Resigning Before 2019? Here's How To Plan Your Finances

Hold your horses and think things through.
PHOTO: istockphoto

People change, interests wane, and skills grow in different directions. You need to always re-evaluate your commitment, and see where your passions take you.

As The Little Prince has taught us, "a goal without a plan is just a wish." If you know it's time to move companies or maybe even switch careers, don't let the fear of getting into a financial rut stop you. In order to transition smoothly, here are a few financial tips to keep in mind:

Create a timeline.

While it's always better to have a new job in line before you send in your resignation letter, that's not always the case and you don't need to panic should it happen. But give yourself a sense of order by establishing deadlines: How long can you afford to take a break? When will you send out resumes and schedule interviews? It also helps to at least have a list of contacts to reach out to. You may be switching careers but there's no need to start from scratch!

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As we've said in a previous artlcle, "If for one reason or another you don't have another company to transfer to or you really need to take a long break, then you'll have to build your emergency fund to support yourself while you're looking for your next endeavor. Actually, Investopedia notes that some experts even say you should have six months worth of savings to be able to remain comfortable, but as long as you budget well, then you'll be fine."

Cut costs where you can and create a leaner budget.

It's nice to have an automated system set up for your routine, but you need to double check some comforts like subscription services that eat up into your monthly budget: Do you really need two streaming services to pay for monthly or can you live with just one for now? Can you cut your gym membership and exercise at home instead?

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While you may have gotten used to certain luxuries over the years, taking this leap of faith entails a few sacrifices here and there. And don't be afraid to be conservative with your calculations, it's better to be safe than sorry!

Do an inventory and sell what you don't need.

Since you'll have some free time on your hands, why not declutter and earn from your old belongings?

Aside from doing an old school garage sale, you can also go online and join Facebook groups or e-Commerce sites!

Pick up a side hustle

Getting a raket has multiple benefits: Aside from earning some extra cash, you also get to experiment with different jobs and use your brain while you're on break. If you don't want to deal with traffic, take advantage of work-from-home opportunities like SEO writing, teaching English, or selling stock photos.

Set up a small, short-term business.

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Similarly, you can be your own boss for a while and set up a small business. Depending on your skills, you can bake goods (especially around the holidays), do buy-and-sell, or help plan small events like weddings and birthdays! Who knows, this small venture could even lead to big, long-term opportunities.

Try to be a consultant.

You don't always have to sell products and services, you can also lend your expertise to businesses. Become a social media consultant or teach small companies how to do basic accounting if that's your field. Be creative, and know how to maximize contacts.

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