Believe it or not, there is a smart way to quit your job when you have no money or are living paycheck to paycheck. Use these 7 steps to get started!

The Smart Way to Quit Your Job When You Have No Money

There is a lot to read on the internet these days about why people hate their jobs. Here are three things only people who hate their jobs will understand. Maybe it’s your boss, maybe it’s the paycheck, your co-workers or maybe you’re just not living your dream. Whatever the case, it can be really hard wanting to quit your job when you have no money. If you already feel like you’re living paycheck to paycheck, how in the world are you supposed to quit your job? My best piece of advice is to have a game plan. Do not just quit! Here are 7 easy to follow steps to help you get clear about how to plan to quit.

*This post contains affiliate links. I may earn a commission on recommendation at no cost to you.

Do you really have no money?

Often times, people who complain of having no money actually have quite a bit it’s just that they aren’t managing it very well. I used to be one of those people.

Thankfully, I figured out how to budget hack our way to more money each month.

Getting a hold of your finances and making the most use out of your money can be a tough thing to maneuver, but if you really want to quit your job, it’s the first step in allowing you to do so.

Review your spending habits

Whenever I work with someone for the first time who is struggling with debt or money management, the first thing I tell them to do is get 3 months of their bank statements gathered. This is generally a pretty simple thing to do since most banks have your statements available online.

Calculate the following:

  • Cost of your home including mortgage/rent and utilities
  • Average spent on grocery shopping
  • Average cost of gas
  • Amount spent on debt
  • Amount spent on “home upgrades” like cable, Netflix or memberships
  • Out to eat costs including fast food and coffee
  • Extra expenses like clothes, alcohol, going to the movies, etc.

Create a realistic budget

Once you have a basic idea of where your money is going every month, create a smart budget that you can stick to. I have a post on how to create a budget with a smartphone and a piece of paper or you can take advantage of my Fun Sized Budget Bundle.

  • Start with your average income
  • Subtract your must-have expenses
  • Minus your debts, groceries an, gas
  • See where you can cut back!

Prepping your budget for quitting

If you have reviewed your budget and are maybe seeing that there is a little more wiggle room than you originally thought, going through and finding ways to reduce unnecessary spending can help put your mind at ease when it’s time to quit your job.

Find areas to cut back

Chances are, there are luxuries in your budget that you just aren’t wanting to give up willingly. The thing is when you want to quit your job, there has to be some other give in your budget to allow you to do so. Especially if you feel like you are living paycheck to paycheck.

Cut back on food

Reducing grocery costs

Could you reduce your grocery bill? The $5 Meal Plan has affordable meal plans for families living on a budget. See how we spend $100 per week for our family of 5.

Minimizing out to eat expenses

The average American household is spending $3,000 per year dining out. In all honesty, that still sounds low to me considering how many people I know who go out to eat.

My recommendations for reducing this expense in your budget is to set a a frugal, realistic goal each month depending on your current habits.

Do your best to reduce your spending in this area. One great way to do this is through You can get local gift cards that cost $25, but you only pay $10. They also have sales throughout the year where you can save even more. If you still want to be able to treat yourself occasionally, I recommend doing it this way or through other savings apps.

Reduce your utility expenses

Phone plans

One of the most expensive things these days can be the cost of your phone plan. Opting to pre-choose your plan through companies like Ting is one of the best ways to cut back on your phone expenses without having to give up your phone! The average phone plan is $25 per month and you can still keep your phone!

Cut cable

If you aren’t already saving on the high cost of cable by opting for a service like Netflix or a digital antenna then you could be costing yourself thousands of dollars.

Everything else

Trim is a company that look at your recurring bills and finds different plans or companies that have more affordable costs. Within 20 minutes of signing up for Trim, I was alerted of a $20 cheaper internet plan I could partake in!

Calculate your debts

Unfortunately, one of the biggest things keeping people tied to their jobs is the amount of debt they are in. Sometimes we become to accustomed to paying our debts that we don’t even realize how much it effects us day to day.

  • Download my debt printout
  • Calculate your monthly debt expenses
  • Use interest calculator to see how much you are paying in interest

How much are you paying in interest?

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Look into consolidation

Depending on the type of debt you have and the amount, debt consolidation might be a great way to lower your interest rate and your monthly payments!

See loan consolidation options through Lending Tree.

How much additional income do you have being debt free?

Now, the scary part. When you really look at how much you are spending each month on your debts, how much is the grand total?

If you are feeling stuck in a job because you feel like you have to keep up with your bills and payments, think about how much more freeing life would be without these debt payments hanging over your head.

Pay debt off!

Needless to say, your next step would be to pay off debt. See how we paid off $6,000 in 6 months or check out this quick 5 minute breakdown of how The Debt Snowball works.

Check in on your savings

If you are hoping to quit your job and potentially have some time off, does your saving account allow for this? If not, then you’ll of course have to be looking into a different job to take its place. Assuming you’re not ready for retirement just yet.

Get help managing your retirement funds.

Consider downsizing your home

When our family found ourselves living paycheck to paycheck, it was due in large part to the high cost of our mortgage. Three years ago we downsized in order to have a smaller, easier to maintain home and a smaller mortgage.

See how we successfully pulled off our downsize.

Is refinancing beneficial?

Sometimes, making a move is not ideal for people. It might not benefit you financially or perhaps a move is just not something you can swing right now.

If that’s the case, you still might be able to reduce your monthly costs and your interest rate by refinancing. Learn if refinancing is right for you.

Do you need credit repair?

If you feel like a downsize might be the right move for you and your family, there are a few things I recommend doing first.

  • Review the homes in your area to see what you might sell yours for
  • Make sure your credit report will work for you, not against you

For reviewing homes, I would check or to get an estimate on how much your home is worth and to see what other homes are selling for.

To get help with credit repair grab this FREE eBook and credit consultation. If you are a home with a significant amount of debt, chances are your credit report is hurting as well. This could definitely slow down or prevent you from buying a better, more affordable home.

Get credit repair help.

Is paying off your mortgage a realistic goal?

On the flip side, if you have been in your house for a long time, a better financial move might be to try and pay off your mortgage completely! Dave Ramsey has a great mortgage payoff calculator. It lets you enter when you got your mortgage, your interest rate and then let’s you calculate differetn options for paying it off faster.

Look into alternative incomes

If it looks like paying off debt and/or increasing your savings is something you are needing to do, then looking into additional incomes might be a good idea as well.

This could be for you or a spouse. Just something that gives you a little extra cushion to help get you on the right financial track so you can quit your job.

Additional income resources:

Plan your goals

It’s important to plan out your financial goals no matter what, but especially if you want to quit your job. Laying out your goals and the things you want to accomplish before you leave your place of employment can give you a great idea of when you might be able to quit.

Maybe that means paying off your biggest debt, or paying off the house. Whatever your goals are, plan them out so that you can start to plan your next move.

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Believe it or not, there is a smart way to quit your job when you have no money or are living paycheck to paycheck. Use these 7 steps to get started!

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