How to Decide When to Quit Your Day Job

How do you decide when to take the leap and quit your job to pursue something you really want to do instead? Follow these useful tips to help you make the big decision.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Accounting Services
• Checking Accounts
• Savings Accounts

1. Discuss your thoughts about quitting your job with your spouse or other important family members.
2. Create a plan for how to make your life work financially if you quit your job.
3. Decide whether you need to line up some other steady income before you can quit your present job, and if so, how much.
4. Research alternatives to your job that interest you before you quit your job.
5. Exhaust all options for making your current job work, if there is any prospect for making it more acceptable. That might include speaking with your boss or the company's human resources department, or applying for another job within the company.
6. Reduce your living expenses as much as you can.

Tips & Warnings

• Sometimes your job is causing you so much grief that you have to leave even if you aren't financially prepared. In that case, believe that something better will show up once you leave the current negative situation.
• If you are quitting your day job to start your own business, double the amount of money you think you'll need to invest, and triple the amount of time you think it will take.
• If possible, have six months of living expenses saved up, or good (and extensive) credit.
• Try to bring your significant other on board before quitting your job.
• The grass often looks greener somewhere else, so be sure you know exactly what you're getting yourself into.