Can I afford To Quit My job Calculator
Take the test with our Free Calculator
Thinking about quitting your job but unsure if you’re financially ready? Use our free ‘Can I Afford to Quit My Job?’ calculator to quickly assess your financial situation and find out if you’re prepared to make the leap.
How It Works
Using our calculator is easy and takes only a few moments. Follow these simple steps to assess your readiness:
Enter Your Savings: Input the both the amount you earn now, and the amount you’ve saved up for living expenses, emergencies, or any other reserves you have.
Calculate How Long You Plan to Be Unemployed / Self Sustained: Decide whether you are planning to quit your job for good and work on your side hustle, or just planning a temporary sabbatical.
List Your Monthly Expenses: Include regular payments such as rent/mortgage, utilities, food, and any recurring debt like student loans or credit card payments.
See The Results: Scroll to the ‘Overall Result’ field to see our recommendation.
Factors to Consider When Quitting Your Job
1. Financial Stability
Before making the decision to quit, it’s crucial to evaluate your financial situation. Ensure that you have enough savings to cover at least 3-6 months of living expenses. You’ll also need to factor in any outstanding debt and emergency funds for unexpected expenses. Leaving a steady paycheck can be risky, so planning ahead is essential to avoid financial strain.
2. Career Impact
Quitting your job can have a significant effect on your career. Consider how this decision will influence your long-term goals. Do you have another job lined up? Are there opportunities for career growth or a career pivot that aligns with your aspirations? Assess whether quitting could set you back or help you move forward in your professional life.
3. Personal Well-being
Your personal satisfaction and work-life balance are just as important as your financial considerations. Are you experiencing burnout, stress, or lack of fulfillment at your current job? Sometimes, quitting is necessary for your mental health and overall happiness. However, make sure you have a plan for improving your well-being after you leave your job, whether through self-care, personal projects, or transitioning into a more fulfilling role.
Tips for Preparing to Quit Your Job
- Tip 1: Build an Emergency Fund
Before quitting, ensure you have a robust emergency fund. Ideally, this should cover 6 months of living expenses in case finding your next job takes longer than expected. - Tip 2: Explore Health Insurance Options
If your current job provides health insurance, look into alternative options such as COBRA or marketplace plans to maintain coverage after leaving your job. - Tip 3: Develop a Career Transition Plan
Whether you’re planning to freelance, start your own business, or transition into a new role, having a solid career plan can reduce the stress of quitting and provide a clear path forward.
Frequently Asked Questions
How much savings should I have before quitting my job?
Financial experts recommend saving at least 3 to 6 months’ worth of living expenses before quitting. This allows you to cover your essential bills and living costs while you search for a new job or figure out your next move.
What if I have outstanding debt?
If you have significant debt, consider paying down high-interest obligations before quitting. While you may not need to be debt-free, ensure that you have enough financial cushion to cover monthly debt payments without a regular paycheck.
How will quitting affect my career?
Quitting can have varying impacts depending on your industry, skillset, and future plans. It’s essential to evaluate whether quitting will open new opportunities or create a gap in your resume. Having a clear strategy in place for your next steps can mitigate career risks.
Can I collect unemployment if I quit my job?
Typically, you cannot collect unemployment benefits if you voluntarily quit your job. However, there are exceptions in cases of harassment, unsafe working conditions, or if your role has significantly changed without your consent.
What should I do about health insurance after quitting?
If your employer provides health insurance, you will likely lose coverage after quitting. Research options like COBRA, private insurance plans, or the healthcare marketplace to ensure you’re covered during the transition.
Conclusion
Quitting your job is a major life decision that requires careful planning and consideration. Use our calculator to evaluate whether you’re financially prepared, and take the time to weigh all the factors that come into play, from career impact to personal well-being. If you’re uncertain, consider speaking with a financial advisor or career coach to get expert advice tailored to your situation. The Consumer Financial Protection Bureau also has a Financial Well-Being Score tool that is also useful when considering a big life change like quitting your job.
Remember, preparation is key to making your next career move a successful one!
Looking for a new job? Check out our blogs for tips that will help you during your Job Search.