In contemporary times, staying in a single company for a decade is not considered smart. These days we come across individuals who shift their jobs a number of times.
There are people who quit to pursue a hobby, business or higher studies. Most of them are lured by higher salaries and better growth prospects.
For individuals with high paying salary, it is not easy to just quit a job and move. If financial things are not planned, the family may see hard times financially as well as emotionally.
At times the plan does not work according to us, and may leave you jobless for a period or your business may not turn how you have planned.
Here are few financial things to consider before quitting your job:
1) Consult your family adviser
Before deciding on quitting your job, discuss the same with your family members as it may impact their life also.
A financial adviser can be of great help at this time and can help you foresee any future commitments.
2) Be ready with Emergency Fund
An emergency fund can be created by setting aside a certain amount on a regular basis which can be used in times of need. By creating an emergency fund, one need not break the long term investments made.
Determine how much emergency fund is needed so that the amount set aside is not higher or lower and matches your needs at that moment.
3) Check your Retirement Fund
When in employment, a regular amount is contributed from your end as well as company's end towards your employee provident fund.
Make sure you have other retirement plans which will work for you. If planning for business one can consider investing in NPS or Public Provident fund for safer returns.
4) Insurance Plans
Cover yourself and your family with insurance plans considering your needs as there will be no insurance cover from the company when you are no more its employee.
While serving notice period, one can consider new insurance plans or check with the new company on how much cover they are providing.
5) Advance Bill Payments
Make sure you pay all your bills, rent, EMI well in advance so that you will have some cash flow.
Keep some funds handy to make next month payments in case required.