Can You Afford to Quit?
Assess your financial readiness to leave your current job safely.
What You'll Learn
This quiz assesses your financial readiness to leave your job. You'll learn about the importance of an emergency fund, how to evaluate your job prospects, and what financial steps to take before making the leap.
Can You Afford to Quit?
Question 1 of 10How many months of expenses do you have saved?
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Explanation
Quitting your job without a plan can be risky. This quiz helps you look at your savings, debts, and job market to make an informed decision. It's about ensuring you have a safety net to protect you while you transition to a new role.
Expert Insights
- A general rule of thumb in Australia is to have at least 3-6 months of living expenses saved before quitting your job.
- Consider the hidden costs of quitting, such as losing health benefits or unvested stock options.
- Your network is your best asset when job hunting. Start networking before you quit to ensure you have strong leads.
Actionable Tips
- Create a detailed budget to understand your minimum monthly expenses. This will help you determine how much you need in your emergency fund.
- Start a side hustle to build an additional income stream before you quit. This can provide a financial buffer during your job search.
- Update your resume and LinkedIn profile, and start applying for jobs before you hand in your notice. Having interviews lined up will boost your confidence.
Example Results
Scenario 1: Ready to Resign
You have a solid emergency fund, low debt, and strong job prospects. The quiz confirms you are financially ready to quit. Action: Start your job search with confidence, knowing you have a strong financial safety net.
Scenario 2: Almost There
You've made good progress with your savings, but your job prospects are uncertain. The quiz suggests you're close, but should strengthen your position. Action: Focus on networking and building your skills before you quit.
Scenario 3: Stay and Save
You have limited savings and high debt. The quiz advises against quitting now. Action: Create a savings plan and work on reducing your debt before you consider leaving your job.
Glossary of Terms
Emergency Fund
A stash of money set aside to cover the financial surprises life throws your way. These funds should be liquid and accessible.
Networking
The action or process of interacting with others to exchange information and develop professional or social contacts.
Side Hustle
A piece of work or a job that you get paid for in addition to doing your main job.