Last week we shared a lot of advice from Suze Orman, author of The Money Class. Last week we shared her advice for those who are currently employed. Even if you are working at a great job, at a time of high unemployment Orman suggests we must hope for the best, but plan for the worst and build an emergency savings account.
She also reminds us that at a time when there are plenty of unemployed ready and willing to accept your job at a lower rate think long and hard before leaving a job you don’t love. She explains how to change your attitude before changing jobs.
Yesterday, we shared her advice to those who are unemployed. She recommends getting back to work as soon as possible even if that means making less money and less benefits while we are still climbing out of an economic recession. Plus, long stretches of being unemployed looks bad to future employers who question why the job seeker hasn’t been hired by anyone else in such a long time.
Here is Suze Orman’s advice of what you must have lined up before voluntarily leaving a job:
1. Another Job.
2. A 16-Month Emergency Fund.
If you don’t have a new job lined up before you quite your old job, then you should have a 16-month emergency fund saved up. Whey 16 months? Because it can take you that long to find your next job. It’s as simple as that.
3. Health Insurance.
If you won’t be able to switch over to your spouse’s plan, shop for new coverage before you give notice.