How to quit the right way for your wallet
Are you planning to leave your job in the near future? Whether you’ve already signed with another company or are planning to take some time out, you need to be realistic with your financial planning. Thankfully, the NY Times recently published a guide on how to resign without leaving any money on the table. Read through the list below to make sure you’ve got the financial bases covered, and proceed with confidence!
- Do a financial check-up
The safest route is to have another job lined up before you quit but, if you haven’t, you’ll need to work out how long you can live without a salary. Make a list of your essential monthly expenses — mortgage, rent, food, utilities, insurance, etc. – and add in an emergency fund. You should have enough to cover your living expenses for at least six months.
- Take advantage of flexible spending accounts
Before you leave, find out if you can re-allocate insurance or medical contributions to your new company. Or perhaps you can get reimbursed for contributions you’ve made.
- Tally up vacation time and bonuses etc.
Check how much paid time off you have left, and whether it can be used during your notice period or paid out. Find out when other perks, such as bonuses and stock options, will be paid out or become available. If you’re holding stock options that enable you to buy shares at a discount, find out how long you have to cash them in after you leave.
- Have a plan for health and life insurance
Book medical appointments for while you’re still covered. If you don’t expect to have employer-provided medical and life insurance coverage for a while, educate yourself about the options for the interim period.
- Understand your retirement plan
Contact your plan administrator to find out if you can keep your money in your old employer’s plan or need to reallocate it to your new employer’s plan. Either way, be sure you understand the process to be followed.
- Giving notice and fixing your exit date
A month’s notice is still common practice so factor this into your financial planning.
Once you’ve addressed the financial impact of your resignation, it’s time to start planning your gracious exit. Please see the article above for details. (For the blog version only – please replace this sentence with ‘Please read our article on how to quit graciously for details.’ and link to the above article).
So that’s the financials covered. Now let’s focus on finding your new dream job! ABL, the leading multilingual recruitment agency in the UK, is here to help. With 124 open vacancies currently on our books, relationships with more than 400 leading organisations worldwide, and 30 years’ experience in the field, we will find the perfect position for all your requirements. Please get in touch to brainstorm the options!