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Knowing how to quit a job gracefully is an important skill to learn. It’s a crucial part of growing your career, finding a good work-life balance, and more. Making the transition smoothly will help you build your personal brand and maintain professional connections. It will also help you have financial stability.

Preparing Yourself

Before you quit your job, you need to be confident in your decision and be able to provide for yourself until you start your new job. The kind of preparation necessary depends on your circumstances and goals.

Finding a New Job

For your financial stability, it’s a good idea to have a new job before you quit your current one. While working and job hunting can be a tricky balancing act, it will ensure that you have stable income. This strategy is especially great if you’re not in a hurry to change jobs or if you are just passively looking at new opportunities.

Most employers’ benefits have a brief waiting period before some benefits, like health insurance, kick in. Be sure that you have a plan for coverage, like using COBRA, before benefits at your new job take effect.

Related: What is an HSA? The Ultimate Tax Shelter for Saving Money

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Budgeting and Savings

The ideal situation isn’t always possible. Finding a job is a lot of work. Actively looking for a new job and working full-time can feel like working two jobs. In some cases, it makes sense to quit first, then start looking. 

Long before you start thinking about quitting your job, you should be sticking to a budget and saving regularly from each paycheck. Having funds stashed away can help you leave a bad work environment quickly if you need to. 

It will also provide a cushion if it takes you awhile to find work and start earning a regular paycheck, whether as a W-2 or 1099 worker

Figure out what the minimum monthly amount you need to keep yourself going—this means eliminating all the excess from your budget. Sticking to this amount will make your savings last longer, which means more time for you to find a new work situation.

Preparing for Self-Employment

If you’re preparing for any kind of self-employment, making a solid plan will help you be successful and have financial stability or even financial independence.

  • Taxes

Work with a financial advisor or accountant to figure out your tax bracket and how much you will likely owe in taxes. Plan to make quarterly tax payments so that you don’t owe the IRS a lot during tax season.

Keep good financial records for your taxes in case of an audit. Being self-employed increases your chances of being audited, so having good records and clear documentation will help protect you if that happens. 

  • Insurance

Insurance is an important part of your employer’s benefits package, and you need to have a plan to replace it when you leave. Health, vision, dental, disability, and life insurance all need to be replaced. 

With health insurance, you can use COBRA to keep coverage under your employer’s plan while taking on the expenses originally paid by your employer. 

With every kind of insurance, shop around. Compare monthly premium rates and coverage levels to find the best fit for your insurance needs and budget.

Looking for Financial Independence?

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Letting People Know Your Decision

After you’ve made your decision and the necessary preparations, it’s time to let others know. Who you tell first and how you frame your decision will affect how it’s perceived by your current employer. Planning how to share your news will help you leave on a positive note and without bias.

  • Talking with Your Boss

Once you’ve made your decision, the first person you should tell at work is your boss. Letting your boss be the first one to know shows respect. 

It also allows your current employer to provide input on the best way to share the news with your co-workers and others at work.

When you talk with your boss, express gratitude for the opportunity and the experience that has allowed you to grow. Frame your decision to leave as positively as you can. 

If there are personal circumstances beyond your control that have affected this decision, you can mention those. 

The point is you want to leave on a positive note to maintain your professional connections and even have the opportunity to return in the future.

  • Communicate with Coworkers

Once you’ve shared your news with your boss, you can share it with more people at work. Follow any guidelines or requests your boss made about sharing the news with others. 

It’s also a good idea to connect with co-workers on LinkedIn to grow your professional network and stay in touch.

  • Share on Social Networks

Even if you have good privacy settings or use DMs, nothing shared on social media is really private. Posting anything on social networks about a career transition before key players have been notified in person is risky, especially if you’re active on social media with co-workers.

However, once you’ve made personal announcements to key players, and the transition is in motion, sharing your news on social media is a great way to show gratitude to your former employer and excitement for your new opportunity to your future employer.

  • Write a Thank You Note

Before your last day of work, take time to write thank you notes to your boss, supervisors, and mentors. Leave these notes in their mailboxes or on their desks. 

Leaving a thank you note is a nice gesture that will underscore gratitude you’ve already expressed for the opportunity.

Planning your transition and your announcement carefully will help you continue to grow your professional network and continue to be self-reliant.

 

Author Bio 

Alice Stevens is a language enthusiast, loves history, and enjoys traveling. She manages content for BestCompany.com specializing in finance, insurance, and car warranty.

About the Site Author and Blog

In 2018, I was winding down a stint in investor relations and found myself newly equipped with a CPA, added insight on how investors behave in markets, and a load of free time.  My job routinely required extended work hours, complex assignments, and tight deadlines.  Seeking to maintain my momentum, I wanted to chase something ambitious.

I chose to start this financial independence blog as my next step, recognizing both the challenge and opportunity.  I launched the site with encouragement from my wife as a means to lay out our financial independence journey and connect with and help others who share the same goal.

Disclaimer

I have not been compensated by any of the companies listed in this post at the time of this writing.  Any recommendations made by me are my own.  Should you choose to act on them, please see my the disclaimer on my About Young and the Invested page.

Looking for Financial Independence?

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