Look, most people know they need to "be financially prepared" before they quit. But they don't actually know what that means. So they wing it. Then two months later they're screwed.

Let me be straight with you: there's a difference between "I have some savings" and "I have actually thought through the financial reality of leaving."

This is not financial advice. Just stuff you need to figure out before you walk out.

1. Know your exact monthly burn rate

This is the most basic thing and almost nobody does it.

Your burn rate is what you actually spend every month. Not what you think you spend. What you actually spend.

Go back three months in your bank account. Add up everything. Rent, food, insurance, subscriptions, all of it. Divide by three. That's your burn rate.

Most people are shocked. They think they spend $4k a month and find out it's $5,500.

Why does this matter? Because everything else you calculate flows from this number. If you don't know your burn rate, you don't know how much runway you have.

Your burn rate is the single most important number you'll calculate. Get it right.

2. Check your 401k vesting schedule

Your employer matched your 401k contributions. That money isn't all yours yet. Some of it might have conditions.

Log into your 401k. Look for the vesting schedule. It'll show you exactly what percentage of employer contributions you own right now.

Common setups: cliff vesting (you get nothing until year 3, then you get it all), or gradual vesting (25% per year for 4 years, or whatever).

If you're two months away from vesting an extra $15k, maybe you wait. If you're just getting started, that money's still theirs if you leave.

Know this number before you quit. It changes the calculation.

3. Confirm your health insurance plan

This one kills people. They quit, then two weeks later they realize they need to buy their own health insurance and it costs $400/month instead of the $50 they were paying with employer coverage.

Before you quit: research your options. COBRA (expensive but familiar), ACA marketplace (check subsidies), spouse's plan (if applicable), or going without (don't do this).

Plug the actual cost into your burn rate calculation. If you're paying $200/month for health insurance now through your employer, but it'll be $400/month on your own, you need to account for that $200/month difference.

Don't find out the hard way. Call your insurance company. Get a quote. Add it to your monthly expenses.

4. Know your final paycheck and last benefits date

When exactly does your final paycheck hit? Is it right after you quit, or does it come two weeks later?

When do your benefits actually end? Sometimes it's your last day. Sometimes there's a grace period. Depends on your company.

This matters because if your final paycheck is May 15 and your benefits end May 31, you have a two-week gap before you're on the hook for your own health insurance.

Get the dates in writing from HR before you hand in your notice. Not because they'll change it, but because you need to know it.

5. Calculate your emergency fund (the real number)

You've heard this: save 6 months of expenses. That's fine advice if you're salaried and getting hired somewhere else in 6 months.

You're quitting your job. It's different.

Real talk: if your burn rate is $5k/month and you're not sure what comes next, you probably want 8-12 months of runway. That's $40k-$60k sitting in a boring savings account.

Why? Because life happens. Your side income dries up. You get sick. A project falls through. Unexpected stuff always happens.

Calculate it. Monthly burn rate × months of runway you need. That's your emergency fund target.

Emergency fund formula: $5k/month burn × 10 months runway = $50k minimum. This is what security actually feels like.

6. Assess your debts (especially high-interest ones)

You don't have to pay off all your debt before you quit. But you need to know what you owe and what the minimum payments are.

Credit cards at 19% APR? Brutal. That's money leaking out of your runway every month. Consider paying these down before you leave, or at least have a plan to kill them fast.

Student loans? Usually deferred if you need it. Look into your deferment options. You might have them.

Car payment? Mortgage? These are predictable. Plug them into your monthly burn rate and move on.

But credit card debt while you're building a business or finding new work? That's a trap. Handle it first.

7. Check your FSA balance and use it up

If you have a Flexible Spending Account through work, use that money before you quit. It doesn't roll over.

It's stupid that it works this way, but it does. Any FSA balance left on your last day of employment? Gone.

Max out your FSA on glasses, dental work, medications, whatever qualifies. Don't leave free money on the table.

You've already earned this. Use it.

8. Know your final paycheck breakdown

Before you quit, ask HR to estimate your final paycheck. You need to know:

  • Is there unused vacation payout? (Some states require it, some don't)
  • Is there unused sick time payout?
  • What's coming out for taxes on the final check?
  • Any bonuses that might trigger on the way out?

Some companies are generous here. Some aren't. You need to know the actual number, not guess it.

This goes into your cash runway calculation. If you get a surprise $8k payout, that extends your runway. If you get nothing, that's built into your plan.

The reality check

Most people skip at least three of these eight things. They tell themselves "I'll figure it out" or "It's fine, I'll be okay."

Then they quit and panic because something they didn't calculate is now a problem.

Don't be most people. Spend an hour. Make a spreadsheet. Get the eight numbers locked down.

The whole point of this is to sleep at night. Do the work now so you can actually enjoy leaving.