Using a throwaway since I have a couple coworkers who know my main.
TL;DR: I'll be leaving my job of 7 years in the Fall to study/travel and am looking for any and all advice to financially prepare for it.
I'm a 32yo male living with my girlfriend of many years in CA. I didn't do particularly well in undergrad, nor was the degree especially valuable, but still got a decent paying corporate job 7 years ago and today make $80K. My gf makes roughly the same. I'm currently in my 3rd term at an online university pursuing a degree that will help me transition into a new career altogether with solid long-term prospects.
I've decided to (most likely) quit my job in the Fall so that I can (1) study full time and finish earlier, (2) travel to Europe for a few weeks relatively care-free, and (3) relax a bit. The ultimate question is – what steps am I missing during these preparatory months?
- As mentioned, $80K (gross) income
- ~$10K in cash
- $20K in series I bonds, half to be available in November, half in January 2023
- ~$17K in a brokerage account
- ~$14K in my HSA
- $7K in Roth IRA
- $78K in 401K
Current expenses per month (not counting giving, entertainment, etc.):
- $700 rent (my share)
- ~$50 utilities
- $25 internet
- $40 auto insurance
- $20 gas (I don't drive much)
- $5 renter's insurance
- $30 phone
- $220 groceries (plenty more on other junk I could cut)
- $200 “fun money”
- $50 subscriptions (Netflix, Spotify, etc.)
- $100 misc.
- ~$2,000 All of the above plus being realistic of my spending and other expenses (like health insurance)
The current plan is to save up another maybe $10K in cash between now and the Fall to give myself a 6+-month buffer where I wouldn't be working + some travel money. As you can imagine, I am as anxious about this as I am looking forward to it. Knowing my luck, the economy will completely tank and unemployment will hit 20% right after I quit. So I'm just trying to dot all i's and cross all t's while I still can.
Any help is much appreciated!!