Three Ways to Support Your Finances During Your Great Resignation
Three Ways to Support Your Finances During Your Great Resignation
In the last few months, workers all over the US have been enthralled with news surrounding what has been called “The Great Resignation.” Whether it be the statistics of millions of Americans quitting their jobs (4,400,000 in September alone) or the many stories on r/antiwork detailing workers speaking out against their unsustainable work environments, there is something for everyone to be interested in. I’m not going to pretend to have all the answers as to why this is happening, but I will share some information about personal finance that you should keep in mind if you find yourself wanting to quit your job for greener pastures like many are doing now. Today, I'm going to provide you with three important personal finance tips that will help you with your great resignation and transition to a new position.
#1 Have an Emergency Fund
An emergency fund is something that everyone should have in any circumstances. However, it is especially important when you are considering changing jobs. Depending on the industry in which you work and your experience level, finding a new job that you like can be tough. This can be true even for industries that have a shortage of workers at the moment. Between the job searching process, interview process, and onboarding, finding a new job and getting paid can take some time. If you want to be able to quit your job and still pay bills during this time, you're going to need a healthy emergency fund. Personally, I keep 6 months of expenses in cash so I never need to worry about living paycheck to paycheck for a reasonable amount of time, even if I quit my job. Your amount might be different, but if you plan on resigning soon to take on more fulfilling work, having the cash on hand to pay bills will make the transition a whole lot easier.
#2 Create More Streams of Income
One of the driving factors behind the great resignation is that workers feel the pressure of working unfulfilling jobs that don't pay enough relative to the stress that the jobs create. I have noticed that for some, the real tipping point isn't due only to the stress of the job itself, but the stress of the job combined with the fact that it's the person's only way to make their next rent payment. Having streams of income in addition to your full-time job will give you more financial freedom that can be leveraged to make the job transition easier. Whether it's photography, driving for Uber, or some other side job with a local organization, having other ways to make money beyond your full-time job can save your personal finances during the transition.
#3 Maintain A Good Budget
Being able to save money and make some extra money on the side are great, but you will also need a strong understanding of your spending before you quit your job. Taking the time to create a budget and understanding both where your money is going and where it should be going is worth the effort, especially if you anticipate not having income while you secure a new position. While having a budget is recommended in all circumstances, it is especially important in this context because you need to know where you can cut spending if you decide to leave your job. Being able to make the conscious choice of cutting back on certain luxuries while transitioning jobs instead of having that choice be made for you because you are suddenly short on cash is a huge benefit for your mental health that should not be overlooked. Budgets provide you with the ability to understand your money and make informed changes were necessary, and you definitely need one before you look to transition your career.
Leaving a job (even one that you don’t like) can be a stressful time because it introduces some variance into your personal finances. However, being prepared by having an emergency fund, additional streams of income, and a good understanding of your budget will make a huge difference when it comes time to make a job move. If you are looking to make a change, be sure to have these areas in mind!