BusinessGuides

How Much Money Should You Save Before Quitting Your First Job

Women at work with laptop

Thousands of professionals hit the snooze button on Monday morning wishing they could hit a different button that transports them into a new career, some time away from the office – or the courage to start their own business.

What keeps them joining the rat race and sticking out their current job is fear. The fear to make a drastic decision to quit your job is understandable because most of us need a regular income to survive. Those that have decided to leave their post should consider how to financially prepare before handing in their notice.

So, How Much Money Do You Need to Quit?

It is recommended that anyone planning on quitting their job should have enough money saved to last them another six months considering their current financial commitments such as rent, bills, food and leisure money. You may also dial down your spending and look for the best ways to cut personal spending.

The reason it is six months is that this is how long it takes on average to find a new job when using reliable recruitment sites such as Jobrapido. If you are quitting to take a year out for health reasons or to become a parent, then this rule will not apply to you. There is no magical figure because it will change from person to person and lifestyle to lifestyle.

But, Why Quit Your Job?

Job Interview

Some people prefer not to quit their job while hunting down their dream career. They work all day and spend their evenings cramming in job applications and writing cover letters. This can work, but most people tend to write more useful applications and apply for more if they are not doing them after a hard day’s work and with more time at their disposal.

This is only achieved by quitting your current job and applying all your time, energy and focus into applying for other jobs. By not having an income, the motivation to get on with applying for jobs or networking is also likely to increase.

Make Preparations Before Quitting

Women Studying

Financially preparing for quitting your job will give you a degree of freedom and time to find your preferred career. However, it is just as smart to ensure that you are an applicable candidate for that career. This may mean upskilling or gaining other qualifications before quitting – so your applications are taken seriously by employers.

It is wise to track down job advertisements that you want to apply for before quitting your job so you can identify professional weaknesses. Online courses are fantastic to help you redirect your career while still working due to their flexibility. Once you have the skills and qualifications will be a better time to quit your job and start applying for others.

If you are quitting your job to start a business, remember that there are also things you can do to cut business costs during the early stages.

Whatever you decide, embrace the fear by being financially smart – and chase your career dream!

Poppy
About author

Poppy loves personal finance almost as much as she loves her two cats, Tif and Taz.
    Related posts
    Guides

    Top Traits Of A Taxi Driver

    Business

    Are Employee Benefits Cost-Effective?

    BusinessFunding & Grants

    Small Businesses Turn To Alternative Funding

    BusinessGuides

    Money-Saving Tips To Make Your Office Relocation Cost-Effective