If you’re going to quit your job, you might as well plan ahead

Actionable tips to brighten your financial future.

Quitting a stable job without having another lined up is a big and scary step, but it doesn’t have to be, especially if you get your proverbial ducks in a row. The smart move before you quit your job is to have a contingency plan in place.

1. Determine how long your emergency fund could last: We suggest you have a robust emergency fund, or one that’s at least big enough to sustain you until the next step in your career. There’s no set formula for how much money you should have, but before you make this decision, sit down and figure out how much you need until that new paycheck comes in.
2. Use up your FSA: If you have an FSA with your company-sponsored health insurance, now’s the time to use up that money. Need contact lens solution or sunscreen or Band-Aids? Your FSA likely covers those, plus so much more. Check with your insurance company first to see what they do cover before you go wild at a drugstore, but once you find out, go nuts.
3. Go to the doctor: Have you been putting off a mole check at the dermatologist? Do you need to go to the eye doctor? Before you cut yourself off from the sweet teat of employer health insurance, take care of all the health-related things you need.
4. Prepare those around you for your decision: Remember, your financial decision might directly affect the lives of others around you. If money is going to be tighter and you can’t send cash back to Grandma, or your mood is going to shift imperceptibly—or not so imperceptibly—give the people in your life a heads up that things might be a little shaky for a while, but that you’ll eventually come out of it.—Megan