How much money do you need to save if you want to quit your job?
Due the phenomenon of the Great Resignation, which has impacted the labor market in the United States, there are those who want to prepare before leaving their jobs.
Getting fed up with a job is valid: the dynamics, the environment, the pressure, the load and other factors can help determine that your cycle in that job has come to an end.
Maybe the impetus is that you have a new job, or if you don’t, maybe your savings make you feel more confident about taking that step. Along these lines, do you know how much money you need to save in order to quit?
According to data from the United States Bureau of Labor Statistics, more than 47 million workers in the country voluntarily left their jobs during 2021, a phenomenon that has continued so far in 2022. At this This situation has been given the name of the “Great Renunciation”.
Discover how much money do you need to save if you want to quit your job?
And so that you take that step with greater security and you are not suffering later, we are going to tell you about some recommendations that you should take into account to determine how much money you would need to have, to leave your job and what you decide to invest in or look for another job. .
“Be disciplined. This is something you have control over: you weren’t fired, so you don’t need to fight. Plan ahead, visualize the opportunity you want for yourself, think things through and make good decisions. The next step you take should be what you want and not something you settle for, which will force you to start looking all over again,” Tom Siomades, CFA, chief investment officer at AE, told Go Banking Rates. Wealth Management.
So the first thing you should do is have a plan, you cannot make such an impactful decision if you have planned it and know the pros and cons that it will bring to your life indefinitely. Within this planning you should consider how much money you want to have saved to serve as a mattress.
“I suggest having at least 12 months of living expenses in a liquid savings account to be on the safe side,” Mark S. Gardner, CSCCS, president of wealth management firm Retire Well Dallas, told Go Banking Rates in an interview. “Unfortunately, not everyone is in this position,” he added.
Read: 5 tips for finding a job after 50
A second thing to keep in mind is to decrease your expenses for those times when you will not have income.
“I would say you need a minimum of six months, depending on how specialized your skill is,” Siomades said. “You could get a new position quickly and the savings would be a nice little bonus. If the timing is not right, it can take a while, so plan accordingly,” he added in an interview with Go Banking Rates.
Finally, what you must take into account is that you must act from the moment you decide to leave your job, as if you no longer have it, that is, tighten your belt and start your savings as soon as possible.
If you like this article about How much money do you need to save if you want to quit your job?, you can continue reading and also follow us on our social networks on Instagram, Facebook and Twitter.
