5 Financial Things to Consider Before Quitting

You’re ready to quit your job, at least, you think you are. While it’s better to wait until you have a new job offer before quitting, sometimes circumstances don’t allow for that ideal situation to line up. If that’s the case for you, make sure you consider these 5 financial things before putting in your two weeks notice.

1. Equity: If you have equity (or you think you do) it’s worth reviewing the conditions under which you can vest and exercise that equity before you quit. These circumstances vary widely depending on the size of your company, whether it is public or private, etc. You don’t wan to leave money on the table but you also don’t want to rely on equity that won’t actually come with you when you quit. Double-check your company’s policy and where your equity stands before you quit.

2. 401k Match: Retirement may seem like it’s in the distant future or it may look like it’s right around the corner, depending on who you are. Either way, you should consider what implications quitting might have on the employer match on your 401k. A lot of times, these matches are contingent upon staying for the full calendar year or staying a full year before they go into effect. See what your company’s policy is before you quit. It may be worth sticking around a few extra months to maximize your retirement perks or it may not be worth the extra time and effort.

3. Unpaid PTO: Unless you have unlimited PTO, the paid time off that you didn’t take is typically paid out to you when you quit. Yes, the one drawback of unlimited PTO is that you often don’t have paid time off accrued in the traditional sense so there’s nothing to pay out when you leave, which will leave you with less money in your final paycheck. But, if you don’t have unlimited PTO, make sure you bring up your unused PTO days and have an accurate count of how many you still have left so you can get that money added to your final paycheck.

4. Emergency Fund: If you’re quitting your job and have no other job lined up immediately, you need to have an emergency fund. After all, this job search could last several days, several weeks, several months, even several years depending on your circumstances. You need to have enough money set aside in an emergency fund if you’re unwilling to look for part-time, freelance, or full time work before resigning from your current position. The exact amount will vary from person to person, but the general advice is to have at least 3-6 months expenses saved.

5. Health Insurance: The earlier in the month you quit, the longer you’ll have inexpensive health insurance! After that month is up, you can utilize COBRA (which is expensive) or find a health plan under the ACA. Either way, you can typically expect your health insurance expenses to go up considerably once your employer isn’t paying a portion of it. Factor that cost into your emergency fund before quitting.

It can be frustrating to stay at a job when you’re ready to quit but, if you don’t have a new job lined up, you need to at least consider these 5 financial things before handing in your notice. Otherwise, you may get stuck in a less-than-pleasant situation that rivals your distaste for your current job.