Becoming a Stay-at-Home-Parent? 10 Things to do Before Leaving your Job

Thinking of leaving your job to stay home with your child?  Follow these 10 steps before making the move.

Ask your Supervisor and a Co-Worker to Write a Letter of Reference.

When you re-enter the workforce, you most likely will be required to provide references. If you haven’t worked in 5+ years, it can be difficult to track down your old managers and colleagues. Ask for reference letters now while your accomplishments and personality are fresh in everyone’s mind.

Collect and Scan your Annual Reviews.

Annual reviews are an easy way to remember the goals and targets you have met over the years. Your annual review will have notes and awards you may have won - all of which will help you build a resume in the future.

Try Living on One Salary.

This will give you the confidence that it can be done. If cash flow is tight, you can start making adjustments now to your expenses or begin exploring reduced time versus quitting altogether.

Track Your Expenses.

Save your receipts, use Mint, YNAB, Tiller, or any method that works for you. Our PWR Cash Flow System is another option that I have used for years and it takes about 30 minutes a month to complete.

Have an Emergency Fund.

Save an amount equal to 6 months’ worth of your monthly expenses in a liquid vehicle, such as a high-yield savings account.

Assess your Home Situation.

Don't assume that you need to upgrade to a bigger house or apartment as soon as you find out that you are expecting a baby. Save money by staying in your current residence until the child is bigger and actually needs more space.

Assess your Car Situation.

Do you have old cars that need to be replaced? Make sure that you have enough money for a new car purchase or down payment before giving your notice.

Meet with a Financial Planner.

Have a fee-only, fiduciary advisor review your financial picture. Now is the time to get an objective, third party opinion.

Maintain your Credit History.

Confirm that your name is on credit cards, your home mortgage, and other loan documents. If something happens to your partner, you will have an issue obtaining a loan if your name hasn’t been on any financial documents for years.

Stay Connected.

Meet old colleagues for coffee, engage on LinkedIn, or consider writing a blog. I have seen many parents decide they missed working - even just for a few hours a day - or decide they were ready to return to work when their child was in school. It is easier to transition back to the workforce when you have maintained relationships and a voice in the industry.

Originally posted 8/8/2012.

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.