Many dream of quitting their 9-5 hustle to find better-paying opportunities. Unfortunately, few are able to take that bold step because they still have bills to pay. They fear quitting their job will plunge them into a state of financial uncertainty. One survey showed that 85% of people refuse to leave their jobs because they can’t afford to lose their salary, leading to discontent, unhappiness, stress, and to some extent, depression. Having a good exit strategy can help you quit your job for better opportunities without losing your financial footing. Therefore, make the following money moves before taking this bold step. 

 

1. Build up an emergency fund

 

It may take a while before you find a better job or get your own business off the ground. During that period, you’ll need a source of funding to rely on, which is why you should build up an emergency fund. Experts recommend saving at least 3 months worth of your living expenses in the fund. Of course, that means sticking to your old job for a while until you have saved enough. But consider saving more than that if you can. The more you have in your fund, the more freedom you’ll have to find your dream opportunity. 

 

2. Know your financial entitlements before you resign

 

It’s important to assess your financial entitlements and obligations before calling it quits. You can refer to your employment contract, the company’s handbook, or HR’s policies to understand accrued benefits like unpaid bonuses, unused vacation days, and unpaid overtime. You can learn about the company’s policy on severance packages. Check if you’ve met all the conditions attached to those financial entitlements to be certain that you qualify. Consider hiring an expert like an attorney for severance dispute if you feel your severance agreement is not in your best financial interest. 

 

3. Use your paid time off or leave without pay to your advantage

 

Your leave period or paid time off can buy you time to search for better opportunities without worrying about losing your monthly income without severing ties with your current employer. But don’t end there; use vacation times, holidays, weekends, and any other break from work to your advantage. This way, you’ll cut down on the time you’ll need to find another job or start a new venture after quitting. If you play your cards right, you might even land your dream job before you quit. 

 

4. Create a tight budget and stick to it

 

 

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Even if you feel you have enough saved in your emergency fund, create a tight budget and stick to it. Since you won’t have a stable source of income for an indefinite period, you need to cut back on some unnecessary spending like entertainment subscriptions, fashion-related shopping, and eating out in restaurants. You’re going to need every penny you can save until you find a better source of income. And speaking of saving, subtract your required expenses from your discretionary spending, and save whatever amount you have left. Also, live within your means and monitor your spending, tracking everything your money goes into.