Make these financial and professional changes before you quit your job

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You might want to give up your commute for good or quit a job you hate.

However, before you quit smoking, you will want to make sure that your financial situation is in order.

Not only will this help you survive a period of unemployment, it will help you focus on finding your next role.

“You want to have a certain sense of stability and peace of mind to accomplish what you want,” said Krista Aliga, Denver-based certified financial planner, senior financial advisor at Personal Capital.

Indeed, a recent survey of Personal capital and The Harris Poll found that 66% of Americans are interested in changing jobs and 52% said they would need at least $ 50,000 in their bank account to do so comfortably. The online survey was conducted from July 29 to August 2 among 933 employed American adults.

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The trend, dubbed the ‘big resignation’, has been spurred on by people reassessing their lives and careers amid the Covid-19 pandemic. Americans are also exhausted. Almost two-thirds of workers have experienced burnout during their careers and 41% said it had happened in the past few months, according to a investigation by human resources technology company Workhuman.

Along with being financially stable, you also need to make sure you are making the right career choices. Here’s how to make sure you’re ready to say “I’m quitting”.

Have an emergency fund

If you want to quit without another job being scheduled, make sure you have an emergency fund that will cover three to six months of living expenses, Aliga said. To find out, assess your consumption habits. If you are planning to relocate, be sure to factor in the cost of living in this area.

Set the money aside in a high-yield savings account so it’s easily accessible, she suggests.

However, the PCP Diahann Lassus, senior director of Peapack Private Wealth Management in New Providence, New Jersey, advises setting aside six to 12 months of living expenses.

“If you need the money, the last thing you want to do is take it out of a retirement account and pay all of those taxes and potentially the penalties for doing it,” said Lassus, CNBC Financial Advisor. Council.

Pay off high interest debt

Consider health care costs

If you quit without another job being scheduled, you will need insurance. Evaluate your options, whether it’s a partner’s plan or the country’s public exchanges. So that you can get COBRA, which extends your current employer health plan for up to 18 months, can be costly.

However, not having any coverage at all can really cost you money. Credit Karma saw its members collect an additional $ 2 billion in medical debt collection from September 2020 to April 2021.

Identify your desires

From a career perspective, the most important thing to determine is what kind of work you want to do, who you want to do it for and the salary, said Vicki Salemi, Career Expert at Monster.

“Now is a great time for people who are considering a career change,” she said.

“A lot of companies are hiring and looking for transferable skills, so you don’t necessarily need experience in that specific job. “

Once you know what you want to do, make a list of target businesses and include the type of business, type of job, size of business, and income.

Prepare for the job search

Create job alerts through career websites to get notified when a new job is posted. If you see a job that interests you, don’t wait to apply.

Also update your CV and change it each time you submit a new application to match the job description.

If it’s a long list, pay close attention to the top three to seven tasks and the three to five skills the company is looking for, said Tejal Wagadia, career coach and recruiter based in Chandler, Ariz. .

If you’re making a career change, highlight your transferable skills in a summary.

It is also important to network. Reach out to people you know who may be in the industry or business you would like to join.

“You are looking for the right person, not just an actual job, but the values ​​of the company, what they stand for, what their benefits are,” said Salemi.

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Disclosure: NBCUniversal and Comcast Ventures are investors in Tassels.


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