Real Talk
A certified financial planner weighs in.
Maybe you want more flexibility to work remotely.
Maybe you have a boss, co-workers, or customers from hell.
Maybe you want topursue a new careerentirely or need space toheal from burnout.
CFPs act as fiduciaries, meaning they arelegally obligatedto always act in your best interest.
Some planners, like Facet Wealth, charge a flat fee.
Below, she offers tips for quitting your job, from setting timelines to finding the best financial apps.
What conversations are you having with clients about leaving jobs and their concerns about making the leap?
We first look at creating a healthy financial foundation good cash flow, properemergency fund, appropriate insurance.
This can give you the security you should probably seek a new job or career.
How does your advice change across income brackets?
How much money should someone have before they quit?
Under normal circumstances, we recommend having three to six months of all of your expenses on hand.
What other things should people take into consideration?
COBRA or private health insurance can be much more expensive than your employee contribution, so do the math.
KFF alsolistsaverage ACA marketplace premiums by state and coverage level and has acalculatorto estimate premiums and subsidies.
What do you think about borrowing from a 401(k)?
This one is tricky.
If theres any way to fund your resignation with your retirement dollars intact, I would encourage that first.
Are there any other considerations you talk to people about?
The Bureau of Labor Statistics issuesunemployment ratesby industry andduration of unemployment.
Earmark bonuses and tax refunds to help you get there faster.
Dont default to credit card spending, whichcan sabotage youbefore you even get started.
How do I set my timeline in anticipation of quitting?
Ill sound like a broken record, but this is arguably the most important step: proactive planning.
What personal finance apps do you recommend for people thinking of quitting?
There are so many Mint,YNAB,Every Dollar,Truebill.
Start by identifying what you want the app to do for you.
I have clientswho use Excelor even just pen and paper.
There are also some great old-school budget planners and bill organizers likeClever FoxandPlanberry.
If Ive been a little spendy, I know to tighten things up going into the weekend.
What should I do before I leave my job?
Take advantage of your health insurance by scheduling medical, dental, and vision appointments.
If your vision plan covers glasses and/or contacts, buy them.
Dont leave money on the table: peek if you get paid for unused vacation days or PTO.
Im ready to leave but my bank account isnt.
First of all, take a deep breath.
Many people have faced this decision and navigated it with patience and planning.
This interview has been edited and condensed for clarity.
This article was originally published onMarch 7, 2022
