Financial Steps to Take if You Plan to Quit Your Job

If you’re planning to leave your current job, either to take a new job or to step out as an entrepreneur, you’ll want to assess your financial situation.

Consider taking the following steps to ensure you’re in a good financial place to make the move.

Create a budget. Some studies have shown that about two-thirds of us do not have a budget. This is an important first step to determine your income needs and to aid in salary negotiation with your next job. You’ll want to know how much money you need to make so you can pay your bills. In addition, creating a budget will help you determine anything you’re wasting your money on and ways you can decrease your spending so you can take the following step.

Save. You’ll feel much more confident with your next step if you’ve built up a nest egg of savings. If you have enough in your savings to pay your expenses for at least six months you should be fine, depending on your next plans. If you don’t have much in savings right now be proactive and look at your expenses. What can you get rid of? Maybe you can go without cable service for a few months, or perhaps pack your lunch rather than eating out every day. You can likely find some creative ways to reduce your expenses.

Live simpler, cut back, and sell. To continue with the point above, make eBay or craigslist your friend. This is a great time to inventory the things in your home and determine what you can sell to bring in a few extra dollars. This might be some CDs or DVDs gathering dust, or perhaps that old laptop you no longer use. Take a look around and see what can be converted into some cash for your savings.

Evaluate 401k options. If you have a 401k with your current employer speak with a financial planner about the implications and options related to leaving your money with your old company’s plan or moving it to an IRA.

In addition to the steps above you might consider speaking to a financial adviser in order to develop a specific financial plan that fits your situation.

High 5 Weekly Career Transitions Roundup: How to Ace a Side Hustle While Working Full Time

This is our weekly roundup of some of the best career-related articles, interviews, blogs, etc., we've read during the week. We share them so you have some great resources to prepare you for the coming week. Enjoy!

• How to Ace a Side Hustle While Working Full Time: "Similar to performance reviews with your boss, sit down with yourself on a regular basis to evaluate your time and resources. Is the side hustle serving its purpose? How is it impacting other areas of your life?"

• 13 Ways to Take Care of Yourself Every Day: "Focusing on work is a great excuse for not taking care of yourself. I have set specific time slots where I won’t work and will instead spend time on my family and me."

• Stop Doing These 10 Things if You'd Like to Be Happy: "Focusing too much on past events doesn’t allow you to live in the present or strive for the future. You can’t change the past."

• How to Manage Somebody You Just Don't Like: "Your role as their boss is to help them be successful in their role. You don’t need to like them to give them feedback, make sure they know your expectations, and be there to help them develop and perform."
• 5 Essential Steps to Changing Jobs Without Burning Bridges: "Refrain from researching open positions on company time. It comes off as incredibly unprofessional. Use personal time outside of work for job hunting."

High 5 Weekly Career Transitions Roundup: Job Interviewing Tips and Dealing with Difficulty

This is our weekly roundup of some of the best career-related articles, interviews, blogs, etc., we've read during the week. We share them so you have some great resources to prepare you for the coming week. Enjoy!

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• Dealing with Difficult Times: "Set small, simple daily goals ... every day and work to achieve them."


• 6 Bad Reasons to Change Jobs: "Feeling unfulfilled in your current role might make you want to take the first opportunity that comes along, but it might not be right for you."


• Things to Stop Doing in 2015: "Stop procrastinating, saving work for tomorrow, and waiting to be inspired to work."


• 6 Ways to be More Likable in the Job Interview: "Think of your interview as a time when you model the behavior you will exhibit after you are hired."


• Questions for the Receptionist While Awaiting the Job Interview: "The time you spend sitting in the waiting room waiting for the interview is a great opportunity to gather up some intel."