Quit My Job Calculator

Financial experts recommend saving 3-6 months of living expenses as a minimum emergency fund, but for quitting your job, aim for 6-12 months. This gives you adequate runway to find new opportunities without financial stress. Consider your industry, job market conditions, and personal risk tolerance when determining the exact amount.

It depends on your financial situation and career goals. If you have substantial savings, are changing careers, or facing serious burnout, quitting without another job can be viable. However, it's generally safer to secure new employment first. Consider factors like your industry's hiring timeline, networking opportunities, and ability to explain employment gaps to future employers.

Give at least two weeks' notice in writing, though some senior positions may require more time. Schedule a private meeting with your direct supervisor first, then follow up with a formal resignation letter. Be professional, express gratitude, and offer to help with the transition. Avoid criticizing the company or colleagues, even if you're leaving due to negative experiences.

You have several options: COBRA continuation coverage (expensive but maintains current plan), marketplace insurance through healthcare.gov, short-term medical insurance, or joining a spouse's plan. Research options before quitting and budget for potentially higher costs. Don't go without coverage, as medical emergencies can be financially devastating.

Consider timing your resignation for tax optimization. You might owe taxes on unused vacation payouts or severance packages. If freelancing, you'll need to make quarterly tax payments and can deduct business expenses. Consult a tax professional to understand implications specific to your situation, especially regarding retirement account contributions and withdrawals.

Job search duration varies widely by industry, experience level, and market conditions. On average, it takes 3-6 months to find a new position, but senior roles or specialized fields may take longer. Factors affecting timeline include networking strength, skill relevance, salary expectations, and interview performance. Plan for longer than expected and stay active in your search.

Career breaks can be valuable for preventing burnout, pursuing education, traveling, or major life transitions. They work best when you have strong savings, marketable skills, and a plan for re-entry. Some industries are more accepting of gaps than others. Use the time productively and be prepared to explain the break positively to future employers.

Burnout is characterized by chronic exhaustion, cynicism, reduced performance, and physical symptoms persisting over weeks or months. Bad days are temporary and often have identifiable causes. Signs of burnout include dreading work, feeling emotionally drained even after rest, increased illness, and loss of motivation. If symptoms persist despite attempts to improve your situation, consider professional help.

You typically have four options: leave it with your former employer (if allowed), roll it over to your new employer's plan, roll it into an IRA, or cash out (not recommended due to taxes and penalties). Rolling over to an IRA often provides the most investment options and control. Avoid cashing out unless absolutely necessary, as you'll face taxes and early withdrawal penalties if under 59½.

Start building your freelance business while still employed by taking on small projects in your spare time. Build a portfolio, set up business systems, establish pricing, and create contracts. Network within your industry and leverage existing relationships for your first clients. Plan for irregular income and set aside money for taxes, equipment, and benefits you'll need to provide yourself.

If you're a valued employee and your role allows it, negotiating reduced hours or remote work can be a good compromise. Present a clear proposal showing how you'll maintain productivity and meet key responsibilities. This works best if you've built strong relationships and have leverage based on your performance. Be prepared for your employer to decline and have a backup plan.

When you resign, you're choosing to leave voluntarily and typically won't qualify for unemployment benefits. Layoffs are employer-initiated due to business reasons and usually make you eligible for unemployment compensation. If you suspect layoffs are coming, it might be worth waiting rather than resigning, as you could receive severance packages and unemployment benefits that provide financial bridge support.