Top Signs you are Ready to Quit Your Job

Who doesn’t dream about quitting their job? Some plan on taking time off for traveling, some wish to retire early or launch their own startup while some want to boost their paycheck by snagging a promotion in a different company. However, if you plan on quitting your job, you have to have an exit strategy in place. In order to make the best plans for your future, you first need to ensure that you really are ready to quit your job. How can you do that? Here are some signs that will tell you that you are ready to call it quits:

You have a plan for the future

It is immensely easy to say that you want to quit, but unless you plan to stay in your parents’ basement or have a trust fund to rely on, it is crucial for you to have a proper plan in place. If you are quitting because you wish to be your own boss, you have to put a formal business plan together. If traveling is your goal, you have to have an itinerary. In case you are taking some time off to stay at home, you should figure out a side gig or activity for keeping your skills sharp and your CV ready when you are ready to come back. Regardless of what your dream may be, having some financial forethought can go a long way in helping you quit.

You know the ins and outs of your contract

You have to be fully aware of the conditions related to resignation on your current contract. Do you need to keep some data security details in mind? Does a mandatory notice period exist? Is there a non-compete clause that might prevent you from moving to a competitor or launching your own business? Even though such agreements were usually reserved for executive-level employees, more and more employers are now introducing them for all workers. You don’t want to violate the terms of your contract as it could lead to major issues. So, you need to be aware of the ins and outs of your contract.

You have your resignation and resume ready

Even though you may be tempted to scream your resignation and run out, it is better to end everything on good terms. Even if a conventional notice period is not required in your contract, it is recommended that you give a resignation letter and two weeks’ notice as well. Depending on the situation, your employer may request you to leave or ask you to stay awhile. In the event that you can get out of the office immediately, you should have your resume waiting and it should be properly updated and tailored individually to highlight your specific experience or talents.

You should know the details of your final paycheck

It is also essential for you to be familiar with your state’s rules about the last paycheck. In some states, employers are required to give you compensation on your next pay date. Others order compensation as soon as the resignation is given. In some areas, payment has to be given for unused vacation while in others, it could be your loss if you resign.

You have enough money for future plans

If you have entrepreneurial aspirations, you shouldn’t quit your day job unless you have saved enough to cover your startup costs. The startup costs are not consistent as they can depend on industry and location, but you can have a rough idea of exactly how much money you should have in the bank. Never quit unless you are sure it will be enough to get you through the first couple of months because there will be no other source of income.

You can travel

If you are leaving your job to travel, you should do some financial planning here as well, even if you plan on living on a backpacker’s budget. There are a number of tools and resources online that can be useful in creating a budget blueprint. For instance, as you will not be working and can have flexible timings, it is best to travel to popular spots during the off-season or in weekdays as this can lead to significant savings.

You are able to manage your debt

Under no circumstances is it ideal for you to have credit card balances or any other form of high-interest debt, but it is particularly important to ensure that your balance sheet is in the black before you quit your job. If you have major expenses related to debt, you should evaluate your income and spending before quitting. Are there some expenses you can reduce for diverting that money to your debt burden? Is it possible for you to earn money in order to pay off your debt faster?

You don’t have any issues with your credit score

As you are trying to reduce your debt, don’t forget to check out your credit reports and increase your credit score as much as possible. Get a copy of your report to ensure it is updated and doesn’t contain any errors. Bear in mind that this data can affect your ability of getting a loan, the interest rates you are charged and whether or not you can get a new job. Thus, if your credit score is still low, you may want to improve it before you quit.

You are aware of your monthly expenses

Before you give up a regular paycheck, you should know your exact monthly expenses. Your fixed expenses should include bills, such as car payments, mortgages, auto insurance and other regular financial expenses. While these expenses can be reduced, you cannot get rid of them completely. Make sure you can cut out some variable expenses, such as your gym membership and Netflix subscriptions, so you can save some money.

When you have everything properly planned and you know how you are going to manage things in the future, you can finally quit your job.