Before Quitting Your Job, Do This
The critical decisions you must make before resigning to protect your financial and professional future
Why this decision will change your life
In my experience advising hundreds of professionals, I've seen how leaving a job can be both the best decision of your life and the most costly mistake you can make. The difference isn't in the decision itself, but in how you prepare for it. In my view, most people dramatically underestimate what this change entails.
I remember when I left a stable job myself without proper preparation. The initial feeling of freedom quickly turned into financial anxiety. I had savings, or so I thought, but I hadn't correctly calculated all the expenses that would come. The health insurance that the company used to pay, the hidden costs of professional transition, the psychological impact of not having a regular income. All of that caught me by surprise.
In my experience, the difference between those who achieve a successful transition and those who end up regretting it isn't talent or luck, it's meticulous preparation. People who plan their exit correctly don't just survive the transition, they thrive in it. In my view, this preparation should begin months, even years, before submitting your resignation.
I've learned that leaving a job isn't an event, it's a process. It's a transition that requires financial, emotional, professional, and legal preparation. Every aspect you neglect can become an obstacle that makes you fall back or, worse, forces you to accept the first job that appears out of sheer economic desperation. This is what you need to do before taking that step.
Build your financial cushion: much more than just 'savings'
The true cost of transition
In my experience, the most common mistake is thinking that 3-6 months of basic expenses will be enough. This is a dangerous oversimplification. When you leave your job, your expenses don't stay the same, many increase significantly. In my view, you need to calculate not only your current expenses, but the new costs that will appear:
- Private health insurance that the company used to cover
- Job search or business launch costs (training, tools, networking)
- An additional cushion of 30-40% for unforeseen expenses you didn't anticipate
How to calculate it correctly
In my experience, you need between 9 and 12 months of complete expenses (not reduced) if you're going to look for another job, and between 12 and 18 months if you plan to start your own business or a significant career transition. Yes, it's much more than most articles will tell you, but I've seen too many people fail by underestimating this. In my view, it's better to have too much and be pleasantly surprised than to fall short and enter financial panic.
Protect your health and work benefits
Medical coverage: don't take it for granted
In my experience, this is one of the most underestimated and potentially most costly aspects. Before resigning, thoroughly research how much it will cost you to maintain adequate medical coverage. In my view, a health problem without insurance can destroy years of savings in weeks. Research your options in advance, compare prices and coverage quality, and make sure that cost is included in your financial cushion.
Bonuses, vacation days, and other pending benefits
In my view, you should make sure you understand what benefits you have pending and which ones you'll lose when you resign. Do you have accumulated vacation days that will be paid? Are there pending bonuses or commissions? Stock programs or profit participation? Pension or savings funds that you can transfer? In my experience, these details can represent a significant sum that makes the difference in your transition.
My personal experience
When I left my first corporate job, I didn't pay enough attention to the benefits I was losing. Besides the salary, I lost a family health insurance that would have cost me a fortune to replicate, company-paid training programs, and a significant annual bonus I had forgotten about. In my experience, making an exhaustive list of everything you currently receive from your employer will help you understand the true cost of leaving that position.
Analyze and reduce your debts strategically
Evaluate your current debt situation
In my experience, leaving a job with significant debts adds immense psychological pressure that can sabotage your transition. In my view, you should honestly evaluate your debt situation before resigning:
- High-interest debts (credit cards, personal loans): these should be your absolute priority to eliminate or significantly reduce
- Mortgages or student loans: evaluate whether you can renegotiate terms or temporarily defer payments
- Recurring financial commitments you could pause or cancel without penalty
Debt management strategy
In my view, ideally you should reduce your high-interest debts as much as possible before resigning. In my experience working with people in transition, those who have their debts under control sleep much better at night and make better professional decisions because they're not pressured by suffocating monthly payments. If you have significant debts, consider postponing your resignation for a few months while you work aggressively on reducing them.
Define your professional transition plan
Absolute clarity about your next step
In my experience, one of the most common mistakes is resigning without clarity about what comes next. 'I'll figure it out' is a recipe for disaster. In my view, you need to know precisely whether you're going to: look for a similar job at another company, change industry or role, start your own business, take a sabbatical with specific goals, or undertake a career transition that requires additional training. Each scenario requires different preparation and a different financial cushion.
Build your network BEFORE resigning
In my view, your professional network is infinitely more valuable while you're still employed. In my experience, people respond differently to someone who is actively employed versus someone who is job hunting. Use your current position to strengthen relationships, attend industry events, make strategic contacts, and position yourself in your field. Don't wait until you're unemployed to start networking, do it while you have the backing and credibility of your current position.
Update and certify your skills
In my experience, the best times to invest in your professional development are BEFORE changing jobs, not after. In my view, dedicate the months before your resignation to completing relevant certifications, updating your professional profile, creating a solid portfolio of your work, or learning skills you know you'll need in your next stage. Doing it while you still have a stable income reduces stress and allows you to take the necessary time.
Prepare all legal and administrative aspects
Complete employment documentation
In my view, before resigning, make sure you have copies of all important documentation: contracts, performance evaluations, achievement certificates, recognition letters, and any documents that support your experience and contributions. In my experience, this documentation can be invaluable for future salary negotiations or as support in legal situations.
Notice period and contractual obligations
In my experience, you should carefully review your contract to understand your notice obligations, non-compete clauses, or confidentiality agreements. In my view, failing to meet these obligations can cost you dearly legally and reputationally. Plan your exit respecting all contractual terms, no matter how anxious you are to leave.
Strategic timing matters
In my view, there are better and worse times to resign. Consider factors such as: bonus cycles or annual payments, accumulated vacation periods, seasonality of your industry, and labor market conditions. In my experience, resigning just before receiving a significant bonus or during a low season in your sector can be strategically disadvantageous.
Secure your professional references
In my experience, before resigning, identify and talk to the people who could give you solid references in the future. In my view, it's much easier to secure these relationships while you still work together than to try to rebuild them months later. Keep these professional relationships active and warm, they'll be a valuable asset in your transition.
Prepare yourself emotionally for the transition
The psychological impact is real and significant
In my experience, even when you leave a job you hate, the transition is emotionally exhausting. The loss of routine, uncertainty about the future, financial pressure, and the change in professional identity are significant stressors. In my view, underestimating this emotional aspect is a mistake. Prepare yourself mentally, consider talking to a therapist or coach, and have stress management strategies before you need them.
Family and social support system
In my view, your family and close friends should be completely aligned with your decision before you resign. In my experience, lack of support at home can turn a manageable transition into a crisis. Talk honestly with your partner or family about the financial implications, lifestyle changes that may come, and your concrete plans. Their emotional support will be crucial.
Redefine your identity beyond your job
In my experience, many people derive much of their identity from their job and position. When that disappears, it can be disorienting. In my view, start building an identity and self-esteem that don't depend exclusively on your job title. Cultivate interests, relationships, and projects outside of work that give you a sense of purpose and personal value.
Practical checklist: your action plan
3-6 months before: intensive financial preparation
Calculate your necessary financial cushion, reduce superficial expenses, eliminate high-interest debts, and maximize your savings. Research health insurance costs and other expenses that will appear.
3-4 months before: professional development and networking
Update your professional profile, complete pending certifications, activate your network, and start exploratory conversations in your industry.
2-3 months before: clarifying your plan
Define your next step precisely, research the job market or business opportunities, and create a detailed action plan with realistic timelines.
1-2 months before: legal and administrative aspects
Review your employment contract, collect important documentation, secure your professional references, and verify pending benefits to collect.
2-4 weeks before: resignation preparation
Draft a professional resignation letter, plan the conversation with your supervisor, organize the transition of your responsibilities, and prepare yourself emotionally.
After resigning: plan execution
Follow your action plan, maintain discipline in your finances, continue networking actively, and evaluate your progress weekly. Adjust your strategy as needed but stay the course.
When you should NOT leave your job
Without adequate financial cushion
In my view, resigning without at least 6-9 months of expenses saved is unnecessarily exposing yourself to failure. In my experience, immediate financial pressure will force you to make bad professional decisions out of desperation. If you don't have the financial cushion, focus on building it before resigning, even if that means staying a few more months in a job you don't like.
On impulse or temporary emotion
In my experience, I've seen too many people resign in a moment of frustration or anger, only to regret it weeks later. In my view, if your decision to resign comes from an intense emotion of the moment (rage, disappointment, acute burnout), wait. Give that emotion time, look for alternative solutions first (department change, conversation with HR, negotiation of conditions). Such an important decision shouldn't be made from emotional heat.
Without a concrete plan of what's next
In my view, 'I'll figure it out' isn't a plan, it's a recipe for anxiety and regret. In my experience, you need to have clarity about your next step before resigning. This doesn't mean you need to have everything figured out, but you do need a concrete action plan with specific steps and realistic timelines. Uncertainty is part of the process, but total lack of direction is dangerous.
Your future is in your hands
In my experience working with hundreds of professionals in transition, the difference between those who thrive and those who struggle isn't talent, luck, or external circumstances. It's preparation. In my view, leaving a job can be the best career move or the most costly mistake, and you decide which it will be by the level of preparation you dedicate to it.
Remember that this isn't a decision that should be taken lightly or on impulse. Take the necessary time to prepare yourself adequately in all aspects: financial, professional, emotional, and legal. In my experience, the months you invest in preparation will translate into years of better professional position and financial peace of mind.
In my view, if you've made it this far, it's because you're seriously considering this step. My final advice is this: don't rush. Plan meticulously, execute patiently, and when you finally take the step, do it with the confidence that you've prepared for success. Your professional and financial future will thank you.