Make these financial and career moves before you quit your job

Hispanolistic | E+ | Getty Images

You may want to ditch your commute permanently or leave a job that you hate.

Yet before you quit, you'll want to make sure your financial house is in order.

Not only will it help you survive a period of unemployment, it will help you focus on finding your next role.

“You want to have some sense of stability and peace of mind to accomplish what you want to,” said Denver-based certified financial planner Krista Aliga, senior financial advisor at Personal Capital.

In fact, a recent survey from Personal Capital and The Harris Poll found that 66% of Americans are interested in switching jobs and 52% said they'd need at least $50,000 in their bank account in order to comfortably do so. The online poll was conducted July 29 to Aug. 2 among 933 employed U.S. adults.

More from Invest in You:
Before you impulsively quit your job, do these four things
10 work-from-home jobs that pay six figures
Employers are planning larger pay raises. How to negotiate for even more

The trend, dubbed the “Great Resignation,” has been driven by people reevaluating their lives and careers amid the Covid-19 pandemic. Americans are also burned out. Nearly two-thirds of workers have experienced burnout in their career and 41% said it happened in just the past few months, according to a survey by the human resources tech company Workhuman.

In addition to being financially stable, you should also ensure you are making the right career moves. Here's how to make sure you are ready to say, “I quit.”

Have an emergency fund

If you want to quit without another job lined up, make sure you have an emergency fund that will cover three to six months of living expenses, Aliga said. To determine that, assess your spending habits. If you plan to move, make sure you take into account the cost of living in that area.

Set the money aside in a high-yield savings account so that it is easily accessible, she suggests.

However, CFP Diahann Lassus, managing principal at New Providence, New Jersey-based Peapack Private Wealth Management, advises having six to 12 months of living expenses set aside.

“If you need money, the last thing you want to do is pull it out of a retirement account and pay all those taxes and potentially penalties to do that,” said Lassus, a member of the CNBC Financial Advisor Council.

Pay down high-interest debt

If you have high-interest rate credit cards, start paying them down. Consider transferring that debt to a card with a lower interest rate, if possible.

Consider health-care costs

If you quit without another job lined up, you'll need insurance. Price out your options, whether it is going on a partner's plan or one through the nation's public exchanges. While you can get COBRA, which extends your current employer health plan for up to 18 months, it can be expensive.

However, having no coverage at all can really cost you. Credit Karma saw its members take on an additional $2 billion in medical debt collections from September 2020 to April 2021.

Identify your wants

From a career perspective, the most important thing to figure out is what type of work you want to be doing, who you want to be doing it for and the pay, said Vicki Salemi, a career expert at Monster.

“Now is an excellent time for people thinking of making a career change,” she said.

“So many companies are hiring and looking for transferable skills, so you don't necessarily need experience in that specific job.”

Once you know what you want to do, come up with a list of target companies and include the type of company, type of job, company size and revenue.

Get ready to job search

Create job alerts through career websites so you'll be notified when a new job is posted. If you see a job you are interested in, don't wait to apply.

Also, update your resume and tweak it each time you submit a new application so that it matches the job description.

If it is a large list, pay most attention to the first three to seven duties and three to five skills the company is looking for, said Tejal Wagadia, a Chandler, Arizona-based career coach and recruiter.

If you are making a career change, highlight your transferable skills in an executive summary.

It's also important to network. Reach out to people you know that may be in the industry or company you'd like to join.

“You are looking for the right fit, not just actual job but company values, what they stand for, what their benefits are like,” Salemi said.

SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.

CHECK OUT: Nearly half of Americans selling their homes don't plan to buy another: Here's what they're doing instead via Grow with Acorns+CNBC

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Internet Explorer Channel Network
News Related

OTHER NEWS

‘Outrageous!' Family holidays from Heathrow could increase by £100, expert warns

The cost of a family summer holiday could rise next year due to Heathrow airport‘s planned price hikes. Passengers flying from Heathrow will be charged substantially more for a holiday ... Read more »

Polygenic screening of embryos is here, but is it ethical?

The birth of the first IVF baby, Louise Brown, in 1978 provoked a media frenzy. In comparison, a little girl named Aurea born by IVF in May 2020 went almost ... Read more »

Cleaning guru Aggie MacKenzie tells ME & MY MONEY she made £440,000 from TV work in one year... but felt like she didn't deserve it

© Provided by This Is Money ( The best financial decision Aggie MacKenzie ever made was giving up her job at the Good Housekeeping Institute to present Channel 4 TV ... Read more »

Five ways to reduce your mortgage as one in 10 struggle to afford monthly payments

One in ten homeowners have struggled meeting their mortgage repayments over the past year, according to government figures. The government’s Household Resilience Study said this has more than doubled from ... Read more »

[Law Talk] Trademark issues in the world of the metaverse

Lee Keun-woo (left) and Helen H. HwangThe word “metaverse,” a portmanteau of the prefix “meta” (meaning beyond) and “universe,” is typically used to refer to a communal and interactive cyberspace ... Read more »

Tightened lending still under way amid eased rules on housing rent loan

A pedestrian passes by a commercial bank promoting jeonse and mortgage loans, on Sunday. The FSC is considering toughening up rules for the current debt service ratios, or DSR, as ... Read more »

Pensioners who claim this ONE key State benefit could instantly get up to SIX more

Campaigners are urging everyone to check whether family, friends or neighbours are claiming pension credit, as many are confused about what support is available. By helping somebody out, you could ... Read more »

HMRC warning as Britons could face £100 penalty if missing vital tax deadline this month

HMRC helps millions of people to deal with their tax affairs each year, and October is a particularly busy month. This is because October 31, 2021 at midnight marks the ... Read more »

State pension 'won't give a nice retirement' - Britons urged to make 'other investments'

To ensure people can afford the life they choose after retirement, and don’t need to rely heavily on the state pension, it’s important for people in work now to start ... Read more »

Inheritance Tax warning as 'hidden wealth bracket' sees more Britons caught in net

Inheritance Tax (IHT) is a levy payable on the value of an estate above a particular threshold – usually £325,000 – of a person who has passed away. The tax ... Read more »

Cleaning guru Aggie MacKenzie tells ME & MY MONEY she made £440,000 from TV work in one year, but didn't deserve it

© Provided by This Is Money ( The best financial decision Aggie MacKenzie ever made was giving up her job at the Good Housekeeping Institute to present Channel 4 TV ... Read more »

Martin Lewis provides useful update for Britons worried about Warm Home Discount

Martin Lewis, Money Saving Expert, offers guidance on a wide range of financial issues, and this week was no different as he took to his Money Show on ITV. An ... Read more »

Martin Lewis provides useful tip for Brits worried if they will receive Warm Home Discount

Martin Lewis, Money Saving Expert, offers guidance on a wide range of financial issues, and this week was no different as he took to his Money Show on ITV. An ... Read more »

Revealed: Britain's best and worst mortgage lenders

© Provided by This Is Money MailOnline logo The best and worst mortgage lenders in Britain have been revealed in a poll voted on by their customers. Consumer website Which? ... Read more »

Ask Gareth Shaw: Will my capital gains tax bill will be so high I can't afford another property?

Question: I currently live in my property which I previously rented out for 17 years and then rebuilt. I have now owned the house for 23 years and have lived ... Read more »

‘I was crying with pain' - why Waspi women want compensation after losing £50,000 each

Lisa is just one of 3.8 million women born in the 1950s who had to wait six years longer than expected to claim their State Pension, after the retirement age ... Read more »

Nearly 150k elderly Brits have to use savings to cover care home costs

© Provided by Daily Mail MailOnline logo Almost 150,000 elderly care home residents are being forced to empty their savings to ‘prop up the broken care system’, new figures show. ... Read more »

Real money, fake beach: Investor executes a Facebook trade in virtual reality

Facebook has been beaten down in the past month, shedding 13%. But, Inside Edge Capital Management founder Todd Gordon is so confident in Facebook's rebound that he's willing to put ... Read more »

From inventing ocean-cleaning ships to calling on businesses to change, U.S. teens are tackling climate change

When Haaziq Kazi was in the fourth grade, he was rocked to the core when he found out about the impact of plastic waste on marine life. He decided to ... Read more »

Labor Department proposes reversing Trump-era rules on socially conscious investing

Fizkes | Getty Images The Department of Labor wants to reverse a Trump-era policy that restricts 401(k) plans and other retirement savings vehicles from offering environmental, social and governance-focused assets, ... Read more »

Annuities might be coming to your 401(k) plan. Here's what you need to know

designer491 | iStock | Getty Images Retirement savers could start seeing annuities in their 401(k) plans. While allowing them in workplace retirement savings plans is not new, the 2019 Secure ... Read more »

How to Calculate Intrinsic Value

Many analysts believe that the market price of a particular stock does not represent the true value of the company. These analysts use intrinsic value to determine if a stock’s ... Read more »

How to Bid on Government Contracts

Each year, the U.S. federal government spends hundreds of billions of dollars purchasing products and services. Of that amount, small businesses receive almost a hundred billion dollars in contracts. With ... Read more »

How to Write a Change Management Plan

There are two types of change management plans. One addresses the impact of change on an organization, easing the transition. The other tracks changes to a single project, creating a ... Read more »

How to Calculate Cost Increase Percentage

As prices increase on many of the things you use in your day-to-day life, it may become necessary for you to calculate that increase for forecasting or accounting purposes. To ... Read more »

How to Write an Email Asking for Donations

Creating an effective email that solicits contributions requires a tone that creates excitement about your organization. The use of email as a medium for fundraising is increasing because the cost ... Read more »

How to Open a Bank

Banking is a difficult industry to join. However, many community-oriented banks are opening across the country. With careful planning, the task of opening a bank might not be as impossible ... Read more »

Stocks making the biggest moves midday: J.B. Hunt, Charles Schwab, Virgin Galactic, 23andMe and more

Signage at 23andMe headquarters in Sunnyvale, California, U.S., on Wednesday, Jan. 27, 2021.David Paul Morris | Bloomberg | Getty Images Check out the companies making headlines in midday trading. J.B. ... Read more »

Norway registered a record trade surplus in September due to high oil and gas prices

High oil and gas prices contributed to Norway having a record trade surplus of NOK 53.7 billion in September. In September, Norway exported goods worth NOK 129.5 billion, an increase ... Read more »

91% of people with health savings accounts make this mistake

The Good Brigade | DigitalVision | Getty Images The vast majority of health savings account owners aren't investing their money — and it's likely shortchanging them over the long term. ... Read more »

Buy any dips in chip stocks, trader says. Here's one name to consider

Semiconductor stocks are worth buying on any weakness, portfolio manager John Petrides told CNBC's “Trading Nation” on Thursday. “My team in particular is in a buy-the-dip mentality for the overall ... Read more »

'Unbelievable!' Couple surprise Dave Ramsey by paying off their two children's mortgage

On a video posted on The Ramsey Show – Highlights YouTube channel in 2018, Dave Ramsey was delighted to speak to the couple about how they were able to pay ... Read more »

Pension savers face ‘catastrophic impact' of interest rates and inflation rises

Sky high inflation rates could mean workers have less money available to contribute towards their retirement savings as the cost of living depletes their pay packets. Alterations to the lifetime ... Read more »

Over 65s 'need appropriate incentives' as Inheritance Tax & Stamp Duty stop 'right-sizing'

It appears pensioners are not being provided with enough options to downsize to a home more suited to them, with low numbers of bungalows and retirement housing being built. The ... Read more »

Martin Lewis says Tesco shoppers can get 'free' money by using their Clubcard

Martin Lewis has revealed Tesco shoppers could get free money from the retailer to spend in-store – but they have to act quickly. The Money Saving Expert founder explained how ... Read more »

Rishi Sunak's pensions plan means Britons face FIVE extra years of work - millions hit

Policy advisers to the Treasury are looking at ways to fund public spending amid record levels of debt due to the pandemic. Later this month the Chancellor will unveil his ... Read more »

Did you blow your budget? Here's how to get back on track

Geber86 | E+ | Getty Images It happens to the best of us — after setting a budget, somehow spending goes off the rails. “It's so easy to do,” said ... Read more »

Social Security benefits are getting biggest boost in 40 years. Here's why it can't always jump so much each year

Don Bayley | Vetta | Getty Images This week's announcement of the highest Social Security cost-of-living adjustment since 1982 was welcome news for retirees. It will help alleviate the financial ... Read more »