This What-if Scenario addresses some of the main factors involved in quitting your job and explores the impact on your short-term and long-term finances.

Everyone's situation is different, and there are many emotional, relational, and financial implications to such a decision. Reducing to a single income takes careful thought and planning.

five questions to ask yourself
While it seems like it is only a matter of living without one paycheck, there are five financial questions you should think about before you walk into your boss's office:
why do you want to quit?
The decision to stop working may be voluntary or involuntary, temporary or permanent, and may have a small or large impact on your short-term and long-term lifestyle, cash flow, and financial goals.
when are you going to do this?
Deciding when you want to quit work depends on where you are on your "life-line," and the type and magnitude of your remaining life goals.
how long will you be out of work?
Will this be for a short period of time to be with your children during their pre-school days, go back to school for a year or two, or recover from an injury? Or have you "had it" with work and you're thinking about quitting as a permanent lifestyle.
how much will it cost you?
Think about the impact of losing one breadwinner's paycheck. How will this impact your monthly cash flow, paying your bills on time, enjoying your lifestyle? How will this affect your savings goals? How about potential loss of benefits? What will it cost you to replace these? What will be the impact of lost contributions to your 401(k) or other retirement plans for the time you are not working?
what else do you need to consider?
Think about the effects (both positive and negative) on the quality of your family life if one partner is home all the time. If you are quitting for a reason such as helping with child raising or caring for an elderly parent, the numbers may be less important then the emotions involved. But even if exploring this What-if Scenario does not change your mind, you should know what the financial impact of your decision will be.
Content provided in part by
The Institute of Certified Financial Planners (ICFP)