepare financially for this change period:

START SAVING AS SOON AS POSSIBLE.
Although this is pretty obvious, consumer analyst and money expert Julie Ramhold says that the first step in taking any risk is to build your savings nest. If it takes longer to find another opportunity that fits what you're looking for, it's important to be able to meet your living expenses without worry. Or, if you are going to change careers entirely, you may be "out of work" while brushing up on new skills for an extended period and need to understand how that is possible. prepare financially. If this is the case, going into squirrel mode will serve you and your bank account well. Although it may not be possible, Ramhold suggests erring on the side of caution and starting to save more about a year before you plan to make a big change.

“Your goal should be to cover monthly expenses for as long as possible, so if you plan to be out of work for six months, make sure you have enough money saved to cover those six months and then some, such as emergencies that may arise,” he explains. . "Doing so will mean you're prepared for whatever life throws your way when you don't have a job or are still settling into a new one."

…TO PROVE YOUR RELATIONSHIP WITH MONEY.
As you begin to develop your exit strategy, remember that throwing a grenade into your current professional life isn't just a threat to your portfolio; it can also be a threat to your psyche. That's why EnrichHer's CEO, Roshawnna Novellus, suggests you educate yourself on your money mindset. Does arguing about finances stress you out? Do you have anxiety about not knowing where or when your next stream of income will arrive?

The more you can mentally prepare for this uncertainty, the better you can prepare financially to deal with the emotions that arise in the process. "It's important to get your financial affairs in order for many reasons, including peace of mind, stress reduction, and the ability to focus," says Novellus. "If your personal relationship with money is not good, it can cause a lot of turmoil by doing something new."

One powerful way to examine your triggers and build confidence in your ability to weather this transition is to connect with like-minded people. Joining circles of entrepreneurs who have taken similar leaps of faith or seeking out mentors who can provide an outsider's perspective can be encouraging.

…AND DO A LITTLE EXTRA WORK IN THE INTERIM.
Depending on the type of transition you're making, going from working a 60-hour week to having some down time will come as a surprise. And while you'll probably enjoy it for a second, you'll probably start to feel anxious, fast, so should prepare financially For that. That's why Ramhold suggests taking a consulting job as you prepare for your move. This will not only help fill your time—since no one can send out resumes eight hours a day, five days a week—but it will also earn you some extra cash to fill the gap.

DETERMINE YOUR NEEDS, AND THEN REDUCE THAT NUMBER.
What you spend right now when you're in gainful employment isn't exactly what you'll charge to your credit card once you've sent the two-week notice. Ramhold says that one of the most effective ways to create a financial roadmap for your unemployment spell is to count your weekly and monthly expenses. With that number in mind, you can start making cuts that result in savings and give you more wiggle room while you look for a better job. And while most people rush to grab a red pen for their daily Starbucks habit, Ramhold says that other recurring expenses are actually much more expensive, and many are unnecessary.

"Maybe you just want Netflix for the final season of You. In that case, go on a binge and put your subscription on hold until later. Maybe you're not using your Amazon Prime benefits enough to justify the $119 annual cost, in which case you should consider canceling it and keeping the money saved,” he says.

If you're going to cut subscriptions, Ramhold says it's better to do it now, rather than when you leave. This gives you time to adjust and understand the reality of your new normal.” "This works because it allows you to accept frugal living before you're forced to, so that when it's no longer an option, it's not a stressful transition," he explains. "Find out where you can cut back, and do it without hesitation."