Congrats on your decision to make a change! Here's a quick guide on essential tasks to tackle before you bid farewell to your job.

If the fresh energy of the New Year hasn't inspired improvements in your work life, you might be thinking about leaving your job. While making a switch can be daunting, it's sometimes the right choice. When we learned that job switchers often enjoy an average salary increase of 23%, even the most content employees reconsidered their positions.

Leaving a job isn't simple, especially if you're unhappy. You'll face worries about informing your boss, bidding farewell to colleagues, and proving yourself again in a new role. But sometimes, it's the best decision to make. In 2021, one in four employees left their jobs, and this trend is likely to continue into 2022. Thankfully, even amidst the uncertainties of remote work and the pandemic, transitioning to a new role doesn't have to be overly intimidating. We're here to provide guidance!

1. Reflect on Your True Motivations

Choosing to depart from your job is a significant decision. To ensure you're ready for this change, ask yourself some challenging questions:

Am I prepared for a major life shift?

Am I open to starting anew in a different environment?

Don't worry if you can't immediately answer these questions. Spend some time reflecting in your journal to uncover your genuine feelings. A bit of planning and research can clarify your path, as noted by financial expert Andrea Woroch. First, check your emotions. If your boss is struggling personally and taking it out on you, consider whether a department change could resolve your discomfort without quitting. If you enjoy your company, it's worth exploring this option.

Next, evaluate your financial circumstances carefully before making a leap. While it's advisable to secure a new position prior to resigning, that isn't always feasible. Regardless, ensure you have a financial strategy that covers your needs, enabling you to pursue your next exciting opportunity, rather than feeling pressured due to financial concerns.

2. Establish a Backup Plan

If a hobby of yours has evolved into a full-time endeavor, congratulations! You likely have a solid roadmap ahead. However, how's your financial cushion? Determine the savings you need before you quit. Assess whether you need to remain in your current position longer to save up or if picking up a side job for a few months is necessary. Creating a financial buffer can reduce stress while seeking your next adventure. Caroline Castrillon, founder of Corporate Escape Artist, emphasizes the importance of waiting for the right opportunity instead of jumping into a role that could lead to future dissatisfaction.

3. Maximize Your Benefits

Departing from a job often results in losing valuable benefits. If you've met your deductible for medical expenses this year, now's the time to schedule any necessary appointments, as they may be covered fully. If it's been a while since your last dentist or dermatologist visit, book those appointments right away. Also, remember to utilize your Health Savings Account (HSA) and any remaining Flexible Spending Account (FSA) funds for these expenses, as advised by Woroch.

4. Take Your Retirement Savings With You

Leaving a position where you've built up retirement savings can feel daunting. However, you're not abandoning your funds—you have ownership over your contributions. Upon departure, you can transfer your funds into another 401(k) or an IRA of your choice. While some employment contracts require a specific duration of employment to achieve full vesting, any salary-based contributions you've made remain yours. Before transferring your 401(k) to a self-directed IRA or brokerage account, consult a financial professional to avoid potential early withdrawal penalties or taxes due to mishandling the rollover process.