Quitting your job to start a new career path or become an entrepreneur can be both exciting and challenging. You might have saved for an emergency fund until you earn money from your new job or business, you have to make do with what you have.
Here are a few tips in managing your finances after resigning from work:
Learn to be frugal.
While you still have money in the bank, this is the perfect time for you to change your lifestyle, in terms of how you spend. This does not mean, though, that you have to be a pan-handler and a pay-loader. Being frugal means not ordering drinks when dining out but go for the healthier option, water. If you want to go to a movie, try an earlier preview schedule. Or perhaps, you can enjoy movies from home. These are minor changes in your lifestyle that can help you in the long run.
Turn your passion into income.
If it will take more time for you to get back to work, there are other ways to make money. You can de-clutter your home and have a garage sale or join a Christmas bazaar. Also, if you have a hobby like photography or writing, you can be a freelance photographer and an online writer. Aside from enjoying what you do, you are also earning money.
Secure your savings.
Do not be tempted to spend your emergency fund unless it will be for what it is intended for: emergencies. If your friends invite you to travel and you have not really saved up for it, do not get money from your fund.
Monitor your spending.
This might require you to sit down and spend time computing, it helps to monitor your expenses and make a list of the things you buy so you can track if you have been purchasing items you do not really need.
Managing your finances after quitting your job might not be an easy task but with planning beforehand, you can succeed with flying colors.