How to Know When It's Time to Quit Your Job

Frequent readers of Free Money Finance know what I think about the importance of managing your career appropriately to maximize its financial impact. In fact, I have a stock paragraph that I put into almost every career post because I feel so strongly about it. Here's the thought:

Your career is your most valuable financial asset, offering you many financial benefits. You can make the most of it by getting a college degree and managing your career to its full potential. Doing this well can earn you millions of dollars in extra income throughout your lifetime.

In order to manage your career correctly and make the most of it, sometimes you'll need to switch from one employer to another. A key to this is knowing when it's time to quit your current job. Here are five signs that can help you decide when it's time to quit from personal finance guru David Bach:

1. You truly hate what you do.

2. You asked for a raise and the answer was "no."

3. You work for a company you don't respect.

4. You work for a company that doesn't respect you.

5. You're bored to death and not challenged.

It's a good list. There are so many thoughts I have on this issue that I'm not sure I can fit them all in one post. But I'll try. Here goes:

1. There is certainly a trade-off between time, money, and "enjoying" work (i.e. which would you rather have, a job you hate that pays $120,000 a year or one you love that pays $40,000 a year?), but all other things being basically equal, you want a job that you at least feel neutral about (one you don't hate). You'll get more out of life, have a better home life, and be better all the way around for at least liking what you do even a bit. Look at it this way -- this is your life. Do you really want to spend 50 hours a week doing something you hate? It's just not worth it.

2. If you were declined for a raise, you should ask why -- maybe there's a good reason (the company's not doing well, you're at the top range of your pay grade, etc.). If there is a good reason, then I would say this isn't necessarily a red flag. On the other hand, if there isn't a good reason, that's a bad sign.

3. If there's nothing you respect about the company, then you should be moving on. Why work for a place you dislike so much?

4. As far as a company that doesn't respect you, see my comments on #3 above and triple them. Get out asap!

5. Number 5 is not a killer -- you have options. First of all, you could find something to do (volunteer for a committee, project, etc.) that could advance your career. Second, if you need additional education and the company pays for it, take some classes on company time. Third, if you're really desperate, join some of the "fluff" committees at work like the Christmas party committee or the annual company picnic committee. Finally, do non-work stuff during work hours. If you've done all you can to take on extra work and have been brushed aside at every point, then bring your own stuff to do. Who's going to care anyway?

6. No matter how bad it is, I advise people to NEVER quit their current job until they have a new one. I've seen too many people quit a decent job they hated only to languish in the job market for months, if not years. Believe me, you'll hate not getting a paycheck a LOT more than you'll hate working at a bad job.

A couple jobs back, I knew it was time for me to leave the company (for various reasons). But it was a decent company, I was being paid well, and I was still challenged. So I took my time, checking out opportunities here and there until I found one that was just right for me -- two years later! That's right, I waited for two years to find just the right job. It all worked out for me, and a key part was that I didn't rush and get out of there with a sub-par job (or no job at all.)

Comments

[Blaine Moore (First Time Homeowner)]

Looking at that list, I do not fall into any of the 5 for my current job. The only thing that I can say about my job is that (sometimes) the hours can be a bit long (but not nearly as bad when I just say "no" and go home, now that I have a family waiting for me at home) and that I am not being paid what I feel I am worth. I do get raises, though, and I do like the job, and I do make enough to "get by". Hopefully it keeps being enough to get by.

[Todd Brill]

1. Check
2. Check
3. Check
4. Check
5. Check

Get me outta here! :)

[William Tanksley]

Non-work stuff during work hours? Not only is that unethical, it's also the best way to deep-six your work ethic.

DON'T DO IT!

I speak as one with experience.

I've posted this before. As soon as your job starts getting easy (most people would say it's getting fun), start training your replacements. Your boss should be sad you're leaving but able to immediately point to your recent accomplishments and feel "covered" by your trainees.

Don't "make do" with being bored. Don't settle. (Don't cheat your employers, either -- don't abandon them without paying off their investment in training.) Above all, don't mistake laziness in your career for loyalty to your employer.

[Rashenbo]

Yup. Great article!