Leaving A Job Without Another Lined Up

You’ve probably heard or have been told to never leave a job until you have another one lined up. If you choose to leave a job without another one lined up, serious concerns include financial stability and security. No job, no income!

However, situations do occur . . . circumstances do arise . . . and life occasionally deals an unexpected hand. As a result, you may end up in a scenario where you’re considering leaving a job without having anything lined up. Perhaps you’re trying to get out of a toxic environment, maybe you’ve found a calling which you’re truly passionate about that you want to pursue full-time, perhaps you’re looking to make a major life change or pursue a fresh start. Whatever the reason may be, you’ve been thinking about this long and hard and you’re truly considering taking the risk and making the leap.

Before you make the move, try to have in place a safety net or security blanket for yourself. Hopefully, over the years, you’ve been saving up money in a reserve fund. Your reserve fund should have at least enough funds to cover no less than three (3) months of expenses, but ideally anywhere between six (6) months to one (1) year worth of expenses. While the hope is that you will begin to generate steady income again within a short period of time, depending on your situation or circumstance, the more funds you have in reserve, the greater the flexibility you’ll have in pursuing your endeavors.

You may want to consider looking at freelance, project or part-time work that offers you the flexibility to pursue your endeavors while also bringing in some income to help offset your monthly expenses. You may be able to find opportunities through staffing firms, online job posting sites and job boards, networking events and/or word-of-mouth.

Try to trim unnecessary expenses from your budget early on so you can operate off what you absolutely need. If there are any major expenses that you need to incur, try to take care of them while you still have steady income. While you can’t anticipate every eventuality, be proactive as you prepare to make this change.

When the time comes to leave your job, avoid burning bridges! You may need references from your former employer, managers or supervisors and/or if you remain in the same industry, you may find that it’s a small world out there. Leave on your own terms but do it professionally and respectfully! Provide ample advanced notice (generally two weeks but refer to your company’s policy, if applicable) and offer to help throughout the transitional period, as needed. On your last day, when you leave that job for the final time, you’ll want to walk out with dignity and your head held high.



Planning For A Rainy Day

Dealing With A Layoff

Planning For A Rainy Day

Have you ever wondered what would happen if you suddenly lost your job? Are you financially prepared to deal with a sudden loss of your income stream? Do you have a backup plan and reserve funds for a “rainy day” event?

Hopefully, you’ll never end up in this situation; however, life doesn’t always play out the way we hope it will and change is always constant. While there may be early warning signs or indications that something may be brewing, without a clear sense of urgency, there may be no desire to act without knowing for certain something is imminent. Sure, you can actively look for new job opportunities (and there’s nothing wrong with that) but when it comes down to timing, events don’t always play out the way we would like them to.

That said, if you haven’t already started to, it’s important to create a safety net or security blanket for yourself, and if applicable, for your family. Start setting aside reserve funds for a “rainy day.” You’ll want to have reserve funds that will cover no less than three (3) months of expenses to start, but ideally, you’ll want to grow it to cover anywhere between six (6) months to one (1) year worth of expenses.

You’ll always want to maintain a stable reserve of funds. In good times, you can tap into reserve funds to meet short-term cash needs (ex: major investments and capital improvements like replacing major appliances, home improvement, etc.) but keep in mind that you need to replenish those funds as additional funds become available. Don’t get into the habit of draining your reserve funds and only realizing there’s a problem when you have an “Oh No!” moment. There is a REAL inherent danger when using reserve funds irresponsibly. Don’t be irresponsible! Of course, you’re better equipped to assess your financial situation at any given time, so you need to make those responsible decisions when it comes down to whether you should tap into your reserve funds in various situations.

Also, be sure you are living within your means. Plan and budget for your expenses. Don’t get into the habit of spending what you don’t have or what you can’t afford simply because your credit card issuer or bank is extending a line of credit to you. A credit line is NOT free cash. If you are constantly paying the minimum balance on your credit cards or overdrawing your credit cards or bank account, you are NOT living within your means.

Make it a point to periodically review your spending habits; trim any non-essential expenses. It’s okay to splurge every now and then but don’t throw your hard-earned money down a big, black hole. You want to be responsible with your finances. If you run into a “rainy day” situation, you’ll be in a much better position if you’ve been responsibly managing and monitoring your finances.