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How to Reduce Your Risk Before Quitting Your Job

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When we decided to move to France for the summer I quit my job without another position in mind. Worse, I didn’t just give up my job; I also moved out of my rented property, with a view to starting life again half way across the country. This is the crazy story of how I planned my exit carefully to minimize risk, and where I’ve ended up at the end of my adventure…

Let’s start by turning the clock back to January 1st 2017 – a time when, like many people, I was considering my New Year’s Resolutions. Like many people, I often make a host of resolutions, but not this year. This year there was just one. A resolution that seemed so simple at the time; to relocate to a new area where we could be closer to family, to the countryside, and where property costs a fraction of what we’re used to.

Within days my job search had begun; I updated my resume and began reaching out to employers and agencies in our chosen area. Despite some initial interest, I started to realize that going straight from one job to another wasn’t what I wanted. Quite frankly I was feeling bored and burned out – stale if you like – and so my girlfriend and I decided that taking a break before the relocation probably made sense.

Of course, we didn’t want just any break. A week off work at home simply wasn’t going to cut it. We wanted to head abroad, experience a whole new way of life and wake up naturally for months, not days. And so it came to pass that the only viable way to make this happen was to quit my job, move out of our house, put everything in storage bar the passports and head off to the sun.

The only problem with this plan was that I am naturally a risk-averse and financially cautious individual. I’ve lost jobs before, so I know how painful a sudden lack of income really can be. With this in mind we put a plan in place to minimize our risk, while maximising our adventure.

If you ever find yourself in a similar situation here are my recommendations:

Save Hard

First and foremost, I wouldn’t recommend completely changing your lifestyle without a strong financial footing. We saved a considerable amount of money before I quit my job, but we still spent more than expected.

For this reason, don’t just make a budget and save till you hit your goal; aim to go some distance past your savings target to give you some leeway. With such a big lifestyle change there are bound to be costs you hadn’t considered when it comes to getting back on your feet.

Consider Every Expense

Before you quit your job it pays to downside your standard monthly expenses as much as possible. Moving out of our rented property certainly helped with this, but also consider gym memberships, car insurance, media subscriptions and more. Be tough and decide what you’ll have to keep paying, and what can be eliminated.

Appreciate that many recurring expenses may take a month or more to actually cancel, so planning ahead is a smart move. The goal is to reduce your monthly outgoings as far as possible, to make your savings go further.

Prepay for Everything Possible

Before I quit my job we had already paid for our overseas accommodation and our return transportation. With these major expenses already out of the way, it’s a lot easier to budget the remainder of your funds. Additionally, the last thing you want to do is run out of money in another country, without an easy way to get home.

Create Additional Streams of Income

Whilst I still need a traditional job to support myself, I have worked hard in recent years to establish additional income streams. Income from a number of blogs was beneficial, and I was also able to take on a small amount of freelance work while away.

Things worked out even better for my girlfriend, who managed to negotiate three months of unpaid leave. In this way, we knew that at least one of us had a full-time job to return to later on.

Establish Access to Credit

If you make a mistake with your budgeting, or it takes longer than you expected to find a new job, a ready source of credit can come in handy. It’s far easier and better to sort out a new credit card or overdraft when you don’t need it, hoping that it won’t even get used, than to be sweating about a lack of cash later on – especially while you’re abroad.

Have a Plan for Your Return  

Lastly, before you go and quit your job to live your dreams, it makes sense to carefully plan your return to “real life”. Whether you ever use that plan is another matter; the key is knowing where you’ll stay, who you can call in favours from and what you’ll do to get back on your feet as soon as possible.

As it turns out, while every one of these points came in handy for us (save for the use of credit, thank goodness) it was this plan for our “return to reality” that really helped us out. I started to apply for new jobs while we were actually abroad, managed to schedule a number of interviews in close succession, then headed home temporarily. With my “interview clothes” at the front of our storage unit, I was able to zip across the country making my appointments, then turn around and head straight back off abroad.

It all worked beautifully; soon afterwards I started a brand new job; just 4 days later than our plan.

Whilst I certainly felt like the “cat who got the cream” right now – a summer off to enjoy ourselves followed by relocation and a new job – it all happened thanks to plenty of careful planning early on in the frosty spring.  

Quitting your job can be a highly liberating experience, especially if you're going to be self employed or work freelance. However, there's plenty of risk. So here' what to do *before* you resign from work.

Richard

Sun-worshipper and obsessive frugality blogger. For loads more money-saving advice come and join us on Facebook.

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