How I (Financially) Quit My Job

One of the first things people ask when they find out that I quit my job is the same thing I would ask if the tables were turned---how?  For me it all started with one thing: making it a priority.

I started with a plan

My decision might have come as a surprise to most people, but it was something I had been planning (aka mostly mustering up the courage) to do for almost a year. I knew I wasn’t happy with where I was, but I also knew that I had one shot at this. If I didn’t properly plan and save, I was setting myself up for failure. So to make sure I knew what I was getting myself into financially, I figured out what my monthly expenses were and how long I could survive in different scenarios (with no income and just savings, with small amounts of income from odd jobs, etc). Once I had a number in my head that I was comfortable with to both live off of and part with from my savings, I worked towards that goal.

I (mostly) stick to a budget

My closest friends know that October is one of my favorite months---yes because I love fall weather, but mostly because that means assessing what I spent the past year and budgeting out the following year. I keep track of everything I spend (literally every dollar that leaves my possession whether it is cash, check, venmo, or credit is documented).  I categorize all of these expenses---from travel, to cleaning supplies, to groceries, to entertainment. By knowing where my money is going I can identify what categories to try and watch in the upcoming months/year. Granted, I would never deny myself something I really want (#TBT to the time I originally only gave myself $250 for clothes for an entire year…and spent it all before February was over), but it helps keep me in line and accountable for what my priorities are. If I notice that I’ve been hitting my “restaurant” category a little too heavily I try and shift my habits and spending towards the cheaper option of groceries for a few weeks. Small changes add up in the big picture.

I changed habits to reprioritize where my money was going

Let’s be honest---I used to go out a lot.  This was one of the most obvious places I could make a change and funnel my money into other categories. I stopped going out every Friday and Saturday night and moved towards going out only for events or celebrations. Spending $50-$100 a weekend on alcohol, late night food, and hungover brunch adds up fast. Luckily for me, that extra ~$400 a month in my budget can go a long way elsewhere. Same concept with swapping out a few happy hours a week for more gym sessions. Bonus of my post-college “old age”? New habits that were healthier for my budget also turned out to be better lifestyle changes overall.

I live within (and mostly under) my means

I’m fortunate enough to have parents that taught me at a young age the value and responsibility of money. I don’t buy something if I don’t know I have the money for it. And even then, I try and wait for the things I want to go on sale before I buy. So even though I can afford the clothes in every Facebook Ad that I almost impulse order, I opt out of it and instead funnel the money towards my travel fund. Even though I can afford to live alone, I have a roommate (shout-out to Lauren for being the best roomie on Earth J) to split my expenses with. I go generic on the things I can, especially when it comes to groceries (if you haven’t checked Aldi out….you need to). All of these little things add up and keep my budget in the black.

I made sure I didn’t have any major debt before I took the leap

My monthly expenses are fairly low---my fixed monthly costs are comprised of my apartment rent, cell phone, and gym membership. I was able to graduate undergrad without any debt by applying for any and every scholarship I could get my hands on, my savings from working throughout high school, part-time internships during the semesters, and full time jobs in the summer. I paid my car off years ago and have resisted the urge to upgrade in the years after that. I’ve always treated my credit card as a reflection of the money I already have instead of using it to buy things I will eventually have the money for. By not having any large payments hanging over my head, I was able to have peace of mind that I can make ends meet with little to no money coming in over the next few months.

I believed in myself

Once I knew how much I could afford to spend during my hiatus from the working world, it was time to take the leap. For me, the hardest part of being “ready” to quit didn't end up being my finances. It was the fear of the unknown that took a year to really prep for.  Eventually I realized that at the end of the day if it came down to it and my finances started to get too scarce I would find a way to feed myself. There are no guarantees in life, so I knew it was time to give it a whirl. After all, what’s the worst thing that can happen? I fail miserably and start back over---this time armed with a few more epic adventures.

#ChallengeAccepted