Through this series, I am attempting to help Joe who wants to change is current job, but he is very much confused. He is not sure, if he is making a right decision or not. In the first part of the series we asked Joe some questions about his current job. In this part, we will ask questions about Joe’s financial condition and will also ask Joe to evaluate himself in terms of finance.
Analysis of Joe’s financial condition
Before Joe can jump out of his current job and take up a new venture, he needs to understand his present financial condition. If he is not very much sound financially then he should stick to his current job until his financial condition improves. To find out how healthy is his financial, Joe needs to ask the following questions:
- How good is your credit rating? Joe needs to have a very healthy credit rating before he should quit his job. If his credit rating is not good then Joe should stay in his current job and build a strong credit score before he can think of quitting the job.
- Can he sustain his life for six months without a regular income? No matter how starry-eyed Joe is, he will not be able to make any difference, if all he got is dream. He needs to think about his family and their life. He needs to put bread on the table, pay his bills, support his child, and have some savings for medical and other emergencies. And if Joe can do all these for six months then Joe is good to go. He should quit the job and chase his dream. Six month is a long time, if his dream is realistic and executable, he can start anew in this period.
- Does he have sufficient savings to support his dream?
- From where is he planning to get financial support to go all in?
- Does he have medical and insurance policies in place? When is the premium due? What if he fails to make the premium? How much will it affect his and his family’s medical and insurance coverage?
- What about his retirement plan? How will it get affected if he fails to make deposit to his retirement fund?
- Is his wife earning? Can she support Joe’s family? And for how long can she do so?
Joe would not like to put his family life in jeopardy by making a reckless decision. Hence, these questions are worth considering before he could bid adieu to his current job.
Tags: Chase, Credit Rating, Credit Score, Emergencies, Finance Analysis, Insurance, Insurance Coverage, Insurance Policies, Job, Long Time, New Venture, Pay Bills, Retirement Plan, Right Decision, Six Months
Gossimer Press Releases