Many individuals harbor dreams of resigning from their jobs. Whether it is triggered by receiving a rude email from a superior, feeling fed up with the monotonous routine, or simply desiring a more extravagant exit, the thought of leaving can be alluring.
Despite the temporary satisfaction that may come from quitting dramatically, it is essential to plan your departure strategically. Ensure that your financial security is intact and that you leave the job on your own terms.
Think strategically
If winning the lottery or inheriting a vast sum of money isn’t in your future, you must approach any financial plans prior to quitting strategically. If you aren’t financially prepared to exit the workforce but are dissatisfied with your current job, consider seeking alternative employment first.
If you have been enhancing your skills and taking advantage of employer-provided education, now might be the perfect time to find a better-paying job due to the Great Resignation.
Even if you secure an ideal new position, it is crucial to focus on long-term goals and formulate a plan for eventually leaving the workforce. You need not retire entirely, but contemplating how you would structure your life without a boss overseeing your time can assist in prioritizing your values.
Make a plan
Instead of merely daydreaming about leaving your current job, initiate small steps to propel you toward your ultimate goal. Brainstorm how you would spend your time if freedom from financial worries was guaranteed. While lounging on a beach sounds appealing, sustained relaxation might eventually become mundane.
If you have always aspired to write a book, start outlining how a writing-centered lifestyle would function. If retirement isn’t your preference, explore potential second-career opportunities.
Developing a spending plan
Once you have envisioned your future activities, incorporate some financial figures into your plans. This will shape your retirement spending strategy and facilitate turning your dreams into reality. Consider your current lifestyle costs, potential alterations like downsizing, and factor in variables like inflation and unexpected expenses.
If working post-retirement is part of your plan, project your future income and evaluate how much you wish to work versus leisure time. With prudent savings and a moderated budget, financial independence may be more attainable than anticipated.
What assets do you have?
After estimating your monthly expenses, create a list of your assets. Include the balances of non-retirement accounts and consider investments that generate passive income. While it is vital to contribute to retirement accounts, these should be excluded from your short-term planning.
Make small steps to achieve your goals
Compare your projected spending with available monthly income and identify any disparities. Develop a plan comprising minor adjustments to align your spending and income streams.
Emphasize consistency in your financial strategy to foster positive outcomes over time. Although avoiding small indulgences may not lead to wealth, establishing a stable saving routine can enhance financial well-being.
Final thoughts
Opting out of the conventional employment structure may evoke fear, but preparing to take control of your financial future is empowering. By crafting a plan to secure your well-being independently, you pave the way for decisions aligned with your values rather than those influenced by external obligations.
