You are currently viewing NH Money Advice: Quitting Your Job

NH Money Advice: Quitting Your Job

Advice offered by Marc Hébert, president of The Harbor Group Inc., certified financial planner. If you have questions about finances or want to suggest a future topic, email webstaff@wmur.com Here’s an incredible number: 4.3 million workers in the United States left their jobs in December 2021. A record 4.5 million quit in November. The Bureau of Labor Statistics (BLS) tracks voluntary job terminations and began doing so in December 2020. These are the highest numbers since that date. This begs the question: why are people quitting their jobs in such large numbers? A strong job market and pandemic-related causes are among the theories. There is a change in attitudes towards work and what it means in general. If you’re considering joining those numbers, here are a few things to keep in mind. First, decide if you plan to retire or just find another job. This is related to planning your career goals and how best to achieve them. Where do you see your career in five years? Ten years? Based on your goals, you can now define a path to get there as well as a specific action plan. You can decide what your next job should entail in order to achieve your goals. If finding another job is your goal, plan how long it will take to do so. The BLS said one-third of unemployed workers in December 2021 were in that status for 27 weeks. The time needed to get a new job could be even longer. This means that you may need to finance six months or more of expenses before getting a new job. Before you quit, make sure you have enough savings to cover your expenses for a realistic period. It’s best to err on the side of caution – save more than you think you need. You may think your expenses will be lower while you’re not working – less dining out, less travel costs, or even less clothing costs! In fact, not working could mean more expenses, including brand new ones. Many employers offer their employees health, dental or life insurance at reasonable costs. Be sure to explore the cost of supporting these benefits yourself for some time. You will need to explore your expenses while you are unemployed. You can start with a list of all the expenses you can think of, including the news mentioned above. A budget, so to speak. You might note expenses that are fixed in nature and not subject to debate – the mortgage payment, for example. There may be costs of a more discretionary nature. These are the ones that could be cut, if necessary. Don’t forget those that can only be paid once a year, such as car insurance. This will give you a guide to follow for the next few months. You might even want to follow it for a few months before quitting. It’s handy for seeing if the budget is working and good preparation for when you don’t have that stable income. You can also take a look at your debt level. If possible, you might consider reducing your level of debt before quitting your job. Having large, high-interest credit card balances can mean working part-time instead of quitting all together. After evaluating your situation, you might decide that it makes sense to stay where you are. Your employer may also ask you to. Whether you want a higher salary or more job responsibilities, your current employer may be willing to oblige. If you decide to go this route, be sure to describe your current and future value to your employer. Considering the costs of hiring and training a new person, your employer might just accommodate your demands. Staying where you are can be good for your future!

Advice provided by Marc Hebert, President of The Harbor Group Inc., a certified financial planner. If you have questions about finances or if you want to suggest a future topic, email webstaff@wmur.com.

Here’s an incredible number: 4.3 million workers in the United States left their jobs in December 2021. A record 4.5 million quit in November. The Bureau of Labor Statistics (BLS) tracks voluntary job terminations and began doing so in December 2020. These are the highest numbers since that date.

This begs the question: why are people quitting their jobs in such large numbers? A strong job market and pandemic-related causes are among the theories. There is a change in attitudes towards work and what it means in general. If you’re considering joining those numbers, here are a few things to keep in mind.

First, decide if you plan to retire or just find another job. This is related to planning your career goals and how best to achieve them. Where do you see your career in five years? Ten years? Based on your goals, you can now define a path to get there as well as a specific action plan. You can decide what your next job should entail in order to achieve your goals.

If finding another job is your goal, plan how long it will take to do so. The BLS said one-third of unemployed workers in December 2021 were in that status for 27 weeks. The time needed to get a new job could be even longer. This means that you may need to finance six months or more of expenses before getting a new job. Before you quit, make sure you have enough savings to cover your expenses for a realistic period. It’s best to err on the side of caution – save more than you think you need.

You may think your expenses will be lower while you’re not working – less dining out, less travel costs, or even less clothing costs! In fact, not working could mean more expenses, including brand new ones. Many employers offer their employees health, dental or life insurance at reasonable costs. Be sure to explore the cost of supporting these benefits yourself for some time. You will need to explore your expenses while you are unemployed.

You can start with a list of all the expenses you can think of, including the news mentioned above. A budget, so to speak. You might note expenses that are fixed in nature and not subject to debate – the mortgage payment, for example. There may be costs of a more discretionary nature. These are the ones that could be cut, if necessary. Don’t forget those that can only be paid once a year, such as car insurance. This will give you a guide to follow for the next few months. You might even want to follow it for a few months before quitting. It’s handy for seeing if the budget is working and good preparation for when you don’t have that stable income.

You can also take a look at your debt level. If possible, you might consider reducing your level of debt before quitting your job. Having large, high-interest credit card balances can mean working part-time instead of quitting all together.

After evaluating your situation, you might decide that it makes sense to stay where you are. Your employer may also ask you to. Whether you want a higher salary or more job responsibilities, your current employer may be willing to oblige. If you decide to go this route, be sure to describe your current and future value to your employer. Considering the costs of hiring and training a new person, your employer might just accommodate your demands. Staying where you are can be good for your future!

Leave a Reply