You just quit your job in rage – Ensure your financial security by following these next steps
Money / Financial Planning
You are exhausted at your job. Your productivity has plummeted. It’s like you’re in a toxic environment with supervisors who don’t show you any respect or consideration. These negative emotions accumulate until the day you quit smoking.
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With today’s dynamic job market, it can be more tempting than ever to leave your current employment situation without a plan in place. While there can be severe financial ramifications to stopping rabies, there are ways to lessen the damage.
Create a budget and make a plan
“As satisfying as it may be to live out your fantasy of letting go of rage, that relief is quickly replaced by fear as you find the comfort of a steady paycheck a thing of the past,” said Brad Cummins. , owner of InsuranceGeek.com. “The first step is to take stock of your finances and estimate how far your final paycheck will go. Then, where possible, reduce spending on subscription services and anything that isn’t crucial. until you find another source of income; you’ll be surprised how that $8.99 adds up!”
Once you have kept your living expenses to a minimum for the time being, figure out where the money you need will come from. Ideally, you’ll have emergency savings you can draw on that won’t negatively impact your retirement savings or other investments.
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“Try not to use your credit cards to survive if you quit your job in anger,” added Wade Schlosser, CEO and Founder of Solvable. “There are almost always better solutions.”
Schlosser recommends considering a home equity loan because interest rates are so low right now. “You may be able to dip into cash to live on AND lower your mortgage payments at the same time, which is a win-win,” he advised.
Opt for the monthly child tax credit
When considering ways to earn money to make ends meet, make sure you have elected to receive the Child Care Tax Credit on a monthly basis if you have children under 17. year. Those who qualify for the credit receive $300 per month for each child under 6 and $250 for each child over 6 until December 2021.
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If you have opted out of receiving monthly payments, you can sign up for the remaining payments at any time. If your income before you quit your job did not qualify you for payments, you can report a change in your income through the IRS portal to see if you qualify now.
Consider taking side gigs
Both Schlosser and Cummins recommend freelancing or side gigs as a way to make ends meet while you look for another job in your field.
“Signing up with a freelance service like Fiverr could be a viable option for maintaining a steady flow of money,” Cummins said, “Even part-time remote freelance gigs outside of your expertise, like being a transcriptionist or virtual assistant, can earn up to $14 an hour,” he continued, noting that finding a side hustle should be a priority to avoid dipping into credit cards or your 401K.
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By taking on a variety of side businesses, you may even discover hidden talents or find a new area that sparks your passion and rekindles your love of work. You may also discover that you like the independence of freelancing and decide that you don’t want to return to a full-time job.
Schlosser reminded people to be wary of their tax situation if they take on freelance work or start a business. “Remember to put money aside for taxes and don’t touch it or you might get a rude awakening from Uncle Sam,” he noted. “I also recommend anyone working on their own speak to a tax accountant who specializes in working with 1099 entrepreneurs or small businesses. Freelancers often have many deductible expenses, including business supplies and travel, that they don’t realize can reduce their taxable income, lowering their tax bill.
Decide on your next career steps
Before you dust off your resume and start looking for another job in the same field you just left, decide whether it’s this specific work environment or your career, in general, that has caused so much rage.
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The 10th annual FlexJobs survey found that 68% of workers surveyed would consider changing careers. If you’re considering quitting smoking as a career change opportunity, you’re certainly not alone.
“If you’ve felt a strong urge to quit the majority of your previous jobs, you might want to dig deeper to find out why those work situations evoked such strong, negative feelings,” said Toni Frana, career coach. and team leader at FlexJobs. and Remote.co.
Next, describe exactly what you are looking for in a career or new position. The FlexJobs survey found that 56% of people want to change careers to find a better work-life balance, while 49% are looking for a more meaningful or fulfilling career.
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Whether you decide to stay in your current field or change careers, you’ll want to make sure you’re prepared to answer that tough interview question: “Why did you leave your last job?” »
“When you start interviewing for your next job after you leave, getting the explanation right is key,” Frana said.
“It helps to practice in front of a mirror to get any emotional response out of your system. Your response should be kept as brief and as neutral as possible and avoid blaming anyone or speaking ill of your former manager or employer. Going into minute detail about why you are leaving, no matter how negative you still feel about your previous job or your time with the company, is not a good idea. In most cases, this will send red flags to a potential employer and leave them with a less than stellar first impression of you.
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Also, she warns, avoid posting anything negative about your job or former employer on social media. “It can backfire in ways that might be hard to come back on and could earn you a bad reputation that will follow you into future work situations.”
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Last update: September 17, 2021