The start of a new year can be a great time to shake things up. You might even be thinking that 2026 will be the year you leave your job. Perhaps you’re unhappy in your current role. Maybe you long to become a solo entrepreneur or to become the CEO of your household as a full-time parent.
But before you head off to your next chapter, you need to make sure your finances are ready for the transition.
If anyone knows how to navigate a change in career, it’s Jannese Torres, a former engineer turned award-winning money expert and founder of Yo Quiero Dinero. GOBankingRates touched base with Torres to get her advice on the money moves to nail down before walking away from a steady paycheck.
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Lock Down Your Non-Negotiables
Sure, slamming a piece of paper that reads “I quit” on your boss’ desk and fist-pumping your colleagues on the way out makes for a great daydream. However, reality can be quite bleak for people who leave their jobs without attending to what Torres calls the “non-negotiables” of personal finance.
- Having an emergency fund: Torres recommends saving at least six months of living expenses before quitting. “If your income is about to become unpredictable, a cash cushion is your best friend,” she said.
- Clearing high-interest consumer debt: Torres was blunt about why high-interest debt could derail your career transition. “You can’t afford it, especially on variable income,” she said.
- Knowing your monthly numbers: Before giving notice, you should have a crystal-clear understanding of your spending. “You should know exactly what it costs to keep your life running and what expenses are optional versus fixed,” Torres said.
For her final baseline non-negotiable, Torres wants you to have proof of concept for how you’re going to make money. No, your best friend’s third cousin who maybe has some seed money for your bespoke bird-patterned hat business at some point in the future doesn’t count.
“I don’t believe in quitting on a hope and a prayer,” she said. “I want to see income already coming in, even if it’s inconsistent.”
Have Your Runway and Revenue in Place
If you’re considering striking out on your own as an entrepreneur or a full-time freelancer, Torres says two things matter most: runway and revenue.
“Runway means cash saved or another income source that buys you time. Revenue means you’ve already validated that people will pay you,” she said. “Quitting to ‘figure it out’ usually turns into panic decision-making.”
If your plan is to leave one job to find another, the bar is slightly different. “You still need savings, but the focus is on optionality,” she said.
As you determine whether you have sufficient financial coverage to leave your job, Torres suggests asking yourself a few crucial questions:
- Can you walk away from a bad offer because you’re not desperate?
- Do you have health insurance figured out?
- Are you clear on your minimum acceptable salary so you don’t undercut yourself out of fear?
When you have ample runway and revenue — whether you’re starting your own business, freelancing or searching for a new role — you’re better positioned to be selective, patient and strategic about what you do next.
Engage in Deep Household Conversations About Money
For those transitioning into a stay-at-home parent or caregiver role, Torres says money conversations need to go much deeper — even when they feel uncomfortable.
“You need to treat the household like a business,” she said. “Access to money, personal spending accounts, retirement contributions in your own name, and legal protections all matter. Love is great; financial vulnerability without safeguards is not.”
She also emphasizes that budgeting looks different when income is variable, a reality many households underestimate.
“Budgeting on variable income is all about building around your lowest average month, not your highest-earning one,” Torres said.
Avoid Major Money Mistakes
In addition to building strong financial habits, Torres also warns against several common money mistakes she sees people make when leaving a steady paycheck:
- Underestimating how long it takes to build a successful new business or side hustle while overestimating how quickly new income will flow in
- Forgetting about taxes and other business expenses
- Failing to price services in a way that accounts for lost job benefits, such as employer-sponsored health insurance
- Neglecting to separate business and personal finances early
Above all, Torres doesn’t want you to get desperate and quit before you know you can fully replace your income.
“You need to plan for slow growth, save a ton of money and price your work like a professional, not a beginner,” she said. “And please separate your business and personal finances early.”
The Bottom Line
Quitting a job can feel like the ultimate goal, but Torres says that mindset misses the bigger picture.
“Leaving a job is not the goal. Owning your time and choices is the goal,” she said. Sometimes that means quitting. Other times, it means staying a little longer while you build income on the side.
“The goal is to be so prepared that you can make decisions from a place of power, instead of stress or pressure,” she said.
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This article originally appeared on GOBankingRates.com: Thinking of Quitting Your Job in 2026? 4 Money Moves To Nail Down First
